REGISTERED NUMBER: 06614978 (England and Wales)

Meridian Lightweight Technologies UK

Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Bin Chen

Y Li

SECRETARY:

Rong Chen

REGISTERED OFFICE:

Meridian Orchard Way

Callidine Park

Sutton-In-Ashfield

Nottinghamshire

NG17 1JU

REGISTERED NUMBER:

06614978 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

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

REVIEW OF BUSINESS

There has been no manufacturing activity during 2024.

Property leases remain in place at both Orchard Way and Castlewood facilities with Castlewood continuing to be sublet to a third party. The Orchard Way lease is due to expire during 2027 and the remaining time will be used for dismantling and shipping of the plant and equipment.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company's activities expose it to foreign exchange risk and liquidity risk. The use of financial derivatives is governed by the Meridian Group of Companies' headed by Zhejiang Wanfeng Auto Wheel Co. Ltd ("Group") policies approved by the Group's board of Directors to manage these risks. The company does not use derivative financial instruments for speculative purposes.

FOREIGN EXCHANGE RISK

The company's activities expose it to the financial risks in foreign currency exchange rates and the company is funded mainly by group borrowings denominated in US dollars.

LIQUIDITY RISK

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations the company uses a mixture of long term and short term debt finance both from group companies and third-party institutions.

Debt finance from third parties is maintained with negotiated facilities. The Company enjoys the full and continued support from its ultimate parent company and has very flexible funding arrangements with them, resources are managed primarily by their board on a global group basis.

BUSINESS CONTINUITY

The business was classified as not a going concern entity from the end of 2020, by the end of FY2021 the company had ceased manufacturing operations at the UK facility. The remaining business has been transferred to another Meridian Group production facility based in China.

ON BEHALF OF THE BOARD:

Bin Chen - Director

19 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 was the production and wholesale of lightweight magnesium products for the automotive industry. The manufacturing activity ceased on 31 December 2021 and since that time the activity consists of dismantling and transferring the remaining consumables and fixed assets to other group companies along with the subleasing of the Castlewood property.

DIRECTORS

Bin Chen has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Y Li was appointed as a director after 31 December 2024 but prior to the date of this report.

Yuan Lyu 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). 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.

AUDITORS

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

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

ON BEHALF OF THE BOARD:

Bin Chen - Director

19 September 2025

Opinion

We have audited the financial statements of Meridian Lightweight Technologies UK Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (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 loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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

The company ceased manufacturing at the end of fiscal year 2021 after having transferred the open customer contract to a group company.

We therefore report in respect of the following matters in relation to which the ISAs (UK) require us to report to you that:

- the directors have prepared the accounts on a basis other than going concern.

Emphasis of matter

We draw attention to the Going Concern accounting policy of the financial statements which explains the cessation of trade and a transfer of trade and assets to another group company starting during the prior year, the directors therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described on Page 16. Our opinion is not modified in respect of this matter.

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; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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:

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) and the relevant tax compliance regulations in the UK;

- we considered provisions of other laws and regulations that do not have a direct effect on the financial statements

but compliance with which may be fundamental to the company's ability to operate or to avoid material penalty.

These include the impact of import restrictions.

- 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, also all areas where fraud might occur in the financial statements and how;

- 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 these programmes and controls;

- we considered how the directors and management respond to risks of fraud and whether they have knowledge of

any actual, suspected or alleged fraud;

- we performed detailed analytical procedures to identify any unusual or unexpected relationships that may indicate

risks of material misstatement due to fraud;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and

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

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

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

Use of our report

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

Darren Barlow FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

19 September 2025

TURNOVER

3

-

-

Administrative expenses

584,818

1,675,425

(584,818

)

(1,675,425

)

Other operating income

445,709

425,000

OPERATING LOSS

(139,109

)

(1,250,425

)

Interest payable and similar expenses

5

50,395

555,904

LOSS BEFORE TAXATION

6

(189,504

)

(1,806,329

)

Tax on loss

7

-

-

LOSS FOR THE FINANCIAL YEAR

(189,504

)

(1,806,329

)

LOSS FOR THE YEAR

(189,504

)

(1,806,329

)

OTHER COMPREHENSIVE INCOME

Item that will not be reclassified to profit or loss:

Translation reserve

(408,003

)

1,716,686

Income tax relating to item that will not be reclassified to profit or loss

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(408,003

)

1,716,686

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(597,507

)

(89,643

)

FIXED ASSETS

Owned

Intangible assets

8

-

-

Tangible assets

9

-

-

Right-of-use

Tangible assets

9, 14

764,519

1,094,930

764,519

1,094,930

CURRENT ASSETS

Debtors

10

481,625

669,961

Cash at bank and in hand

213,492

156,893

695,117

826,854

CREDITORS

Amounts falling due within one year

11

31,067,093

30,203,767

NET CURRENT LIABILITIES

(30,371,976

)

