City Hydraulics Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

City Hydraulics Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 05772956 . The registered office is Unit 2, Buckholt Business Centre, Warndon, Worcester, WR4 9ND.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

2. Statement of Compliance

The financial statements have been prepared in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. Accounting Policies

3.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention.

3.2. Going Concern Disclosure

The directors have identified material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern, however, the going concern basis remains appropriate.

3.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

3.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of 10 years.

3.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	10 years straight line
Motor Vehicles	3 years straight line
Fixtures & Fittings	5 years straight line
Computer Equipment	5 years straight line

3.6. Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicy traded and where fair value cannot be measured reliably are measured at cost less impairment.

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City Hydraulics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

3.7. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

3.8. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

3.9. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

3.10. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3.11. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3.12. Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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City Hydraulics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

3.13. 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.

3.14. Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

4. Average Number of Employees

Average number of employees, including directors, during the year was: 7 (2024: 7)

5. Intangible Assets

	Goodwill
	£
Cost
As at 1 June 2024	80,000

As at 31 May 2025	80,000

Amortisation
As at 1 June 2024	80,000

As at 31 May 2025	80,000

Net Book Value
As at 31 May 2025	-

As at 1 June 2024	-

6. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 June 2024	38,257	112,782	30,349	71,717	253,105
Additions	904	-	-	645	1,549

As at 31 May 2025	39,161	112,782	30,349	72,362	254,654

Depreciation
As at 1 June 2024	30,195	66,403	26,677	63,305	186,580
Provided during the period	1,663	27,953	879	6,537	37,032

As at 31 May 2025	31,858	94,356	27,556	69,842	223,612

Net Book Value
As at 31 May 2025	7,303	18,426	2,793	2,520	31,042

As at 1 June 2024	8,062	46,379	3,672	8,412	66,525

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City Hydraulics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

7. Investments

	Subsidiaries
	£
Cost
As at 1 June 2024	102,699

As at 31 May 2025	102,699

Provision
As at 1 June 2024	-

As at 31 May 2025	-

Net Book Value
As at 31 May 2025	102,699

As at 1 June 2024	102,699

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any classes of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights	and shares held.
Subsidiary undertakings			2024	2023
Buffrail Limited	Unit 6, Oldington Trading Estate Stourport Road Kidderminster DY11 7QP Englang	Ordinary £1	100%	100%

Subsidiary undertakings

Buffrail Limited

The principal activity of Buffrail Limited and is Pirtek Franchise.

8. Stocks

	2025	2024
	£	£
Stock	57,146	54,403

9. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	162,562	141,635
Amounts owed by participating interests	51,106	135,475
Other debtors	14,741	12,528

	228,409	289,638

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City Hydraulics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

10. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	24,827	21,746
Trade creditors	69,715	76,298
Bank loans and overdrafts	64,156	45,535
Other creditors	85,894	116,326
Taxation and social security	55,985	69,266

	300,577	329,171

11. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	36,411	61,165
Bank loans	-	23,203

	36,411	84,368

12. Loans

An analysis of the maturity of loans is given below:

	2025	2024
	£	£
Amounts falling due within one year or on demand:
Bank loans	23,203	45,535

	2025	2024
	£	£
Amounts falling due between one and five years:
Bank loans	-	23,203

13. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	24,827	21,746
Later than one year and not later than five years	36,411	61,165

	61,238	82,911

	61,238	82,911

14. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	1,002	1,002

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City Hydraulics Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

15. Related Party Disclosures

Transactions with directors

All directors remuneration was paid under normal market conditions.

Summary of transactions with other related parties

Urbanmajor Ltd, Buffrail Ltd, M&J Woods Ltd, M&J Woods (NP) Ltd.

All the above listed companies are under the common control of Mr J & Mrs M Woods.

At the year end there were outstanding loans from Urbanmajor Ltd, Buffrail Ltd, M&J Woods Ltd, M&J Woods (NP) Ltd.

All sales and purchases with entities under common control were conducted under normal market conditions.

Loans to related parties

	Key management	Total
2025	£	£
At start of period	135,474	135,474
Repaid	(84,368)	(84,368)

At end of period	51,106	51,106

	Key management	Total
2024	£	£
At start of period	194,479	194,479
Repaid	(59,005)	(59,005)

At end of period	135,474	135,474

Terms of loans with related parties

There are no repayment terms or interest charges associated with loans to other related parties. All loans are repayable on demand.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	6		31,042		66,525
Investments	7		102,699		102,699

			133,741		169,224
CURRENT ASSETS
Stocks	8	57,146		54,403
Debtors	9	228,409		289,638
Cash at bank and in hand		21,821		41,907

		307,376		385,948
Creditors: Amounts Falling Due Within One Year	10	(300,577 )		(329,171 )

NET CURRENT ASSETS (LIABILITIES)			6,799		56,777

TOTAL ASSETS LESS CURRENT LIABILITIES			140,540		226,001

Creditors: Amounts Falling Due After More Than One Year	11		(36,411 )		(84,368 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(5,898 )		(12,640 )

NET ASSETS			98,231		128,993

CAPITAL AND RESERVES
Called up share capital	14		1,002		1,002
Profit and Loss Account			97,229		127,991

SHAREHOLDERS' FUNDS			98,231		128,993