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Registration number: 04069159

Precision Refrigeration Limited
Annual Report and Financial Statements
for the Year Ended 31 January 2025

Precision Refrigeration Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3 to 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 9
Profit and Loss Account | 10
Statement of Comprehensive Income | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Statement of Cash Flows | 14
Notes to the Financial Statements | 15 to 28

Precision Refrigeration Limited

Company Information

Directors | Mr Nicholas Williams Mr Andrew Fysh Mrs Cecile Williams

Company secretary | Mr Michael Williams

Registered office | Stephenson Way Thetford Norfolk IP24 3RU

Auditors | Carbon Accountancy Limited Chartered Accountants and Registered Auditors 80-83 Long Lane London EC1A 9ET

Precision Refrigeration Limited

Strategic Report for the Year Ended 31 January 2025

The directors present their strategic report for the year ended 31 January 2025.

Principal activity

The principal activity of the company is the design and manufacture of commercial refrigeration products.

Fair review of the business

Despite an increase in sales of only 1% in 2025 reflecting a challenging market environment, the company's strategic decision to prioritise maintaining market share without compromising profitability nonetheless saw improvement in both gross and net margins. These improvements also reflect continuing focus on process efficiencies and stringent efforts to mitigate inflationary increases in both labour and supply chain costs. We continue to work with our suppliers to advance innovation and sustainability initiatives to add value to our products.
After dividends of 16.67p per share (2024 - 16.67p) were voted, net assets at the year after prior year adjustment increased from £5.95m to £7.84m, reflecting both a strong cash position and continued focus on working capital management.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Increase in sales | % | 1 | 2
Gross profit margin | % | 41 | 40
Operating profit margin | % | 18 | 14

Principal risks and uncertainties

The company's operations are exposed to a variety of financial risks that include the effects of changes to foreign currency exchange rates, customer credit risk, supply chain risk and trading seasonality. The company. has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company.
Policies are in place to limit the exposure to excess stock being carried forward from one year to the next. The company has no significant concentrations of credit risk. Receivable balances are monitored on ongoing basis to ensure the company's bad debt exposure is not significant.
The company's foreign exchange exposures arise from sourcing product overseas in US dollars and Euros. The company has a policy of maintaining both trade receivable and payable positions in foreign currencies to manage its risk exposure.
The company looks to mitigate supply chain risk by implementing a rigorous supplier selection process and working closely with a variety of suppliers in a range of regions.

Approved and authorised by the Board on 26 September 2025 and signed on its behalf by:

......................................... Mr Nicholas Williams Director

Precision Refrigeration Limited

Directors' Report for the Year Ended 31 January 2025

The directors present their report and the financial statements for the year ended 31 January 2025.

Directors of the company

The directors who held office during the year were as follows:

Mr Nicholas Williams

Mr Andrew Fysh

Mrs Cecile Williams

Financial instruments

Objectives and policies and risk assessment

The company's principal financial instruments comprise cash, short term. deposits and/or borrowings.
The company has various other financial instruments such as trade debtors and creditors that arise directly from its trading operations.
The main risks arising from the company's financial instruments are with liquidity, credit and exchange rate fluctuations. The company has clear policies for managing these risks as summarised below.:

Liquidity risk: Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Investment levels and cash flows are carefully controlled, with authorisation limits operating at different levels up to board level.
Credit risk: Risk of financial loss due to a counterparty's failure to honour its obligations arises principally in relation to transactions where the company provides goods and services on deferred credit terms. Company policies are aimed at minimising such losses, and require that deferred credit terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures.
Financial risk: The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company focuses on hedging existing monetary assets and liabilities (like receivables, payables, and debt) to reduce exposure in this regard.

Events after the financial period

Since the year end the company has invested in excess of £2m in new factory and storage facilities which have been financed from cash reserves.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Precision Refrigeration Limited

Directors' Report for the Year Ended 31 January 2025 (continued)

Reappointment of auditors

The auditors Carbon Accountancy Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 26 September 2025 and signed on its behalf by:

......................................... Mr Nicholas Williams Director

Precision Refrigeration Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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.

