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

The group’s principal activities during the year continued to be the manufacture of plastic injection moulded components and assemblies and related mould tooling services.

The key financial and other performance indicators during the year were as follows:

2024 continued to be challenging for the group with business levels in the Slovakia-based automotive arm of the group seeing extremely high levels of volatility and unpredictability.

The UK arm of the business saw growth in both revenue and margin from its primary Aerospace and Medical sectors. This contributed to a growth in net profit despite an adjustment for impairment of investment assets.

The European automotive sector continued its stagnation leading to volatility in demand levels and cancelled projects. Although some new programs were brought into production, delays in completion meant that others slipped out of the year, and production demand for these new programs has not year met expectations.

Although tooling revenue remained at historically high levels, this has yet to translate into growth in production moulding revenue.

These market conditions were compounded by a strengthening Pound versus the Euro which futher devalued the contribution from ENL SK.

The group’s senior management team assesses risks and uncertainty on a regular basis, in line with its obligations under its ISO 9001, TS 16949 and AS 9100 quality certifications.

The principal risks facing the group are as follows:

Market Risk

The group has a significant concentration in the aerospace and automotive sectors. This is subject to demand levels for new build aircraft and cars, as well as spares requirements within the aerospace sector. Although demand schedules are forecast from 1 to 5 years in advance, these are subject to change and any contraction of either sector would negatively impact the business.

Aerospace revenues are supported by a strong relationship with one of the two main suppliers of new build aircraft and a high level of stability in their forecasting.

Automotive remains extremely challenging with volatility in their forecasts and demand level.

The group has an increased focus on defence spending with a long term contract in place for supply of parts for new build military aircraft. With an increased focus on defence capabilities worldwide, the Directors are targeting this as an area for future growth.

Price Risk

The group is reliant on certain raw materials in its manufacturing processes. These include thermoplastic polymers, aluminium and steel. Pricing of these materials is subject to fluctuations in commodity prices and presents a risk for future profitability. Wherever possible the group uses multi-sourcing to mitigate price risk and, where possible, seeks to ensure that changes in purchase pricing can be reflected in customer pricing. However, this can be delayed and complicated by our customers’ requirements.

Liquidity Risk

Current and projected working capital and investment requirements are constantly reviewed. Both the aerospace and automotive sectors demand significant levels of working capital funding from the supply chain. This results in deferred payment terms on tooling and also longer payment terms on production components. In addition, new tooling programs often encounter program delays, further increasing the working capital requirements of the group.

The group manages this risk by monitoring its working capital capacity for new tooling business and ensuring that growth in business is controlled within that capacity. Wherever possible, staged payments terms are sought to mitigate the working capital burden of tooling contracts. The business maintains a strong relationship with suppliers and funding providers to ensure that working capital funding is available to match the needs of the business.

Credit Risk

We supply a wide range of customers usually on 30-90 day credit terms. Credit risk is managed through internal control procedures and external rating agencies, and the use of invoice discounting and factoring facilities.

Currency Risk

The group buys and sells in GBP and EUR. Our policy is to trade in the currency native to each company within the group, whenever possible. Natural hedging is used whenever possible to mitigate currency risk. Forward foreign currency cashflows are reviewed to assess any other mitigation requirements.

The picture in 2025 is one of continued differing fortunes in the UK and Slovakia.

ENL UK is experiencing strong growth and good profitability. Whereas ENL SK continues to experience highly volatile demand from its customers leading to mixed results on a monthly basis.

Overall, the directors expect that losses from ENL SK will exceed the profit generated by ENL Limited. However the net loss for the Group will likely be significantly reduced from the 2024 and 2023 levels.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company and group continued to be that of the manufacture of plastic components and associated tooling.

The results for the year are set out on page 11.

No ordinary dividends were paid.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of ENL Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 December 2024 and of its loss for the year 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, 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 is 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK, and the relevant waste regulations in the UK (including the Waste (England and Wales) Regulations 2011);

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ENL Group Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 6-9 , Victory Trading Estate, Kiln Road, Portsmouth, Hampshire, United Kingdom, PO3 5LP.

The group consists of ENL Group Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights to, variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

• the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

• potential voting rights held by the Company, other vote holders or other parties;

• rights arising from other contractual arrangements; and

• ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders'' meetings

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the Consolidated statement of Comprehensive Income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interest even if this results in the non-controlling interest having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

The Directors have assessed the group’s ability to continue as a going concern, taking into account its current financial position, performance, and forecast cash flows for a period of at least 12 months from the date of approval of these financial statements.

The assessment has considered both a base-case scenario and a severe but plausible downside scenario, reflecting lower-than expected sales orders, and sustained inflationary cost pressures. Management has considered the impact of these scenarios on the group’s trading, liquidity, and facility headroom.

