The directors present their strategic report and financial statements for the year ended 31 December 2024.

Presspart Manufacturing Limited is a wholly owned subsidiary of the Heitkamp & Thumann Group, a global family owned Corporate Group based in Dusseldorf, Germany, founded in 1978.

The Heitkamp & Thumann Group is a leading global partner for the development and supply of world class precision formed components, devices and services. As a Holding Company, the Heitkamp & Thumann Group combines 15 medium-sized companies under one group. H&T Battery Components, H&T Recharge and H&T Presspart represent the three divisions and H&T Industrial, H&T Tool Design and H&T Produktions Technologie the three independent business units.

Presspart Manufacturing Limited operates within one of the divisions, that being the H&T Presspart division, which is a world leader and specialist in the manufacturing drug delivery devices and pharmaceutical components. Presspart Manufacturing Limited also encompasses the H&T Industrial business unit an established manufacturer of high precision metal components, metal pressings and stamped parts, with a key competence to support customer product developments.

Founded in 1970, Presspart Manufacturing Limited is a world leader and specialist in manufacturing pharmaceutical components, which offers pharmaceutical clients metered-dose inhaler canisters and other medical components, with the emphasis on quality, technology, flexibility, and fast turnaround. Focus continues to be on industry-leading innovations, continually pushing the boundaries to find technologies that will improve drug delivery performance for our customers and their patients. Additionally, Presspart Manufacturing Limited produces a range of other components for the water pump, fastening and writing instrument industries, as well as a wide variety of other components for numerous industries through its business unit H&T Industrial.

“H&T Excellence” continue to be fundamental to our success as it ensures operational excellence in all value adding processes and forms the core of our lean management program. This ensures the highest quality and economic efficiency, setting the stage for being the leading global partner for the development and supply of world class precision formed metal components now and in the future.

As a market leader in the field, people from a wide range of career and skill backgrounds are employed. Investment is made in the training and education of our employees with major specialised training programmes, including a long-established Apprenticeship scheme.

Continuing competitive global pressure has caused some challenges during 2024, which could have resulted in it losing sales to key competitors. The company manages these risks by providing high quality products to its customers, coupled with fast response times in supplying its products, underpinned by long to medium term contracts with customers.

The fluctuations in raw material market prices along with scrap and energy prices are a high-ranking risk to the business. The company continues to try to minimise this risk by entering long term supplier contracts with suppliers including partial price hedging where it is appropriate with the purpose of stabilising any fluctuations.

Credit Risk

Presspart Manufacturing Limited has a credit control policy where appropriate credit checks are made on potential customers and suppliers before any transactions occur. For existing customers, the company closely monitors continued credibility via an external rating agency. A monthly reporting structure is established to make directors aware of any changes to credit risks.

Health, Safety and Environment

Presspart Manufacturing Limited is engaged in the manufacturer of deep drawn metal pressings for a range of different industries. We recognise our responsibility in supplying products to our customers whilst striving to provide quality excellence, endeavouring to minimise the impact on the environment and reducing health & safety risk. During 2024 we prepared ourselves for ISO: 45001 accreditation, with an expectation of receiving certification in Quarter 2 2025.

In pursuit of environmental excellence, we operate an environmental management system in compliance with ISO 14001:2015 standard. Through this system we establish and review objectives, targets, and improvement programmes in line with our significant environmental aspects.

Investment continues to be made in Health, Safety & Environmental projects, where particular attention has been given to developing strategies for improving health & safety throughout the workplace along with environmental sustainability.

Due to the previously mentioned uncertainties and the overall cost of living pressures many consumers experienced during 2024, the sites Industrial business saw a downturn in sales driven by an unexpected contraction in the domestic water pump market, where H&T Industrial has a significant market share, which was caused by uncertainties regarding the transition from traditional boiler systems to heat pumps, cheap imports from China, along with a slowdown in the new build housing market, resulting in very unfavourable trading conditions for the business unit.

The company’s pharmaceutical business saw sales volumes increase dramatically in 2024 when compared to 2023, significantly exceeding the 2024 projection, sales from its Plasma can treatment process also grew significantly in 2024 and exceeded forecasted expectations. Efficiency increases through H&T Excellence, along with continued investment in equipment and machinery all enabled these sales to be met in the most cost-effective manner as possible, in a challenging year in terms of costs.

