The directors present the strategic report for the year ended 31 March 2025.

The year to 31 March 2025 has seen Spellman High Voltage Electronics Ltd consolidate on the growth of the previous two years. Seeing excellent sales numbers of just under £48million, this has left us in a strong position to push for greater growth in FY26 and beyond whilst continuing to develop the latest cutting-edge high voltage technologies.

Our fiscal year 2025 has been a challenging but rewarding one with strong sales despite external constraints and pressures such as continued high inflation levels, as well as market uncertainties largely due to global trade tariffs. The company has worked hard to mitigate these risks. This combined with our long-term collaborative partnerships with our customers enabled us to keep providing advanced high voltage power supplies.

We are cognisant of the responsibilities and grateful for the opportunities to provide the high voltage power for so many critical applications that progress health, safety, connectivity, and quality of life. High stability, ultra-low noise, fast switching, multiple outputs that are RoHS, CE and UL compliant are a few of our comprehensive range of products’ advanced capabilities that enable our customers’ systems to excel in their markets. Our technology and our team’s focus on delivering to our customers’ demands, enables us to grow organically by developing long-term partnerships. We continue to learn and expand into high-tech market segments by advancing our precision power conversion technology, providing global application and integration support, and leveraging robust, resilient, and flexible global design, manufacturing, and customer service resources to provide exceptional support throughout product life cycles.

We will continue to build a safe, high-performance organisation that protects the environment, supports our communities, and develops our people. The company maintains a high level of investment in its employees, facilities, and R&D. By continuously improving our skills, processes, infrastructure, and products, we add new customers and strengthen our partnerships with existing customers. The company’s Quality, Environmental and Health & Safety practices, ISO9001:2015, ISO14001:2015, and ISO45001:2018 are accredited by our registrar ISOQAR. The company is also registered with Underwriters Laboratories (UL) Data Acceptance Program (DAP). This affords Spellman and its customers who require UL-recognized products increased control over the scheduling of product testing and certification. Spellman has full UK Authorized Economic Operator (AEO) status. The company continues to hold a Low-Risk Rating after completing the Self-Assessment Questionnaire for the Responsible Business Alliance (RBA) Corporate Social Responsibility Program. During the last fiscal year, the company also registered with EcoVadis to benchmark and improve on our sustainability journey. Upon completion of our first assessment, Spellman was awarded a Silver Medal; this result places the company among the top 25 percent of companies assessed by EcoVadis. The company continues to innovate our products, processes, and services while engaging a workforce with the knowledge, skills, and passion to “Understand and Provide What Our Customers Value”.

The principal risks and uncertainties facing the company are broadly legal, economic conditions, technology and competitor activity.

The following are the financial key performance indicators ('KPIs') used by management to assess and regulate the company's performance:

The company closely monitors legal and regulatory matters at a group, company and operational level and consults with external advisors where necessary.

Competitor activity and developing technology could affect the level of company revenue and profitability.

The company is committed to advancing high voltage design and manufacturing technology and devotes significant resource to achieving this goal. The company strives to continuously improve the features, performance, reliability and cost-effectiveness of its products. The company seeks to drive long-term growth and profitability by expanding its ability to serve global markets and developing product lines for new high voltage applications. The company will continue to leverage Spellman Group’s Global resources to remain competitive.

Section 172 of The Companies Act 2006 states that a director of a company must act in the way it considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

In doing so a director of a company must have regard (amongst other matters) to:-

1. The likely consequences of any decision in the long term;

2. The interests of the company’s employees;

3. The need to foster the company’s business relationships with suppliers, customers and others;

4. The impact of the company’s operations on the community and the environment;

5. The desirability of the company maintaining a reputations for high standards of business conduct; and

6. The need to act fairly as between members of the company.

The Directors have reviewed their current approach to corporate governance and decision making, engagement with stakeholders and the company’s impact on the environment. The following summarises how the company’s Directors fulfil their duties under Section 172.

Company Strategy and Promotion of Values

The Directors fulfil their duties to act in good faith to promote the success of the company through the implementation of the Spellman High Voltage (HV) Limited Strategic Principles as well as its values, mission and vision. As part of the Spellman HV strategy, they aim to:

Provide Unique Value to our Customers:

• Develop deep market insights and partner with high-tech system designers and manufacturers to develop the right high-voltage power conversion products for each customer and application.

• Provide world-class delivery, quality, and customer support throughout product life cycles. Meeting or exceeding customer expectations ('No Worries') and eliminate unnecessary production costs.

