REGISTERED NUMBER: 00380480 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

NORBAR TORQUE TOOLS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

N A Brodey

R Miller

J M Arregui Saez

J L Reynertson

S R Clarke

SECRETARY:

J Patstone

REGISTERED OFFICE:

Wildmere Road

Banbury

Oxfordshire

OX16 3JU

REGISTERED NUMBER:

00380480 (England and Wales)

AUDITORS:

Luckmans Duckett Parker Limited

1110 Elliott Court

Coventry Business Park

Herald Avenue

Coventry

West Midlands

CV5 6UB

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

REVIEW OF BUSINESS

The company manufactures and sells a range of torque tools and torque measuring instruments for critical bolting applications. These products are primarily sold into six main industrial sectors or "critical industries"; namely oil and gas, mining and refining, power generation, transportation, general manufacturing and aerospace. Given the global presence of these sectors, they can be subject to economic swings that may influence the company's performance in any one year.

The company continues to have four different routes to market as follows:

1) Distribution through Norbar companies including those in the USA, China, India and Australia;

2) Distribution through global Snap-on family companies;

3) Independent distributors of tools and torque products; and

4) Catalogue companies selling a wide range of tools, some of which are labelled with the customers' brand.

This multi-tiered approach extends our customer reach enabling us to be closer to the markets that we serve, where we continue to deploy the Snap-on Value Creation Model offering a unique customer proposition. These channels are complimented by further expansion in the digital space providing customers with insights into products and applications via video and other media forms.

This very broad nature of the company's distribution, not just in geographic market terms, but also industrial markets, means that to some extent the company is protected from any specific country risk or industrial sector risk.

During 2024 the company saw a sales decline of 2.8% primarily through sales to Norbar companies in overseas territories. This follows a particularly strong year in 2023 where the regional outlets invested in growing inventory to serve local customer base. Sales to industrial distribution and Snap-on channels exceeded 2023 levels.

Norbar continued to utilise its "rapid continuous improvement" or RCI activities with the intention of eliminating waste in processes or products. RCI helped the company to increase its production efficiencies partially offsetting inflationary cost pressures. RCI is a unique way to engage employees at all levels by teaching them how to recognise waste within their operation or function and empowering them with the tools and resources necessary to eliminate that waste.

The key financial highlights are as follows:

2022 (£)

2023(£)

2024 (£)

Turnover

37,546,507

41,784,694

40,606,915

Turnover Growth

15.15%

11.29%

-2.82%

Gross Profit Margin

36.5%

36.98%

36.63%

Profit before tax

3,477,261

3,275,631

1,079,433

Profits were down year over year driven by an increase in operating expenses as the company undertook an extensive refresh and refurbishment of the Banbury factory. Improvements to the facility included new washrooms for the staff, lighting within the factory and the creation of a new innovation centre to fast-track new product development continuing the companies investment into new products and research and development work. The company launched an exciting new range of class leading battery torque multipliers, the EBT-C that will provide future growth opportunities across critical industries.

Norbar maintained its skilled workforce with the number of employees stable during 2024 relative to 2023.

Overall 2024 was an encouraging year despite multiple challenges across the wider business environment, the efforts and determination of our workforce to satisfy our customers was highly commendable.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all trading businesses, the company is exposed to a variety of risks in the conduct of its normal business operations. The company maintains a range of insurance policies against major identified insurable risks including (but not limited to) those related to business interruption, damage to property and equipment, product and employee liability. While it is not possible to completely record or quantify every material risk, below is summary of those risks that the directors believe are significant to the company's business:

Operational and commercial risks

The company's revenues are principally derived from the sales of torque tightening and measuring tools and instruments. The markets for these products (and therefore revenues) are subject to variations in patterns of demand and economic growth. The wide range of markets and geographic territories serviced by the group mitigates this risk, although exposure to the oil and gas industries means that the cyclic nature of these industries can have an effect on the company's revenue. Norbar also serves transportation and manufacturing industries which, collectively with oil and gas, diversify the company's business broadly.

Market competition

Competition within the torque tool industry remains steady with competitors at both the high quality and lower quality/lower price ends of the market. However, the critical and essential nature of torque product, and Norbar's reputation for offering robust, long lasting solutions give the company some ability to ask for price in the marketplace. The company will continue to develop and sell high quality products and the directors believe that in this market it remains competitive. The company is also investing in registered intellectual property protection to help mitigate this risk.

