REGISTERED NUMBER: NI027091 (Northern Ireland)

TYRONE FABRICATION LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

B McDermott

A McDermott

A McDermott

A McDermott

M Montague

REGISTERED OFFICE:

87 Goland Road

Ballygawley

Co. Tyrone

BT70 2LA

REGISTERED NUMBER:

NI027091 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

HSBC

1 Dublin Road

Omagh

Co. Tyrone

BT78 1ES

SOLICITORS:

Simmons, Meglaughlin & Orr

20 Northland Row

Dungannon

Co. Tyrone

BT71 6BL

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

REVIEW OF BUSINESS

Tyrone Fabrication Limited has delivered a strong trading performance for the year ended 31 December 2024 and the business remains in a sound financial position at the year end.

The directors consider that the key performance indicators are those that communicate the financial performance and strengths of the business as a whole, being revenue, gross profit and operating profit.

The directors have reviewed the performance of the company in the year. The directors are reporting a decrease in revenue to £17,378,628 (2023: £29,540,795). The gross profit margin has increased to 33.8% (2023: 28.5%). The company's operating profit has decreased to £(2,427,637) (2023: £4,978,592) and the company generated profit before tax of £2,456,320 (2023: £4,957,889).

The directors are satisfied with the company's financial performance. This is further reflected in the fact that the company has a strong net asset position at the year end.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company operations expose it to a variety of risks that include economic risk, competition risk and financial risk. The company has in place a risk management programme that seeks to limit and adverse effects on the financial performance of the company.

Economic Risk:

The economic risks facing the company include wages inflation and fall in demand for products. The directors work closely with employees, customers, suppliers and the company's financial institutions to carefully manage such risks.

Competition Risk:

Competition risk is managed through close attention to product quality, customer service and sustainable markets.

Financial Risk:

The company has exposure to financial risks through interest rates applied to its bank borrowings. These risks are managed by budgetary control and maintaining a close working relationship with its bankers.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors deem the following as key performance indicators for the company:

2024

2023

Revenue:

£17,378,628

£29,540,795

Gross Profit Margin:

33.8%

28.5%

Net Operating Profit Margin:

14.4%

16.8%

STRATEGY

The company's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the company's operations. The directors are continually looking for new opportunities to expand the business.

EMPLOYMENT POLICY

The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company performance.

FUTURE DEVELOPMENTS

The company is committed to long term creation of shareholder value by increasing the company's market share. The company aims to increase revenue and operating profits. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive.

ON BEHALF OF THE BOARD:

A McDermott - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company is the manufacture of steel cabinets and associated equipment.

DIVIDENDS

The total interim distribution of dividends for the year ended 31 December 2024 were £1,320,000 (2023: £4,000,000). The Directors do not recommend payment of a final dividend (2023: £Nil).

DIRECTORS

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

B McDermott

A McDermott

A McDermott

A McDermott

M Montague

DISCLOSURES REQUIRED UNDER SCHEDULE 7

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the review of the company's business, financial risk management objectives and policies, future developments and employment policy in the company's Strategic Report which would otherwise be required to be disclosed in the Director's Report.

RESEARCH AND DEVELOPMENT

The Company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

POLITICAL DONATIONS

The company made charitable donations of £950 during the year (2023: £12,851). No expenditure was incurred for political purposes in the current or prior year.

DIRECTORS' RESPONSIBILITIES STATEMENT

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), 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 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 audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A McDermott - Director

29 September 2025

Opinion

We have audited the financial statements of Tyrone Fabrication Limited (the 'Company') for the year ended 31 December 2024 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 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.

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 Directors' Report.

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 Directors' Responsibilities Statement 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 an Auditors' 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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

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

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.

Mr. Desmond Kelly FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

29 September 2025

REVENUE

5

17,378,628

29,540,795

Cost of sales

(11,507,415

)

(21,120,896

)

GROSS PROFIT

5,871,213

8,419,899

Operating costs

(1,021,593

)

(1,191,975

)

Administrative expenses

(2,426,041

)

(2,249,332

)

2,423,579

4,978,592

Other operating income

4,058

-

OPERATING PROFIT

7

2,427,637

4,978,592

Finance income

40,000

18,972

2,467,637

4,997,564

Finance costs

8

(11,317

)

(39,675

)

PROFIT BEFORE TAXATION

2,456,320

4,957,889

Tax on profit

9

589,786

(1,027,373

)

PROFIT FOR THE FINANCIAL YEAR

3,046,106

3,930,516

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,046,106

3,930,516

NON-CURRENT ASSETS

Property, plant and equipment

11

4,619,539

4,212,947

CURRENT ASSETS

Inventories

12

2,112,247

2,737,924

Receivables: Amounts falling

due within one year

13

5,131,555

6,507,808

Cash at bank

5,107,643

3,532,080

12,351,445

12,777,812

PAYABLES

Amounts falling due within one year

14

(2,803,671

)

(4,523,887

)

NET CURRENT ASSETS

9,547,774

8,253,925

TOTAL ASSETS LESS CURRENT LIABILITIES

14,167,313

12,466,872

PAYABLES

Amounts falling due after more than one year

15

-

(95,442

)

PROVISIONS FOR LIABILITIES

18

(759,946

)

(690,169

)

