REGISTERED NUMBER: 10856270 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2024

for

Flexitallic UK Ltd

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

M N Horton

L H Walker

SECRETARY:

N Norton

REGISTERED OFFICE:

Scandinavia Mills

Hunsworth Lane

Cleckheaton

West Yorkshire

BD19 4LN

REGISTERED NUMBER:

10856270 (England and Wales)

SENIOR STATUTORY AUDITOR:

Peter Smith FCA

INDEPENDENT AUDITORS:

Constantin

Chartered Accountants and

Statutory Auditor

25 Hosier Lane

London

EC1A 9LQ

This Strategic Report has been prepared solely to provide additional information to shareholders to assess the company's strategies and the potential for those strategies to succeed. The Strategic Report contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward -looking information. The directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.

REVIEW OF BUSINESS

The company generates value to customers and shareholders through the manufacture and delivery of specialist gaskets and sheet materials for use in the oil and gas upstream and downstream sectors, petrochemical and power generation industries.

The board monitors progress of the company's performance against the agreed Business Plan for the financial year with specific reference to Order Intake, Turnover, Gross Margin, EBITDA, Working Capital and Free Cash targets as demanded by the Plan.

In 2024, the company experienced strong UK sales, though export and intercompany sales were lower due to de-stocking activities. Despite this, EBITDA grew to 23.1%, a 0.4% increase from 2023, driven by effective cost controls that offset the impact of reduced sales.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to be:

Competition

The company operates in a global competitive market and seeks to minimise this risk through focusing on the provision of specialist gasket and sheet material with excellent customer service.

Supply chain

Risks are mitigated through continuous negotiation with a wide supplier base.

Brexit

Brexit has had minimal impact on the entity.

Ukrainian-Russian conflict

The directors are aware of the Ukrainian-Russian conflict, and this has had no impact on the company.

SECTION 172(1) STATEMENT

The directors are well aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders and other stakeholders; including the following key matters:

- Strategic decisions are made in close conjunction with the Flexitallic group to ensure they fully support the interests of shareholders, employees and clients;

- Ensuring a high degree of integrity in dealings with employees, customers and suppliers. This is closely monitored against internal procedures and is reflected in both the long service of a number of senior staff across all subsidiaries and through long-standing relationships with clients;

- Working closely with its employees through its employee engagement groups to ensure employee views and opinions are considered in developing key strategies and decisions;

- Through its corporate activities and using its employee engagement groups the company and the subsidiaries seeks to maximise its contribution to its local communities and environment; and

- A key objective of the company and its subsidiaries being to assist customers harness technological change to successfully deliver innovation which supports fostering long term relationships, improved products for the global economy and increased opportunity for staff.

KEY PERFORMANCE INDICATORS

The Board monitors the progress of the UK Group's performance against prior year for the financial year 2024 with specific reference to the achievement of Order Intake, Turnover, Gross Margin & EBITDA targets. In 2024 the performance against these KPIs were as follows:

2024 Actual

2023 Actual

£'000s

£'000s

Order intake

27,715

26,937

Turnover

37,111

40,537

Gross margin

14,656

15,528

EBITDA

8,583

9,213

The board considers the employees number a key non-financial performance indicator. The company employed 237 employees in the current year (2023: 243).

ON BEHALF OF THE BOARD:

M N Horton - Director

29 September 2025

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

Certain information required to be disclosed in the Directors' Report is considered to be of strategic importance to the company and therefore disclosure is given in the Strategic Report. The specific items disclosed in the Strategic Report are:

- Review of business

- Principal risks and uncertainties

- Key performance indicators

- Section 172(1) statement

PRINCIPAL ACTIVITY

The principal activity of the company during the year was the delivery of high value gaskets and sheet sealing materials for use in the oil and gas upstream and downstream sectors, petrochemical and power generation industries.

DIVIDENDS

The profit for the year, after taxation, amounted to £4,504,083. No dividends will be distributed for the year ended 31 December 2024 (2023 - £nil).

RESEARCH AND DEVELOPMENT

The Company has a research and development team and laboratory at its site in Cleckheaton UK. Flexitallic's R&D team is focused on bringing new, highly engineered products to the market, as well as a software that will serve as a platform for customer joint specifications across sites to enable flange management and monitoring.

FUTURE DEVELOPMENTS

With a strong position and high market share in the UK, growth plans are focussed on under-served markets in Europe and other Global opportunities. Additional focus and initiatives are underway in key European markets and sales offices and service centres are being developed to meet demand.

DIRECTORS

M N Horton 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:

L H Walker - appointed 26 November 2024

POLITICAL DONATIONS

No political donations were made in the current and previous periods.

INDEMNITY PROVISION

The company had no qualifying indemnity provision in the current and previous periods.