Foreign exchange risk

The company continues to sell mainly in pounds and so the inflationary environment in the UK provides a currency risk. However, currency risk is now mitigated through hedging. The company's strategy is to focus on continuous improvement and increasing its efficiency to help counteract the impact of increased prices and salaries.

Suppliers

Norbar believes in the vision of becoming the business partner of choice for customers and suppliers alike. Although the company takes care to ensure alternative sources of supply are available for goods on which the company's business is critically dependent, this is not always possible. The company follows a policy of local supply where possible and has strong relationships with its key suppliers. Norbar continually looks to re-shore or near-shore the supply of some components which are currently sourced from far-flung places. In addition, the company is leveraging the greater buying power of its parent company to help source goods at a better price.

IT and systems reliability

The company is dependent on its information technology systems to operate its business efficiently, without failure or interruption. While data within key systems is regularly backed up and the system is subject to virus and fire wall protection, any failure of back-up systems or other major interruption to the information technology system could have a disruptive effect on the company's business. To mitigate this risk updates to data and operational protection are constantly being reviewed and implemented.

Skilled employees

In order to remain competitive, the company needs to remain at the forefront of the development of new products. To do this it needs to be able to recruit and retain suitably skilled employees, particularly engineers and skilled CNC machine operators. The company is working closely with local schools and universities to promote engineering as a career and to attract suitably skilled individuals to the company at all levels including apprenticeships.

Political change

The company sells worldwide including into regions that are politically unstable and sales can be impacted by sanctions or other export controls that may be imposed by the UK government. An increasing move towards protectionism in major markets can affect the business.

ENGAGEMENT WITH EMPLOYEES

Norbar's parent company, Snap-on Inc., expresses a vision of being an employer of choice, a brand of choice and a business partner of choice.

Norbar maintains open and frequent dialogue with employees of all levels. Specifically, directors meet with employees monthly by holding an Employee Council where all departments and shifts are represented. The Employees' Council (EC) allows all employees to participate in the decisions that help us achieve our mission and vision. Additionally, Norbar offers all employees an incentive bonus scheme so that everyone can benefit from the company's financial success.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Through our sales forces and distributors, we make daily contacts with thousands of professionals in their workplaces across the globe. Each of these contacts represents an opportunity to understand in depth our customers' wants and needs, which we believe provides us with an important strategic advantage.

Guided by our core shared beliefs and values, Snap-on and Norbar is committed to integrity and social responsibility throughout its worldwide supply base.

ON ORDER OF THE BOARD:

S R Clarke - Director

27 August 2025

The directors present their report with the financial statements of the company 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 continues with its research and development activities. The purpose of this is to develop new concepts to improve the technology used in torque tools and to continue to bring new products to market to enable the company to maintain its product range as being a worldwide market leading torque tool manufacturer.

DIRECTORS

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

N A Brodey

R Miller

J M Arregui Saez

J L Reynertson

S R Clarke

EMPLOYEES

The company shares information with employees through cascade briefings or "Team Briefs". The directors continue to meet regularly with the senior managers to discuss the core aspects of the business and to consider trading trends and marketing policies that are applicable to an ever-changing global sales environment.

The company has monthly gatherings to communicate general news and has an elected representative body which complies with the European Information and Consultation Directive requirements.

DISABLED EMPLOYEES

The company has policies and procedures in place to encourage employees with disabilities. Managers receive education in the requirements of the Disability Discrimination Act 1995 and the Equality Act 2010.

To remove any possible discrimination our application form for recruitment does not ask if a potential applicant has a disability. After selection of candidates, in our invite, for interview letter we ask what reasonable adjustments can be made to enable that applicant to attend.

We work closely with our Occupational Health team to make the necessary reasonable adjustments for those who become disabled to allow them to continue to carry out their job roles.

Our Equal Opportunities policy commits that we treat all our employees equally for recruitment, selection, training and development and promotion.

STREAMLINED ENERGY AND CARBON REPORTING

Norbar is committed to the reduction of its carbon footprint and has had an ISO50001 registered Energy Management System since 2015. This means Norbar has been monitoring its energy use since that date and has been actively looking to introduce energy saving measures. In 2015 Norbar installed a solar array on the roof of its factory and in July 2022 it installed a second, larger scheme. Together these arrays were predicted to generate approximately 25% of Norbar's electricity needs, unfortunately we generated a fault on the first array (April 2023) and was fixed in August 2024, however despite this the solar array did generate 24% of energy needs.

