REGISTERED NUMBER: 03216903 (England and Wales)

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31st December 2024

for

CANNON TECHNOLOGIES GROUP LIMITED

Page

Company Information

1

Report of the Directors

2

Statement of Directors' Responsibilities

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

E A Reddicliffe

M Goulding

SECRETARY:

E A Reddicliffe

REGISTERED OFFICE:

13 Queensway

Stem Lane Industrial Estate

New Milton

Hampshire

BH25 5NU

REGISTERED NUMBER:

03216903 (England and Wales)

SENIOR STATUTORY AUDITOR:

Alasdair Weaks

AUDITORS:

TC Group

Statutory Auditor

Office: Croydon - TC SWP

3rd Floor, Suffolk House

George Street

Croydon

CR0 0YN

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

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the design and manufacture of specialist electronic data enclosure systems.

DIRECTORS

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

E A Reddicliffe

M Goulding

GOING CONCERN AND FUTURE DEVELOPMENTS

The group finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities.

During 2024 and continuing into 2025 the group has experienced delays to projects in the business pipeline. The directors have prepared forecasts and have considered sensitivity analysis which includes scenarios where there are delays in orders. To support the group in meeting its short-term liabilities and ongoing running costs for at least 12 months from the date of signing these financial statements, an overdraft facility of £625,000 is available. In addition, the group has also generated a number of opportunities with both existing and new customers that the directors expect to generate positive cashflow inflow for 2026.

The banking credit facility has been reduced from c£1.25m in 2023 to c£625k to date. The current headroom on the facility is £525,000 and is due for renewal on 28 February 2026. The directors have no reason to believe that the facility will not be renewed based on the guarantees provided for the facilities. The directors consider the group has adequate funds to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue.

Whilst there are elements of uncertainty regarding the timing of delayed projects, the directors are confident that the going concern basis of preparation is appropriate given the combination of an expectation of sufficient cash inflows from ongoing trade, the commencement of delayed orders and the use of the group's credit facility, together with the ability to temporarily reduce the group cost base if required.

FINANCIAL INSTRUMENTS

The group's operations expose it to a variety of financial risks which include credit risk and liquidity risk.

Credit Risk

The group's credit risk relates to bank loans and overdraft facilities held by group companies. These facilities are secured against the assets of all group companies and are reviewed annually.

Liquidity Risk

The group ensures that sufficient liquidity is available to meet forseeable needs. The group of companies is liable to its bankers in respect of overdrafts operated by group companies under the terms of an unlimited multilateral guarantee.

Interest Risk

The bank overdraft facilities are used when needed, during the year, the Board monitors the interest rate and level of overdraft and does not believe it appropriate to hedge against interest rate fluctuations.

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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

E A Reddicliffe - Director

22nd September 2025

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

Opinion

We have audited the financial statements of Cannon Technologies Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position 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 group's and of the parent company affairs as at 31st December 2024 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 the audit:

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

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- We made enquiries with management to confirm our understanding that the group continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the group to ensure ongoing compliance.

- We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the group's policies and procedures on fraud risks through discussion with the group's management.

- We considered the risk of material misstatement due to fraud as a result of possible management override of controls, and improper revenue recognition. To address these risks we tested the appropriateness of journal entries posted, reviewed those judgements made in making accounting estimates, and tested the application of revenue recognition and the cut-off of revenue.

- We communicated those laws and regulations considered relevant to the group, and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alasdair Weaks (Senior Statutory Auditor)

For and on behalf of TC Group

Statutory Auditor

Office: Croydon - TC SWP

3rd Floor, Suffolk House

George Street

Croydon

CR0 0YN

22nd September 2025

REVENUE

Group and share of joint ventures

8,941,113

12,549,367

Less:

Share of joint ventures' revenue

(3,390,459

)

(2,899,206

)

GROUP REVENUE

5,550,654

9,650,161

Cost of sales

(4,083,318

)

(7,443,019

)

GROSS PROFIT

1,467,336

2,207,142

Administrative expenses

(2,321,521

)

(2,307,778

)

(854,185

)

(100,636

)

Other operating income

6,631

1,467

GROUP OPERATING LOSS

6

(847,554

)

(99,169

)

Share of operating profit in

Joint ventures

386,997

266,441

Interest receivable and similar income

1,260

-

(459,297

)

167,272

Interest payable and similar expenses

Group

(22,049

)

(81,255

)

Joint ventures

(52

)

(326

)

(LOSS)/PROFIT BEFORE TAXATION

(481,398

)

85,691

Tax on (loss)/profit

128,863

605,843

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(352,535

)

691,534

OTHER COMPREHENSIVE INCOME

Unrealised gain on financial instrument

293,328

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

293,328

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(59,207

)

