REGISTERED NUMBER: NI707606 (Northern Ireland)

S.MORRIS HOLDINGS LTD

Group Strategic Report, Director's Report and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Director's Report

4

Independent Auditors' Report

6

Consolidated Income Statement

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTOR:

Seamus Morris

REGISTERED OFFICE:

63 Gortgonis Road, Coalisland

Dungannon

Co. Tyrone

BT714QG

REGISTERED NUMBER:

NI707606 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Bank of Ireland

24 Scotch Street

Dungannon

Tyrone

BT70 1AR

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

Principal Activities

The principal activity of the company was that of a holding company and The principal activity of the group was that of the manufacture of precision cylinders for the materials handling, construction and agricultural industries.

REVIEW OF BUSINESS

S.Morris Holdings Limited was incorporated on the 05 January 2024 in order to affect a group reconstruction involving Northern Hydraulics Ltd. The company acquired the controlling share in Northern Hydraulics Ltd in a share for share exchange. This group reconstruction has been accounted for using the merger accounting method as it is considered to meet the requirement of FRS102 and the companies Act 2006.

The concept of merger accounting results in the company's financial statements being prepared as if the group had always excised and therefore the group financial statements reflect the results for the period ended 31 December 2024 with the comparative financial results for the year end 31 December 2023.

The Group delivered a satisfactory trading performance in respect of the year ended 31 December 2024 and the business remains in a sound financial position at the year end. The Group returned a profit for the financial year of £348,443 (2023: £1,453,492)

The director considers the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit.

The director has provided an analysis of the key performance indicators of the business below. The director continue to monitor revenue and costs to ensure the company remains profitable. The Group continues to maintain a strong net asset position.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Groups strategy are subject to a number of risks. The key business risks and uncertainties affecting the Groups relate to competition, industry cost pressures and human resources.

- Competition: The director carry out regular strategic reviews including assessments of competitor activity and market trends. The risks are also, addressed through not being overly reliant on any one customer, strong customer service as well as investment in its people and facilities.

- Inflationary cost pressures: manufacturers continue to experience issues with,rising interest rates, commodity' and energy costs, supply chain disruption and geopolitical tensions. We remain attentive to the potential headwinds experienced by all aspects of the project cycle and seek to mitigate these risks through robust risk and commercial management, together with continuing dialogue with key stakeholders.

- Human resources: recruitment, retention and development of key employees is paramount to continued business success in the current economic climate and the business continues to invest in employment training and development, together with appropriate incentive and career progression arrangements, as well as the introduction of employee wellbeing initiatives.

STRATEGY & DEVELOPMENT

The Group and the company's success is dependent on understanding and meeting the developing needs of customers and developing innovative solutions for their needs. The company will continue to improve upon its position and concentrate on achieving maximum growth in its market sector while at the same time continuing to improve efficiency in all areas of its operations. With its proven track record the company believes it will be well placed to retain existing customers and generate new business.

BUSINESS ENVIRONMENT

The engineering sector is a highly competitive sector. It is our expectation that this will continue to be the case.

FINANCIAL KEY PERFORMANCE INDICATORS

The director consider the key performance indicators of the company to be those that reflect the performance of the company as a whole:

2024

2023

Revenue:

£10,747,682

£15,443,029

Gross profit margin:

18.66%

20.22%

FUTURE DEVELOPMENTS

The Group is committed to long term creation of shareholder value by increasing the company's market share. The Group aims to increase revenue and operating profits. The Group will continue to meet the needs of the customers and develop innovative solutions for their needs while remaining highly competitive.

EMPLOYEES

The Group's policy is to consult and discuss with employees matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on part of all employees of the financial and economic factors affecting the company performance.

ON BEHALF OF THE BOARD:

Seamus Morris - Director

12 September 2025

The director presents his report with the financial statements of the Company and the Group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company was that of a holding company and The principal activity of the group was that of the manufacture of precision cylinders for the materials handling, construction and agricultural industries.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024 (2023:37,000)

RESEARCH AND DEVELOPMENT

The Group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

DIRECTOR

Seamus Morris was appointed as a director on 5 January 2024 and held office during the whole of the period from then to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

The Group made charitable donations totalling £5,818 (2023: £5,427). No political donations were made during the year (2023: Nil).