Precision Refrigeration Limited

Independent Auditor's Report to the Members of Precision Refrigeration Limited

Qualified opinion

We have audited the financial statements of Precision Refrigeration Limited (the 'company') for the year ended 31 January 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 January 2025 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 qualified opinion on financial statements

We were not appointed as auditor of the company until after 31 January 2024 and thus did not observe the counting of all physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 1 February 2023, which impact the inventory figure held at 31 January 2024 and included in the balance sheet at £2,861,251, by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount was necessary.

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 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 qualified opinion.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Other matter

The financial statements of the company for the year ended 31 January 2024 were not audited and, accordingly, we do not express an opinion on them. Our audit of the financial statements for the year ended 31 January 2025 included procedures designed to obtain reasonable assurance about whether the opening balances contained any misstatements that materially affect the current year's financial statements.

Precision Refrigeration Limited

Independent Auditor's Report to the Members of Precision Refrigeration Limited (continued)

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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £2,861,251 held at 31 January 2024. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our 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 and the Directors' Report.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records have been kept.

Precision Refrigeration Limited

Independent Auditor's Report to the Members of Precision Refrigeration Limited (continued)

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:

• | 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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.

The extent to which our procedures are 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

| • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates; • we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, and health and safey legislation; • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence, and; • identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

Precision Refrigeration Limited

Independent Auditor's Report to the Members of Precision Refrigeration Limited (continued)

| We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management. To address the risk of fraud in relation to revenue recognition, we: • performed detailed substantive testing to address completeness and accuracy of sales; • assessed the appropriateness and application of the accounting policy concerning income recognition; and • performed detailed cut-off testing either side of the balance sheet date.
| To address the risk of fraud through management bias and override of controls, we: • performed analytical procedures to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias, and; • investigated the rationale behind significant or unusual transactions.
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involvesintentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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.

......................................
John Leyden FCA (Senior Statutory Auditor)
For and on behalf of Carbon Accountancy Limited, Statutory Auditor
80-83 Long Lane
London
EC1A 9ET

26 September 2025

Precision Refrigeration Limited

Profit and Loss Account for the Year Ended 31 January 2025

| Note | 2025 £ | (As restated) 2024 £
Turnover | 3 | 9,577,836 | 9,483,772
Cost of sales |  | (5,630,036) | (5,735,736)
Gross profit |  | 3,947,800 | 3,748,036
Administrative expenses |  | (2,211,354) | (2,395,211)
Operating profit | 4 | 1,736,446 | 1,352,825
Income from participating interests |  | 745,358 | 566,774
Other interest receivable and similar income | 5 | 73,634 | 29,617
|  | 818,992 | 596,391
Profit before tax |  | 2,555,438 | 1,949,216
Tax on profit | 8 | (468,127) | (311,264)
Profit for the financial year |  | 2,087,311 | 1,637,952

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Precision Refrigeration Limited

Statement of Comprehensive Income for the Year Ended 31 January 2025

| 2025 £ | (As restated) 2024 £
Profit for the year | 2,087,311 | 1,637,952
Total comprehensive income for the year | 2,087,311 | 1,637,952

Precision Refrigeration Limited

(Registration number: 04069159)
Balance Sheet as at 31 January 2025

| Note | 2025 £ | (As restated) 2024 £
Fixed assets |  |  |
Intangible assets | 9 | 1,805 | 3,472
Tangible assets | 10 | 995,351 | 1,157,804
Investments | 11 | 76,190 | 76,190
|  | 1,073,346 | 1,237,466
Current assets |  |  |
Stocks | 12 | 2,765,140 | 2,452,186
Debtors | 13 | 1,161,497 | 1,400,242
Cash at bank and in hand |  | 5,407,813 | 3,223,262
|  | 9,334,450 | 7,075,690
Creditors: Amounts falling due within one year | 15 | (2,384,122) | (2,297,668)
Net current assets |  | 6,950,328 | 4,778,022
Total assets less current liabilities |  | 8,023,674 | 6,015,488
Provisions for liabilities | 16 | (180,627) | (59,752)
Net assets |  | 7,843,047 | 5,955,736
Capital and reserves |  |  |
Called up share capital |  | 1,200,000 | 1,200,000
Retained earnings |  | 6,643,047 | 4,755,736
Shareholders' funds |  | 7,843,047 | 5,955,736

