REGISTERED NUMBER: 02937377 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Sella Controls Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

J D Blackwell

E A Turnock

C S Parr

SECRETARY:

J D Blackwell

REGISTERED OFFICE:

Unit 3 Ivanhoe Office Park

Ivanhoe Park Way

Ashby De La Zouch

Leicestershire

LE65 2AB

REGISTERED NUMBER:

02937377 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

The directors present their strategic report for the period ended 31 December 2024.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of the business during the past twelve months and its position at the year-end. Our review is consistent with the size, nature and complexity of the business.

The business is principally engaged in the development, supply and support of high integrity safety control systems across a variety of industries including oil and gas, petrochemicals, power, nuclear and rail.

This report reflects the progress made by the business in the twelve months of trading to 31 December 2024. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the business as a whole, these being order intake, sales revenue and profit margins.

During the year, sales order intake was £17.7m (2023: £21.2m) however this was impacted by the timing of award of a substantial new order which was secured following our financial year end. Our Rail Systems business had another solid year securing a number of major projects. In Process Safety we had a strong year continuing our renewed momentum and growth across this area. Orders continue to consist of a good mix of engineering projects, modification works and recurring revenues from assurance, consultancy and support services with diversity across both our Process Safety and Rail Systems markets continuing to be a significant strength of our business.

The business enters the new financial year with an order book of £15.1m (2023: £15.4m) and this provides the platform to continue our momentum and growth and deliver another strong financial performance through 2025. Opportunities for securing new contracts remain strong and are supported by a well-qualified and extensive list of project pursuits across all of our market sectors.

Sales revenue for the year was another record £20.0m (2023: £18.5m), as we continue our momentum and generate excellent business growth. The range of contracts and engineering solutions we are able to offer are providing numerous opportunities for growth and we are seeing an increase in activity levels across all areas of our business, whilst our industry mix also continues to give the business strong resilience and the ability to meet future challenges.

Operating profit for the year before group management charges was £0.9m (2023: £1.5m) which is a reasonable result as we tried to contain underlying operating costs during our growth. Our gross margins came under pressure from material cost increases and reduced efficiencies in labour recoveries as we onboarded new staff and increased engineering resource to meet the higher activity levels, we also invested heavily in the provision of more expensive subcontract labour in order to meet engineering resource demands. We are constantly investing to maintain the quality of our engineering expertise and range of engineering solutions and this translates in to strong rates of return as we move towards the provision of higher value engineering services and solutions, however there are timing issues as new resource is onboarded and becomes fully revenue generating. We closely control our operating costs in order to ensure we maintain margins, but we are also investing considerably in support functions across research and development, facilities, IT and sales and marketing in order to facilitate future growth.

The business' operating profit is stated after incurring depreciation charges of £0.1m (2023: £0.1m). Pre group management charges and depreciation, the business delivered an underlying EBITDA of £1.0m (2023: £1.6m), which is another good performance.

We continued to invest in engineering expertise and with the continued backdrop of legislative requirements for compliance with safety, emissions and environmental standards, our traditional markets for high integrity safety systems remain strong. As a part of the HIMA Group, we continue to explore and develop new international rail opportunities and expand our functional safety assurance and consultancy services. We have also made further investments in our facilities to support our future increased business levels.

We continue to invest in the development of new products, systems, technologies and applications and this places the business in an excellent position to maintain the momentum generated to date and in summary, the directors are confident of achieving the business' targets, commencing the new financial year with a strong order book and excellent new sales opportunities, underpinned by industry and product diversity.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the business are around the winning of new business against the backdrop of the challenging economic climate and these risks are mitigated through the industry and product diversity of the business, underpinned by the excellent order book and project pursuits lists.

We are continually updating our plans to manage risks and have invested in management and systems to facilitate flexible and responsive working. We are also investing in our facilities to improve collaborative working, flexibility and enhanced capacity.

We are therefore able to work flexibly and effectively and continue to engage with customers and suppliers and are confident we are able to deal with any future challenges over the longer term.

We have worked closely with our customers and suppliers in a collaborative spirit to communicate and manage any project delivery delays and our supply chain is proving robust in the face of supply chain challenges.

The financial impact on the business from the economic challenges, potential further pandemic outbreaks and global supply chain issues is therefore mitigated by our detailed financial and contingency plans in place to deal with any impact. We are confident of our ability to continue to manage with our outlook for 2025 and beyond very positive.

FINANCIAL INSTRUMENTS

Price risk, credit risk, liquidity risk and cash flow risk

Price risk

The business normally enters into fixed price contracts with its customers and mitigates any short-term price risk through its bid pricing and validation process. The business is exposed to currency fluctuations which impact upon its underlying cost base over time, however short term cash flow risk from currency variations is mitigated by the use of foreign currency exchange forward contracts to hedge this.