DISCLOSURES REQUIRED UNDER SCHEDULE 7

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the review of the company's business, financial risk management objectives and policies, future developments and employment policy in the Group's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

FINANCIAL RISK MANAGEMENT

The Group's operations expose it to a variety of financial risks which include the effects of credit risk, foreign exchange risk and price risk. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Credit risk

The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

Foreign exchange risk

While the greater part of the Group's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, principally on payments received in Euro and US Dollar. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

Price risk

The Group is exposed to commodity price risk as a result of its operations. However, given the size of the Group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The director will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Group Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is 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 he 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, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Seamus Morris - Director

12 September 2025

Opinion

We have audited the financial statements of S.Morris Holdings Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 Group's and of the Parent Company affairs as at 31 December 2024 and of the Group's 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Director's Report, but does not include the financial statements and our Auditors' Report 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 Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Director's Report 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the Group or the Parent Company or to cease operations, or has 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

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

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

Use of our report

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

Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

12 September 2025

TURNOVER

6

10,747,682

15,443,029

Cost of sales

(8,742,099

)

(12,320,021

)

GROSS PROFIT

2,005,583

3,123,008

Administrative expenses

(1,725,727

)

(1,637,265

)

279,856

1,485,743

Other operating income

10,000

64,769

OPERATING PROFIT

8

289,856

1,550,512

Finance income

6,217

-

296,073

1,550,512

Finance costs

9

(51,885

)

(47,697

)

PROFIT BEFORE TAXATION

244,188

1,502,815

Tax on profit

10

104,255

(49,323

)

PROFIT FOR THE FINANCIAL YEAR

348,443

1,453,492

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

348,443

1,453,492

Profit attributable to:

Owners of the parent

287,390

1,453,492

Non-controlling interests

61,053

-

348,443

1,453,492

Total comprehensive income attributable to:

Owners of the parent

287,390

1,453,492

Non-controlling interests

61,053

-

348,443

1,453,492

NON-CURRENT ASSETS

Tangible assets

13

3,361,860

3,483,589

Investments

14

-

-

3,361,860

3,483,589

CURRENT ASSETS

Stocks

15

2,170,410

2,751,234

Receivables: amounts falling due within one year

16

4,594,227

6,742,504

Cash at bank and in hand

2,488,620

2,301,501

9,253,257

11,795,239

PAYABLES

Amounts falling due within one year

17

(2,324,771

)

(5,031,712

)

NET CURRENT ASSETS

6,928,486

6,763,527

TOTAL ASSETS LESS CURRENT LIABILITIES

10,290,346

10,247,116

PAYABLES

Amounts falling due after more than one year

18

(420,109

)

(539,970

)

PROVISIONS FOR LIABILITIES

22

(477,631

)

(613,459

)

GOVERNMENT GRANTS

23

(178,948

)

(193,472

)

NET ASSETS

9,213,658

8,900,215

CAPITAL AND RESERVES

Called up share capital

24

1,037,600

1,037,600

Merger reserve

25

(45,300

)

(45,300

)

Retained earnings

25

8,147,805

7,895,415

9,140,105

8,887,715

NON-CONTROLLING INTERESTS

26

73,553

12,500

TOTAL EQUITY

9,213,658

8,900,215

The financial statements were approved by the director and authorised for issue on 12 September 2025 and were signed by:

Seamus Morris - Director

NON-CURRENT ASSETS

Tangible assets

13

-

-

Investments

14

82,800

-

82,800

-

CURRENT ASSETS

Cash at bank and in hand

1,000,075

-

PAYABLES

Amounts falling due within one year

17

(80,300

)

-

NET CURRENT ASSETS

919,775

-

TOTAL ASSETS LESS CURRENT LIABILITIES

1,002,575

-

CAPITAL AND RESERVES

Called up share capital

24

1,037,600

-

Retained earnings

25

(35,025

)

-

1,002,575

-

Company's loss for the financial year

(25

)

-

The financial statements were approved by the director and authorised for issue on 12 September 2025 and were signed by:

Seamus Morris - Director

Called up

share

Retained

Merger

capital

earnings

reserve

£

£

£

Balance at 1 January 2023

50,000

6,478,923

(45,300

)

Changes in equity

Issue of share capital

987,600

-

-

Dividends

-

(37,000

)

-

Total comprehensive income

-

1,453,492

-

1,037,600

7,895,415

(45,300

)

Acquisition of non-controlling interest

-

-

-

Balance at 31 December 2023

1,037,600

7,895,415

(45,300

)

Changes in equity

Dividends

-

(35,000

)

-

Total comprehensive income

-

287,390

-

Balance at 31 December 2024

1,037,600

8,147,805

(45,300

)

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2023

6,483,623

-

6,483,623

Changes in equity

Issue of share capital

987,600

-

987,600

Dividends

(37,000

)

-

(37,000

)

