Registered number: 05334073
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors present their strategic report for Wefco (Gainsborough) Limited (the "company" or "Wefco") for the period ended 31 December 2025.
Following the company’s acquisition by the CGH Group (“the Group”) during the period, the directors resolved to change the company’s accounting reference date to 31 December in order to align with that of the wider Group. As a result, the current financial period covers the fifteen months from 1 October 2024 to 31 December 2025 and is therefore longer than twelve months. The comparative figures, which relate to the year ended 30 September 2024, cover a twelve-month period and accordingly, are not directly comparable with the current period.
The results for the period and the financial position of the company are shown in these financial statements.
The period was defined by a transformational development in the company’s ownership. During the period, Wefco became part of the CGH Group, an international industrial group operating multiple manufacturing facilities and sales offices across Europe and beyond. This represents the most significant strategic milestone in the company’s recent history and marks the beginning of a new phase of development.
Becoming part of the CGH Group has provided access to broader strategic support, enhanced resources, expanded geographical reach, and increased opportunities for collaboration across the Group. Operating within the Group framework gives Wefco access to shared engineering expertise, cross-market experience, and technological synergies, supporting the delivery of complex international projects while strengthening long-term operational stability and access to new markets. Overall, this represents a highly positive step forward, positioning both the business and the wider Group for sustained growth, improved resilience, and long-term success that can be shared with customers through the successful delivery of projects.
Against this backdrop of change, the company delivered a strong trading performance and maintained healthy profitability throughout the period. Revenue remained robust across the fifteen-month period, supported by sustained demand across the company’s core markets and continued success in securing new work. The business achieved a solid profit and sustained healthy margins, reflecting disciplined cost management and ongoing operational improvement.
This performance reflects the resilience provided by the breadth of the company’s product portfolio. Revenue continued to be led by underground fuel tanks, tanks for industry, pressure vessels, and LPG products, with the diversity of the offering providing protection against softer conditions in individual industrial sectors amid ongoing macroeconomic pressure and geopolitical uncertainty.
The company’s two operating sites - Britannia Works in Gainsborough and the satellite facility at Blyton Grange - continued to operate at good levels of capacity, with the integration of the Cookson & Zinn product range now fully embedded within the business.
The period was defined by a transformational development in the company’s ownership. During the period, Wefco became part of the CGH Group, an international industrial group operating multiple manufacturing facilities and sales offices across Europe and beyond. This represents the most significant strategic milestone in the company’s recent history and marks the beginning of a new phase of development.
Becoming part of the CGH Group has provided access to broader strategic support, enhanced resources, expanded geographical reach, and increased opportunities for collaboration across the Group. Operating within the Group framework gives Wefco access to shared engineering expertise, cross-market experience, and technological synergies, supporting the delivery of complex international projects while strengthening long-term operational stability and access to new markets. Overall, this represents a highly positive step forward, positioning both the business and the wider Group for sustained growth, improved resilience, and long-term success that can be shared with customers through the successful delivery of projects.
Against this backdrop of change, the company delivered a strong trading performance and maintained healthy profitability throughout the period. Revenue remained robust across the fifteen-month period, supported by sustained demand across the company’s core markets and continued success in securing new work. The business achieved a solid profit and sustained healthy margins, reflecting disciplined cost management and ongoing operational improvement.
This performance reflects the resilience provided by the breadth of the company’s product portfolio. Revenue continued to be led by underground fuel tanks, tanks for industry, pressure vessels, and LPG products, with the diversity of the offering providing protection against softer conditions in individual industrial sectors amid ongoing macroeconomic pressure and geopolitical uncertainty.
The company’s two operating sites - Britannia Works in Gainsborough and the satellite facility at Blyton Grange - continued to operate at good levels of capacity, with the integration of the Cookson & Zinn product range now fully embedded within the business.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
The company’s strategic focus remains on sustainable growth, operational excellence, and innovation, now further strengthened by its position within the CGH Group. Key priorities for the coming period include:
∙Aligning operational and strategic initiatives with the wider objectives of the CGH Group
∙Leveraging Group synergies, capabilities, and shared expertise
∙Increasing capacity utilisation across both the Gainsborough and Blyton Grange sites
∙Expanding presence in core and adjacent markets, particularly those aligned with the energy transition and new technology infrastructure
∙Continuing investment in people, infrastructure, and process improvement
∙Advancing digitalisation and automation to enhance productivity, efficiency, and quality
The company enters the new financial period with a strong order book, providing good forward visibility and underpinning confidence in continued growth. The directors remain confident in the long-term prospects of the business, supported by a solid financial position, a skilled and committed workforce, and the strategic backing of the CGH Group.
The company considers its exposure to risks on an ongoing basis and implements policies and procedures to mitigate these risks. The key risks are summarised below:
Liquidity and cashflow risk
The company seeks to manage financial risk by maintaining adequate liquidity to meet its operational and financial commitments. The main liquidity and cash flow risk arises from timing differences between the collection of trade receivables and the payment of trade payables. This risk is managed through careful cash flow monitoring and effective working capital management.
