REGISTERED NUMBER: 01689259 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

DYNAMIC CONTROLS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

B J Ruscillo

J Miller

R O Whitford, Jr.

SECRETARY:

R Gregory

REGISTERED OFFICE:

Dynamic Works

Union Street

Royton

Oldham

OL2 5JD

REGISTERED NUMBER:

01689259 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

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

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

Dynamic Controls continues to design and manufacture cartridge valves, with interchangeable valve cartridges,manifolds/reducing stations with applications for H.P. Hydraulic systems, H.P. Air systems, and other system/applications (i.e. Air, Co2, Methanol, Nitrogen, Water, Oil, LNG), also bellows sealed globe valves for the nuclear and diesel electric submarine market, aircraft carriers and the nuclear market. Additionally, we design and manufacture proprietary valves for high pressure gas supply control systems/manifolds for cargo ships and LNG carriers.

In the year ended 31 December 2024, Dynamic Controls experienced a downturn in production volume, profitability, and cash flows. The downturn was primarily driven by a dedicated effort to complete the remaining backlog for one of our navy contracts with our major customer. The backlog consisted primarily of bellows sealed globe valves, a first-of-a-kind design and production effort for DCL, that resulted in delays over quality and design, longer production times, and overall higher costs. By the end of calendar year 2024, significant progress was made against this contract and Dynamic Controls is seeing improved production volume and cash flows in 2025.

The Board remains committed to delivering high-quality product to our customers and improving production capacity to position Dynamic Controls for growth and to secure future work in our existing markets and potential new business capture opportunities.

KEY PERFORMANCE INDICATORS

The main financial key performance indicators used to monitor business performance are sales, gross profit, operating profit and operating cash flows. In addition, there is a management team in place to monitor health and safety, regulatory compliance, and customer satisfaction.

2024

2023

Turnover

13,370,317

11,046,796

Gross Profit

454,378

4,076,641

Gross Profit %

3.4%

36.9%

Operating Profit/(Loss)

(2,421,163)

1,822,125

Operating Cash Flows

(7,882,158)

(3,643,100)

In the year ended 31 December 2024, the company generated a net cash loss from operations of £ (7,882,158) and invested £669,972 in capital expenditures at its site in Oldham. It is important to note that Dynamic Controls operates a milestone-based payment structure with its primary customer. Approximately 30% of the contract value is paid upon award to enable the company to secure long-lead material procurements to support production. There were significant cash inflows in 2022 to support our largest contract and 2023 and 2024 were impacted by the related cash outflows.

2024 turnover included £6,547,372 of pass-through revenues for manufacturing work completed by an intercompany business unit. Given the pass-through nature, Dynamic Controls had minimal profit margin (~7%) for this work, driving gross profit margin significantly lower than 2023.

PRINCIPAL RISKS AND UNCERTAINTIES

Credit risk is mitigated by a credit limit being set for all customers and monitoring the amount of credit offered on a regular basis. This is further managed and overseen by the corporate Treasury department for Dynamic Controls' ultimate parent company, BWX Technologies, Inc. Liquidity risk is monitored locally by the on-site Finance team and Managing Director, but managed by the corporate Treasury department for BWX Technologies, who will ensure the company has sufficient current and future cash reserves and facilities available to meet its liabilities and financial obligations for at least twelve months from the signing of the financial statements.

ON BEHALF OF THE BOARD:

R O Whitford, Jr. - Director

16 September 2025

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

PRINCIPAL ACTIVITY

Dynamic Controls continues to design and manufacture cartridge valves, for the nuclear and diesel electric submarine market, aircraft carriers, and the nuclear market. Additionally, we design and manufacture engine and high pressure gas supply control systems for cargo ships and LNG carriers.

DIVIDENDS

The company reported an operating loss of £2.4m (2023: Operating profit of £1.9m on turnover of £13.3m (2023: £11.0m). No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

B J Ruscillo

J Miller

R O Whitford, Jr.

Other changes in directors holding office are as follows:

Mrs F C Plant , R A LeMasters and K Mccoy ceased to be directors after 31 December 2024 but prior to the date of this report.

GOING CONCERN

The company is reliant upon the support, both financial and management, of the parent company, which has been confirmed for the foreseeable future.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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 the group and of the profit or loss of the group 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; and

- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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:

R O Whitford, Jr. - Director

16 September 2025

Opinion

We have audited the financial statements of Dynamic Controls Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation, Health and Safety regulations and ISO 9001 Quality Management System.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

John B S Fairhurst BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

16 September 2025

TURNOVER

3

13,370,317

11,046,796

Cost of sales

12,915,939

6,970,155

GROSS PROFIT

454,378

4,076,641

Administrative expenses

2,875,541

2,254,516

OPERATING (LOSS)/PROFIT

5

(2,421,163

)

1,822,125

Interest receivable and similar income

33,714

170,415

(2,387,449

)

1,992,540

Amounts written off investments

6

-

100

(2,387,449

)

1,992,440

Interest payable and similar expenses

7

15,797

-

(LOSS)/PROFIT BEFORE TAXATION

(2,403,246

)

1,992,440

Tax on (loss)/profit

8

(178,373

)

476,721

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(2,224,873

)

1,515,719

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,224,873

)

1,515,719

FIXED ASSETS

Tangible assets

9

1,727,334

1,403,481

CURRENT ASSETS

Stocks

10

7,725,274

4,958,244

Debtors

11

4,781,875

1,696,365

Cash at bank and in hand

184,462

2,261,359

12,691,611

8,915,968

CREDITORS

Amounts falling due within one year

12

11,571,285

5,309,218

NET CURRENT ASSETS

1,120,326

3,606,750

TOTAL ASSETS LESS CURRENT LIABILITIES

2,847,660

5,010,231

PROVISIONS FOR LIABILITIES

14

307,501

245,199

NET ASSETS

2,540,159

4,765,032

CAPITAL AND RESERVES

Called up share capital

15

6,000

6,000

Retained earnings

16

2,534,159

4,759,032

SHAREHOLDERS' FUNDS

2,540,159

4,765,032

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

R O Whitford, Jr. - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

6,000

3,243,313

3,249,313

Changes in equity

Total comprehensive income

-

1,515,719

1,515,719

Balance at 31 December 2023

6,000

4,759,032

4,765,032

Changes in equity

Total comprehensive income

-

(2,224,873

)

(2,224,873

)

Balance at 31 December 2024

6,000

2,534,159

2,540,159

Cash flows from operating activities

Cash generated from operations

1

(2,827,054

)

(3,319,605

)

Interest paid

(15,797

)

-

Tax paid

(240,675

)

-

Net cash from operating activities

(3,083,526

)

(3,319,605

)

Cash flows from investing activities

Purchase of tangible fixed assets

(569,023

)

(494,462

)

Interest received

33,714

170,415

Net cash from investing activities

(535,309

)

(324,047

)

Cash flows from financing activities

New group loans in year

1,541,938

(122,305

)

Net cash from financing activities

1,541,938

(122,305

)

Decrease in cash and cash equivalents

(2,076,897

)

(3,765,957

)

Cash and cash equivalents at beginning of year

2

2,261,359

6,027,316

Cash and cash equivalents at end of year

2

184,462

2,261,359

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(2,403,246

)

1,992,440

Depreciation charges

245,169

237,976

Finance costs

15,797

-

Finance income

(33,714

)

(170,415

)

(2,175,994

)

2,060,001

Increase in stocks

(2,767,030

)

(2,292,918

)

(Increase)/decrease in trade and other debtors

(2,898,540

)

158,001

Increase/(decrease) in trade and other creditors

5,014,510

(3,244,689

)

Cash generated from operations

(2,827,054

)

(3,319,605

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

184,462

2,261,359

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

2,261,359

6,027,316

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

2,261,359

(2,076,897

)

184,462

2,261,359

(2,076,897

)

184,462

Total

2,261,359

(2,076,897

)

184,462

1.	STATUTORY INFORMATION

Dynamic Controls Ltd 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.

Judgements and sources of estimation uncertainty

The preparation of the financial statements require management to make significant judgements, estimates and assumptions. The items in the financial statements where these judgements and estimates have been made include:

Judgements

The useful economic lives of tangible fixed assets are assessed on an annual basis on the latest available information. Management believe that the useful economic lives being used currently are still appropriate.

Sources of estimation uncertainty

Stock provisions are assessed annually by experienced management, using their product knowledge and industry specific background.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for goods and services provided.