As shown in the company's income statement on page 14, total company sales grew by 11% compared with 2023 due to volume growth in our pharmaceutical business, compensating for the downturn in the H&T Industrial business, and changes in sales mix.

Total gross operating margin has increased year on year 2024 – 29.6% vs 2023 – 26.7% due to increase in sales revenue.

Average Working Capital KPI: actual 2024 – 11.6% vs 2023 - 13.6%.

Trade debtors of Presspart Manufacturing Limited at 31 December 2024 were equivalent to 37 days

(2023 - 34 days).

Inventory days of Presspart Manufacturing Limited at 31 December 2024 were 27 days (2023 - 33 days). Decrease mainly due to reduced stockholding in H&T Industrial following working capital reduction initiative programmes.

The cash balance of Presspart Manufacturing Limited at the yearend was £1.968m – positive.

The Company recognises the importance of delivering effective corporate governance to support the success and sustainability of the business in the long term. The members of the board offer a broad range of technical and industry-specific experience as part of the decision-making process. The Company holds regular meetings throughout the year and is supported by management and various departmental divisions providing timely and detailed information in support of the Board’s decision making. The Board operates an agenda of items appropriate to the size and complexity of the business. Where appropriate the directors will consult with professionals to assist with decision making and help consider the likely consequences of the decision in the long term. The interests of all key stakeholders including the Company’s employees, suppliers, customers, and the wider community are considered as part of the decision-making process. The company actively engages with key stakeholders through employee, customer, and supplier feedback.

Reputation and Integrity

Both are core values of the H&T Group, and they will never be compromised. Training and awareness of such values are delivered throughout the year to continue to reinforce their cultural and ethical importance.

H&T Presspart continues to actively engage with its employees in numerous ways. The success of our H&T Excellence Lean program is predominantly delivered by our employees who engage and contribute to this initiative, with over 85% of employees having contributed to this process. Additionally, our employee suggestion scheme allows further engagement on an individual basis giving a further voice to all our employees, with over 150 suggestions submitted during 2024. In October 2024 we invited our employees to participate in the third employee survey, to not only understand the success of our response to the survey in 2023, but to also allow further engagement and feedback from our staff.

Diversity

H&T Presspart has always been an equal opportunity employer but by challenging stereotypes through our recruiting policy we have promoted career pathways usually followed by men with female engineers successfully contributing to the business in many ways. The diverse senior leadership team in PPB comprises of a similar split between male and female employees, with a 57:43 ratio.

H&T Presspart sees both its suppliers and customers as business partners, as sole suppliers to many customers we supply it is vital that we have an integrated relationship throughout the supply chain. Our H&T Excellence program further fosters this approach as we work with both customers and suppliers in improving costs and efficiencies throughout the value stream.

On behalf of the board

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies 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 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 directors present their annual report and financial statements for the year ended 31 December 2024.

Presspart Manufacturing Limited is a wholly owned subsidiary of the Heitkamp & Thumann Group, a global family owned Corporate Group based in Dusseldorf, Germany, founded in 1978.

Presspart Manufacturing Limited operates within one of the divisions being the H&T Presspart division which manufactures precision components made of metal and plastic for the pharmaceutical industry and has an industrial business until which provides metal components to other industrial sectors.

The results for the year are set out on page 14.

A dividend of £10.425m (2023 - £2.65m) was paid during the year.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Presspart Manufacturing Limited has a credit control policy where appropriate credit checks are made on potential customers and suppliers before any transactions occur. For existing customers, the company closely monitors continued creditability via an external rating agency. A monthly reporting structure is established to make directors aware of any changes to credit risks.

Presspart Manufacturing Limited is engaged in the manufacturer of deep drawn metal pressings for a range of different industries. We recognise our responsibility in supplying products to our customers whilst striving to provide quality excellence, endeavouring to minimise the impact on the environment and reducing health & safety risk. During 2024 we continued to prepare ourselves for ISO: 45001 accreditation, with an expectation of receiving certification in 2025.