Build a high performance, socially responsible global organisation:

• Provide an inclusive, high-performance culture that fosters collaboration and empowers employees to learn and create.

• Maintain socially responsible business practices that protect the environment, support our communities, and ensure compliance with all legal requirements and international standards.

Create long-term stakeholder value:

• Continuously adapt and enhance facilities and equipment to align with and support current needs and strategic initiatives.

• Improve financial results and resilience.

The Directors define the Mission of the company as to:

• Understand and provide what our customers value.

• Develop high-voltage solutions for advanced technologies and systems.

• Provide flexible, resilient, and responsive global operations and customer support.

• Build a high-performance organization that protects the environment, supports our communities, and develops our people.

The following values directly support the implementation of the strategic Principles:

People: We are committed to the safety and success of our people. We expect the performance of every person to continually improve with personal initiative and proper support. We strive for a work environment of dignity and respect. To exhibit humility, and to seek out and value others’ opinions and focusing on the needs of others.

Customers: Our customers are the most important person(s) in our business, to be treated with the utmost respect. No business activity, other than safety, is more important than listening, learning, and providing product and service of uncompromised quality.

Integrity: We are all responsible for the long-term success of our business and our people. We are trustworthy and honest, and carry out our work in a professional, ethical, and legal manner. We challenge actions inconsistent with our values.

Innovation & Continuous Improvement: Our company is built on a collection of innovative ideas and a passion for continuous improvement. We challenge the status quo and explore all ideas that improve our performance.

Teamwork: We succeed together, believing unity of purpose and teamwork enables us to do far more than we could individually. We draw strength from each other and speak freely with fairness, candour, respect, and courage; respectfully stating what we think even it if is unpopular. Our collaboration turns interesting ideas into great product and service solutions.

Accountability: We say what we mean, and we honour our commitments. We hold ourselves and each other accountable for our results.

Commitment to Create Enduring Value: Investment in long-term growth over short-term profit is prioritised by striving to create lasting value for our customers, communities, employees, and stakeholders.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of the design, manufacture and distribution of high voltage equipment.

The company operates a small branch in Germany which operates as a sales office in support of the UK operations.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £5,508,936 (2024 - £5,319,713). The directors do not recommend payment of a further dividend.

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

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The objective of the company's capital management is to minimise the interest cost and to balance the capital needs of the business against the available reserves, securing a mix of debt at fixed and floating rates if necessary to support the activities. In recent years the reserves available have been sufficient to fund the company's operations which has reduced the exposure to interest rate risk.

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Spellman High Voltage Electronics Limited as a part of the Spellman Group (herein referred to as "Spellman") has become a leading precision engineering technology provider to high-tech customers in industry, research and medical equipment applications. Spellman had achieved this by working closely with those customers, providing strategic services and a quality product through all the research, design and development stages. The group strategy is to grow our ability to supply customer solutions by increasing our technical capabilities, using our technical knowledge and innovative ideas to develop substantially improved quality devices.

The S172(1) statement in the strategic report details how the directors have had regard to the need to foster business relationships with suppliers, customers and other stakeholders during the year.

The directors have presented the future developments of the company in the Strategic Report.

In accordance with the company's articles, a resolution proposing that Sumer Audit be reappointed as auditor of the company will be put at a General Meeting.

Spellman High Voltage Ltd operates across two sites located in Southwater and Pulborough. During the year the company consumed 676,476.4 kWh (2024 - 659,124.9 kWh) of energy across both sites.  This has been calculated based on invoices from the energy providers at each site.

The company has followed the 2024 HM Government Environmental Reporting Guidelines. It has also used the GHG reporting Protocol – Corporate Standard. The carbon dioxide (and equivalent gasses) emitted by the generation of electricity from the UK grid was 140,064.44 kg CO2e based on a ratio of 0.20705 kg CO2e per kWh (FY24 - 153,668.38 based on a ratio of 0.23314 kg CO2e per kWh). In our calculations, we converted kWh to kg of carbon released based on Greenhouse gas reporting: conversion factors from Department for Business, Energy and Industrial Strategy.

The company also used diesel in the operation of its company vans. Using a total of 3,133.59 litres. Based on the 2024 HM Government Environmental Reporting Guidelines and using a conversion rate of 2.51279 this equates to 7,874.05 kg CO2e (FY24 - 5,948.74).

No gas power was used by the company.

The chosen intensity measurement ration is total gross emissions in kilograms CO2e per sales revenue, the recommended ratio for this sector 0.00232:1. Based on total sales revenue of £47,988,018 this total is 111,332.20 CO2e (FY24 - 121,478.66).

