REGISTERED NUMBER: 00246071 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

For The Year Ended 31 December 2024

for

Poeton Industries Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

A D McLeish

J A Poeton

J R Blackford

REGISTERED OFFICE:

Eastern Avenue

Gloucester

Gloucestershire

GL4 3DN

REGISTERED NUMBER:

00246071 (England and Wales)

AUDITORS:

Kingscott Dix Limited

Chartered Accountants

and Statutory Auditor

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

BANKERS:

Santander UK PLC

Bridle Road

Bootle

Merseyside

L30 4GB

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

Business Performance and Strategic Overview

The business continues to benefit from a diversified customer base across Aerospace, Automotive, General Engineering, and, Oil & Gas. However, this year has been more challenging, with fluctuating demand, supply chain pressures, and rising costs impacting operations and margins.

Our mix of higher-margin proprietary coatings and price-sensitive solutions has helped balance these pressures, though careful cost control and pricing strategies have been essential. While our balance sheet remains strong and supports future investment, we have taken a more cautious approach to priorities key initiatives.

The employee profit share scheme has continued to drive engagement and reinforce a shared commitment to quality and efficiency. Maintaining our focus on quality and on-time delivery has required significant effort but remains critical to our market differentiation.

Despite the challenging environment, we have secured new business domestically and overseas and introduced new environmentally friendly products at our UK and Polish sites in collaboration with key customers, supporting our long-term growth and sustainability goals.

REVIEW OF BUSINESS

The key financial highlights were as follows:-

2024

2023

2022

2021

2020

Turnover movement

+7%

+47%

+19%

-13%

-33%

Gross profit movement

-1%

+66%

+45%

-2%

-44%

Profit before tax (excluding exceptional items)

£1,671k

£1,878k

£461k

£65k

£176k

PRINCIPAL RISKS AND UNCERTAINTIES

Regulatory and Environmental Compliance

The business has effectively navigated a number of key risks during the year. A major milestone was the implementation of the REACH environmental legislation in 2024, which granted a 12-year extension for specific use cases while introducing new mandatory working practices. We are pleased to confirm that all our sites have successfully mitigated this risk and remain fully compliant with the relevant governmental requirements.

Geopolitical Considerations

At our Polish facility, the ongoing conflict in neighbouring Ukraine remains a background concern. However, this situation is also viewed as an economic opportunity for Poland, with the local economy demonstrating continued resilience and growth. We continue to closely monitor these developments to ensure appropriate risk management.

Market and Customer Dynamics

While the business is largely insulated from global trade fluctuations, we recognise that our diverse and international customer base introduces a level of exposure to global economic shifts. As such, we are actively monitoring customer relationships and performance to safeguard business continuity and strengthen our market position.

Health, Safety, and Environmental Commitments

Operating within the manufacturing sector - and particularly in the chemical industry - places health, safety, and environmental responsibility at the forefront of our operations. We uphold a strong culture of safety, which underpins every operational decision and has resulted in multiple awards recognising our proactive approach.

A cornerstone of this commitment is our investment in training. We prioritise equipping our employees with the skills and awareness necessary to protect not only their own safety and well-being but also that of their colleagues. This ongoing focus reinforces our dedication to creating a safe, responsible, and supportive workplace, benefiting both our employees and our customers.

Pension Obligations

Finally, we continue to maintain and support our pension obligations, which remain in a strong and healthy position. This reflects our commitment to the long-term financial well-being of our employees.

ON BEHALF OF THE BOARD:

J A Poeton - Director

4 July 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of surface engineering.

DIVIDENDS

Dividends totalling £900,000 were paid during the year on the B shares (2023: £1,460,000).

RESEARCH AND DEVELOPMENT

The company continually seeks to develop improved processes for sale and production. The company's accounting policy in respect of research and development expenditure is set out in note 2 to the financial statements.

DIRECTORS

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

A D McLeish

J A Poeton

Other changes in directors holding office are as follows:

A R Poeton - resigned 8 April 2024

D J Burge - resigned 30 September 2024

J R Blackford was appointed as a director after 31 December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, other loans, trade creditors, trade debtors and inter group loans. The main purpose of these instruments collectively is to raise funds for the company's operations.

Due to the nature of the financial instruments used by the company there is no significant exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Interest is charged at 4% on group loans expected to be recovered over one year. There are no fixed terms of repayment.