In pursuit of environmental excellence, we operate an environmental management system in compliance with ISO 14001:2015 standard. Through this system we establish and review objectives, targets, and improvement programmes in line with our significant environmental aspects.

Investment continues to be made in Health, Safety & Environmental projects, where particular attention has been given to developing strategies for improving health & safety throughout the workplace and environmental sustainability.

Presspart Manufacturing Limited remains dedicated to its core business in the Pharmaceutical and Industrial sectors. In 2025 it will continue making significant progress within its pharmaceutical strategy, focusing on value added elements to its core pharmaceutical business, predominantly the treatment of internal surfaces of MDI cans through its revolutionary plasma treatment. Significant investments in additional manufacturing equipment during 2025 will ensure we are successful in meeting the overall growth expectations of the business.

In 2025 the Industrial business will continue to focus on the recovery of its core market business. In addition to following its strategic objective of utilising existing capacity within its manufacturing facility.

Presspart Manufacturing Limited continues to demonstrate its commitment to Innovation with its Inhalation Product Technology Centre (IPTC) based in Blackburn. The main function of IPTC is to develop the strategic projects of H&T Presspart and its customers. This includes extensive product and process development and regulatory support. Investments in 2024 included equipment to support the pharmaceutical inhalation industry in the transition to low global warming propellants.

Saffery LLP have expressed their willingness to continue in office.

Health & Safety / Managing Environmental Impacts

There have been eighteen minor incidents, and no reportable accidents recorded across the site during 2024. This is across 3 shifts 24 hours a day 7 days a week and 194 employees.

The reporting and investigation of accidents is completed swiftly through the 8 Discipline processes, with all incidents having corrective actions to eliminate the risk of repetition. Improvements and investment are continuously being carried out to help further improve our Health & Safety performance, there have been no enforcement actions.

Environmentally there were no incidents to report. H&T Presspart has committed itself to the Science Based Targets Initiative with the ultimate goal of achieving net zero by 2050. Initial sustainability objectives have been completed and targets identified that focus on: - sustainable sourcing; transport; packaging and production waste and disposal. Projects have been established in 2024 to manage these targets at a site level moving forward.

The company continues to challenge and improve process efficiencies through its Value Stream Designs, including raw material savings, increasing capacity, and improving waste oil reuse / recycling

Quarterly meetings are held with HSE Manager and the senior leadership team to review all aspects of performance and policy.

The data for the annual period runs from 1st January - 31st December, energy usage has been calculated from supplier invoices and internal meter readings.

We have used the GHG reporting protocol and the 2024 UK Government GHG Conversion Factors for Company Reporting. Energy usage has been calculated from supplier invoices and internal meter readings. All electricity supply is from a renewable source.

The chosen intensity measurement ratio is total gross emission in metric tonnes C02e per employee the recommended ratio for the sector. The ratio per £million of sales revenue is 283.52 (2023- 244.87)

In 2023 sustainability targets were established that focussed on sustainable sourcing and raw material use; principles of circular economy in our product designs; transport, packaging and production waste and disposal and a reduction in GHG emissions.

Throughout 2024 work has continued developing H&T Presspart’s sustainability programme to establish the relevant foundations and a roadmap for our decarbonisation strategy.

At Group level projects include: -

• Preparation for CSRD reporting including a materiality analysis, KPI gap analysis to align group targets with individual site activities, definition of reporting tools and establishing a reporting structure.

• Process mapping and data collection for CBAM reporting.

• The development of a carbon footprint calculation for reporting and gathering data for the Science Based Targets Initiative for 2023 and 2024. In December this data was finalised and submitted for validation by SBTi. H&T Presspart has committed to reduce its absolute scope 1 and 2 GHG emissions by 55% by 2033 and by 90% by 2050. Scope 3 targets are to be finalised.

On a site level work has focused on the expansion of the company’s energy management system including: -

• In March 2024 the company’s 35 existing UV fly control units were replaced by LED versions. These are estimated to save approximately 16,250kWh / annum.

• In December 2024 the installation of 191 solar panels, which provide 73,000kWh annual yield, 100% on site use, 1.29% reduction in overall electricity, 15,069kg/yr Co2reduction and a 7-year payback.

