REGISTERED NUMBER: 05659246 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Industrial Inkjet Ltd

Page

Company information

1

Strategic report

2

to

3

Report of the directors

4

to

5

Report of the independent auditors

6

to

9

Statement of comprehensive income

10

Statement of financial position

11

Statement of changes in equity

12

Statement of cash flows

13

Notes to the statement of cash flows

14

Notes to the financial statements

15

to

21

Directors:

J C Corrall

Mrs L M Corrall

P Easton

Secretary:

Mr D J Pearce

Registered office:

Unit 3, Meridian

Buckingway Business Park

Anderson Road

Swavesey, Cambridge

CB24 4AE

Registered number:

05659246 (England and Wales)

Independent auditors:

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

The Directors present their Strategic Report for the year ended 31 December 2024. We aim to provide a balanced and comprehensive review of the development and performance during the year and the position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Review of business

Industrial Inkjet Ltd is the parent company of the Industrial Inkjet Group. The Company's principal activities are the research, development, manufacture, sale and servicing of digital printing solutions and related consumables.

The Company recorded a profit for the year after taxation of £45,188 (2023: loss £553,582). Profit before taxation was £65,000 (2023: loss £725,000). Net return on sales was 7% (2023: -10%).

The improvement in results reflects the benefits of the restructuring undertaken in 2023, together with tighter cost control and operational efficiencies. Turnover in 2024 was lower than anticipated as customer projects were delayed, but the Company's leaner cost base enabled it to return to profitability.

Principal risks and uncertainties

Exchange rate volatility - The Company manufactures in the UK while trading internationally. Fluctuations in currency exchange rates may impact reported performance.

Economic environment - The wider economic environment remains challenging, with inflation, interest rates and geopolitical tensions creating uncertainty for both demand and costs.

People - Recruitment and retention remain a risk, with competition for skilled staff and cost-of-living pressures potentially affecting the Company's ability to maintain the skills required to deliver its strategy.

Market demand - Sales to OEMs can be affected by changes in customer project timings and investment cycles, creating variability in turnover.

Key financial performance indicators

The Company’s key performance indicators during the year were as follows:

2024

2023

£'000

£'000

Profit before tax

65

-725

Net return on sales %

7%

-10%

The return to profitability reflects the earlier restructuring and ongoing cost discipline. Lower turnover highlights the continued need to diversify the Company's revenue base and to focus on customer pipeline development.

Outlook

The Directors are encouraged by the return to profitability in 2024. The business has benefitted from the cost reductions achieved through the 2023 restructuring, alongside a continued focus on operational efficiency. Investment in innovation and strong customer relationships provide a solid foundation for future growth.

While economic conditions remain uncertain, the Directors believe the Company is well positioned to deliver sustainable results in the years ahead.

The Directors are satisfied with the results for the year and remain optimistic about the Company's prospects.

To improve efficiencies further the group undertook a restructuring programme as disclosed under Post Balance Sheet Events.

On behalf of the board:

J C Corrall - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

Dividends

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

Events since the end of the year

In July 2025 the Group undertook a restructuring programme within the UK entity.

This action is expected to reduce annual staff costs by approximately £650K and forms part of the Group's ongoing strategy to align its cost base with anticipated levels of turnover.

The Board believes this restructuring will strengthen the Group's financial position and improve operating efficiency in future periods.

Directors

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J C Corrall

Mrs L M Corrall

P Easton

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

Auditors

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

On behalf of the board:

J C Corrall - Director

29 September 2025

Opinion

We have audited the financial statements of Industrial Inkjet Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the company, including such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislations;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charge with governance;

-

enquiring of management as to actual and potential litigation and claims;

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limiitations in our audit procedures described above. The move removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatement that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Matt Storey (Senior Statutory Auditor)

for and on behalf of Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

30 September 2025

Turnover

8,893,076

6,951,245

Cost of sales

4,486,285

3,414,744

Gross profit

4,406,791

3,536,501

Administrative expenses

4,436,199

4,310,966

(29,408

)

(774,465

)

Other operating income

81,790

32,416

Operating profit/(loss)

5

52,382

(742,049

)

Interest receivable and similar income

12,838

16,066

Profit/(loss) before taxation

65,220

(725,983

)

Tax on profit/(loss)

6

(39,764

)

(172,401

)

Profit/(loss) for the financial year

104,984

(553,582

)

Other comprehensive income

-

-

Total comprehensive income for the year

104,984

(553,582

)

Fixed assets

Intangible assets

7

24,031

24,031

Tangible assets

8

379,521

414,679

Investments

9

780,332

780,332

1,183,884

1,219,042

Current assets

Stocks

10

1,132,965

1,079,636

Debtors

11

1,638,549

1,791,030

Cash at bank and in hand

1,058,366

960,690

3,829,880

3,831,356

Creditors

Amounts falling due within one year

12

925,737

1,067,355

Net current assets

2,904,143

2,764,001

Total assets less current liabilities

4,088,027

3,983,043

Capital and reserves

Called up share capital

14

1,050

1,050

Share premium

15

44,950

44,950

Retained earnings

15

4,042,027

3,937,043

Shareholders' funds

4,088,027

3,983,043

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J C Corrall - Director

Mrs L M Corrall - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,040

4,490,625

35,960

4,527,625

Changes in equity

Issue of share capital

10

-

8,990

9,000

Total comprehensive income

-

(553,582

)