Credit risk

The financial assets of the business are cash, bank balances and trade receivables and the primary credit risk is attributable to its trade receivables, however the business deals with government backed agencies or major multinational companies who are highly credit worthy. As such credit risk is considered to be low in respect of trade and other receivables.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The business assesses the credit ratings of these counterparties as required to ensure that any potential credit risk is mitigated.

Liquidity risk

Liquidity is managed through the profitable ongoing business transactions and the working capital facilities. The business has sufficient cash and available facilities to manage its liquidity risk.

The financial statements are prepared on the basis of going concern. The business's activities, together with the factors likely to affect its future development, performance and position are set out in the fair review of the business. The directors have considered the working capital requirements for a period of 12 months from the date of this report. As a consequence, the directors believe that the business is well placed to manage its business risks successfully. After making enquiries, the directors have a reasonable expectation that the business has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Cash flow risk

The business's activities expose it to cash flow risk as projects progress, however this is mitigated through the negotiation of appropriate stage and progress payments as part of the bid validation process and then underpinned by the managing of adequate working capital facilities.

ON BEHALF OF THE BOARD:

J D Blackwell - Director

14 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is the development, design, manufacture and supply of high integrity electronic control systems and associated technical support activities.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 2,500,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J D Blackwell

E A Turnock

C S Parr

DISCLOSURE IN THE STRATEGIC REPORT

The matters required to be disclosed under SI (2008) 410 Sch 7 relating to research and development and financial instruments are contained within the Strategic Report as applicable in accordance with s414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J D Blackwell - Director

14 September 2025

Opinion

We have audited the financial statements of Sella Controls Limited (the 'company') for the year ended 31 December 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 2024 and of its loss 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 Auditors' 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

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 five, 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 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.

Auditors' 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 a Report of the Auditors 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.

Based on our understanding of the company and industry in which it operates, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

-

Enquiry of management around actual and potential litigation and claims;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

Reviewing minutes of meetings of those charged with governance;

-

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Ian Neal FCA CTA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

15 September 2025

TURNOVER

3

20,048,130

18,482,092

Cost of sales

15,115,908

13,840,972

GROSS PROFIT

4,932,222

4,641,120

Administrative expenses

5,012,974

4,196,472

(80,752

)

444,648

Other operating income

-

2,816

OPERATING (LOSS)/PROFIT

5

(80,752

)

447,464

Interest receivable and similar income

8,375

-

(72,377

)

447,464

Interest payable and similar expenses

6

53,055

67,519

(LOSS)/PROFIT BEFORE TAXATION

(125,432

)

379,945

Tax on (loss)/profit

7

(18,834

)

(13,687

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(106,598

)

393,632

FIXED ASSETS

Intangible assets

9

9,520

4,621

Tangible assets

10

561,704

623,629

571,224

628,250

CURRENT ASSETS

Stocks

11

825,028

427,654

Debtors

12

9,599,188

12,062,968

Cash at bank and in hand

1,171,651

903,796

11,595,867

13,394,418

CREDITORS

Amounts falling due within one year

13

8,024,464

7,252,603

NET CURRENT ASSETS

3,571,403

6,141,815

TOTAL ASSETS LESS CURRENT LIABILITIES

4,142,627

6,770,065

PROVISIONS FOR LIABILITIES

15

13,811

34,651

NET ASSETS

4,128,816

6,735,414

CAPITAL AND RESERVES

Called up share capital

16

200,000

200,000

Revaluation reserve

17

323,968

323,968

Capital redemption reserve

17

400,000

400,000

Retained earnings

17

3,204,848

5,811,446

SHAREHOLDERS' FUNDS

4,128,816

6,735,414

The financial statements were approved by the Board of Directors and authorised for issue on 14 September 2025 and were signed on its behalf by:

J D Blackwell - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2023

200,000

5,389,689

323,968

Changes in equity

Total comprehensive income

-

421,757

-

Balance at 31 December 2023

200,000

5,811,446

323,968

Changes in equity

Dividends

-

(2,500,000

)

-

Total comprehensive income

-

(106,598

)

-

Balance at 31 December 2024

200,000

3,204,848

323,968

Capital

Share

redemption

option

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2023

400,000

28,125

6,341,782

Changes in equity

Total comprehensive income

-

(28,125

)

393,632

Balance at 31 December 2023

400,000

-

6,735,414

Changes in equity

Dividends

-

-

(2,500,000

)

Total comprehensive income

-

-

(106,598

)

Balance at 31 December 2024

400,000

-

4,128,816

1.	STATUTORY INFORMATION

Sella Controls Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

Other than on certain long term contracts, turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. On certain long term contracts, turnover represents the estimated sales value of the work performed in the year.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

- straight line over 10 - 25 years

Plant and machinery

- 10% - 33% straight line

Fixtures and fittings

- 4% - 20% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account.

