Registration number:
VDL Steelweld UK Limited
for the Year Ended 31 December 2025
VDL Steelweld UK Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
VDL Steelweld UK Limited
Company Information
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Directors |
P M De Vos D T Dowsett |
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Registered office |
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Auditors |
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VDL Steelweld UK Limited
Strategic Report for the Year Ended 31 December 2025
The directors present their strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the company is production automation.
Fair review of the business
The Directors report a stable but challenging period in the Automotive industry, mainly due to the required investment for electrification of vehicles by all the major manufacturers globally, reporting revenue of £49.1m (2024: £52.7m), which reflects our efforts to reinforce the position of VDL Steelweld as a quality supplier for the delivery of Innovative Automation solutions within the production automation segment.
The period 2025 has been a busy time for VDL Steelweld UK having many major projects being delivered at various Jaguar Landrover sites. Based on this we continued to reinforce our workforce to support other engineering requirements across the organisation which has enabled us to support our project needs.
We have concluded projects in Solihull and Halewood and with a variety of new orders and 2nd models being introduced into the already installed facilities we have remained almost fully loaded in terms of our capacity throughout 2025. Due to the fact that many of our projects have a long delivery timing of 2-3 years as a norm, we also have a bright outlook into 2026 and beyond. The nature of the orders we have received from JLR lay down a strong baseline of work coming out of 2025 and into 2026. This provides overall a healthy and stable outlook for the future of VDL Steelweld UK.
The business has consolidated against its strategic plan and are pleased to report that in 2025 we have retained our workforce levels based on the new project awards and generally positive expectations going forward.
We have carried out some further restructuring across the VDL Steelweld group as we look to strengthen our financial position as well as invoking some strategical changes largely due to increasing demands on price level and costs.
With an already healthy order book carried over from 2025 we expect a fairly bright 2026 which we hope will enable further potential for growth / rebuild, but primarily will provide stability throughout the coming year.
Our principle market and continued sales focus will remain on securing work within the BIW Automotive Industry strengthening our position as a key supplier of Production Automation Systems.
The directors, investors and senior leadership team are encouraged with the progress that has been made in 2025 that has achieved both solid results and high levels of customer satisfaction, which remains a core focus of our business.
We remain focused on the Automotive sector and our key customers amongst the UK & global Automotive OEM’s.
VDL Steelweld UK Limited
Strategic Report for the Year Ended 31 December 2025
2025 highlights include:
• The start of 2025 saw the complete Organisation engaged on completion of existing orderbook projects for our existing customer, Jaguar Landrover, within the production automation sector for the delivery of Automotive Production Systems.
• In early 2025 we successfully completed and closed project 10305, a new Framing line for Jaguar Land Rover, Solihull.
• Throughout the entire period of 2025 we have successfully delivered a new Bodyside and Framing Line facility for Project 10304 in Halewood, Liverpool. This line was running in full auto mode prior to the end of the year, however due to requests from the customer we will continue supporting this project into 2026.
• Throughout 2025 we have continued with the integration for the 2nd new model (Project 306) into the JLR Halewood facility and this project will continue through to early 2027, the end of 2025 saw us building the first assemblies in auto.
• The largest project under execution in 2025 was the Project 335 being a new underbody line into JLR, Solihull. This project started site activities after Q1-2025 and started first part try out by Q3. This project will continue through product and automation maturation throughout 2025 and 2026.
• We successfully completed the Underbody engineering for the second model into the new line for JLR Solihull and sourcing for industrialization is expected Q1 2026.
• We saw a slow down in terms of new RFQs being received due to uncertainty over UK’s ZEV mandate targeting 100% car sales electric by 2035. As soon as this mandate is changed or modified the expectation is new requests will pick up again.
The outlook into 2026 is looking positive due to the longevity of the current projects live on the order book and therefore carried forward into 2026 as well as a new project on the horizon for our main customer Jaguar Landrover. With these orders secured the UK capacity for 2026 has been partially filled already which provides the opportunity for further investment in resources to align with our strategy of controlled growth.
Despite this positivity in terms of order book and new opportunities our expectation is that we will remain in a very challenged industry and prices will remain a key factor when it comes to new business awards.
VDL Steelweld UK Limited
Strategic Report for the Year Ended 31 December 2025
Mission, vision and strategy
Mission
To provide the development, production and integration of innovative products and solutions as well as to preserve and grow opportunities for employment.
Vision
To be the preferred supplier of choice for Production Systems, Special Products and AGV's and be renowned as a reliable and flexible partner.
Strategy
To strengthen our existing customer relationships and partnerships.
To continue our controlled global expansion.
To remain a project driven organisation dedicated to our customer's needs.