(29,376,913

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(29,607,457

)

(28,281,983

)

CREDITORS

Amounts falling due after more than one year

12

(840,917

)

(1,592,100

)

PROVISIONS FOR LIABILITIES

15

(1,739,140

)

(1,715,924

)

NET LIABILITIES

(32,187,514

)

(31,590,007

)

CAPITAL AND RESERVES

Called up share capital

16

15,176,402

15,176,402

Retained earnings

17

(47,363,916

)

(46,766,409

)

SHAREHOLDERS' FUNDS

(32,187,514

)

(31,590,007

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

Bin Chen - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

15,176,402

(46,676,766

)

(31,500,364

)

Changes in equity

Total comprehensive income

-

(89,643

)

(89,643

)

Balance at 31 December 2023

15,176,402

(46,766,409

)

(31,590,007

)

Changes in equity

Total comprehensive income

-

(597,507

)

(597,507

)

Balance at 31 December 2024

15,176,402

(47,363,916

)

(32,187,514

)

1.	STATUTORY INFORMATION

Meridian Lightweight Technologies UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

•

the requirements of

-

paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

-

paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be appropriate under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. 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 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.

Intangible assets

Intangible assets with finite lives are amortised on a straight-line basis over the useful economic life as follows:

Software

20%

The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. The amortisation period and the amortisation method are reviewed at least at each financial year end. Changes in the expected useful life on the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset on a straight line basis over its expected useful life as follows:

Leasehold improvements

14%

Plant and machinery

10%

Fixtures and fittings

12%

Computers

20%

Assets in the course of construction are not depreciated.

The carrying values of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. The useful lives and residual values are reviewed annually and where adjustments are required they are made prospectively.

Financial instruments

Financial instruments originated, issued or assumed in an arm's length transaction are recorded at fair value on initial recognition. Related party financial instruments that have repayment terms are initially recorded at cost, representing the undiscounted cash flows of that instrument, excluding interest and dividend payments. Related party financial instruments that do not have repayment terms are recorded at cost, determined using the consideration transferred or received by the Company. The exchange amount is used when the transaction is in the normal course of operations or the transaction is not in the normal course of operations but has commercial substance, the change in ownership interest in the related financial item transferred is substantive and the amount of consideration transferred or received is established and agreed to by the related parties and is supported by independent evidence. Otherwise, the carrying amount of the consideration transferred or received is used as the cost of the related party financial instrument. All other financial instruments are subsequently recorded at cost or amortised cost, unless management has elected to carry the instruments at fair value. The Company has not elected to carry any such financial instruments at fair value.

Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other arm's length financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortised using the straight-line method.

Financial assets measured at cost and amortised cost are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Company determines if there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of:

(i) For an arm's length financial asset, the present value of the cash flows expected to be generated by holding the asset, discounted using a current market rate of interest appropriate to that asset, and for a related party debt instrument, the undiscounted cash flows expected to be generated by holding the asset, excluding interest and dividend payments;

(ii) The amount that could be realised by selling the asset at the combined balance sheet date; and

(iii) The amount the Company expects to realise by exercising its right to any collateral held to secure repayment of the asset, net of all costs necessary to exercise those rights.

If events and circumstances reverse in the future period, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.

Taxation

Current UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

Provisions for liabilities and trade creditors

A provision is recognised when the Company has a legal or constructive obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

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.

Government grants

Government grants in respect of capital expenditure are treated as deferred income and are credited to the profit and loss account over the expected useful lives of the assets concerned, other grants are credited to the profit and loss account as the related expenditure is incurred.

Leasing and hire purchase commitments

i. Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at the cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets include the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of

the assets, as follows:

- Building leasing

If ownership of the lease asset transfers to the company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

ii. Lease Liabilities

At the commencement date of the lease; the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.

Pension costs

For defined contribution pension schemes the amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contribution payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Functional currency

The functional currency of the company was changed from GBP to USD with effect from 1 January 2024. The change was made to reflect that USD has become the predominant currency in the company, accounting for a significant part of the company's business activities. The change has been implemented with prospective effect.

Transactions in foreign currencies are initially recorded in the functional currency by applying the rate of exchange at the date of the transaction. Where this is not practical and exchange rates do not fluctuate materially, the average rate has been used. Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the spot exchange on the balance sheet date. Any resulting exchange differences are included in the profit and loss account. Non-monetary assets and liabilities, other than those measured at fair value, are not retranslated subsequent to initial recognition.

Presentational currency

The company continue to present its financial statements in GBP. As a result it translates its financial statements from functional currency to presentation currency as follows:

- assets and liabilities are translated at the closing rate;

- income and expenses are translated at exchange rates at the transaction dates; for practical reasons, most

entities use average rates of the period as an approximation; and

- all resulting differences are recognised in other comprehensive income.