Approved and authorised by the Board on 26 September 2025 and signed on its behalf by:

......................................... Mr Nicholas Williams Director

Precision Refrigeration Limited

Statement of Changes in Equity for the Year Ended 31 January 2025

| Share capital £ | Retained earnings £ | Total £
At 1 February 2024 | 1,200,000 | 4,755,736 | 5,955,736
Profit for the year | - | 2,087,311 | 2,087,311
Dividends | - | (200,000) | (200,000)
At 31 January 2025 | 1,200,000 | 6,643,047 | 7,843,047

| Share capital £ | Retained earnings £ | Total £
At 1 February 2023 | 1,200,000 | 3,628,550 | 4,828,550
Prior period adjustment | - | (310,766) | (310,766)
At 1 February 2023 (As restated) | 1,200,000 | 3,317,784 | 4,517,784
Profit for the year | - | 1,637,952 | 1,637,952
Dividends | - | (200,000) | (200,000)
At 31 January 2024 | 1,200,000 | 4,755,736 | 5,955,736

Precision Refrigeration Limited

Statement of Cash Flows for the Year Ended 31 January 2025

| Note | 2025 £ | (As restated) 2024 £
Cash flows from operating activities
Profit for the year |  | 2,087,311 | 1,637,952
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 4 | 279,206 | 283,065
Finance income | 5 | (818,992) | (596,391)
Income tax expense | 8 | 468,127 | 311,264
Foreign exchange gains/losses |  | (27,557) | 65,413
|  | 1,988,095 | 1,701,303
Working capital adjustments |  |  |
Increase in stocks | 12 | (312,954) | (798,755)
Decrease in trade debtors | 13 | 238,745 | 25,775
Decrease in trade creditors | 15 | (36,354) | (88,997)
Increase in provisions | 16 | 125,952 | -
Cash generated from operations |  | 2,003,484 | 839,326
Income taxes paid | 8 | (350,396) | (145,791)
Net cash flow from operating activities |  | 1,653,088 | 693,535
Cash flows from investing activities |  |  |
Interest received and similar income | 5 | 818,992 | 596,391
Acquisitions of tangible assets |  | (115,086) | (92,094)
Acquisition of intangible assets | 9 | - | (5,000)
Net cash flows from investing activities |  | 703,906 | 499,297
Cash flows from financing activities |  |  |
Dividends paid |  | (200,000) | (200,000)
Net increase in cash and cash equivalents |  | 2,156,994 | 992,832
Cash and cash equivalents at 1 February |  | 3,223,262 | 2,295,843
Effect of exchange rate fluctuations on cash held |  | 27,557 | (65,413)
Cash and cash equivalents at 31 January |  | 5,407,813 | 3,223,262

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

1 | General information

The company is a private company limited by share capital, incorporated in England.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

At the balance sheet date the company had a strong net current asset position. At the time of signing these accounts, the directors have considered the going concern position, and consider that this does indicate that the company will continue to trade for the foreseeable future.

Prior period errors

Year end adjustments made to closing stock to agree physical inventory in the 2021 financial period were not reversed in 2022 or subsequent years resulting in stock being overvalued in subsequent periods. In addiion, the cost of 50% investment in the shares of associated entity Precision Refrigeration Hong Kong Ltd was not previously reflected in the financial statements.

| 2025 £ | 2024 £ | 2023 and prior periods £
P&L reserves | - | - | 310,766
Finished goods | - | - | (409,065)
Investment in associates | - | - | 190
Other creditors | - | - | (190)
Other debtors - tax refundable | - | - | 98,299
Opening stock | (409,065) | (409,065) | -
Closing stock | 409,065 | 409,065 | -

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

2 | Accounting policies (continued)