Trade debtors are managed in respect of credit and cash-flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits.

Trade creditor's liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

OVERSEAS SUBSIDIARY

Poeton Industries Limited's Polish subsidiary Poeton Polska Sp.z.o.o. has continuted to trade and increase its turnover during the year.

DISCLOSURE IN THE STRATEGIC REPORT

Information regarding the review of the business and principal risks and uncertainties is shown within the strategic report on page two of the accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Kingscott Dix Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J A Poeton - Director

4 July 2025

Opinion

We have audited the financial statements of Poeton Industries Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

In assigning the audit engagement team we ensured that collectively they had the appropriate competence and capabilities to identify non-compliance with laws and regulations, highlight areas of the financial statements particularly susceptible to fraud and conduct appropriate additional enquiries where suspicions or weaknesses became evident.

At the planning stage, we assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. This involved preliminary planning discussions with management to obtain their assessment of fraud risk, to identify any incidences of fraud during the year and understand the measures and controls they had taken to combat the possibility of fraud.

Our transaction testing and assessment of controls during the audit provided further evidence as to the validity of this initial assessment with regard to material misstatement and fraud.

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Directors, and inspection of the Company's regulatory and legal correspondence. The team were briefed with regard to laws and regulations and remained alert to any indication of non-compliance throughout the audit.

The company is subject to laws and regulations that directly affect the financial statements including legislation covering financial reporting including related companies, distributable profits and taxation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In assessing this compliance, we evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates in the measurement and presentation of profit within the financial statements.

The company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Aerospace management standards AS9100, National Aerospace and Defense Contractors Accreditation Program (NADCAP), environmental management standards ISO14001, Occupation health and safety ISO45001, UK REACH, Customs (Special Procedures and Outward Processing) Regulations 2018, employment laws, GDPR and any other regulations recognising the nature of the company's activities. Audit procedures designed to identify non-compliance with these laws and regulations included enquiry of the Directors and other management and inspection of regulatory and legal correspondence. None of the procedures applied identified actual or suspected non-compliance.

Owing to the 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. Where an irregularity is non-financial or has not reached a stage where its impact is financial, it is less likely to be identified by auditing procedures. In addition, to the extent that an irregularity involves collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls, there remains a high risk of non-detection. We are not responsible for detecting all instances of non-compliance with laws and regulations and cannot be expected to do so.

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.

Emma Steward FCCA (Senior Statutory Auditor)

for and on behalf of Kingscott Dix Limited

Chartered Accountants

and Statutory Auditor

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

4 July 2025

TURNOVER

3

16,486,679

15,327,923

Cost of sales

10,593,657

9,373,203

GROSS PROFIT

5,893,022

5,954,720

Distribution costs

586,176

492,604

Administrative expenses

3,634,318

3,598,261

4,220,494

4,090,865

1,672,528

1,863,855

Other operating income

4

18,081

22,494

OPERATING PROFIT

6

1,690,609

1,886,349

Redundancy costs

7

(120,800

)

-

Profit/loss on sale of invest

7

-

(2

)

1,569,809

1,886,347

Interest receivable and similar income

102,965

80,551

1,672,774

1,966,898

Interest payable and similar expenses

8

1,698

81,625

Other finance costs

23

-

7,000

1,698

88,625

PROFIT BEFORE TAXATION

1,671,076

1,878,273

Tax on profit

9

418,717

271,691

PROFIT FOR THE FINANCIAL YEAR

1,252,359

1,606,582

PROFIT FOR THE YEAR

1,252,359

1,606,582

OTHER COMPREHENSIVE INCOME

Actuarial (losses) / gains

234,000

(101,000

)

Return on plan assets (excluding

(159,000

)

111,000

interest income)

Exchange gains and losses

Income tax relating to components of other comprehensive income

(18,750

)

(2,500

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

56,250

7,500

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,308,609

1,614,082

FIXED ASSETS

Intangible assets

11

2

2

Tangible assets

12

1,921,501

1,523,142

Investments

13

84,955

84,955

2,006,458

1,608,099

CURRENT ASSETS

Stocks

14

306,650

440,016

Debtors

15

4,664,523

3,851,447

Cash at bank

927,846

1,254,824

5,899,019

5,546,287

CREDITORS

Amounts falling due within one year

16

3,387,780

3,718,471

NET CURRENT ASSETS

2,511,239

1,827,816

TOTAL ASSETS LESS CURRENT LIABILITIES

4,517,697

3,435,915

CREDITORS

Amounts falling due after more than one year

17

(142,571

)

