REGISTERED NUMBER: 01451657 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MJ SECTIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr P R M Jordan

Mr K Singh

Mrs T M Jones

SECRETARY:

Mrs M J Harding

REGISTERED OFFICE:

Unit 5 Marriott Road Industrial Estate

Cradley Road

Netherton

DUDLEY

West Midlands

DY2 0JZ

REGISTERED NUMBER:

01451657 (England and Wales)

AUDITORS:

E R Grove & Co Limited

Chartered Accountants and Statutory Auditors

Grove House

Coombs Wood Court

Steel Park Road

Halesowen

West Midlands

B62 8BF

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.

As for many businesses of our size, the business environment in which we operate continues to be challenging. We face competition from the UK and the import market. To help the company stay ahead of its competitors and to meet the demands of major customers the company has embarked on a significant investment program in new premises and plant.

The overall order book remains healthy, and the board believes that the continued investment in plant and machinery will strengthen the company's ability to increase market share.

During the year the company has continued to expand its production capabilities by investing in a new purpose built factory and two new vacuum heat treatment furnaces at its Halesowen site.

In line with its strategic plan, the company has continued to invest in its workforce during the year, widening the implementation of a skilled based salary framework to encompass further key areas and a roll out of a learning and development strategy. the company increased overall headcount in the year by 15% to support the company's increased orders and growth targets.

We consider that our key performance indicators are those that communicate the financial performance and strength of the company, these being turnover, gross margin and profitability.

2024

2023

Turnover

£28.1m

£26.1m

Gross profit

£9.7m

£9.8m

Gross profit %

34.4%

37.6%

Profit before tax

£4.3m

£4.9m

2025 will continue to be a challenging year for the aerospace industry from airlines, airports and their supporting industries to manufacturers throughout the supply chain.

The company has in recent years adopted a strategy to reduce risk by expanding into new overseas markets and investing in plant and capacity without the need for high levels of borrowing. This strategy continues to keep the company in a strong position and is able to adjust capacity without the pressure to meet finance payments.

Securing the required volume of raw material, at a competitive price, has been at times, very challenging but the company has continued to adopt its approach to acquire stock in anticipation of future orders. Post balance sheet, orders have increased and the company is well positioned to deal with the backlog as airlines begin to return to the skies.

We anticipate the business environment will remain competitive and believe that the company is in a good financial position and that the risks that have been identified and are being well managed. With careful focus on new markets and new products, as well as continuing review of the state of the market and the activities of competitors, we are confident in the company's ability to maintain and build on the current position.

Each year, the board undertakes an in-depth review of the company's strategy, including an assessment of the business plan. Once approved by the board, the plan and strategy form the basis for financial budgets, resource plans and investment decisions and also the future strategic direction of the company. In making decisions concerning the business plan and future strategy, the board has regard to a variety of matters including the interests of various stakeholders, the consequences of its decisions in the long term and its long-term reputation.

PRINCIPAL RISKS AND UNCERTAINTIES

The board has overall responsibility for ensuring that risk is effectively managed. The risk management process is designed to identify, evaluate and manage the significant risks that the company faces.

Principal risks

The principal risks and uncertainties facing the company are the turbulence in the financial markets, competition from the UK and abroad and changes in macro-economic conditions. Global market and economic conditions have been challenging, with tighter credit conditions and slower growth in most major economies during the last few years. Although signs of recovery exist, there are continued concerns about government austerity measures, bank debts, the availability and cost of credit and geographical issue that all contribute to increased market volatility.

As a supplier to the aerospace industry we are of course also subject to air passenger travel patterns. These can be affected by consumers' overall level of disposable income in the global economy, the threat of terrorism, an increased awareness of the environmental impact of air travel and environmental factors.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

Financial risk management

The company's principal financial instruments comprise of stock and cash and cash equivalents. Other financial assets and liabilities such as trade debtors and trade creditors arise directly form the company's operetta activities. the main purpose of these financial assets is to provide finance for the company's on-going operations.

Credit risk

The company's policy is to require assessments of customers credit worthiness prior to their being accepted as a credit customer. Payment histories are monitored on a continuous basis to mitigate credit risk. the directors set limits for customers based on a combination of payment history and third-party references.

Cashflow and liquidity risk

The company's finances are monitored by the directors on an ongoing basis. the directors assess the company's cash requirements by assessing short term and long-term forecast.