Judgements and key sources of estimation undertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of stock: At the end of the reporting period, management undertake an assessment of stock, based upon their knowledge of the market and the movement of each stock item. Where necessary, an impairment is recognised in the profit and loss account. The actual net realisable value may differ from the estimated level of recovery.
Impairment of trade debtors: At each balance sheet date, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt. The actual level of debt collected may differ from the estimated level of recovery.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue from the sale of goods, on delivery of the goods, and from the rendering of services in the period in which the servies are provided when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

2 | Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Freehold land | Not depreciated
Factory premises | 4% straight line
Plant and machinery | 10%-25% straight line
Motor vehicles | 33% straight line
Fixtures, fittings and office equipment | 33% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Computer software | 33% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

2 | Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the moving average cost method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the profit and loss account in the year that the company up becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

2 | Accounting policies (continued)

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

Financial instruments

Classification
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Recognition and measurement
Basic financial assets, which include trade and other debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
Impairment
Financial assets are assessed for indicators of impairment at each reporting end date. 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.

3 | Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 9,470,073 | 9,350,293
Rendering of services | 107,763 | 133,479
| 9,577,836 | 9,483,772

4 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 277,539 | 281,537
Amortisation expense | 1,667 | 1,528
Research and development cost | 11,550 | 4,608
Foreign exchange (gains)/losses | (27,557) | 65,413

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 73,634 | 29,617

6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 834,606 | 778,394
Social security costs | 56,811 | 60,074
Other post-employment benefit costs | 141,119 | 112,111
Other employee expense | 14,619 | 6,236
| 1,047,155 | 956,815

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Administration and support | 2 | 2
Sales, marketing and distribution | 52 | 47
| 54 | 49

7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 124,772 | 120,125

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

8 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 473,204 | 350,396
Deferred taxation |  |
Arising from origination and reversal of timing differences | (5,077) | (39,132)
Tax expense in the income statement | 468,127 | 311,264

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 24%).
The differences are reconciled below:

| 2025 £ | (As restated) 2024 £
Profit before tax | 2,555,438 | 1,949,216
Corporation tax at standard rate | 638,860 | 467,812
Tax increase from other short-term timing differences | 28,741 | 31,800
Effect of revenues exempt from taxation | (186,340) | (136,026)
Effect of expense not deductible in determining taxable profit (tax loss) | 7,861 | 5,930
Tax decrease from effect of adjustment in research and development tax credit | (20,995) | (58,252)
Total tax charge | 468,127 | 311,264

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated capital allowances | - | 54,675
| - | 54,675

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

8 | Taxation (continued)

2024 | Asset £ | Liability £
Accelerated capital allowances | - | 59,752
| - | 59,752

Future tax charges and therefore the effective tax rate may be affected by tax regime reforms. The standard rate of tax applied to reported profit is as disclosed above. As confirmed in the Spring Budget 2024, the UK corporation tax rate is to remains at 25%.

9 | Intangible assets

| Other intangible assets £ | Total £
Cost or valuation
At 1 February 2024 | 5,000 | 5,000
At 31 January 2025 | 5,000 | 5,000
Amortisation
At 1 February 2024 | 1,528 | 1,528
Amortisation charge | 1,667 | 1,667
At 31 January 2025 | 3,195 | 3,195
Carrying amount
At 31 January 2025 | 1,805 | 1,805
At 31 January 2024 | 3,472 | 3,472

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

10 | Tangible assets

| Freehold and short leasehold land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Other tangible assets £ | Total £
Cost or valuation
At 1 February 2024 | 883,696 | 78,543 | 236,338 | 1,447,041 | 2,645,618
Additions | - | 15,259 | 95,930 | 3,897 | 115,086
Disposals | - | - | (27,583) | - | (27,583)
At 31 January 2025 | 883,696 | 93,802 | 304,685 | 1,450,938 | 2,733,121
Depreciation
At 1 February 2024 | 281,063 | 68,322 | 129,226 | 1,009,203 | 1,487,814
Charge for the year | 27,444 | 13,539 | 72,283 | 164,273 | 277,539
Eliminated on disposal | - | - | (27,583) | - | (27,583)
At 31 January 2025 | 308,507 | 81,861 | 173,926 | 1,173,476 | 1,737,770
Carrying amount
At 31 January 2025 | 575,189 | 11,941 | 130,759 | 277,462 | 995,351
At 31 January 2024 | 602,633 | 10,221 | 107,112 | 437,838 | 1,157,804

Included within the net book value of land and buildings above is £575,189 (2024 - £602,633) in respect of freehold land and buildings and £Nil (2024 - £Nil) in respect of short leasehold land and buildings. The original cost of freehold land and buildings was £611,891 (2024 - £611,891).

