REGISTERED NUMBER: 00516559 (England and Wales)

REGAL MANUFACTURING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

to

5

Report of the Directors

6

to

7

Report of the Independent Auditors

8

to

12

Income Statement

13

Other Comprehensive Income

14

Statement of Financial Position

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Statement of Cash Flows

18

to

19

Notes to the Financial Statements

20

to

34

DIRECTORS:

G Cozzo

G J Llewellyn

REGISTERED OFFICE:

C/O Company Secretatial Department

280 Bishopsgate

London

EC2M 4AG

REGISTERED NUMBER:

00516559 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

BANKERS:

J. P. Morgan

25 Bank Street

Canary Wharf

Floor 19

London

E14 5JP

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

REVIEW OF BUSINESS

During 2024, due to the organic sales decline driven by lower volumes resulting from slowing market demand, sales for Regal Manufacturing Limited have decreased from to £15.1m in 2023 to £11.4m in 2024.

On the other hand, the increase in commodity prices for copper, steel and aluminium as well as the impact from currency markets have resulted in a decrease in gross profit from 27.5% in 2023 to 22.7% in 2024.

DISTRIBUTION/SUSTAINABLE PRACTICES

We continue to focus on improving the customer experience by providing excellent service and quality, while increasing our productivity and reducing our costs. We accomplish this by embedding lean operating principles in our distribution processes, while emphasizing a culture of continuous improvement with a "sense of urgency". We have a shared services approach, which allows our intercompany businesses to leverage shared manufacturing facilities to optimise capacity utilization and enhance operational excellence. We continue to reduce costs by improving inventory controls; reducing defects; decrease costs in material and transportation, by leveraging Global Regal Rexnord Contracts with key suppliers. Another ongoing initiative is to enhance and further implement lean methods to improve productivity, whilst maintaining quality. We continue to sponsor sustainability initiatives that encompass environmental-friendly practices. We have aligned with suppliers that promote sustainable business practices.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is affected by a number of factors, the principal ones of which are:

o The company is exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, and restrictions in the availability of credit, business failures in the customer or supplier base, or increases in financing costs, and in the cost of utilities, raw materials and finished products. Such developments might increase operating costs, recovered with productivity and sales price increase.

o The company operates in a competitive market, and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on demand and / or margins.

The company mitigates risk in several ways:

o The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

o Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication.

o The company operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the company's corporate objectives.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company reported on a number of key performance indicators (KPIs) to monitor and manage performance.

In 2023-24 these KPIs were as follows:

- Sales £15.1m v. £11.4m

- PBT £2.5m v. £1.6m

- Net Assets £9.6m v. £10.7m

- EBITDA £2.6m v. £1.4m

The company also uses certain non-financial indicators, the most significant of which is the number of employees and most importantly their associated skill sets with a strong emphasis wherever possible of developing and promoting our people from within the organisation.

RESEARCH AND DEVELOPMENT

The company provides best in class technical service to our customer base. In addition the company is working closely with other Regal research & development centres in the world, allowing the company to have access to a wider product offering.

FUTURE DEVELOPMENTS

There have been increases in costs which have placed pressure on profitability but the company strives to source from low cost, high quality, suppliers so that it can provide its customers with a good value, high quality, product together with flexibility and engineering expertise. The company believes this will ensure that it maintains its position in the marketplace.

Future growth is being sought from the UK & European market. While there is still some uncertainty in the market, our increased product range and quality improvements should leave us in a good position to build further on the previous growth achieved.

GOVERNMENT REGULATION

We are subject to numerous UK, international & EU laws and regulations that affect our business activities in several areas, including, but not limited to, labour, advertising, taxation, data privacy and security, digital content, consumer reports, consumer protection, e-commerce, online payment services, intellectual property, environmental matters, International Trade, Anti-Corruption, FCPA and workplace health and safety. The cost of complying with these laws and regulations is significant and regulators may adopt new laws or regulations at any time. We believe that our business is operated in substantial compliance with all applicable laws and regulations.

EMPLOYEES

As of December 31, 2024, we employed 18 employees in the U.K. None of our employees are represented by labour unions, and we consider our employee relations to be good.

CODE OF ETHICS GUIDELINES

We have adopted a Corporate Code of Business Ethics that applies to all of our employees and our board of directors. The Code of Business Ethics is available upon written request to the attention of Legal Department & Investors relations, Regal Rexnord Corporation 111 W Michigan Street, Milwaukee, Wisconsin 53203, United States. Any changes or waivers of the Code of Business Ethics will be disclosed on our website.

ON BEHALF OF THE BOARD:

G Cozzo - Director

24 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 sale of electric motors and ventilation systems.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors who have held office during the period from 1 January 2024 to the date of this report are as follows:

J R Longley - resigned 19 April 2024

A Fernandes - resigned 28 May 2024

G Cozzo - appointed 29 May 2024

G J Llewellyn - appointed 29 May 2024

M Miccio ceased to be a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

G Cozzo - Director

24 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statement audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimated and judgemental areas of the financial statements such as deprecation of tangible fixed assets and stock provision, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journals entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, ISO accreditation, GDPR and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits and ISO assessments conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls and ISO compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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. The further removed non-compliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

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.