The figures shown below are for Norbar's energy consumption in financial year 2024 in kWh including purchased electricity, electricity generated by the solar arrays and car fuel usage. Norbar does not have a gas supply. The related carbon footprint, measured in CO2e metric tonnes, for purchased electricity and car fuel usage has been calculated using the UK Government conversion factors for company reporting of greenhouse gas emissions. This figure has been used to generate the intensity ratio by dividing it by the total sales for 2024. The total emission savings from the solar array generation have been calculated using the same UK Government factors and have not been included in the intensity ratio calculation. The comparison figures for 2023 and 2022 have also been provided.

For the year ended 31.12.24

For the year ended 31.12.23

For the year ended 31.12.22

Energy consumed (purchased electricity) plus car fuel usage (kWh)

2392469

2432794

2603565

Electricity consumption (generated by solar array)(kWh)

430959

520693

316171

Total gross emissions (purchased electricity plus car fuel usage) (CO2e metric tonnes)

51.0

64.0

512.3

Total emissions savings from solar array generation (CO2e metric tonnes)

99.4

120.3

79.4

Sales (£million)

39.9

41.6

37.1

Intensity ratio Tonnes CO2e per £1 million sales

1.3

1.5

13.8

DISCLOSURE IN THE STRATEGIC REPORT

Reports for Engagement with Employees and Engagement with Suppliers, Customers and Others are included in the Strategic Report

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON ORDER OF THE BOARD:

S R Clarke - Director

27 August 2025

Opinion

We have audited the financial statements of Norbar Torque Tools Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 six, 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 identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- reference to past history and experience of the Entity,

- enquiry of management, including obtaining and reviewing supporting documentation concerning

the Entity's procedures relating to:

- identifying and complying with laws and regulations and whether they were aware of any instances

of non-compliance;

- detection and response to risk of fraud and whether they were aware of any actual or suspected

instances of fraud.

- assessment of the controls and processes that the Entity has in place to mitigate risk

Our assessments included the identification of the following potential areas for fraud:

- Management override of control;

- Revenue recognition, particularly in respect of delivery of goods

We design audit procedures by tailored and directed testing to aid and support the level of determined level of risk. In response to the assessed risk we plan audit tests and procedures that target specific areas where misstatement may occur. These procedures and the extent to which they are capable of detecting

irregularities, including fraud, are detailed below:

- We critically assessed the appropriateness and tested the application of the revenue and cost

recognition policies

- We tested the appropriateness of accounting journals and other adjustments made in the

preparation of the financial statements

- We reviewed the Entity's accounting policies for non-compliance with relevant standards.

- We made enquiries of management and reviewed correspondence with the relevant authorities to

identify any irregularities or instances of non-compliance with laws and regulations

In performing an audit in accordance with UK GAAP, we exercise professional judgement and maintain

professional scepticism throughout the audit process.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from

error, as fraud may involve collusion or override of internal controls. There are inherent limitations in the audit procedures performed.

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.

Mark Spafford FCA FCCA (Senior Statutory Auditor)

for and on behalf of Luckmans Duckett Parker Limited

1110 Elliott Court

Coventry Business Park

Herald Avenue

Coventry

West Midlands

CV5 6UB

27 August 2025

TURNOVER

3

40,606,915

41,784,694

Cost of sales

25,730,856

26,333,646

GROSS PROFIT

14,876,059

15,451,048

Administrative expenses

14,859,880

12,977,969

16,179

2,473,079

Other operating income

348,781

246,298

OPERATING PROFIT

5

364,960

2,719,377

Interest receivable and similar income

714,473

556,254

PROFIT BEFORE TAXATION

1,079,433

3,275,631

Tax on profit

6

(24,298

)

1,047,837

PROFIT FOR THE FINANCIAL YEAR

1,103,731

2,227,794

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,103,731

2,227,794

FIXED ASSETS

Intangible assets

7

53,378

29,573

Tangible assets

8

10,235,099

8,697,470

10,288,477

8,727,043

CURRENT ASSETS

Stocks

9

7,561,792

7,660,110

Debtors

10

21,326,081

21,717,229

Cash at bank

774,237

347,528

29,662,110

29,724,867

CREDITORS

Amounts falling due within one year

11

6,838,032

6,413,647

NET CURRENT ASSETS

22,824,078

23,311,220

TOTAL ASSETS LESS CURRENT LIABILITIES

33,112,555

32,038,263

PROVISIONS FOR LIABILITIES

14

1,481,872

1,511,311

NET ASSETS

31,630,683

30,526,952

CAPITAL AND RESERVES

Called up share capital

15

62,770

62,770

Retained earnings

16

31,567,913

30,464,182

SHAREHOLDERS' FUNDS

31,630,683

30,526,952

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2025 and were signed on its behalf by:

S R Clarke - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

62,770

28,236,388

28,299,158

Changes in equity

Total comprehensive income

-

2,227,794

2,227,794

Balance at 31 December 2023

62,770

30,464,182

30,526,952

Changes in equity

Total comprehensive income

-

1,103,731

1,103,731

Balance at 31 December 2024

62,770

31,567,913

31,630,683

1.	STATUTORY INFORMATION

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

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.

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.

Turnover

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

Turnover from the sale of goods are recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is either on an ex-works basis for international sales or a CIP basis for domestic sales.

Intellectual property

Amortisation is provided to write off intellectual property over its estimated useful life of 5 years from the acquisition date of the intellectual property.

Computer software

Amortisation is provided to write off computer software over its estimated useful life of 5 years from when the asset comes into use by the company.

Tangible fixed assets

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

Improvements to property

-

4% on cost

Plant and machinery

-

Over 10 years

Fixtures and fittings

-

Straight line over 15 years

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks are valued on a First In First Out basis using a standard costing pricing model.

Stock recognised in cost of sales during the year as an expense was £NIL.

Taxation

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

Current 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.

Pension costs and other post-retirement benefits

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

Government grants

Revenue grants are charged to the profit and loss account when the expenditure is incurred. Capital grants are deducted from the acquisition cost of fixed assets acquired under the terms of the grant.

Changes in accounting estimates

Bad Debt Provision

Bad debts are assessed according to how long the customer is over their terms by:

100% for customers with known trading issues

90%- 180 days or more over their terms

50% - between 121-179 days over their terms

20% - between 90-120 days over their terms

Stock Provision

Stock provision is assessed on usage over the past 12 months compared to the relative stock holdings,

Quantity over 12 mths usage - 5%

Quantity over 24 mths usage - 20%

Quantity over 36 mths usage - 30%

No usage in last 12 mths - 100%

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

11,258,964

11,292,106

Overseas

29,347,951

30,492,588

40,606,915

41,784,694

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

14,415,085

13,760,368

Social security costs

1,429,153

1,314,675

Other pension costs

821,187

777,252

16,665,425

15,852,295

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

2024

2023

Production

244

243

Management and administration

77

78

321

321

2024

2023

£

£

Directors' remuneration

300,550

258,205

Directors' pension contributions to money purchase schemes

11,010

-

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

Money purchase schemes

1

-

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

158,270

258,205

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation - owned assets

934,705

861,177

Loss on disposal of fixed assets

3,484

8,239

Computer software amortisation

34,121

35,015

Auditors' remuneration

22,575

21,500

Foreign exchange differences

49,327

27,116

6.

TAXATION

Analysis of the tax (credit)/charge

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

2024

2023

£

£

Current tax:

UK corporation tax

5,141

634,441

Research & Developments Expenditure Credit

-

33,704

Total current tax

5,141

668,145

Deferred tax provision movement

(29,439

)

379,692

Tax on profit

(24,298

)

1,047,837

UK corporation tax has been charged at 19% (2023 - 25%).

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

1,079,433

3,275,631

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

205,092

818,908

Effects of:

Expenses not deductible for tax purposes

5,855

5,498

Capital allowances in excess of depreciation

(235,245

)

-

Depreciation in excess of capital allowances

-

265,052

Adjustment for partial year taxed at 19%

-

(41,621

)

Total tax (credit)/charge

(24,298

)

1,047,837

7.	INTANGIBLE FIXED ASSETS

Intellectual

Computer

property

software

Totals

£

£

£

COST

At 1 January 2024

60,500

469,033

529,533

Additions

-

57,926

57,926

Disposals

-

(34,388

)

(34,388

)

At 31 December 2024

60,500

492,571

553,071

AMORTISATION

At 1 January 2024

60,500

439,460

499,960

Amortisation for year

-

34,121

34,121

Eliminated on disposal

-

(34,388

)

(34,388

)

At 31 December 2024

60,500

439,193

499,693

NET BOOK VALUE

At 31 December 2024

-

53,378

53,378

At 31 December 2023

-

29,573

29,573