Future developments
VDL Steelweld UK Limited is focused on the following for the future -
Our future plans remain focused around continuing to consolidate our position as a leading supplier in Body in White Production Automation Systems and staying very close to our key UK customers, particularly Jaguar Landrover.
Due to the current healthy order book our primary focus will be upon the quality execution of our existing projects, whilst simultaneously keeping an active eye and engagement on innovation and new sales within the ever changing landscape being significantly challenged due to the electrification and environmental challenges being faced by Automotive OEMS.
Our strategy remains to be a close partner to our key customers and securing continuous orders by providing on the doorstep services whenever and wherever our customers need them.
Our focus will remain on our core competence of BIW automation systems within the UK market, but continued emphasis will be applied on our ability to support the other VDL Steelweld global offices, with a particular focus on supporting the operations established in the USA plus the expansion of our Engineering services and Manufacturing capabilities at our sister company in India. This will help us to offer a lower cost solution to our customers in an ever-challenging price market.
VDL Steelweld UK Limited
Strategic Report for the Year Ended 31 December 2025
Price risk, credit risk, liquidity risk and cash flow risk
The business's principal financial instruments are comprised of bank balances, trade creditors, trade debtors and finance lease agreements (as relevant). The main purpose of these is to finance the continuing operations of the business.
The company has an agreed inter-company debt of £8,736,269 which was renewed on 31.12.2025.
Trade debtors are carefully managed in respect of credit and cash flow risk by policies that govern the facilities.
that are offered to customers and regular monitoring of the amounts due. The amounts presented in the balance sheet is net of allowances for doubtful debts.
Trade creditor liquidity risk is carefully managed by regular planning and monitoring of payment obligations.
In behalf of the transfer-price-policies, VDL Steelweld B.V. compensates the result before taxes to 6% over the cost of sales and de administrative expenses excluding these cost made at the Steelweld-group.
Going concern
While the company achieved its revenue growth and operating profit objectives, it made a profit after depreciation and loss on foreign exchange for the period of £4,336,166 (2024: £1,880,334).
As disclosed above, this level of debt is dependent on the continued support of VDL Steelweld B.V.
Following a review of forecasts undertaken which incorporate the continuation of the funding outlined above; at the time of approving the financial statements, the directors have a reasonable expectation that the company has 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.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£ |
49,076,294 |
52,707,882 |
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Gross profit |
£ |
8,515,206 |
4,489,187 |
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Profit for the financial year |
£ |
3,224,114 |
1,442,427 |
The company tracks sales in terms of orders received and shipments made monthly. Profit and loss performance are tracked by product and/or service type, to provide analysis of the revenue, material, direct and indirect costs by activity.
Because of the project nature of the business, results are reviewed as a full trading quarter against the agreed budget.
Approved and authorised by the
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VDL Steelweld UK Limited
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
Results and dividends
The profit for the year, after taxation, amounted to £3,234,615 (2024: £1,442,427). No dividend was paid in both years.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C (11) to set out the company’s strategic report information required by Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be continued in the director’s report. It has been done so in respect of business review, future developments, principal risks and uncertainties.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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VDL Steelweld UK Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VDL Steelweld UK Limited
Independent Auditor's Report to the Members of VDL Steelweld UK Limited
Opinion
We have audited the financial statements of VDL Steelweld UK Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
VDL Steelweld UK Limited
Independent Auditor's Report to the Members of VDL Steelweld UK Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
VDL Steelweld UK Limited
Independent Auditor's Report to the Members of VDL Steelweld UK Limited
• the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, skills, and capabilities to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the relevant industry;
• we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company, including the Companies Act 2006, taxation legislation,
and other legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries
of management and inspecting legal correspondence where relevant; and
• identified laws and regulations were communicated within the audit team regularly and the team remained
alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative
of potential bias; and
• investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HM Revenue & Customs.