Interest rate risk
The company continues to finance its operations through a mix of retained earnings and finance leases (principally the company’s hire purchase facility). Exposure to fluctuations in interest rates on finance lease liabilities is effectively managed through fixed-rate financing arrangements, providing certainty over future financing costs.
Credit risk
The principal credit risk relates to trade receivables. This is managed through robust credit control procedures, including credit checking, monitoring of debtor ageing profiles, and active collection processes.
Fraud risk
The company recognises the risk of loss arising from internal or external fraud. This is mitigated through segregation of duties, defined authorisation limits, regular reconciliation and management review, and the strengthened financial controls and oversight that accompany the company’s integration into the CGH Group’s governance framework.
Business integration risk
Integration into the CGH Group introduces a degree of transitional risk as systems, processes, and reporting are aligned with those of the wider Group. The directors manage this through structured integration planning, close collaboration with Group management, and the retention of experienced local leadership to ensure continuity of service to customers.
Liquidity and cashflow risk
The company seeks to manage financial risk by maintaining adequate liquidity to meet its operational and financial commitments. The main liquidity and cash flow risk arises from timing differences between the collection of trade receivables and the payment of trade payables. This risk is managed through careful cash flow monitoring and effective working capital management.
Interest rate risk
The company continues to finance its operations through a mix of retained earnings and finance leases (principally the company’s hire purchase facility). Exposure to fluctuations in interest rates on finance lease liabilities is effectively managed through fixed-rate financing arrangements, providing certainty over future financing costs.
Credit risk
The principal credit risk relates to trade receivables. This is managed through robust credit control procedures, including credit checking, monitoring of debtor ageing profiles, and active collection processes.
Fraud risk
The company recognises the risk of loss arising from internal or external fraud. This is mitigated through segregation of duties, defined authorisation limits, regular reconciliation and management review, and the strengthened financial controls and oversight that accompany the company’s integration into the CGH Group’s governance framework.
Business integration risk
Integration into the CGH Group introduces a degree of transitional risk as systems, processes, and reporting are aligned with those of the wider Group. The directors manage this through structured integration planning, close collaboration with Group management, and the retention of experienced local leadership to ensure continuity of service to customers.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors monitor performance against a range of financial and non-financial key performance indicators. The principal measures, together with the comparative figures from the last filed accounts, are set out below. As noted above, the current period covers the fifteen months ended 31 December 2025 while the comparative covers the twelve months ended 30 September 2024.
Revenue for the fifteen-month period was £17.1 million (2024: £14.8 million). The gross margin was 31.8% (2024: 31.2%), and profit before tax was £1.7 million (2024: £0.9 million). EBITDA for the period was £2.2 million (2024: £1.3 million).
Capital expenditure during the period was £0.33 million (2024: £0.2 million), reflecting continued investment in plant, equipment and digital systems.
Revenue for the fifteen-month period was £17.1 million (2024: £14.8 million). The gross margin was 31.8% (2024: 31.2%), and profit before tax was £1.7 million (2024: £0.9 million). EBITDA for the period was £2.2 million (2024: £1.3 million).
Capital expenditure during the period was £0.33 million (2024: £0.2 million), reflecting continued investment in plant, equipment and digital systems.
∙Acquisition of the company by the CGH Group, providing enhanced scale, resources, and international reach
∙A strong trading performance, with robust revenue and healthy profitability sustained throughout the fifteen-month period
∙Continued strong order intake, particularly within clean energy and infrastructure-related markets
∙Further investment in plant, equipment, and digital systems, including an upgrade to the company’s accounting system, to support scalability and efficiency
∙Ongoing development of the workforce, supporting both operational capability and succession planning
∙High levels of customer satisfaction and repeat business
The company remains guided by its core values of Safety, Quality, Teamwork, Continuous Improvement, Community, Sustainability, Innovation, and Integrity.
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STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors, together with the CGH Group, set the company’s strategic direction. The company’s overarching aim is to build a profitable, sustainable engineering business that serves its customers reliably across its core markets while realising the benefits of Group membership. The principal strategic objectives, and the company’s current position against each, are summarised below.
Profitable, sustainable growth
The company’s vision is to deliver innovative engineering solutions and sustainable growth, and to build a strong and lasting position across a broad range of market sectors. In pursuit of this, the directors are focused on strengthening the company’s core services, pursuing measured expansion, embedding continuous improvement, and investing in the company’s facilities, equipment, processes and people.
Such as developing cleaner energy technologies and other industrial developments, the directors consider that the engineering sector is well placed for growth. The company intends to maintain and grow the resources needed to respond to changing industry needs and trends, to serve these markets as a reliable and chosen partner, and to continue developing its product portfolio in line with advances in the industry.
The company aims to grow revenue and profitability at a sustainable rate, which means growth that the company can fund and resource without compromising product quality, safety or financial stability. Progress is measured through the revenue, gross margin, profit before tax and EBITDA indicators set out above.
Operational excellence and capacity utilisation
A key objective is to increase capacity utilisation across both the Gainsborough and Blyton Grange sites and to improve delivery performance and quality. Progress is monitored through internal operational measures including output, on-time delivery and quality / non-conformance rates.
Investment and digitalisation
The company continues to invest in plant, equipment and digital systems, including the upgrade to its accounting system, and to advance automation. Progress is measured through the level of capital expenditure set out above and the realisation of the efficiency benefits those investments are intended to deliver.
People and capability
The company aims to develop its workforce and strengthen succession planning to support its operational capability. Progress is monitored through the output capacities and achievements, together with internal measures of recruitment, retention and training.
Integration with the CGH Group
A current objective is the orderly alignment of the company’s systems, processes and reporting with those of the wider Group, while retaining the local expertise and customer relationships that underpin the business.
Profitable, sustainable growth
The company’s vision is to deliver innovative engineering solutions and sustainable growth, and to build a strong and lasting position across a broad range of market sectors. In pursuit of this, the directors are focused on strengthening the company’s core services, pursuing measured expansion, embedding continuous improvement, and investing in the company’s facilities, equipment, processes and people.
Such as developing cleaner energy technologies and other industrial developments, the directors consider that the engineering sector is well placed for growth. The company intends to maintain and grow the resources needed to respond to changing industry needs and trends, to serve these markets as a reliable and chosen partner, and to continue developing its product portfolio in line with advances in the industry.
The company aims to grow revenue and profitability at a sustainable rate, which means growth that the company can fund and resource without compromising product quality, safety or financial stability. Progress is measured through the revenue, gross margin, profit before tax and EBITDA indicators set out above.
Operational excellence and capacity utilisation
A key objective is to increase capacity utilisation across both the Gainsborough and Blyton Grange sites and to improve delivery performance and quality. Progress is monitored through internal operational measures including output, on-time delivery and quality / non-conformance rates.
Investment and digitalisation
The company continues to invest in plant, equipment and digital systems, including the upgrade to its accounting system, and to advance automation. Progress is measured through the level of capital expenditure set out above and the realisation of the efficiency benefits those investments are intended to deliver.
People and capability
The company aims to develop its workforce and strengthen succession planning to support its operational capability. Progress is monitored through the output capacities and achievements, together with internal measures of recruitment, retention and training.
Integration with the CGH Group
A current objective is the orderly alignment of the company’s systems, processes and reporting with those of the wider Group, while retaining the local expertise and customer relationships that underpin the business.
This report was approved by the board on 25 September 2026 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the period ended 31 December 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the period, after taxation, amounted to £1,315,986 (2024 - £613,895).
No dividends have been proposed for the period ended 31 December 2025.
Purchase of own shares
During the period, the Company purchased 49,000 of its own £1 ordinary shares for an aggregate consideration of £294,000. The shares purchased represented 14.6% of the Company's called-up ordinary share capital and were subsequently cancelled.
The shares were purchased in connection with the departure of two shareholders from the Company.
Purchase of own shares
During the period, the Company purchased 49,000 of its own £1 ordinary shares for an aggregate consideration of £294,000. The shares purchased represented 14.6% of the Company's called-up ordinary share capital and were subsequently cancelled.
The shares were purchased in connection with the departure of two shareholders from the Company.
The directors who served during the period were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
The auditors, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 25 September 2026 and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEFCO (GAINSBOROUGH) LIMITED
We have audited the financial statements of Wefco (Gainsborough) Limited (the 'Company') for the period ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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 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 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.
The other information comprises the information included in the annual report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEFCO (GAINSBOROUGH) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial period 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.
In the light of the 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 or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEFCO (GAINSBOROUGH) LIMITED (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Obtained an understanding of the nature and sector of the Company along with reviewing the financial performance;
∙Discussions with management to identify areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements based on our understanding of the Company and through discussion with management (as required by auditing standards);
∙We also considered laws and regulations in areas that directly affect the financial statements including financial reporting (including related company legislation);
∙We evaluated directors and management's incentives and opportunities for fraudulent manipulation of the financial statements;
∙We communicated the identified laws and regulations throughout our audit team to ensure that they were alert of any indications which would highlight any non-compliance during the audit;
∙Reviewed copies of the monthly management reports from throughout the period and any that have taken place after the period end;
∙Matters were also discussed with the finance director during the planning process and throughout the audit fieldwork, together with those charged with governance, in relation to any cases of fraud or non-compliance of laws and regulations which may have taken place during the period or post year end;
∙Review of transactions (including journals) using data analytic software; and
∙Review of legal costs and related correspondence.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEFCO (GAINSBOROUGH) LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditor
One Express
1 George Leigh Street
M4 5DL
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2026 .
The notes on pages 14 to 29 form part of these financial statements.
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