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

24 September 2025

REVENUE

3

11,381,909

15,144,156

Cost of sales

8,795,259

10,981,984

GROSS PROFIT

2,586,650

4,162,172

Distribution costs

197,305

266,251

Administrative expenses

1,139,195

1,445,412

1,336,500

1,711,663

1,250,150

2,450,509

Other operating income

183,121

-

1,433,271

2,450,509

Cost of restructuring

5

142,713

12,649

1,290,558

2,437,860

Interest receivable and similar income

6

358,708

219,459

1,649,266

2,657,319

Interest payable and similar expenses

7

12,034

200,112

PROFIT BEFORE TAXATION

8

1,637,232

2,457,207

Tax on profit

9

484,556

556,617

PROFIT FOR THE FINANCIAL YEAR

1,152,676

1,900,590

PROFIT FOR THE YEAR

1,152,676

1,900,590

OTHER COMPREHENSIVE INCOME

Foreign exchange movement

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,152,676

1,900,590

FIXED ASSETS

Intangible assets

10

-

72,905

Property, plant and equipment

11

346,829

376,215

Investments

12

3,000

3,000

349,829

452,120

CURRENT ASSETS

Inventories

13

1,950,312

2,158,778

Debtors

14

3,454,274

8,929,786

Cash at bank

6,256,390

5,932

11,660,976

11,094,496

CREDITORS

Amounts falling due within one year

15

1,278,056

1,962,045

NET CURRENT ASSETS

10,382,920

9,132,451

TOTAL ASSETS LESS CURRENT LIABILITIES

10,732,749

9,584,571

PROVISIONS FOR LIABILITIES

18

71

4,569

NET ASSETS

10,732,678

9,580,002

CAPITAL AND RESERVES

Called up share capital

19

610,221

610,221

Retained earnings

20

10,122,457

8,969,781

SHAREHOLDERS' FUNDS

10,732,678

9,580,002

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

G Cozzo - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

610,221

7,069,191

7,679,412

Changes in equity

Total comprehensive income

-

1,900,590

1,900,590

Balance at 31 December 2023

610,221

8,969,781

9,580,002

Changes in equity

Total comprehensive income

-

1,152,676

1,152,676

Balance at 31 December 2024

610,221

10,122,457

10,732,678

Cash flows from operating activities

Cash generated from operations

1

6,364,347

542,033

Interest paid

(6,637

)

(200,112

)

Tax paid

(468,726

)

(683,228

)

Net cash from operating activities

5,888,984

(341,307

)

Cash flows from investing activities

Sale of tangible fixed assets

975

111,419

Reclassification of fixed assets

-

3,128

Interest received

358,708

219,459

Net cash from investing activities

359,683

334,006

Increase/(decrease) in cash and cash equivalents

6,248,667

(7,301

)

Cash and cash equivalents at beginning of year

2

5,932

13,233

Cash and cash equivalents at end of year

2

6,254,599

5,932

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

2024

2023

£

£

Profit before taxation

1,637,232

2,457,207

(Profit)/loss on disposal of fixed assets

(975

)

95,266

Depreciation and amortisation charges

102,290

144,487

Finance costs

12,034

200,112

Finance income

(358,708

)

(219,459

)

1,391,873

2,677,613

Decrease in inventories

208,466

2,403,709

Decrease/(increase) in trade and other debtors

5,475,513

(3,939,787

)

Decrease in trade and other creditors

(711,505

)

(599,502

)

Cash generated from operations

6,364,347

542,033

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

6,256,390

5,932

Bank overdrafts

(1,791

)

-

6,254,599

5,932

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

5,932

13,233

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

5,932

6,250,458

6,256,390

Bank overdrafts

-

(1,791

)

(1,791

)

5,932

6,248,667

6,254,599

Total

5,932

6,248,667

6,254,599

1.	STATUTORY INFORMATION

Regal Manufacturing 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about Regal Manufacturing Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Regal Rexnord Corporation, Corporate Office, 111 W Michigan Street, Milwaukee, Wisconsin 53203, United States of America.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 and are covered within the accounting policies:

i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property, plant and equipment and below for the useful economic lives for each class of asset.

(ii) When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 13 for the net carrying amount of the inventory and associated provision.

(iii) The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue

Revenue is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, 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. This is usually on dispatch of the goods.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Provision is made for any impairment.

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.

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

-

10% on cost and Land - Not depreciated

Plant and machinery

-

33% on cost, 20% on cost and 10% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

33% on cost

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

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Inventory

Inventories are valued at the lower of cost and estimated selling price after making due allowance for obsolete and slow moving items. Costs include all cost attributed to the production of each product, including wages and overheads, on an standard costing basis. Provisions are made for reject products and products still subject to final quality control approval at the year end with an estimated value based on average yield rates.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

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

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions expressed in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the period end reporting date.

All differences are taken to the income statement.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution pension scheme for the benefit of it's employees.. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Provisions

Provisions are recognised when the company has an obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in income statement unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3.

REVENUE

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

An analysis of revenue by geographical market is given below:

2024

2023

£

£

United Kingdom

3,550,698

4,820,770

Europe

7,831,003

10,368,394

United States of America

-

(46,043

)

Asia

208

1,035

11,381,909

15,144,156

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

744,334

1,069,908

Social security costs

78,577

94,231

Other pension costs

71,996

82,899

894,907

1,247,038