There are inherent limitations in our audit procedures described above. The more remote that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
VDL Steelweld UK Limited
Independent Auditor's Report to the Members of VDL Steelweld UK Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Lawford House
Albert Place
London
N3 1QA
VDL Steelweld UK Limited
Profit and Loss Account for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
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Gross profit |
|
|
|
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Administrative expenses |
( |
( |
|
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Other operating income |
- |
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|
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Operating profit |
|
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|
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
VDL Steelweld UK Limited
Statement of Comprehensive Income for the Year Ended 31 December 2025
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2025 |
2024 |
|
|
Profit for the year |
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|
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Total comprehensive income for the year |
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VDL Steelweld UK Limited
(Registration number: 11354161)
Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
|
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Fixed assets |
|||
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Tangible assets |
|
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Current assets |
|||
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Debtors |
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Cash at bank and in hand |
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|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
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Total assets less current liabilities |
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|
|
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Provisions for liabilities |
( |
( |
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
860 |
860 |
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Profit and loss account |
8,024,711 |
4,800,597 |
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Shareholders' funds |
8,025,571 |
4,801,457 |
Approved and authorised by the
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VDL Steelweld UK Limited
Statement of Changes in Equity for the Year Ended 31 December 2025
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Share capital |
Profit and loss account |
Total |
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At 1 January 2025 |
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Profit for the year |
- |
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At 31 December 2025 |
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|
|
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Share capital |
Profit and loss account |
Total |
|
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At 1 January 2024 |
|
|
|
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Profit for the year |
- |
|
|
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At 31 December 2024 |
860 |
4,800,597 |
4,801,457 |
VDL Steelweld UK Limited
Statement of Cash Flows for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
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Profit on disposal of tangible assets |
( |
( |
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Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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Decrease/(increase) in debtors |
|
( |
|
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(Decrease)/increase in creditors |
( |
|
|
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Increase in provisions for warranties |
|
- |
|
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Cash generated from operations |
|
|
|
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Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
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Cash flows from investing activities |
|||
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
|
|
|
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
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Net increase in cash and cash equivalents |
|
|
|
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Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
1,449,557 |
1,009,365 |
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VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The principal activity of the company is production automation.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Monetary amounts in these financial statements are rounded to the nearest £1
Going concern
The financial statements have been prepared on a going concern basis.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has 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.
As the company operates under a transfer pricing arrangement with its parent company, VDL Steelweld BV, which ensures that the company will generate positive trading results, the profit and loss forecasts prepared indicate that the company has sufficient resources in place to enable it to continue trading for the foreseeable future. Additionally, the parent company has confirmed in writing that it will not seek repayment of the intercompany balance of £376,917 in note 16, nor plan to cease operations in the UK for a period of at least 12 months from the date of signing thee financial statements.
Whilst some level of future uncertainty remains, the directors have taken into consideration the company's operating structure, profit and loss forecasts and the availability of the financial strength and cash availability of the wider VDL Group if required, consider the company is able to continue meeting its liabilities as they fall due in the foreseeable future which is considered to be a period of 12 months from the date of approving the financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Revenue recognition
Revenue from contracts to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
The amount of revenue can be reliably measured;
It is probable that the Company will receive the consideration due under the contract;
The stage of completion of the contract at the end of the reporting period can be measured reliably;
The costs incurred and the costs to complete the contract can be measured reliably.
The stage of completion is calculated by comparing costs incurred, mainly in relation to the 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 probably will be recovered.
Other operating income
Staff are recharged between the group dependent on the location of the assigned projects. Recharges are booked to recognise the appropriate level of work done for each entity. This is shown as an intercompany recharge within other operating income.
Finance income and costs policy
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
3% on cost |
|
Furniture, fittings and equipments |
20% on cost |
|
Motor vehicles |
20% on cost |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY ESTIMATES OF 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.
Stage of completion of contracts for revenue recognition and valuation of WIP
Although the stage of completion is calculated by comparing costs incurred, mainly in relation to the contractual hourly staff rates and materials, as a proportion of total costs, there is a potential that this is not a fair representation of the stage of completion of the contract.
In a case where the standard calculation is not appropriate, an estimate is made on the probability of costs being incurred recovered. The assessment of this probability is a management judgement, which inherently includes a degree of uncertainty.
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Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
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2025 |
2024 |
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Rendering of services |
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During the year ended 31 December 2025 and 2024, all turnover arose within the United Kingdom.
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2025 |
2024 |
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Intercompany recharges |
- |
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Details regarding intercompany recharges are set out in note 19.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
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2025 |
2024 |
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Gain on disposal of tangible assets |
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Operating profit |
Arrived at after charging/(crediting)
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2025 |
2024 |
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Depreciation expense |
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Foreign exchange (gains)/losses |
( |
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Operating lease expense - plant and machinery |
|
- |
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Profit on disposal of tangible assets |
( |
( |
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Interest payable and similar expenses |
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2025 |
2024 |
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Interest expense on other finance liabilities |
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2025 |
2024 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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Other employee expense |
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
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2025 |
2024 |
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Engineering and project management |
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Administration |
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Directors |
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VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Directors' remuneration |
The directors' remuneration for the year was as follows:
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2025 |
2024 |
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Remuneration |
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Contributions paid to money purchase pension schemes |
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|
|
200,585 |
180,727 |
During the year, remuneration of £194,048 (2024: £174,446) was contributed by 1 director (2024: 1). In addition, retirement benefits were accruing to 1 director (2024: 1) in respect of money purchase pension schemes.