(152,090

)

PROVISIONS FOR LIABILITIES

21

(1,446,410

)

(580,878

)

PENSION ASSET/(LIABILITY)

23

139,169

(43,671

)

NET ASSETS

3,067,885

2,659,276

CAPITAL AND RESERVES

Called up share capital

22

26,000

26,000

Retained earnings

3,041,885

2,633,276

SHAREHOLDERS' FUNDS

3,067,885

2,659,276

The financial statements were approved by the Board of Directors and authorised for issue on 4 July 2025 and were signed on its behalf by:

J A Poeton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

26,000

2,479,194

2,505,194

Changes in equity

Total comprehensive income

-

1,614,082

1,614,082

Dividends

-

(1,460,000

)

(1,460,000

)

Balance at 31 December 2023

26,000

2,633,276

2,659,276

Changes in equity

Total comprehensive income

-

1,308,609

1,308,609

Dividends

-

(900,000

)

(900,000

)

Balance at 31 December 2024

26,000

3,041,885

3,067,885

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Poeton Industries Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Poeton Holdings Limited, .

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods) and the amount of revenue can be measured reliably.

Rental Income

Rental income from the Company's sublet of storage facilities. The Company recognises such revenue on a straight line accruals basis.

Intangible fixed 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.

Intangible fixed assets comprise licences which are amortised over their estimated useful life.

Tangible fixed assets

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

Depreciation is calculated to write off the cost or valuation of assets less their residual values over their estimated useful lives at the following rates per annum:

Assets under construction

Nil

Motor vehicles

25% - 35% of written down value

Other plant and equipment

10% - 25% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to present location and condition.

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

Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets

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

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

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

Impairment of financial assets

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, other loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

Other financial liabilities

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 they are included in a hedging arrangement.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 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

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

Hire purchase and operating leases

Assets that are held by Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company 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 statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised. Contingent rentals are recognised as expenses in the period in which they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are

recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental

expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The cost of providing retirement pensions and related benefits is charged to the profit and loss account over the periods benefiting from the employee's services. Any differences between the charge to the profit and loss account and the contributions paid to the schemes is shown as an asset or liability in the balance sheet.

Warranty provision

The company provides for the anticipated costs of rectification work on services provided, based upon experience.

Agent companies

Poeton (Cardiff) Limited, Poeton (Gloucester) Limited and Poeton Aptec Limited act as agents for Poeton Industries Limited and do not trade on their own account. The accounts of Poeton Industries Limited include the trade of these agent companies.

Government grants and private sector grants

Government grants and private sector grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

3.

TURNOVER

All turnover is generated in the UK.

4.	OTHER OPERATING INCOME

31.12.24

31.12.23

£

£

Rents received

7,150

5,850

Other grants receivable

10,931

16,644

18,081

22,494

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

6,488,912

5,947,200

Social security costs

584,996

490,204

Other pension costs

194,626

168,977

7,268,534

6,606,381

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

31.12.24

31.12.23

Production

132

129

Selling and distribution

14

16

Administration and management

55

49

201

194

31.12.24

31.12.23

£

£

Directors' remuneration

213,853

324,842

Directors' pension contributions to money purchase schemes

24,725

17,300

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

31.12.24

31.12.23

£

£

Emoluments etc

110,807

211,708

Pension contributions to money purchase schemes

17,125

12,500

6.	OPERATING PROFIT

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

31.12.24

31.12.23

£

£

Operating lease income

(7,150

)

(5,850

)

Depreciation - owned assets

336,386

345,168

Loss on disposal of fixed assets

6,000

238,842

Auditors' remuneration

30,000

30,700

Auditors' remuneration for non audit work

12,550

5,325

Vehicle leasing costs

57,841

48,797

Rent paid on leased property

348,416

299,300

Research and development costs

400,000

582,000

7.	EXCEPTIONAL ITEMS

31.12.24

31.12.23

£

£

Redundancy costs

(120,800

)

-

Profit/loss on sale of invest

-

(2

)

(120,800

)

(2

)

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank loan interest

-

79,101

Hire purchase

1,698

2,524

1,698

81,625