-

(553,582

)

Balance at 31 December 2023

1,050

3,937,043

44,950

3,983,043

Changes in equity

Total comprehensive income

-

104,984

-

104,984

Balance at 31 December 2024

1,050

4,042,027

44,950

4,088,027

Cash flows from operating activities

Cash generated from operations

1

531,341

(1,281,444

)

Tax paid

37,967

43,395

Net cash from operating activities

569,308

(1,238,049

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(422

)

Purchase of tangible fixed assets

(148,790

)

(168,937

)

Purchase of fixed asset investments

-

(389,944

)

Sale of tangible fixed assets

156

21,441

Interest received

12,838

16,066

Net cash from investing activities

(135,796

)

(521,796

)

Cash flows from financing activities

Amount introduced by directors

-

259,963

Amount withdrawn by directors

(27,244

)

-

Share issue

-

10

Amounts received from parent company

(308,592

)

-

Net cash from financing activities

(335,836

)

259,973

Increase/(decrease) in cash and cash equivalents

97,676

(1,499,872

)

Cash and cash equivalents at beginning of year

2

960,690

2,460,562

Cash and cash equivalents at end of year

2

1,058,366

960,690

1.	Reconciliation of profit/(loss) before taxation to cash generated from operations

2024

2023

£

£

Profit/(loss) before taxation

65,220

(725,983

)

Depreciation charges

140,094

132,681

Loss on disposal of fixed assets

5,198

6,282

Asset reclassification to P/L account

38,500

-

Finance income

(12,838

)

(16,066

)

236,174

(603,086

)

Increase in stocks

(53,329

)

(107,938

)

Decrease/(increase) in trade and other debtors

462,870

(443,560

)

Decrease in trade and other creditors

(114,374

)

(126,860

)

Cash generated from operations

531,341

(1,281,444

)

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

1,058,366

960,690

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

960,690

2,460,562

3.	Analysis of changes in net funds

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

960,690

97,676

1,058,366

960,690

97,676

1,058,366

Total

960,690

97,676

1,058,366

1.	Statutory information

Industrial Inkjet Ltd 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.	Statement of compliance

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

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income received in advance of work being carried out is excluded from the income statement and recognised as deferred income within creditors, until such time as the work is carried out.

Patents & licenses

Parents & licenses are initially measured at their cost to acquire. After initial recognition, patents & licenses are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation of patents will commence from the date the patent is accepted and granted, and will be measured evenly over the useful economic life of the patent. Should the Patent application be unsuccessful, all recognised costs relating to the application will be impaired, with the impairment being recognised in the Income statement.

Tangible fixed assets

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

Improvements to property

-

in accordance with the property

Plant and machinery

-

25% on reducing balance

Materials and overheads related to assets under construction are capitalised separately. Once the asset comes in to use the asset will be transferred to the appropriate fixed asset category. Assets under construction are not depreciated until the asset comes in to use.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress is valued at the lower of cost and net realisable value.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Amounts recoverable on contracts

Where work performed is in excess of the already invoiced amount, the excess is recognised in sales on the income statement as well as within trade debtors on the statement of financial position until an invoice is raised.

4.	Employees and directors

2024

2023

£

£

Wages and salaries

2,446,976

2,363,935

Social security costs

273,478

270,525

Other pension costs

192,498

182,314

2,912,952

2,816,774

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

2024

2023

Average employees

48

53

2024

2023

£

£

Directors' remuneration

281,309

150,978

Information regarding the highest paid director for the year ended 31 December 2024 is as follows:

2024

£

Emoluments etc

150,447

5.	Operating profit/(loss)

The operating profit (2023 - operating loss) is stated after charging:

2024

2023

£

£

Hire of plant and machinery

61,691

63,055

Other operating leases

181,415

182,294

Depreciation - owned assets

140,095

133,013

Loss on disposal of fixed assets

5,198

6,282

6.

Taxation

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(37,967

)

(43,395

)

Deferred tax

(1,797

)

(129,006

)

Tax on profit/(loss)

(39,764

)

(172,401

)

Reconciliation of total tax credit included in profit and loss

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

2024

2023

£

£

Profit/(loss) before tax

65,220

(725,983

)

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

16,305

(181,496

)

Effects of:

Expenses not deductible for tax purposes

1,590

5,217

Enhanced R&D expenditure

(117,391

)

(46,914

)

Enhanced super deduction allowance

-

(413

)

Surrendered loss for R&D tax credits

59,732

51,205

Total tax credit

(39,764

)

(172,401

)

7.	Intangible fixed assets

Patents

and

licences

£

Cost

At 1 January 2024

and 31 December 2024

24,031

Net book value

At 31 December 2024

24,031

At 31 December 2023

24,031