REGISTERED NUMBER: 09742722 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

LUNOVI LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

P Mehta

REGISTERED OFFICE:

C/o JEB Technologies Limited

Hampstead Avenue

Mildenhall

Suffolk

IP28 7AS

REGISTERED NUMBER:

09742722 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited, Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

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

The trading results for the period and the group's financial position at the end of the period are shown in the attached financial statements.

REVIEW OF BUSINESS

Total turnover on continuing operations increased during the year by £12.1m, due to the sales growth in the subsidiaries.

Net profit before tax increased by £0.8m to £8.3m as a result, representing a margin of 15% on sales.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's activities expose it to a number of financial risks including credit risk, liquidity risk and currency risk. The group does not use derivative financial instruments for speculative purposes.

Credit risk

The group's principal financial assets are bank balances and trade debtors.

The group's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. The credit risk on bank balances is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The group has some concentration of credit risk to a small number of major customers. However, a number of these are national defence agencies and other government departments and so this risk is considered to be limited. The group's exposure to commercial customers is managed on an account by account basis to ensure these don't exceed agreed credit limits.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for on-going operations and future developments, the group uses a mixture of long-term and short-term debt finance and equity funding and inter-company treasury management.

Currency risk

The group undertakes trading transactions in currencies other than sterling and has funding instruments denominated in foreign currency. The foreign exchange risk is managed by holding cash resources in foreign currency.

KEY PERFORMANCE INDICATORS

The group uses order intake, production levels, turnover and profit as key performance indicators to monitor performance.

SIGNED BY ORDER OF THE DIRECTORS:

P Mehta - Director

29 September 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of the design, manufacture and supply of training and sport munitions, diverse industrial products and medical devices.

DIVIDENDS

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

DIRECTOR

P Mehta held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Shaw Gibbs (Audit) Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

P Mehta - Director

29 September 2025

Opinion

We have audited the financial statements of Lunovi Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Andrew Clifford (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited, Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

30 September 2025

TURNOVER

3

55,388,727

43,255,851

Cost of sales

31,457,690

23,873,975

GROSS PROFIT

23,931,037

19,381,876

Administrative expenses

15,971,327

11,994,823

7,959,710

7,387,053

Other operating income

758,756

678,934

OPERATING PROFIT

6

8,718,466

8,065,987

Interest receivable and similar income

27,401

64,327

Other finance income

20

1,000

26,000

28,401

90,327

8,746,867

8,156,314

Interest payable and similar expenses

7

468,992

716,275

PROFIT BEFORE TAXATION

8,277,875

7,440,039

Tax on profit

8

2,701,515

1,621,070

PROFIT FOR THE FINANCIAL YEAR

5,576,360

5,818,969

Profit attributable to:

Owners of the parent

5,576,360

5,818,969

PROFIT FOR THE YEAR

5,576,360

5,818,969

OTHER COMPREHENSIVE INCOME/(LOSS)

Actuarial gain/(loss) on pension scheme

1,810,000

(576,000

)

Income tax relating to other comprehensive income/(loss)

-

-

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX

1,810,000

(576,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

7,386,360

5,242,969

Total comprehensive income attributable to:

Owners of the parent

7,386,360

5,242,969

FIXED ASSETS

Intangible assets

10

15,775,817

17,773,784

Tangible assets

11

14,673,259

12,397,110

Investments

12

-

-

Investment property

13

2,776,461

2,776,461

33,225,537

32,947,355

CURRENT ASSETS

Stocks

14

12,785,649

12,649,390

Debtors

15

8,316,816

10,135,130

Cash at bank and in hand

3,665,431

2,115,406

24,767,896

24,899,926

CREDITORS

Amounts falling due within one year

16

18,803,771

24,926,679

NET CURRENT ASSETS/(LIABILITIES)

5,964,125

(26,753

)

TOTAL ASSETS LESS CURRENT LIABILITIES

39,189,662

32,920,602

PROVISIONS FOR LIABILITIES

18

(831,941

)

(138,241

)

PENSION ASSET

21

1,834,000

23,000

NET ASSETS

40,191,721

32,805,361

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Revaluation reserve

20

379,567

379,567

Capital contribution reserve

20

35,345

35,345

Retained earnings

20

39,775,809

32,389,449

SHAREHOLDERS' FUNDS

40,191,721

32,805,361

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

P Mehta - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

4,955,357

4,955,357

Investment property

13

-

-

4,955,357

4,955,357

CURRENT ASSETS

Debtors

15

21,385,165

23,675,076

Cash at bank

226

553,519

21,385,391

24,228,595

CREDITORS

Amounts falling due within one year

16

8,062,668

15,215,834

NET CURRENT ASSETS

13,322,723

9,012,761

TOTAL ASSETS LESS CURRENT LIABILITIES

18,278,080

13,968,118

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Capital contribution reserve