FINANCIAL RISK MANAGEMENT

The company's operations expose it to a variety of financial risks with the significant ones being currency risk, liquidity risk and credit risk. The company has in place a risk management programme that seeks to limit the adverse effects of these risks on the financial performance of the company.

Currency risk

The company makes some of its sales and purchases in currencies other than GBP, primarily US Dollars and Euros. This is minimised through matching the time of settlement so as to eliminate, as far as possible, currency exposure.

Liquidity and cash flow risk

At 31 December 2024 the cash position was £2,319k (2023 - £3,125k). The available cash is managed by the treasury function which reports to the CFO who decides the optimum use of available cash in accordance with the directors' mandate.

Credit risk

Credit risk is managed through setting credit limits based on payment history and third party credit reference.

GREENHOUSE GAS AND ENERGY CONSUMPTION

A key target for the company is to minimise its environmental impact and, in particular, to reduce where possible its energy usage and CO2 emissions. From the production line to our support functions, reducing our carbon footprint, lowering the consumption of energy, and limiting the creation of waste are goals that we work actively to achieve.

The annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from activities for which the company is responsible, measured in TCO2e, is as follows:

2024

2023

- The combustion of gas

1,933.4

2,020.5

- The consumption of fuel for the purposes of transport

77.7

76.9

- The purchase of electricity by the company for its own use

736

817

The annual quantity of energy consumed from activities for which the company is responsible, measured in kWh, is as follows:

2024

2023

- The combustion of gas

10,559,254

11,033,982

- The consumption of fuel for the purposes of transport

351,973

319,658

The annual quantity of energy consumed resulting from the purchase of electricity by the company for its own use, including for the purposes of transport, was 3,553,506 kWh (2023 3,945,971 kWh).

The information is based on the SECR data which is a government regulatory framework (Streamlined Energy and Carbon Reporting).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;

- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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, Constantin, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M N Horton - Director

29 September 2025

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Flexitallic UK Limited (the 'company'):

- 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, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and

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

We have audited the financial statements which comprise:

- The statement of comprehensive income;

- The statement of financial position;

- The statement of changes in equity; and

- The related notes 1 to 21 which include the statement of 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).

Basis for opinion

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

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company's business sector.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

- Had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; and

- 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 a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our procedures performed to address it are described below:

- Cut-off of turnover due to varying timing of transfer of risks and rewards of the revenue transactions.

We addressed this risk by performing the following procedures:

- Obtaining an understanding of management's processes and controls in relation to ensuring the correct recognition of revenue. This includes performing the design and implementation of relevant controls;

- Performed analytical procedures to identify any unusual relationships that may indicate an error in the revenue recognised for the year; and

- Selecting a sample of revenue transactions before and after the year end and verifying the terms of the services to the underlying customer agreements in order to validate the timing of revenue recognition.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

- Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

- Reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters 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.

We have nothing to report in respect of these matters.

Use of our report

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

Peter Smith FCA (Senior Statutory Auditor)

For and on behalf of Constantin

Chartered Accountants and

Statutory Auditor

25 Hosier Lane

London

EC1A 9LQ

29 September 2025

REVENUE

3

37,111,355

40,536,890

Cost of sales

(20,987,389

)

(23,489,682

)

GROSS PROFIT

16,123,966

17,047,208

Distribution costs

(5,339,553

)

(5,492,812

)

Administrative expenses

(6,017,408

)

(7,441,625

)

OPERATING PROFIT

5

4,767,005

4,112,771

Interest receivable and similar income

8

1,128,250

1,139,910

5,895,255

5,252,681

Interest payable and similar expenses

9

(284,073

)

(265,226

)

Other finance costs

20

(5,000

)

(25,000

)

PROFIT BEFORE TAXATION

5,606,182

4,962,455

Tax on profit

10

(1,102,099

)

(1,030,390

)

PROFIT FOR THE FINANCIAL YEAR

4,504,083

3,932,065

OTHER COMPREHENSIVE INCOME

Actuarial gain/(loss) on pension scheme

784,000

(433,000

)

Deferred tax charge

809,750

108,250

Net defined benefit asset derecognition

(1,090,000

)

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

503,750

(324,750

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,007,833

3,607,315

FIXED ASSETS

Intangible assets

11

33,416

51,517

Property, plant and equipment

12

15,759,122

14,446,725

15,792,538

14,498,242

CURRENT ASSETS

Inventories

13

4,938,114

5,049,312

Debtors

14

41,071,859

34,477,556

Cash at bank and in hand

2,318,676

3,124,922

48,328,649

42,651,790

CREDITORS

Amounts falling due within one year

15

(18,084,280

)

(15,163,076

)

NET CURRENT ASSETS

30,244,369

27,488,714

TOTAL ASSETS LESS CURRENT LIABILITIES

46,036,907

41,986,956

CREDITORS

Amounts falling due after more than one year

16

(212,204

)