Going concern

The Company's Balance Sheet shows net liabilities of £32,188k (2023: £31,590k), and at year end reported net current liabilities of £30,372k (2023: £29,377k).

The Company ceased manufacturing at the end of fiscal year 2021 after having transferred the open customer contract to a group company. Further, the company has transferred the remaining consumable inventory to a group company at net book value and have started dismantling the plant and machinery, which will be transferred to the group company. Further, property leases remain in place at both Orchard Way and Castlewood facilities with Castlewood continuing to be sublet to a third party. The Orchard Way lease is due to expire during 2027 and the remaining time will be used for dismantling and shipping of the plant and equipment. As required by FRS 101 reduced disclosure framework, the directors have prepared the accounts on a basis other than going concern.

Lease accounting

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The company cannot readily determine the interest rate implicit in the lease, and therefore has developed a calculation method to determine its incremental borrowing rate that would apply to the financing of the leased assets. The discount rate is calculated based on the following parameters: maturity of the lease liability and reference rate of the relevant currency and the Group borrowing, on the basis that the Group provides the majority of the financing requirements of its subsidiaries where necessary.

3.

TURNOVER

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

An analysis of turnover by class of business for the year ended 31 December 2023 is given below:

£

This analysis is not considered to be applicable to the year ended 31 December 2024.

An analysis of turnover by geographical market for the year ended 31 December 2023 is given below:

£

This analysis is not considered to be applicable to the year ended 31 December 2024.

There is no turnover in 2024 and 2023 due to cessation of trade in 2021.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

197,638

224,299

Social security costs

16,447

21,586

Other pension costs

7,906

9,379

221,991

255,264

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

2024

2023

Administration

4

5

2024

2023

£

£

Directors' remuneration

-

-

All directors are also directors of other group companies. Their services to the Company are deemed incidental to their wider group role and they receive no remuneration from the Company during FY24 and FY23.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest payable

50,395

555,904

6.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging/(crediting):

2024

2023

£

£

Depreciation - assets on hire purchase contracts or finance leases

345,225

345,225

Profit on disposal of fixed assets

(2,500

)

(29,400

)

Auditors' remuneration

30,595

40,113

Foreign exchange differences

(467,872

)

396,704

7.

TAXATION

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Loss before income tax

(189,504

)

(1,806,329

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

(47,376

)

(451,582

)

Effects of:

Amounts not recognised

47,376

451,582

Tax expense

-

-

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Translation reserve

(408,003

)

-

(408,003

)

2023

Gross

Tax

Net

£

£

£

Translation reserve

1,716,686

-

1,716,686

8.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 January 2024

and 31 December 2024

8,000

AMORTISATION

At 1 January 2024

and 31 December 2024

8,000

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

9.	TANGIBLE FIXED ASSETS

Improvements

Right of

to

Plant and

use asset

property

machinery

£

£

£

COST

At 1 January 2024

5,677,481

1,005,774

8,188,235

Disposals

-

(4,446

)

(1,033,175

)

Exchange differences

76,814

-

-

At 31 December 2024

5,754,295

1,001,328

7,155,060

DEPRECIATION

At 1 January 2024

4,582,551

1,005,774

8,188,235

Charge for year

345,225

-

-

Eliminated on disposal

-

(4,446

)

(1,033,175

)

Exchange differences

62,000

-

-

At 31 December 2024

4,989,776

1,001,328

7,155,060

NET BOOK VALUE

At 31 December 2024

764,519

-

-

At 31 December 2023

1,094,930

-

-

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2024

81,883

135,000

15,088,373

Disposals

(27,832

)

(11,350

)

(1,076,803

)

Exchange differences

-

-

76,814

At 31 December 2024

54,051

123,650

14,088,384

DEPRECIATION

At 1 January 2024

81,883

135,000

13,993,443

Charge for year

-

-

345,225

Eliminated on disposal

(27,832

)

(11,350

)

(1,076,803

)

Exchange differences

-

-

62,000

At 31 December 2024

54,051

123,650

13,323,865

NET BOOK VALUE

At 31 December 2024

-

-

764,519

At 31 December 2023

-

-

1,094,930

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

233,211

406,552

Other debtors

248,414

263,409

481,625

669,961

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Right of use liability (see note 13)

781,879

781,879

Trade creditors

162,059

219,547

Amounts owed to group undertakings

30,030,319

29,115,407

Tax

(6,650

)

-

Accrued expenses

99,486

86,934

31,067,093

30,203,767

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Right of use liability (see note 13)

840,917

1,601,133

Other creditors

-

(9,033

)

840,917

1,592,100

13.	FINANCIAL LIABILITIES

2024

2023

£

£

Current:

Right of use liability (see note 14)

781,879

781,879