Total comprehensive income

1,453,492

-

1,453,492

8,887,715

-

8,887,715

Acquisition of non-controlling interest

-

12,500

12,500

Balance at 31 December 2023

8,887,715

12,500

8,900,215

Changes in equity

Dividends

(35,000

)

-

(35,000

)

Total comprehensive income

287,390

61,053

348,443

Balance at 31 December 2024

9,140,105

73,553

9,213,658

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Balance at 31 December 2023

-

-

-

Changes in equity

Issue of share capital

1,037,600

-

1,037,600

Dividends

-

(35,000

)

(35,000

)

Total comprehensive income

-

(25

)

(25

)

Balance at 31 December 2024

1,037,600

(35,025

)

1,002,575

Cash flows from operating activities

Cash generated from operations

1

623,383

713,774

Interest paid

(36,252

)

(24,331

)

Interest element of hire purchase payments paid

(15,633

)

(23,366

)

Tax paid

(54,026

)

(224,682

)

Net cash from operating activities

517,472

441,395

Cash flows from investing activities

Purchase of tangible fixed assets

(179,530

)

(352,317

)

Sale of tangible fixed assets

48,333

22,700

Interest received

6,217

-

Net cash from investing activities

(124,980

)

(329,617

)

Cash flows from financing activities

Loan repayments in year

(76,091

)

(56,227

)

Capital repayments in year

(81,502

)

(129,678

)

Share issue

-

1,000,100

Equity dividends paid

(35,000

)

(37,000

)

Net cash from financing activities

(192,593

)

777,195

Increase in cash and cash equivalents

199,899

888,973

Cash and cash equivalents at beginning of year

2

2,288,721

1,399,748

Cash and cash equivalents at end of year

2

2,488,620

2,288,721

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

2024

2023

£

£

Profit before taxation

244,188

1,502,815

Depreciation charges

260,204

237,216

(Profit)/loss on disposal of fixed assets

(7,278

)

16,411

Warranty provision movement

(36,993

)

60,898

Government grants

(14,524

)

(23,553

)

Finance costs

51,885

47,697

Finance income

(6,217

)

-

491,265

1,841,484

Decrease/(increase) in stocks

580,824

(864,479

)

Decrease/(increase) in trade and other debtors

2,148,277

(2,828,890

)

(Decrease)/increase in trade and other creditors

(2,596,983

)

2,565,659

Cash generated from operations

623,383

713,774

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

2,488,620

2,301,501

Bank overdrafts

-

(12,780

)

2,488,620

2,288,721

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

2,301,501

1,399,748

Bank overdrafts

(12,780

)

-

2,288,721

1,399,748

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

2,301,501

187,119

2,488,620

Bank overdrafts

(12,780

)

12,780

-

2,288,721

199,899

2,488,620

Debt

Finance leases

(162,838

)

81,502

(81,336

)

Debts falling due within 1 year

(88,421

)

(17,751

)

(106,172

)

Debts falling due after 1 year

(452,404

)

81,062

(371,342

)

(703,663

)

144,813

(558,850

)

Total

1,585,058

344,712

1,929,770

1.	PRINCIPAL ACTIVITY

The principal activity of the company was that of a holding company and The principal activity of the group was that of the manufacture of precision cylinders for the materials handling, construction and agricultural industries.

2.	STATUTORY INFORMATION

S.Morris Holdings Ltd is a private company, limited by shares, registered in Northern Ireland in the United Kingdom. The company's registered number and registered office address can be found on the General Information page.

3.	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" and the Companies Act 2006.

4.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts are prepared under the historical cost convention modified when necessary to include the revaluation of certain fixed assets.

Basis of consolidation

The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows the financial statements of the company and its subsidiary's undertakings made up to 31 December 2024.

Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

The group's share of post-acquisition profit or loss is recognised in the consolidated income statement. When the group's share of losses in a joint venture equals or exceeds its interest in the associate, including any other unsecured receivables, the group recognises further losses and presents its share of the net liabilities of the joint venture in provisions for liabilities and charges.

S.Morris Holdings Ltd was incorporated on 05 January 2024 in order to affect a group construction involving Northern Hydraulics Ltd. The company acquired the share capital of Northern Hydraulics Ltd in a share for share exchange. This group construction has been accounted for using the merger accounting method as it is considered to meet the requirements of FRS102 and The Companies Act 2006.

The concept of merger accounting results in the company's financial statements being prepared as if the group had always existed and therefore the group financial statements reflect the results for the period ended 31 December 2024 with comparative financial results for the year ended 31 December 2023. The financial statements of the company have been presented for the 12 month accounting period to 31 December 2024.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods:

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

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company

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