(928,039

)

PROVISIONS FOR LIABILITIES

18

(1,738,977

)

(1,450,024

)

PENSION LIABILITY

20

-

(531,000

)

NET ASSETS

44,085,726

39,077,893

CAPITAL AND RESERVES

Called up share capital

19

4

4

Retained earnings

44,085,722

39,077,889

SHAREHOLDERS' FUNDS

44,085,726

39,077,893

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:

M N Horton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

4

35,470,574

35,470,578

Changes in equity

Total comprehensive income

-

3,607,315

3,607,315

Balance at 31 December 2023

4

39,077,889

39,077,893

Changes in equity

Total comprehensive income

-

5,007,833

5,007,833

Balance at 31 December 2024

4

44,085,722

44,085,726

1.	STATUTORY INFORMATION

Flexitallic UK 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 principal activity of the company during the year continued to be the delivery of high value gaskets and sheet sealing materials for use in the oil and gas upstream and downstream sectors, petrochemical and power generation industries.

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.

Going concern

The directors, having considered the current trading prospects, identifiable risks, working capital requirements and the availability of finance, are of the opinion that the company is a going concern. The directors took into account the impact of Brexit and the Russian Ukrainian conflict in making their assessment of the going concern. The accounts have been prepared on this basis.

Presentational currency

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Significant judgements and estimates

Critical accounting judgements and key sources of estimation uncertainty:

In the application of the Company’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.

Critical judgements in applying the Company’s accounting policies:

There are no other critical judgements except for those related to estimation uncertainty which are detailed below.

Key source of estimation uncertainty - impairment of intangible assets:

Determining whether intangible assets are impaired requires an estimation of their value in use to the Company. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the intangible asset and a suitable discount rate in order to calculate present value.

Revenue

Revenue is the amount derived from the provision of goods and services, stated after trade discounts, other sales taxes and net of VAT. Revenue is recognised upon delivery of goods to the customer.

Intangible assets

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and loss account over its estimated economic life.

Amortisation is provided at the following rates:

Goodwill

- 5 years

Customer relationships

- 5 years

Computer software

- 3 years

Property, plant and equipment

Property, plant and equipment are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold property improvements

- Over the remaining lease term

Plant and machinery

- 3 - 10 years

Fixtures, fittings and equipment

- 3 - 5 years

Assets under construction

- Not depreciated

Motor vehicles

- 4 years

Inventories

Inventories and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 the profit and loss account in the period to which they relate.

The company also operates a defined benefit pension scheme which was closed to further accrual on 6 April 2015. Scheme assets are measured at fair value. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other net assets on the balance sheet. A net surplus is recognised only to the extent that it is recoverable by the company. The current service costs and costs from settlements and curtailments are charged against operating profit. Past service costs are spread over the period until the benefit increases vest. Interest on the scheme liabilities and the expected return on scheme assets are included net in other finance expense. Actuarial gains and losses are reported in the statement of total recognised gains and losses.

Provisions

Provisions are recognised when the company has a present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

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

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

3.

REVENUE

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

An analysis of revenue by geographical market is given below:

2024

2023

£

£

United Kingdom

13,407,898

11,863,145

Europe

10,400,266

12,462,954

Rest of the World

13,303,191

16,210,791

37,111,355

40,536,890

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

9,300,157

9,588,767

Social security costs

997,619

1,024,486

Other pension costs

585,934

528,818

10,883,710

11,142,071

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

2024

2023

Direct manufacturing

113

118

Indirect manufacturing

29

29

Sales, administration and finance

95

96

237

243

2024

2023

£

£

Directors' remuneration

298,033

302,156

Directors' pension contributions to money purchase schemes

13,953

13,549

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

298,033

302,156

Pension contributions to money purchase schemes

13,953

13,549

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

88,662

91,951

Operating leases

909,096

895,738

Depreciation - owned assets

1,121,320

847,288

Loss on disposal of fixed assets

1,421

13,318

Computer software amortisation

21,704

27,912

Foreign exchange differences

(166,415

)

1,151,079

6.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements

53,560

52,000

Fees payable to the company's auditors and their associates for other

services:

The auditing of accounts of any associate of the company

32,960

32,000

7.	EXCEPTIONAL ITEMS

2024

2023

£

£

Bridgepoint charges

135,305

135,305

Other costs

847,806

740,297

983,111

875,602

The above costs were incurred outside the normal activity of the business including apportionment of bridge point costs, project costs and severance.

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

£

Bank interest receivable

5,074

8,049

Interest receivable from group companies

1,123,176

1,123,277

Other interest received

-

8,584

1,128,250

1,139,910

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest payable to group companies

258,541

252,322

Other interest payable

191

3,718

Hire purchase interest

25,341

9,186

284,073

265,226