Mitigation

The barriers for new entrants who specialise in the similar products continues to be very high. Despite this, the company continues to penetrate new territories and increase its product range with an increasing customer base. The directors are taking a cautious and steady approach to expansion into overseas markets. The directors see the expansion into new markets as a reduction in the risk of relying heavily on the UK market.

The company continues to be a major supplier of precision cold formed rings and fabrications to the UK and international aerospace industry.

ENGAGEMENT WITH EMPLOYEES

The company places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed of matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

ON BEHALF OF THE BOARD:

Mr P R M Jordan - Director

23 September 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 the production and machining of high quality non-ferrous steel and cold formed section rolling principally for the aerospace industry.

DIVIDENDS

The total distribution of dividend for the year ended 31 December 2024 is £11,322,493 (2023: £nil).

Included in the above distribution is a a dividend of £11,307,493 paid to the parent company to clear the debt from the parent which resulted from the acquisition by the parent of the company's entire property portfolio.

RESEARCH AND DEVELOPMENT

The company is heavily committed to research and development activities so as to maintain its position and to allow access to markets.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes 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.

Mr P R M Jordan

Mr K Singh

Mrs T M Jones

FINANCIAL INSTRUMENTS

The company operates within its agreed overdraft facility with the bank. Most sales are to UK customers and the majority of suppliers are UK based: the company has therefore not entered into any hedging arrangements in respect of risks relating to trade debtors or creditors.The company does not use derivative financial instruments for speculative purposes.

DISCLOSURE IN THE STRATEGIC REPORT

Certain information is not shown in the Director's Report because it is shown in the Strategic Report instead. The Strategic Report includes a business review, principle risks and uncertainties and information on the company's key performance.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, E R Grove & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P R M Jordan - Director

23 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 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 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:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risks of acts by the Company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006, the principles of United Kingdom Generally Accepted Accounting Practice and tax legislation.

We designed audit procedures to respond to the risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the Company financial statements. Our tests included, but were not limited to:

- agreement of the financial statement disclosures to underlying supporting documentation;

- enquiries of management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- review of minutes of Directors' board meetings throughout the year; and

- obtaining an understanding of the control environment in monitoring compliance with laws and regulations.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals, assessing and challenging the accounting estimates made and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

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.

Mr Steven Lomas (Senior Statutory Auditor)

for and on behalf of E R Grove & Co Limited

Chartered Accountants and Statutory Auditors

Grove House

Coombs Wood Court

Steel Park Road

Halesowen

West Midlands

B62 8BF

23 September 2025

TURNOVER

4

28,091,658

26,116,020

Cost of sales

18,403,717

16,281,836

GROSS PROFIT

9,687,941

9,834,184

Administrative expenses

5,396,766

4,940,117

4,291,175

4,894,067

Other operating income

31,500

42,000

OPERATING PROFIT

6

4,322,675

4,936,067

Interest receivable and similar income

11,144

19,000

4,333,819

4,955,067

Interest payable and similar expenses

7

(7,133

)

441

PROFIT BEFORE TAXATION

4,340,952

4,954,626

Tax on profit

8

913,438

1,135,705

PROFIT FOR THE FINANCIAL YEAR

3,427,514

3,818,921

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,427,514

3,818,921

FIXED ASSETS

Tangible assets

10

5,847,855

11,697,174

CURRENT ASSETS

Stocks

11

11,410,325

9,453,572

Debtors

12

7,481,444

10,283,124

Cash at bank and in hand

4,669,135

4,688,966

23,560,904

24,425,662

CREDITORS

Amounts falling due within one year

13

4,473,214

3,760,250

NET CURRENT ASSETS

19,087,690

20,665,412

TOTAL ASSETS LESS CURRENT LIABILITIES

24,935,545

32,362,586

PROVISIONS FOR LIABILITIES

16

1,319,301

851,363

NET ASSETS

23,616,244

31,511,223

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

23,616,144

31,511,123

SHAREHOLDERS' FUNDS

23,616,244

31,511,223

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

Mr P R M Jordan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

27,692,202

27,692,302

Changes in equity

Total comprehensive income

-

3,818,921

3,818,921

Balance at 31 December 2023

100

31,511,123

31,511,223

Changes in equity

Dividends

-

(11,322,493

)

(11,322,493

)

Total comprehensive income

-

3,427,514

3,427,514

Balance at 31 December 2024

100

23,616,144

23,616,244

Cash flows from operating activities

Cash generated from operations

1

5,665,289

4,899,906

Interest paid

7,133

(441

)

Tax paid

(212,253

)

(90,567

)

Net cash from operating activities

5,460,169

4,808,898

Cash flows from investing activities

Purchase of tangible fixed assets

(4,993,228

)