As part of this review, the Directors have considered various mitigating actions available to them, including cost reduction plans, customer renegotiations, and tighter working capital management. Additionally, the Directors continue to monitor sales volumes through ongoing communication with its customers in order to forecast demand. The group continues to benefit from access to a finance facility, including a invoice discounting facility, and has demonstrated proactive cash preservation and risk reduction measures.

Based on the above assessment, and having reviewed the liquidity and facility position the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable period. Accordingly, these financial statements have been prepared on a going concern basis.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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. Amounts 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.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

On consolidation, the assets and liabilities of the Group's operations are translated at exchange rates prevailing on the Statement of Financial Position date. Income and expense items are translated at average exchange rates for the year. All resulting exchange differences are recognised in other comprehensive income.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

The directors are required to exercise judgement in determining whether lease and hire purchase arrangements entered into by the company should be classified as finance leases or operating leases.

This involves assessing factors such as the transfer of risks and rewards of ownership, the term of the lease relative to the useful life of the asset, the presence of purchase options, and the present value of minimum lease payments relative to the fair value of the underlying asset.

The classification of lease arrangements has a significant impact on the presentation of the company’s assets and liabilities and the timing of expense recognition within the profit and loss account.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

The company maintains a stock provision in order to maintain stock at the lower of cost and net realisable value. The provision is reviewed monthly. The company uses specific criteria to calculate stock provisions, but establishing the criteria requires significant judgement. The company estimates by providing for stock lines that have no active order or expected usage at the month end.

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.

All turnover derives from the sale of goods. An analysis of the group's turnover is as follows:

The average monthly number of persons (including directors) employed by the group during the year was:

Their aggregate remuneration comprised:

The director is also considered to be the key management personnel of the company.

The Directors have reviewed the valuations of listed and unlisted investments and has recognised impairment losses.

This impairment has arisen following an assessment of the likely recoverable value if those investments were sold at fair value.

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

ENL Limited has carried forward tax losses totalling £1,859,137 (2023: £2,109,605) available for future use which do not expire. The deferred tax asset arising on the tax losses available for future use has been capped to offset the deferred tax liability arising on the fixed asset timing differences.

ENL SK s.r.o. has carried forward losses totalling €408,419 (2023: €nil) available for future use which do not expire. No deferred taxation has been recognised in respect of the carried forward tax losses.

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts:

These financial statements are separate company financial statements for ENL Group Limited.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Finished goods stock is shown net of an impairment allowance, which totals £279,817 (2023: £260,584). The associated impairment expense has been recorded in cost of sales.

Hire purchase agreements are secured on the assets to which they relate. The commercial finance loan is secured on the trade debtors of the company.

Hire purchase agreements are secured on the assets to which they relate. The rates of interest vary depending on the type of finance involved between 4.5% and 11%.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The typical lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. All leases are secured on the assets to which they relate.

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Deferred tax balances have been calculated at the prevailing future corporation tax rate in their respective jurisdictions in order to accurately reflect the tax implications of the unwinding of deferred tax from the date of these financial statements.

In the UK, the prevailing future corporation tax rate is 25%, which came in to effect from 1 April 2023. In Slovakia, the prevailing future corporation tax rate is 21%.

The deferred tax liability in respect of accelerated capital allowances is expected to reverse over the course of the asset lives.

The deferred tax asset in respect of retirement benefit obligations, offset against the above, is expected to reverse in the 12 months following the balance sheet date.

ENL Limited has £1,859,137 (2023: £2,109,605) of tax losses carried forward available for future use which do not expire. The deferred tax asset arising on the tax losses available for future use has been capped to offset the deferred tax liability arising on the fixed asset timing differences. Deferred tax assets are not recognised on £1,152,511 (2023: £1,229,693) of losses as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

ENL SK s.r.o. has carried forward losses totalling €408,419 (2023: €nil) available for future use which do not expire. No deferred taxation has been recognised in respect of the carried forward tax losses as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the balance sheet date the company has entered into contractual agreements for professional services. The minimum amounts payable under these contracts is £6,231.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The director holds a non-interest bearing current account with the company to record transactions between the two parties. The balance owed by the company to the director at the balance sheet date is £60,117 (2023: £3,197) and is repayable on demand.

The company was under the control of the Gamble Family throughout the current and previous year.

Delta Developments Limited, a company in which ENL Group Limited has a participating interest, charged interest on a loan totalling £28,987 (2023: £17,715). At the balance sheet date the amount due to Delta Developments Limited by the group was £554,655 (2023: £453,791).

At the balance sheet date, the group owed Axelton s.r.o, a subsidiary of Delta Developments Limited that owns the property occupied by ENL SK s.r.o. £53,340 (2023: £57,423). The rent charged in relation to this property totalled £78,101 (2023: £57,391).

Close family members of the Director are remunerated by the business, in aggregate the total expense recorded within Administrative Expenses in the Statement of Comprehensive Income is £84,968 (2023: £59,111).