During the year, there was a reclassification of some assets to align these with the intended use.

Stocks

Stock and work in progress is stated at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

Net realisable value is based on selling price less anticipated costs to completion and selling costs.

The company has changed its accounting policy for the valuation of stock to the weighted average cost method from the first in first out method. This change was made to align the policy with that of the group. Prior periods have been considered but the impact was not considered to be material, therefore no adjustment has been made.

Long term contracts are those extending in excess of 12 months and any of a shorter duration which are material to the activity of the period. Attributable profit is recognised once the outcome of a long term contract can be assessed with reasonable certainty. Attributable profit is recognised on the cost percentage completion method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted.

Provision is made at current rates for taxation deferred in respect of all material timing differences.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Leasing commitments

Rentals paid under operating leases are charged to the profit and loss account as incurred.

Related parties

The company is a wholly owned subsidiary undertaking of Sella Limited. The company has taken advantage of the exemption contained within Financial Reporting Standard 102 and has therefore not disclosed transactions with entities which form part of the group, other than as normally disclosed in the notes to the financial statements.

Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical judgements and where relevant the key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken in to account.

Long term contracts are those extending in excess of 12 months and any of a shorter duration which are material to the activity of the period. Attributable profit is recognised once the outcome of a long term contract can be assessed with reasonable certainty. Attributable profit is recognised on the cost percentage completion method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable.

3.

TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

19,368,361

17,040,631

Europe

428,621

1,092,701

Rest of world

251,148

348,760

20,048,130

18,482,092

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

6,256,067

5,453,893

Social security costs

711,482

585,703

Other pension costs

154,257

145,399

7,121,806

6,184,995

The average number of employees during the year was as follows:

2024

2023

Directors

3

3

Production

97

90

Administration and support

14

22

Sales, marketing and distribution

12

8

126

123

2024

2023

£

£

Directors' remuneration

627,272

478,013

Directors' pension contributions to money purchase schemes

31,861

18,329

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

No directors exercised share options during the year (2023 - one director).

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

258,479

137,500

5.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

117,784

124,469

Loss on disposal of fixed assets

-

439

Patents and licences amortisation

3,901

770

Auditors' remuneration

29,000

18,550

Auditors' remuneration for non audit work

12,047

9,877

Foreign exchange differences

(135,408

)

(24,106

)

Operating lease payments

449,051

345,817

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest on taxation

-

6,924

Bank interest payable

353

12,842

Other interest

52,702

47,753

53,055

67,519

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2024

2023

£

£

Current tax:

Adjustments in respect of

previous years

-

382

Foreign tax:

Current tax on income

2,006

14,517

Total current tax

2,006

14,899

Deferred tax

(20,840

)

(28,586

)

Tax on (loss)/profit

(18,834

)

(13,687

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

(Loss)/profit before tax

(125,432

)

379,945

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

(31,358

)

89,367

Effects of:

Expenses not deductible for tax purposes

8,905

9,461

Adjustments to tax charge in respect of previous periods

-

382

Other permanent differences

1,613

(3,655

)

Foreign tax

2,006

14,517

EMI share options exercised

-

(123,759

)

Total tax credit

(18,834

)

(13,687

)

8.

DIVIDENDS

2024

2023

£

£

Interim

2,500,000

-

9.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2024

7,701

Additions

8,800

At 31 December 2024

16,501

AMORTISATION

At 1 January 2024

3,080

Amortisation for year

3,901

At 31 December 2024

6,981

NET BOOK VALUE

At 31 December 2024

9,520

At 31 December 2023

4,621

10.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2024

500,000

693,752

399,343

1,593,095

Additions

21,849

-

34,010

55,859

Reclassification/transfer

-

(319,007

)

319,007

-

At 31 December 2024

521,849

374,745

752,360

1,648,954

DEPRECIATION

At 1 January 2024

195,000

534,258

240,208

969,466

Charge for year

8,069

27,785

81,930

117,784

Reclassification/transfer

-

(265,358

)

265,358

-

At 31 December 2024

203,069

296,685

587,496

1,087,250

NET BOOK VALUE

At 31 December 2024

318,780

78,060

164,864

561,704

At 31 December 2023

305,000

159,494

159,135

623,629

Cost or valuation at 31 December 2024 is represented by:

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

Valuation in 2014

500,000

-

-

500,000

Cost

21,849

374,745

752,360

1,148,954

521,849

374,745

752,360

1,648,954