• Installation of 4 electricity sub -meters with an additional 4 activated on individual Press machines. This sub-metering programme will be expanded during 2025.

• Work on improving energy reporting, expanding the existing production software package to include an energy module and the use of Power BI.

• In October 2024 the company was reassessed and maintained its Silver rating for EcoVadis.

• The Climate Change Agreement and ISO 14001 Certification remain in place.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the companies strategic report information required by Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch.7 to be contained in the directors report.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Details of employees and related costs can be found in note 6 to the financial statements on page 26.

The workforce is one of the major success factors of the company which is why Presspart Manufacturing Limited continues to maintain a Health Management system including private medical healthcare a Cycle to Work Scheme and a healthy eating programme for its employees. Mental health support continues to be made available, free from the point of use, from the company to all employees when required. Employees also have access to a number of mental health first aiders who are employees trained in this specific area.

Presspart Manufacturing Limited is committed to ensuring equal opportunities for all current and

future members of the company. It is committed to the promotion of standards of personal conduct based on respect for and the dignity of individuals.

It is the company's policy to provide a working environment free from discrimination. All employees of Presspart are expected to support and contribute to the maintenance of this policy.

Employees are also developed through a variety of training courses that supports the continuous optimisation of internal know-how within Presspart Manufacturing Limited including, H&T Excellence lean activities along with internal and external skills and learning courses, including a long-established Apprenticeship scheme.

We have audited the financial statements of Presspart Manufacturing Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year 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.

We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Presspart Manufacturing Limited is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Whitebirk Industrial Estate, Blackburn, BB1 5RF.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.

The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tooling turnover is recognised when the final stage payment is approved by the customer.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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

The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For the defined benefit section the amounts charged to operating profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other financial costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the statement of total recognised gains and losses.

The defined benefit section is funded, with the assets held separately from those of the company, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Transactions denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the transaction date. Assets and liabilities expressed in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical Judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Provisions

Provision is made for bad and doubtful debts and obsolete stock. These provisions require management's best estimate of the recoverability of trade debtors and the expected future use of stock.

Defined benefit pension scheme

The company has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and the current trends.

When the actuarial valuation of the pension scheme results in an asset during the year, this is fully provided for against the value of the pension scheme with the gain restricted to nil on the balance sheet.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

Freehold land amounting to £693,000 (2023: £693,000) has not been depreciated.

Trade debtors disclosed above are measured at amortised cost.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The group operates a funded defined benefit scheme arrangement. The assets are held independently of the group in trustee administered funds. The defined benefit section was frozen on 1 October 2001 and subsequent contributions were made to a defined contribution scheme, the assets of which are held independently of the group in trustee administered funds.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 5 April 2024 using a market based approach. That valuation has been updated to 31 December 2024 by the independent actuaries.

Assumed life expectations on retirement at age 65:

Amounts recognised in the income statement

Of the total expenses for the year £1,159,000 (2023: £1,030,000), £1,100,000 is included in cost of sales and £59,000 (2023: £18,000) in finance costs

Amounts taken to other comprehensive income

The amounts included in the statement of financial position arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans which are wholly or partly funded.

Movements in the fair value of plan assets

The actual return on plan assets was £508,000 (2023 - £1,449,000).

Fair value of plan assets at the reporting period end

The company has one class of ordinary shares which carry no right to fixed income.

A contingent liability exists in that the company has provided a cross guarantee in respect of an asset finance agreement taken out by a fellow group company, Presspart GmbH & Co KG. The amount guaranteed is £2,199k.

The Company is party to a joint guarantee in respect of the bank borrowings of Heitkamp & Thumann GmbH & Co. KG, the ultimate parent company. At 31 December 2024, under a joint arrangement the Company guaranteed a £165,837k Term and Revolving Facilities Agreement as a joint and several guarantor with four other group entities. As at 31 December 2024, the utilisation of the loan is £66,954k (2023: £61,061k).

Amounts contracted for but not provided in the financial statements:

The remuneration of key management personnel is as follows.

The following amounts were outstanding at the reporting end date:

The ultimate parent company is Heitkamp & Thumann GmbH & Co. KG, a company based in Germany. This is also the ultimate controlling party of the company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: