REGISTERED NUMBER: 06586098 (England and Wales)

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Borg Automotive UK Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

M P Zieba

REGISTERED OFFICE:

Units 13-16 Newman Park

Western Way

Wednesbury

West Midlands

WS10 7BJ

REGISTERED NUMBER:

06586098 (England and Wales)

SENIOR STATUTORY AUDITOR:

Daniel Crowther FCA FCCA

AUDITORS:

Thorne Widgery Accountancy Ltd

Chartered Accountants

Statutory Auditors

2 Wyevale Business Park

Kings Acre

Hereford

Herefordshire

HR4 7BS

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Borg Automotive UK Ltd is proud to operate as a leading re-manufacturer of automotive steering parts, serving the

automotive aftermarket through the Borg Automotive Group. We stand as the sole steering re-manufacturing site within this esteemed group. Our principal offerings include steering racks, available in manual, hydraulic, and electric variants, along with hydraulic steering pumps.

In alignment with our commitment to the circular economy, our remanufactured steering racks deliver significant

environmental benefits, including a reduction of 78% in CO2 emissions, a conservation of 62% of energy, and a remarkable decrease of 96% in the use of new materials compared to newly manufactured steering racks. This sustainable approach empowers us to produce cost-efficient original equipment (OE) products while consistently upholding high quality for our aftermarket customers.

Furthermore, the Borg Automotive UK site has achieved certifications in ISO 9001 Quality, 14001 Environment, and 45001 Health & Safety standards, and proudly holds a Silver Award accreditation from Investors in People.

Results and performance

The results for the year ending December 2024 are set out on pages 9 to 25 and show reference to any significant entries within financial reports.

The company's overall performance during the year ending December 2024 has been satisfactory, characterized by an increase in revenue driven by group sales, which have been positively influenced by both new and existing customer relationships. While we have navigated a challenging environment marked by rising salaries and material costs due to ongoing geopolitical factors, we are pleased to report that these challenges have been effectively managed through increased sales and enhanced operational performance. Moreover, both our gross profit margin and operating profit margin have demonstrated a commendable increase compared to the previous year, consistent with our expectations and intercompany trading agreements.

Rapid advancements in steering product technologies, particularly in electric and electronic control systems, have created new opportunities for development. In this context, our manual racks have shown notable growth, benefiting from their design advantages and versatility. We remain dedicated to staying at the forefront of these developments, as they play a vital role in our strategic growth plan aimed at ensuring the long-term sustainability of our business.

While we recognize that technological know-how poses certain challenges within our vertical integration chain, we

continue to invest in research and development (R&D) to enhance our capabilities. This focus allows us to provide superior customer service and maintain our leadership position in the market. Consequently, we have experienced consistent year-over-year growth in our sales, and we are committed to expanding our production capacity in this area. Investments have been made to enhance our production capabilities through the integration of the latest technologies, thereby positioning us for further growth.

Financial Key Performance Indicators

2024

2023

Turnover

£20,155,783

£17,796,022

Gross profit margin

10.74%

10.43%

Operating profit margin

4.98%

4.82%

Current ratio

3.23

3.00

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks rest with:

-

The challenge of attracting and retaining highly skilled staff, which can influence our cost structure.

-

Competitive pressures, particularly from low-cost offerings in the Far East.

-

The necessity to respond quickly to evolving market demands for our products.

-

Ongoing price pressure for purchased components and materials.

-

Logistics challenges related to geopolitical issues and their effect on delivery performance.

-

Our ability to align our expertise and product range with changes in technology on steering products.

Strategy/Future Developments

As we move forward, the company will focus on maximizing growth within our existing market segments while further

leveraging our resources in both electric and manual steering products. We also see opportunities for growth through strategic acquisitions and the development of product technologies that align with our core competencies, a focus we actively pursue within the Borg Group.

Quality is a cornerstone of our growth strategy, and we have made significant strides in enhancing product quality over the past year, which ensures we maintain a reliable offering that maximizes customer satisfaction. We are committed to ongoing investments in our manufacturing processes to improve efficiency, capacity, and agility while developing innovative approaches to broaden our market reach. In light of the growing challenges surrounding capacity and costs, we plan to establish additional production lines and warehouses at strategically selected locations, aligning with our group manufacturing and supply chain strategy.

Continuous improvement in our operations is a priority, and we will employ lean tools and automation technologies to

drive these enhancements while ensuring that customer service remains at the forefront of our efforts. We are also

dedicating additional resources to optimize our material recovery and supply chain efficiency without compromising on quality or service, recognizing this as a vital factor in driving down product costs.

We are committed to providing the necessary resources to support the Borg Group in expanding our customer base and achieving volume growth. To facilitate improvements in products and processes, we will allocate substantial time and resources to the development of our workforce, focusing on technical skills, personal growth, and leadership development.

Furthermore, we maintain a strong commitment to employee health and safety, which is essential for maintaining

efficient and high-quality manufacturing practices.

ON BEHALF OF THE BOARD:

M P Zieba - Director

11 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

RESEARCH AND DEVELOPMENT

The company will continue to develop an understanding of electronic repairs and the design of mechatronic systems. This is seen as strategically important for the continuation of our current position within the remanufacturing industry and also for future growth. The company will continue to invest in resources to achieve this. Development of repair techniques for mechanical systems will also continue.

Consideration is also given to new product categories and resources will be made available to pursue relevant opportunities in conjunction with the BORG group.

FUTURE DEVELOPMENTS

The market continue to grow for remanufacturing and technological developments on the area of products and services are continuously evaluated to mitigate business risks and opportunities. Technological know-how and development of reman processes are expected to be more complex in the future due to significant upstream control on design and technology.

Investment in capacity and resources will be made to offer high performing products and customer satisfaction. Opportunities for growth through acquisition are also an area of focus and the BORG group are active in this respect.

DIRECTOR

M P Zieba held office during the whole of the period from 1 January 2024 to the date of this report.

DIRECTORS:

The directors who have held office from 1 January 2024 to the date of this report include:

- M P Zieba - appointed 4 August 2023

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS

The auditors, Thorne Widgery Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M P Zieba - Director

11 September 2025

Opinion

We have audited the financial statements of Borg Automotive UK Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Based on our understanding of the Group, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the British Standards Institution, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the financial statements of the Group such as the Companies Act 2006, the British Standards Institution and UK tax legislation.

We have also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks are related to management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the engagement team included:

-

Discussions with the Board, Management and Company Secretary involved in the Risk and Compliance functions and the Company's legal function, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

-

Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

-

Identifying and testing journal entries based on risk criteria;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and

-

Testing transactions entered into outside the normal course of the Company's business as appropriate.

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 collusions.

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.

Daniel Crowther FCA FCCA  (Senior Statutory Auditor)

for and on behalf of Thorne Widgery Accountancy Ltd

Chartered Accountants

Statutory Auditors

2 Wyevale Business Park

Kings Acre

Hereford

Herefordshire

HR4 7BS

18 September 2025

TURNOVER

3

20,155,784

17,803,533

Cost of sales

(13,747,899

)

(12,181,717

)

GROSS PROFIT

6,407,885

5,621,816

Administrative expenses

(5,908,944

)

(5,175,604

)

498,941

446,212

Other operating income

670,262

648,628

OPERATING PROFIT

5

1,169,203

1,094,840

Interest receivable and similar income

12,445

10,970

1,181,648

1,105,810

Interest payable and similar expenses

6

(112,057

)

(199,387

)

PROFIT BEFORE TAXATION

1,069,591

906,423

Tax on profit

7

296,160

631,575

PROFIT FOR THE FINANCIAL YEAR

1,365,751

1,537,998

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,365,751

1,537,998

Profit attributable to:

Owners of the parent

1,365,751

1,537,998

Total comprehensive income attributable to:

Owners of the parent

1,365,751

1,537,998

FIXED ASSETS

Intangible assets

9

5,494

15,262

Tangible assets

10

580,581

535,180

Investments

11

-

-

586,075

550,442

CURRENT ASSETS

Stocks

12

5,761,190

3,957,282

Debtors

13

4,388,696

4,744,748

Cash at bank and in hand

1,487,262

92,711

11,637,148

8,794,741

CREDITORS

Amounts falling due within one year

14

(1,785,749

)

(1,484,685

)

NET CURRENT ASSETS

9,851,399

7,310,056

TOTAL ASSETS LESS CURRENT LIABILITIES

10,437,474

7,860,498

CREDITORS

Amounts falling due after more than one year

15

(3,159,295

)

(1,948,070

)

NET ASSETS

7,278,179

5,912,428

CAPITAL AND RESERVES

Called up share capital

19

10,600,001

10,600,001

Share premium

20

6,118,321

6,118,321

Retained earnings

20

(9,440,143

)

(10,805,894

)

SHAREHOLDERS' FUNDS

7,278,179

5,912,428

The financial statements were approved by the director and authorised for issue on 11 September 2025 and were signed by:

M P Zieba - Director

FIXED ASSETS

Intangible assets

9

5,494

15,262

Tangible assets

10

580,581

535,180

Investments

11

1

1

586,076

550,443

CURRENT ASSETS

Stocks

12

5,761,190

3,957,282

Debtors

13

4,388,696

4,744,748

Cash at bank and in hand

1,487,262

92,711

11,637,148

8,794,741

CREDITORS

Amounts falling due within one year

14

(1,785,751

)

(1,484,687

)

NET CURRENT ASSETS

9,851,397

7,310,054

TOTAL ASSETS LESS CURRENT LIABILITIES

10,437,473

7,860,497

CREDITORS

Amounts falling due after more than one year

15

(3,159,295

)

(1,948,070

)

NET ASSETS

7,278,178

5,912,427

CAPITAL AND RESERVES

Called up share capital

19

10,600,001

10,600,001

Share premium

20

6,118,321

6,118,321

Retained earnings

20

(9,440,144

)

(10,805,895

)

SHAREHOLDERS' FUNDS

7,278,178

5,912,427

Company's profit for the financial year

1,365,751

1,537,998

The financial statements were approved by the director and authorised for issue on 18 September 2025 and were signed by:

M P Zieba - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

10,600,001

(12,343,892

)

6,118,321

4,374,430

Changes in equity

Total comprehensive income

-

1,537,998

-

1,537,998

Balance at 31 December 2023

10,600,001

(10,805,894

)

6,118,321

5,912,428

Changes in equity

Total comprehensive income

-

1,365,751

-

1,365,751

Balance at 31 December 2024

10,600,001

(9,440,143

)

6,118,321

7,278,179

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

10,600,001

(12,343,893

)

6,118,321

4,374,429

Changes in equity

Total comprehensive income

-

1,537,998

-

1,537,998

Balance at 31 December 2023

10,600,001

(10,805,895

)

6,118,321

5,912,427

Changes in equity

Total comprehensive income

-

1,365,751

-

1,365,751

Balance at 31 December 2024

10,600,001

(9,440,144

)

6,118,321

7,278,178

Cash flows from operating activities

Cash generated from operations

1

1,662,215

4,678,446

Finance costs paid

(112,057

)

(199,387

)

Tax paid

(2,084

)

(504

)

Net cash from operating activities

1,548,074

4,478,555

Cash flows from investing activities

Purchase of tangible fixed assets

(165,967

)

(256,725

)

Sale of tangible fixed assets

(1

)

100,894

Interest received

12,445

10,970

Net cash from investing activities

(153,523

)

(144,861

)

Cash flows from financing activities

Loan repayments in year

-

(4,273,882

)

Net cash from financing activities

-

(4,273,882

)

Increase in cash and cash equivalents

1,394,551

59,812

Cash and cash equivalents at beginning of year

2

92,711

32,899

Cash and cash equivalents at end of year

2

1,487,262

92,711

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

1,069,591

906,423

Depreciation charges

130,337

129,789

Finance costs

112,057

199,387

Finance income

(12,445

)

(10,970

)

1,299,540

1,224,629

(Increase)/decrease in stocks

(1,803,908

)

449,384

Decrease/(increase) in trade and other debtors

356,052

(47,941

)

Increase in trade and other creditors

1,810,531

3,052,374

Cash generated from operations

1,662,215

4,678,446

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,487,262

92,711

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

92,711

32,899

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

92,711

1,394,551

1,487,262

92,711

1,394,551

1,487,262

Debt

Debts falling due after 1 year

(1,948,070

)

(1,211,225

)

(3,159,295

)

(1,948,070

)

(1,211,225

)

(3,159,295

)

Total

(1,855,359

)

183,326

(1,672,033

)

1.	STATUTORY INFORMATION

Borg Automotive UK 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

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

As from 1st July 2017 Borg Automotive UK changed its accounting policy to account for the Core Element as part of revenue.

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 nil years.

Tangible fixed assets

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

Short leasehold

-

20% on cost and 10% on cost

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

at varying rates on cost

Motor vehicles

-

33.33% on cost and 20% on cost

Computer equipment

-

33.33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Going concern

The director has assessed whether the use of going concern is appropriate. The director makes this assessment in respect of a period of one year from the date of approval of the financial statements.

The current inflationary pressures are continually monitored in conjunction with the BORG group and mitigating actions are/will be put into place when appropriate to protect the business.

The company will continue to concentrate significant efforts on achieving maximum growth in its existing market segments, whilst also further utilising existing, and growing resources on electric steering products.

The company has received a letter of support from its parent undertaking confirming that it will support the company for at least 12 months following approval of the financial statements. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.