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Auditors' remuneration |
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2025 |
2024 |
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Audit of the financial statements |
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Taxation |
Tax charged/(credited) in the profit and loss account
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2025 |
2024 |
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Current taxation |
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UK corporation tax |
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Deferred taxation |
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Arising from origination and reversal of timing differences |
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( |
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Tax expense in the income statement |
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The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK of
The differences are reconciled below:
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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2025 |
2024 |
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Profit before tax |
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Corporation tax at standard rate |
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Decrease in corporation tax from adjustment for prior periods |
- |
( |
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Tax increase from effect of capital allowances and depreciation |
|
|
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Effect of revenues exempt from taxation |
( |
( |
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Effect of expense not deductible in determining taxable profit (tax loss) |
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- |
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Tax increase/(decrease) from timing differences. |
|
( |
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Balancing charge/(allowance) |
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- |
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Total tax charge |
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Deferred tax
The deferred tax liability expected to reverse in 2026 is £10,961. This primarily relates to the reversal of timing differences on tangible assets and the corresponding capital allowances claimed for tax purposes.
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Tangible assets |
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Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 January 2025 |
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Additions |
- |
- |
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Disposals |
- |
- |
( |
( |
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At 31 December 2025 |
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Depreciation |
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At 1 January 2025 |
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Charge for the year |
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- |
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Eliminated on disposal |
- |
- |
( |
( |
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At 31 December 2025 |
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Carrying amount |
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At 31 December 2025 |
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At 31 December 2024 |
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Included within the net book value of land and buildings above is £1,116,842 (2024 - £1,163,626) in respect of long leasehold land and buildings.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Debtors |
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Current |
Note |
2025 |
2024 |
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Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Prepayments |
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Gross amount due from customers for contract work |
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Cash and cash equivalents |
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2025 |
2024 |
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Cash at bank |
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Creditors |
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Note |
2025 |
2024 |
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Due within one year |
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Trade creditors |
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Amounts due to group undertakings |
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Social security and other taxes |
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Outstanding defined contribution pension costs |
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Other payables |
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Accruals |
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Income tax liability |
1,093,070 |
606,870 |
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Payments on account |
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Included in other payables above is £103,873 (2024: £nil) in respect of the current portion of provision for warranties.
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Provisions for liabilities |
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Warranties |
Deferred tax |
Total |
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At 1 January 2025 |
- |
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Additional provisions |
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At 31 December 2025 |
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VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
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Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
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No. |
£ |
No. |
£ |
|
|
|
|
860 |
|
860 |
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Related party transactions |
During the year ended 31 December 2025, total key management personnel remuneration including that of the director amounted to £358,401 (2024 : £325,711).
Included in creditors are balances outstanding of £376,917 (2024: £13,738,257) owed to fellow group companies. The balances are unsecured, attract interest at the Euribor monthly rate +0.75% and are repayable on demand.
Included in debtors are balances outstanding of £1,890,288 (2024: 22,072) owed from fellow group companies. The balances are unsecured, interest free and are repayable on demand.
Included in cost of sales is an intercompany recharge expense of £3,711,783 relating to costs recharged by fellow group companies for engineering and project management services provided to the company. Equivalently, in 2024, £2,459,295 was received for engineering and project management services provided by the company and was recognised in other operating income.
Included in administrative expenses is a management charge of £787,047 (2024: £1,257,338) for administrative support and time costs incurred by group companies.
VDL Steelweld UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Financial instruments |
As at 31 December 2025, financial assets that are debt instruments measured at amortised cost totalled £17,850,872 (2024: £24,747,721). The balance comprises trade debtors totalling £2,478,524 (2024: £5,200,561), amounts owed from group undertakings - £1,330,946 (2024: £22,072) and amounts recoverable on contracts -£14,041,402 (2024: £19,525,088).
As at 31 December 2025, financial liabilities measured at amortised cost amounted to £3,924,374 (2024: £16,898,235). The balance comprises trade creditors totalling £3,532,324 (2024: £3,145,119), amounts owed to group undertakings - £376,917 (2024: £13,738,257) and pension payable of £15,133 (2024: £14,859).
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Parent and ultimate parent undertaking |
VDL Group B.V (incorporated in Netherlands) is regarded by the directors as being the company’s ultimate parent company.
The immediate parent company of the company is VDL Steelweld B.V. and the directors regard VDL Group B.V., a company registered in Netherlands, as the ultimate parent company.
A copy of the consolidated financial statements of VDL Group B.V. can be obtained from VDL Group B.V., Hoevenweg 1, 5652 AW, Eindhoven, Netherlands.
The directors consider there to be one ultimate controlling individual, Mr WV Der Leegte.
VDL Group B.V. is the parent of the smallest and largest company in the group of which VDL Steelweld UK Limited is a member and for which group accounts are prepared.