NET ASSETS

13,407,367

11,681,261

CAPITAL AND RESERVES

Called up share capital

19

200,002

200,002

Revaluation reserve

567,203

567,203

Retained earnings

12,640,162

10,914,056

SHAREHOLDERS' FUNDS

13,407,367

11,681,261

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:

A McDermott - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

200,002

10,983,540

567,203

11,750,745

Changes in equity

Dividends

-

(4,000,000

)

-

(4,000,000

)

Total comprehensive income

-

3,930,516

-

3,930,516

Balance at 31 December 2023

200,002

10,914,056

567,203

11,681,261

Changes in equity

Dividends

-

(1,320,000

)

-

(1,320,000

)

Total comprehensive income

-

3,046,106

-

3,046,106

Balance at 31 December 2024

200,002

12,640,162

567,203

13,407,367

1.	STATUTORY INFORMATION

Tyrone Fabrication Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.

Disclosure exemptions for qualifying entities under FRS 102

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions.

The company has taken advantage of the following exemptions:

- from preparing a Statement of cash flows on the basis that it is a qualifying entity, its cash flows are included in the cash flow statement of Redcherry Bidco Limited; and

- from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods:

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services and contracting:

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Property, plant and equipment and depreciation

Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Historical cost included expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property

4% Straight line

Plant and machinery

20% Reducing balance

Fixtures and fittings

15% Reducing balance

Motor vehicles

25% Reducing balance

Computer equipment

25% Straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Inventories

Inventories are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. The cost of manufactured finished goods and work in progress includes raw materials, direct labour and other direct costs and related production overheads.

Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Work in progress

Work in progress is stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each contract to its present stage, plus an element of profit attributable to the current stage of completion. Net realisable value is based on estimated contract price less any further costs expected to be incurred in completion.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group and related parties and are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to group and related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation and deferred taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Research and development

Research expenditure is written off to the Income Statement in the year in which it is incurred.

Foreign currencies

The company's functional and presentational currency is GBP.

Employee benefits

The company operates a range of benefits to employees, including paid holiday arrangements and a defined contribution plan.

(i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense, in the period in which the service is receivable.

(ii) Defined contribution plan

The company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Government grants

Capital grants received and receivable are treated as deferred income and amortised to the Income Statement annually over the useful economic life of the asset to which it relates. Revenue grants are credited to the Income Statement when received.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Distribution to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial period in which the dividends and other distributions are approved by the company's shareholders.These amounts are recognised in the statement of changes in equity.

Debtors

Debtors are stated after all known bad debts have been written off. Specific provision has been made against all debts considered doubtful of collection.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within current liabilities.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Warranty provision

Provisions for warranty related costs are recognised based on experience of the costs of making good claims under warranty. The future cash flows are estimated based on a number of factors, including historical claim and cost experience, the duration of the warranty coverage and the nature of the product sold, and are discounted at a current pre-tax rate that reflects the risks specific to the provision. The estimate for the warranty related costs is reviewed annually and adjusted as appropriate through cost of sales.

4.	SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAI

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below:

Warranty Provision

The company offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold.

5.

REVENUE

All turnover is generated from the company's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudicial to the interests of the company.

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,109,325

4,255,837

Social security costs

318,003

425,471

Other pension costs

161,046

116,790

3,588,374

4,798,098

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

2024

2023

Production and selling

64

102

Administration and Directors

26

23

90

125

2024

2023

£

£

Directors' emoluments

512,420

638,635

Pension

71,415

10,308

Retirement benefits are accruing to five (2023: four) directors under a defined contribution

scheme.

Highest paid director:

2024

2023

£

£

Aggregate emoluments

237,096

370,646

Pension Contributions

-

2,692

7.	OPERATING PROFIT

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

2024

2023

£

£

Depreciation - owned assets

358,640

517,170

Amortisation

17,000

-

Auditor's remuneration

12,550

11,950

Non audit services: Taxation

120,187

10,990

Foreign exchange differences

119.501

(3,005

)

8.	FINANCE COSTS

2024

2023

£

£

Bank interest paid

1,782

28,065

Hire purchase interest

9,535

11,610

11,317

39,675

9.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

104,573

911,239

Adjustments in respect of

prior periods

(764,136

)

123,164

Total current tax

(659,563

)

1,034,403

Deferred tax:

Origination and reversal of temporary differences

70,491

(8,491

)

Adjustments in respect of

prior periods

(714

)

1,995

Impact of rate change

-

(534

)

Total deferred tax

69,777

(7,030

)

Tax on profit

(589,786

)

1,027,373

Reconciliation of total tax (credit)/charge 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 before tax

2,456,320

4,957,889

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

614,080

1,166,095

Effects of:

Expenses not deductible for tax purposes

2,716

7,886

Income not taxable for tax purposes

-

(4,462

)

Depreciation in excess of capital allowances

54,272

48,022

Adjustments to tax charge in respect of previous periods

(764,850

)

125,159

Impact of super deduction

-

(42

)

Research and development tax credit

(247,886

)

(312,868

)

Group relief

(2,051

)

(1,883

)

Patent box regime

(246,067

)

-

Impact of rate change

-

(534

)

Total tax (credit)/charge

(589,786

)

1,027,373

10.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

1,320,000

4,000,000