20

35,345

35,345

Retained earnings

20

18,241,735

13,931,773

SHAREHOLDERS' FUNDS

18,278,080

13,968,118

Company's profit for the financial year

4,309,962

4,035,946

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

P Mehta - Director

Called up

Capital

share

Retained

Revaluation

contribution

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

1,000

27,146,480

379,567

35,345

27,562,392

Changes in equity

Total comprehensive income

-

5,242,969

-

-

5,242,969

Balance at 31 December 2023

1,000

32,389,449

379,567

35,345

32,805,361

Changes in equity

Total comprehensive income

-

7,386,360

-

-

7,386,360

Balance at 31 December 2024

1,000

39,775,809

379,567

35,345

40,191,721

Called up

Capital

share

Retained

contribution

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000

9,895,827

35,345

9,932,172

Changes in equity

Total comprehensive income

-

4,035,946

-

4,035,946

Balance at 31 December 2023

1,000

13,931,773

35,345

13,968,118

Changes in equity

Total comprehensive income

-

4,309,962

-

4,309,962

Balance at 31 December 2024

1,000

18,241,735

35,345

18,278,080

Cash flows from operating activities

Cash generated from operations

1

7,174,055

4,812,986

Interest paid

(468,992

)

(716,275

)

Tax paid

(1,501,765

)

(338,926

)

Net cash from operating activities

5,203,298

3,757,785

Cash flows from investing activities

Purchase of intangible fixed assets

-

(48,861

)

Purchase of tangible fixed assets

(3,322,533

)

(3,652,614

)

Purchase of subsidiary

-

(309,000

)

Introduction of net assets of subsidiary

-

801,363

Interest received

27,401

64,327

Net cash from investing activities

(3,295,132

)

(3,144,785

)

Cash flows from financing activities

Loan repayments in year

(358,141

)

(561,879

)

Net cash from financing activities

(358,141

)

(561,879

)

Increase in cash and cash equivalents

1,550,025

51,121

Cash and cash equivalents at beginning of year

2

2,115,406

2,064,285

Cash and cash equivalents at end of year

2

3,665,431

2,115,406

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

2024

2023

£

£

Profit before taxation

8,277,875

7,440,039

Depreciation charges

3,044,351

2,464,713

Movement in pension scheme

-

(116,000

)

Deferred tax difference

6,700

-

Finance costs

468,992

716,275

Finance income

(28,401

)

(90,327

)

11,769,517

10,414,700

Increase in stocks

(136,259

)

(2,144,678

)

Decrease in trade and other debtors

1,384,673

745,172

Decrease in trade and other creditors

(5,843,876

)

(4,202,208

)

Cash generated from operations

7,174,055

4,812,986

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

3,665,431

2,115,406

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

2,115,406

2,064,285

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

2,115,406

1,550,025

3,665,431

2,115,406

1,550,025

3,665,431

Debt

Debts falling due within 1 year

(2,354,788

)

358,141

(1,996,647

)

(2,354,788

)

358,141

(1,996,647

)

Total

(239,382

)

1,908,166

1,668,784

1.	STATUTORY INFORMATION

Lunovi 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 General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its subsidiaries and joint ventures) made up to 31 December each period. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Subsidiaries

Subsidiaries are fully consolidated from the date on which control is transferred to the group and de-consolidated from the date that control ceases.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

The consolidated financial statements incorporate the assets, liabilities and results of the following entities in accordance with the accounting policy described above:

Name of entity

Registered office

Country of incorporation

Class ofshares held

Equity holding %

JEB Technologies Limited

See note 12

UK

Ordinary

100

UTM Limited

See note 12

UK

Ordinary

100

Lunpro Limited

See note 12

UK

Ordinary

100

Lunele Ltd

See note 12

UK

Ordinary

100

Eley Group Limited

See note 12

UK

Ordinary

100

Eley Limited

See note 12

UK

Ordinary

100

Medovate Limited

See note 12

UK

Ordinary

100

Medovate Limited was acquired on 2 November 2023 and is therefore proportionately consolidated from that date.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover

Turnover represents the value, excluding Value Added Tax, of goods and services supplied to customers during the year. Income is recognised when significant risks and rewards of ownership of the goods have been transferred to the buyer, which depending on the specific contract terms is either on dispatch or delivery of goods. Turnover on customer development and construction projects is recognised in accordance with agreed milestones being met.

Goodwill on consolidation

Goodwill on consolidation, arising on the acquisition of the subsidiaries, is amortised over 10 years.

Tangible fixed assets

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

Freehold & leasehold property

-

33% on cost

Plant and machinery

-

25% on cost, 20% on cost, 20% on reducing balance, 10% on cost and at varying rates on cost

Fixtures and fittings

-

33% on cost, 25% on reducing balance and 25% on cost

Motor vehicles

-

25% on reducing balance

Assets under construction

-

33% on cost

No depreciation is provided on a long term leasehold property where the lease is for a 999 year period, as in the opinion of the directors, the residual value is such that any depreciation charge would be immaterial.

Freehold buildings are improved such that residual values of these properties, based on prices prevailing at the time of acquisition, are at least equal to their book values. It is the opinion of the Directors that depreciation on any such properties as required by the Companies Act and accounting standards would not be material.

Other leasehold property is depreciated over the life of the lease.

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The director considers that the individual carrying values of assets are supportable by their value in use.

Investments in associates

Investments in associate undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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.