(5,707,562

)

Sale of tangible fixed assets

10,827,536

-

Interest received

11,144

19,000

Net cash from investing activities

5,845,452

(5,688,562

)

Cash flows from financing activities

Amount introduced by directors

8,251

-

Amount withdrawn by directors

(11,210

)

(40,626

)

Equity dividends paid

(11,322,493

)

-

Net cash from financing activities

(11,325,452

)

(40,626

)

Decrease in cash and cash equivalents

(19,831

)

(920,290

)

Cash and cash equivalents at beginning of year

2

4,688,966

5,609,256

Cash and cash equivalents at end of year

2

4,669,135

4,688,966

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

2024

2023

£

£

Profit before taxation

4,340,952

4,954,626

Depreciation charges

895,408

527,259

(Profit)/loss on disposal of fixed assets

(880,397

)

980

Finance costs

(7,133

)

441

Finance income

(11,144

)

(19,000

)

4,337,686

5,464,306

Increase in stocks

(1,956,753

)

(1,740,745

)

Decrease in trade and other debtors

2,735,308

54,445

Increase in trade and other creditors

549,048

1,121,900

Cash generated from operations

5,665,289

4,899,906

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

4,669,135

4,688,966

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,688,966

5,609,256

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

4,688,966

(19,831

)

4,669,135

4,688,966

(19,831

)

4,669,135

Total

4,688,966

(19,831

)

4,669,135

1.	STATUTORY INFORMATION

MJ Sections 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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about he carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

Revenue recognition

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT.

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

-

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

-

the company 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 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, specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed.

Rental income from property leased out under an operating lease is recognised in the profit and loss on a straight line basis over the lease term.

Tangible fixed assets

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

Freehold property

-

1% on cost

Plant and machinery

-

20% on cost and 20% on reducing balance

Fixtures and fittings

-

20% on cost and 20% on reducing balance

Motor vehicles

-

25% on reducing balance

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks and work in progress

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.

Work-in-progress is reflected in the accounts on a job by job basis by recording turnover and related costs as job activity progresses.

Provision is made for obsolete, slow-moving or defective items where appropriate.

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

The financial statements are presented in pounds sterling, which is also the functional currency of the company. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the reporting date. Gains and losses arising on translation are included in the income statement for the period.

Hire purchase and leasing commitments

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.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

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.

Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting.

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.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, be definition, seldom equal the related actual results.In the opinion of the directors the following are the critical judgements made in the process of applying the company's accounting policies:

Impairment of fixed assets:

At each reporting date, the company is required to assess whether there is any indication that, in management's judgement, the carrying value of tangible or intangible assets may not be recoverable. If any indication exists, the relevant assets recoverable value is estimated, being the greater of its value in use and fair value less cost to sell. Where the carrying value exceeds the recoverable value, the asset's carrying value is reduced to the recoverable value.

Stock provisioning:

The company manufactures components and sub assemblies for the aerospace industry. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. Management consider the nature and condition of the stock and apply assumptions around future demand when calculating the level of provisioning required.

Debtor provisioning:

The company makes an estimate of the recoverable value of trade debtors. When assessing recoverability, management considers factors including customer credit rating, the age profile and historic experience.

Changes to the tax charge based on research and development expenditure:

At each reporting date the company is required to assess the value of research and development expenditure in calculating the corporation tax charge.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

2024

2023

£

£

Cold formed rolled sections

28,091,658

26,116,020

28,091,658

26,116,020

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

21,115,298

19,585,638

Europe

1,905,424

2,105,665

Rest of the world

5,070,936

4,424,717

28,091,658

26,116,020

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

11,186,918

8,847,005

Social security costs

1,202,073

951,849

Other pension costs

441,418

382,425

12,830,409

10,181,279

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

2024

2023

Administration

-

21

Production

218

168

218

189

2024

2023

£

£

Directors' remuneration

1,326,260

1,224,749

Directors' pension contributions to money purchase schemes

23,200

23,200

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

454,221

452,131

6.	OPERATING PROFIT

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

2024

2023

£

£

Other operating leases

18,904

-

Depreciation - owned assets

895,408

527,260

(Profit)/loss on disposal of fixed assets

(880,397

)

980

Auditors' remuneration

34,250

26,000

Foreign exchange differences

(3,993

)

18,702

Auditors' remuneration for non audit work

18,075

17,175

Operating lease charges

52,663

25,567

Research and development

-

880,000

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest

(7,133

)

441