691,534

(Loss)/profit attributable to:

Owners of the parent

(352,535

)

691,534

Total comprehensive (loss)/income attributable to:

Owners of the parent

(59,207

)

691,534

FIXED ASSETS

Intangible assets

8

9,729

11,995

Property, plant and equipment

9

214,033

240,337

Investments

10

Interest in joint venture

Share of gross assets

1,704,374

1,197,036

Share of gross liabilities

(773,895

)

(344,394

)

1,154,241

1,104,974

CURRENT ASSETS

Inventories

11

1,623,835

1,382,216

Debtors

12

1,454,959

2,990,457

Cash at bank and in hand

307,579

66,734

3,386,373

4,439,407

CREDITORS

Amounts falling due within one year

13

973,413

1,917,973

NET CURRENT ASSETS

2,412,960

2,521,434

TOTAL ASSETS LESS CURRENT LIABILITIES

3,567,201

3,626,408

CAPITAL AND RESERVES

Called up share capital

16

47,000

47,000

Capital redemption reserve

17

1,575,942

1,575,942

Fair value reserve

17

293,328

-

Retained earnings

17

1,650,931

2,003,466

SHAREHOLDERS' FUNDS

3,567,201

3,626,408

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 22nd September 2025 and were signed on its behalf by:

E A Reddicliffe - Director

FIXED ASSETS

Intangible assets

8

-

-

Property, plant and equipment

9

-

-

Investments

10

70,106

70,106

70,106

70,106

CURRENT ASSETS

Cash at bank

5

5

CREDITORS

Amounts falling due within one year

13

121,989

121,989

NET CURRENT LIABILITIES

(121,984

)

(121,984

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(51,878

)

(51,878

)

CAPITAL AND RESERVES

Called up share capital

16

47,000

47,000

Capital redemption reserve

3,000

3,000

Retained earnings

(101,878

)

(101,878

)

SHAREHOLDERS' FUNDS

(51,878

)

(51,878

)

Company's loss for the financial year

-

(1,000

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 22nd September 2025 and were signed on its behalf by:

M Goulding - Director

1.	STATUTORY INFORMATION

The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the design and manufacture of specialist electronic data enclosure systems.

The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is 13 Queensway, Stem Lane Industrial Estate, New Milton, Hampshire, BH25 5NU.

2.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. During the year the Group derecognised a financial asset in exchange for the rights and rewards of stock items. In accordance with FRS 102 (Para 11.33), the stock has been measured by the directors at fair value at the date of the exchange. FRS 102 also requires that any difference between the consideration received and the amounts recognised and derecognised shall be recognised in the profit and loss. However Companies Act 2006 states that 'only profits realised at the balance sheet date are to be included in the profit and loss account'. As FRS 102 is not explicit in this particular circumstance, the directors have decided it is necessary to invoke a true and fair override of FRS 102 to comply with Companies Act 2006. The unrealised gain arising totalling £293,328 has been recognised in other comprehensive income and the fair value reserve on the balance sheet. Subject to the departure, all applicable legislation and accounting standards have been complied with.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

Going concern

The group finances its operations from ongoing trading, investment income and through various financing agreements with their bankers, including overdraft facilities.

During 2024 and continuing into 2025 the company has experienced delays to projects in the business pipeline. The directors have prepared forecasts and have considered sensitivity analysis which includes scenarios where there are delays in orders. To support the group in meeting its short-term liabilities and ongoing running costs for at least 12 months from the date of signing these financial statements, an overdraft facility of £625,000 is available. In addition, the group has also generated a number of opportunities with both existing and new customers that the directors expect to generate positive cashflow inflow for 2026.

The banking Credit facility has been reduced from c£1.25m in 2023 to c£625k to date. The current headroom on the facility is £525,000 and is due for renewal on 28 February 2026. The directors have no reason to believe that the facility will not be renewed based on the guarantees provided for the facilities. The directors consider the group had adequate funds to meet its liabilities as they fall due for a period of at least 12 months from the date the financial statements were authorised for issue.

Whilst there are elements of uncertainty regarding the timing of delayed projects, the directors are confident that the going concern basis of preparation is appropriate given the combination of an expectation of sufficient cash inflows from ongoing trade, the commencement of delayed orders and the use of the group's credit facility, together with the ability to temporarily reduce the group cost base if required. As a result, the directors believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The consolidated financial statements present the results of Cannon Technologies Group Limited and all of its subsidiary undertakings and joint ventures up to 31 December each year. Intercompany transactions and balances between group companies are therefore eliminated in full.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Where a subsidiary has different accounting policies from the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements.