The company recognises revenue when the significant risks and rewards of ownership have transferred to the buyer. This is usually when the customer takes delivery of the goods.

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract at the reporting date.When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Amounts recoverable on contracts are stated at the net sales value of the work completed, taking into account any necessary provisions for anticipated future losses on contracts. Milestone payments on account received on contracts are included in creditors, having netted off any sales value of the work completed on the contracts.

Fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation and impairment.

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

Land and buildings

-

1% on cost

Plant and machinery etc

-

10% - 33 1/3% on cost

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct expenditure and an appropriate proportion of variable overheads.

Financial instruments

The company only holds basic financial instruments, as defined under Section 11 of FRS 102.

Short term financial assets, including trade and other debtors and cash and bank balances, are measured at the transaction price.

Short term financial liabilities, including trade and other creditors, are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Research and development expenditure is written off in the profit and loss account in the period 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 Statement of Financial Position 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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the company. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to the profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight-line basis.

Short term employee benefits

Short term employee benefits are recognised as an expense in the period in which they are incurred.

The company operates a number of defined contribution pension schemes. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

9,381,053

10,757,353

Europe

3,593,530

28,129

United States of America

286,272

-

Australia

6,333

3,536

Canada

96,369

197,885

India

1,038

59,795

Worldwide (Various)

5,722

98

13,370,317

11,046,796

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,497,753

2,105,286

Social security costs

297,110

245,941

Other pension costs

80,473

68,853

2,875,336

2,420,080

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

2024

2023

Office

23

17

Manufacturing

36

33

59

50

2024

2023

£

£

Directors' remuneration

179,569

149,582

5.	OPERATING (LOSS)/PROFIT

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

2024

2023

£

£

Other operating leases

18,954

11,662

Depreciation - owned assets

245,170

237,876

Auditors' remuneration

17,500

15,000

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2024

2023

£

£

Amounts written off investments

-

100

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

15,797

-

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

-

240,675

Prior year tax

(240,675

)

204,507

Total current tax

(240,675

)

445,182

Deferred tax

62,302

31,539

Tax on (loss)/profit

(178,373

)

476,721

Reconciliation of total tax (credit)/charge 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

(2,403,246

)

1,992,440

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 19%)

(600,812

)

378,564

Effects of:

Expenses not deductible for tax purposes

168

98,157

Adjustments to tax charge in respect of previous periods

(240,675

)

-

Fixed asset differences

3,600

-

Losses carried back

255,814

-

Movement on deferred tax not recognised

403,532

-

Total tax (credit)/charge

(178,373

)

476,721

9.	TANGIBLE FIXED ASSETS

Long

leasehold

Plant and

property

machinery

Totals

£

£

£

COST OR VALUATION

At 1 January 2024

779,048

3,348,177

4,127,225

Additions

135,743

433,280

569,023

Disposals

(25,807

)

(1,029,900

)

(1,055,707

)

At 31 December 2024

888,984

2,751,557

3,640,541

DEPRECIATION

At 1 January 2024

152,761

2,570,983

2,723,744

Charge for year

43,235

201,935

245,170

Eliminated on disposal

(25,807

)

(1,029,900

)

(1,055,707

)

At 31 December 2024

170,189

1,743,018

1,913,207

NET BOOK VALUE

At 31 December 2024

718,795

1,008,539

1,727,334

At 31 December 2023

626,287

777,194

1,403,481

Included in cost or valuation of land and buildings is freehold land of £15,500 (2023 - £15,500) which is not depreciated. Long leasehold property was valued on an open market, existing use basis in June 2018 by Avison Young, Valuers. The directors have relied upon this valuation, taking into account the current property market conditions, in arriving at it's net book value at 31 December 2024.

Cost or valuation at 31 December 2024 is represented by:

Long

leasehold

Plant and

property

machinery

Totals

£

£

£

Valuation in 1997

70,000

-

70,000

Valuation in 2012

(45,533

)

-

(45,533

)

Valuation in 2018

(283,130

)

-

(283,130

)

Cost

1,147,647

2,751,557

3,899,204

888,984

2,751,557

3,640,541

If long leasehold property had not been revalued it would have been included at the following historical cost:

2024

2023

£

£

Cost

1,147,647

1,037,711

Aggregate depreciation

457,569

401,951