Fairwood Engineering Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 03973440

Fairwood Engineering Limited

Filleted Unaudited Financial Statements

28 February 2025

Fairwood Engineering Limited

Financial Statements

Year ended 28 February 2025

CONTENTS	PAGE

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

Fairwood Engineering Limited

Officers and Professional Advisers

The board of directors	Mr G M Davies
	Mr C J Owen

Company secretary	Mr G M Davies (Resigned 2 October 2024) Mrs J Davies (Appointed 2 October 2024)

Registered office	8 Heather Rise
	Jersey Marine
	Neath
	SA10 6LJ

Accountants	James & Uzzell Ltd
	Chartered Certified Accountants
	Axis 15, Axis Court
	Mallard Way
	Riverside Business Park
	Swansea
	SA7 0AJ

Fairwood Engineering Limited

Statement of Financial Position

28 February 2025

	2025	2024
Note	£	£

FIXED ASSETS

Tangible assets	5	167,139	102,958

CURRENT ASSETS

Stocks	6	15,520	41,952
Debtors	7	124,297	247,152
Cash at bank and in hand		75,097	9,575
		---------	---------
		214,914	298,679

CREDITORS: amounts falling due within one year	8	124,406	199,246
		---------	---------
NET CURRENT ASSETS		90,508	99,433
		---------	---------
TOTAL ASSETS LESS CURRENT LIABILITIES		257,647	202,391

CREDITORS: amounts falling due after more than one year	9	145,095	93,033

PROVISIONS

Taxation including deferred tax	41,785	25,740
	---------	---------
NET ASSETS	70,767	83,618
	---------	---------

CAPITAL AND RESERVES

Called up share capital	10	100	100
Profit and loss account		70,667	83,518
		--------	--------
SHAREHOLDERS FUNDS		70,767	83,618
		--------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 28 February 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Fairwood Engineering Limited

Statement of Financial Position (continued)

28 February 2025

These financial statements were approved by the board of directors and authorised for issue on 24 November 2025 , and are signed on behalf of the board by:

Mr G M Davies

Director

Company registration number: 03973440

Fairwood Engineering Limited

Notes to the Financial Statements

Year ended 28 February 2025

1. GENERAL INFORMATION

Fairwood Engineering Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities is that of precision engineering.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)', Section 1A for Small Entities and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. The reporting period of these financial statements and its comparative period is 12 months. These financial statements only include the results of the individual entity made up to 28 February 2025. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The directors have considered the future trading position of the company and are confident that the going concern principle can be applied to the financial statements.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of asset and liabilities within the next financial year are addressed below. Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. Stock provisioning The company sells parts for metal structures and is subject to consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability Provisions Estimates are used in determining the value of provisions when recognised. This will be based on historical information, known expectations and reasonable outcomes Going Concern The assessment of going concern may include the use of critical judgements in respect of impact of various external factors such as political, economic and social issues. Material uncertainties are considered in this regard

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: Sale of goods Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Rendering of services When the outcome of a transaction can be estimated reliably, turnover is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to monies received. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. Interest receivable Interest income is recognised using the effective interest method.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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 balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold Improvements	-	10% straight line
Plant & Machinery	-	10% straight line
Motor Vehicles	-	25% straight line

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 16 (2024: 14 ).

5. TANGIBLE ASSETS

	Land and buildings	Plant and machinery	Motor vehicles	Total
	£	£	£	£
Cost
At 1 March 2024	200,485	114,892	–	315,377
Additions	–	31,655	48,855	80,510
	---------	---------	--------	---------
At 28 February 2025	200,485	146,547	48,855	395,887
	---------	---------	--------	---------
Depreciation
At 1 March 2024	200,485	11,934	–	212,419
Charge for the year	–	13,072	3,257	16,329
	---------	---------	--------	---------
At 28 February 2025	200,485	25,006	3,257	228,748
	---------	---------	--------	---------
Carrying amount
At 28 February 2025	–	121,541	45,598	167,139
	---------	---------	--------	---------
At 29 February 2024	–	102,958	–	102,958
	---------	---------	--------	---------

6. STOCKS

	2025	2024
	£	£
Work in progress	15,520	41,952
	--------	--------

7. DEBTORS

	2025	2024
	£	£
Trade debtors	120,732	216,338
Amounts owed by group undertakings and undertakings in which the company has a participating interest	–	27,803
Other debtors	3,565	3,011
	---------	---------
	124,297	247,152
	---------	---------

8. CREDITORS: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	5,810	5,611
Trade creditors	46,016	98,919
Amounts owed to group undertakings and undertakings in which the company has a participating interest	–	45,866
Corporation tax	3,138	–
Social security and other taxes	33,845	27,165
Other creditors	35,597	21,685
	---------	---------
	124,406	199,246
	---------	---------

Bank loans and overdrafts are secured by a fixed and floating charge over the company's assets. Hire Purchase Contracts are secured over the asset to which they relate. The total amount of secured liabilities is £31,402 (2024: £16,934)

9. CREDITORS: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	25,457	30,671
Other creditors	119,638	62,362
	---------	--------
	145,095	93,033
	---------	--------

Hire Purchase Contracts are secured over the asset to which they relate. The total amount of secured liabilities is £119,638 (2024: £62,362)

10. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	25	25	25	25
Ordinary A shares of £ 1 each	75	75	75	75
	----	----	----	----
	100	100	100	100
	----	----	----	----

11. FINANCIAL COMMITMENTS

Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £95,625 (2024: £118,125).

12. RELATED PARTY TRANSACTIONS

During the period the company entered into the following transactions related parties: 1. Entities with control, joint control or significant influence over the entity

	2025	2024
	£	£
Balance due (to)/from related parties	–	(45,866)

2. Other related parties

	2025	2024
	£	£
Balance due (to)/from related parties:	–	27,803

No interest had been incurred on this balance.

13. PARENT COMPANY

The ultimate parent company is Fairwood Holdings Limited, a company registered in England & Wales. The registered office for the parent company is the same as that shown on page 1 of these financial statements.