To further our commitment to environmental responsibility, we partnered with Keramida for a comprehensive analysis of Greenhouse Gas (GHG) emissions (Scope 1 & 2). The findings for FY24 are as follows:

• Scope 1 Emissions: 0 MTCO₂e (no direct emissions)

• Scope 2 Emissions: 136.36 MTCO₂e (location-based method)

A formal improvement plan is underway, and Scope 1 & 2 emission reduction targets will be defined by the end of FY26. Work is also progressing on “Scope 3 data collection”, with a commitment to submitting targets to the Science-Based Targets initiative (SBTi) by FY27.

As part of our ongoing commitment to sustainability, Spellman HV Ltd has taken several steps to increase energy efficiency and reduce environmental impact:

• Zero Waste to Landfill status has been maintained across both sites.

• Food waste and PPE recycling programmes were successfully introduced.

• Continued recycling of paper, cardboard, batteries, WEEE, metals, dry mixed recyclables, milk bottle tops, and wood.

• Electricity purchased is sourced from 100% renewable energy providers, who are actively working to eliminate fossil fuel use in their generation mix.

• Achieved an overall 80 score in the Responsible Business Alliance (RBA) assessment, highlighting strong performance in ethical and sustainable practices.

• Awarded a Silver Medal by EcoVadis, placing Spellman in the 93rd percentile among assessed companies globally.

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.

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.

We have audited the financial statements of Spellman High Voltage Electronics Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 March 2025 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 directors' 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;

• Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and

• Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

• Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to stock provisions, and warranty provisions; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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 profit and loss account has been prepared on the basis that all operations are continuing operations.

Spellman High Voltage Electronics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Broomers Park, Broomers Hill Lane, Pulborough, West Sussex, RH20 2RY.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

At 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. The directors have considered relevant information, including the company’s principal risks and uncertaintiestrue, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.  Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and 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.

Turnover 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 turnover 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.

Turnover derived from long term contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is determined with reference to project milestones and considering costs incurred as a proportion of total costs.

Intangible assets 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:

Software under development is amortised from the date it is brought into use having been reclassified into the computer software category.

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, of all fixed assets other than items under construction, over their useful lives on the following bases:

Assets under construction are depreciated from the date they are brought into use having been reclassified into an appropriate category.

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.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

Stocks are stated at the lower of standard cost and estimated selling price less costs to complete and sell after making allowances for obsolete and slow moving stock on a first in first out basis.

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

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.

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

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.

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 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.

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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.

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 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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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.

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

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

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors have made key assumptions in determining the appropriate impairment provision against stock items held at the end of the reporting period. At the financial reporting date, the carrying amount of stock was £8,944,820 (2024 - £9,213,264).

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £315,962 profit (2024 - £169,151 loss).

The number of directors for whom retirement benefits are accruing under defined contribution pension schemes amounted to 2 (2024 - 2).

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:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The company holds investments in a number of listed funds through an investment advisor. These funds are publicly traded and the fair value is based on a market report provided at the reporting date.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Finance leases are secured against the assets to which they relate.

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

The deferred tax balances set out above are linked to the tangible and intangible fixed assets held by the company, the year end pension creditor and the level of the warranty provision. The deferred tax balances will reverse as the related balances are released.

Included in current liabilities is an amount of £104,215 (2024 - £80,151) due to defined contribution schemes.

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.

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

During the year the company entered into the following transactions with related parties:

During the year the company undertook the following transactions with fellow group undertakings:

• Sales of goods to group undertakings - £8,385,224 (2024 - £10,802,079)

• Expenses and commissions recharged to group undertakings - £460,322 (2024 - £523,885)

• Purchase of goods from group undertakings - £3,892,821 (2024 - £6,721,864)

• Expenses and commissions paid to group undertakings - £74,707 (2024 - £102,576)

At the reporting date the company was owed £3,075,307 (2024 - £4,511,074) from group undertakings and the company owed £204,322 (2024 - £157,309) to group undertakings. These balances are interest-free and repayable on demand.

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:

The immediate parent company is Start Spellman Holdings Limited, a company registered in Broomers Park, Broomers Hill Lane, Pulborough, West Sussex, United Kingdom, RH20 2RY. Start Spellman Holdings Limited prepares consolidated financial statements, copies of which are available from Companies House.

The ultimate controlling party is Spellman High Voltage Electronics Corporation, a company registered in the United States of America. Copies of the group financial statements of Spellman High Voltage Electronics Corporation can be obtained from 475 Wireless Blvd, Hauppauge, New York 11788, USA.