A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of the joint venture are accounted for using the equity method of accounting.

The consolidated financial statements incorporate the results of business combinations using the purchase method.

Joint ventures

An entity is treated as a joint venture where the group is a party to contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.

In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated statement of financial position, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on aquisition.

Any premium on acquisition is dealt with accordance with the goodwill policy.

Revenue

Turnover is recognised to the extent that it is probable the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Revenue is recognised when all of the following conditions are satisfied:

-

the group has transferred the significant risks and rewards of ownership to the buyer;

-

the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of revenue can be measured reliably;

-

it is probable that the group will receive the consideration due under the transaction;

-

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill may arise on the acquisition of subsidiary and associated undertakings and interests in joint ventures. It represents the excess of cost over fair value of the group's share of net assets acquired.

Goodwill arising in such a manner is capitalised as an intangible asset and amortised by equal instalments over its expected life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost included expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives or, if held under a finance lease, over the lease term, which ever is the shorter.

Plant and machinery

- 10% straight line

Fixtures and fittings

- 20% straight line

Motor vehicles

- 25% reducing balance

Computer equipment

- 33% straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised in the Statement of Comprehensive Income.

Inventories

Stocks are stated at the lower of cost and net relisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

Financial instruments

The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from financial institutions and hire-purchase agreements.

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute financing transactions, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market value, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 is written off in the year in which it is incurred.

Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period in which the company is expected to derive benefits.

Foreign currencies

The group's and company's functional and presentational currency is pound sterling.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Investments

Shares in group companies are stated at cost less provision for diminution in value.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term trade creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effect interest method.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carry value of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively.

In assessing whether there have been any indicators of impairment to assets, the directors consider both external and internal sources of information such as market conditions and experience of recoverability.

Recoverability of receivables

The group establishes a provision for receivables that are estimated not to be recoverable or recoupable. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of the debtor.

Provisions against slow moving inventory

The group establishes a provision for slow moving inventory. When determining the provision, the directors consider factors such as the amount of inventory holding and subsequent sales.

Determining residual values and useful economic lives of property, plant and equipment

The group depreciates tangible and intangible assets over their estimated useful lives. The estimation of the useful lives of the assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes.

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,945,496

2,329,872

Social security costs

222,770

239,885

Other pension costs

58,981

52,449

2,227,247

2,622,206

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

31.12.24

31.12.23

Management and administration

21

23

Production

41

42

Paint shop and drivers

3

5

65

70

The average number of employees by undertakings that were proportionately consolidated during the year was 65 (2023 - 70 ) .

6.	OPERATING (LOSS)/PROFIT

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

31.12.24

31.12.23

£

£

Hire of plant and machinery

33,081

13,763

Depreciation - owned assets

60,301

97,864

Loss on disposal of fixed assets

641

589

Patents and licences amortisation

2,266

2,508

Foreign exchange differences

(1,587

)

(1,467

)

The Group incurred £1,902k (31.12.23: £2,461k) of research and development expenditure in the year, of which £1,429k (31.12.23: £1,491k) relates to total staff costs.

7.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.

8.	INTANGIBLE FIXED ASSETS

Group

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1st January 2024

and 31st December 2024

50,476

85,620

136,096

AMORTISATION

At 1st January 2024

50,476

73,625

124,101

Charge for year

-

2,266

2,266

At 31st December 2024

50,476

75,891

126,367

NET BOOK VALUE

At 31st December 2024

-

9,729

9,729

At 31st December 2023

-

11,995

11,995

9.	PROPERTY, PLANT AND EQUIPMENT

Group

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1st January 2024

4,465

3,641,629

323,236

Additions

-

31,183

3,749

Disposals

-

-

-

At 31st December 2024

4,465

3,672,812

326,985

DEPRECIATION

At 1st January 2024

4,465

3,485,288

284,830

Charge for year

-

33,409

8,822

Eliminated on disposal

-

-

-

At 31st December 2024

4,465

3,518,697

293,652

NET BOOK VALUE

At 31st December 2024

-

154,115

33,333

At 31st December 2023

-

156,341

38,406

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st January 2024

119,900

663,014

4,752,244

Additions

(294

)

-

34,638

Disposals

(3,505

)

-

(3,505

)

At 31st December 2024

116,101

663,014

4,783,377

DEPRECIATION

At 1st January 2024

84,562

652,762

4,511,907

Charge for year

10,369

7,701

60,301

Eliminated on disposal

(2,864

)

-

(2,864

)

At 31st December 2024

92,067

660,463

4,569,344

NET BOOK VALUE

At 31st December 2024

24,034

2,551

214,033

At 31st December 2023

35,338

10,252

240,337