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

11 | Investments

| 2025 £ | (As restated) 2024 £
Investments in associates | 76,190 | 76,190

Associates | £
Cost
At 1 February 2024 | 76,190
Provision
Carrying amount
At 31 January 2025 | 76,190
At 31 January 2024 | 76,190

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Associates
Precision Refrigeration Equipment (Shenzhen) Company Limited | South Block 3/F, 3-1 Jinde Rd Caowei, Xixiang Town, Bao'an. Shenzhen 518128. | Ordinary | 50% | 50%
| China |  |  |
Precision Refrigeration (Hong Kong) Limited | 1 Halson Building, Jubilee St Central, Hong Kong. | Ordinary | 50% | 50%
| Hong Kong |  |  |

Associates
Precision Refrigeration Equipment (Shenzhen) Company Limited The principal activity of Precision Refrigeration Equipment (Shenzhen) Company Limited is the manufacture and sale of commercial refrigeration products.

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

11 | Investments (continued)

Precision Refrigeration (Hong Kong) Limited The principal activity of Precision Refrigeration (Hong Kong) Limited is the sale of commercial refrigeration products.

12 | Stocks

| 2025 £ | (As restated) 2024 £
Raw materials and consumables | 853,464 | 1,003,466
Finished goods and goods for resale | 1,911,676 | 1,448,720
| 2,765,140 | 2,452,186

13 | Debtors

Current | 2025 £ | (As restated) 2024 £
Trade debtors | 1,007,256 | 1,241,897
Other debtors | 98,299 | 89,548
Prepayments | 55,942 | 68,797
| 1,161,497 | 1,400,242

14 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 110 | 200
Cash at bank | 1,933,982 | 1,652,145
Short-term deposits | 3,473,721 | 1,570,917
| 5,407,813 | 3,223,262

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

15 | Creditors

| Note | 2025 £ | (As restated) 2024 £
Due within one year |  |  |
Trade creditors |  | 1,477,373 | 1,526,215
Social security and other taxes |  | 179,422 | 146,050
Outstanding defined contribution pension costs |  | 10,609 | 9,713
Other payables |  | 87,269 | 129,046
Accrued expenses |  | 156,218 | 136,221
Income tax liability | 8 | 473,231 | 350,423
|  | 2,384,122 | 2,297,668

16 | Provisions for liabilities

| Warranties £ | Deferred tax £ | Total £
At 1 February 2024 | - | 59,752 | 59,752
Additional provisions | 125,952 | - | 125,952
Increase (decrease) in existing provisions | - | (5,077) | (5,077)
At 31 January 2025 | 125,952 | 54,675 | 180,627

Warranties – provision is made for the estimated liability on all products which carry warranties of up to two years.

Deferred tax – provision is made on temporary differences under the liability method using a tax rate of 25% (2024 – 25%).

17 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
A Ordinary shares of £1 each | 1,080,000 | 1,080,000 | 1,080,000 | 1,080,000
B Ordinary shares of £1 each | 120,000 | 120,000 | 120,000 | 120,000
| 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

18 | Company pension schemes

Defined contribution schemes The company contributes to defined contribution pension plans for its employees including directors. The assets of the plans charge represents the contributions paid by the company to the fund and for the year ended 31 January 2025 amounted to £141,119 (2024: £112,111). Contributions amounting to £10,609 (2024: £9,713) were payable to the funds at the reporting date.

19 | Related party transactions

Trading activities with related parties

During the period the company had the following transactions with associated entities:
Sales of services - £107,764 (2024 - £133,479)
Purchases of goods - £2,410,764 (2024 - £3,094,952)
Dividends receivable - £745,358 (2024 - £566,744)
Trade related payables at the balance sheet date - £1,239,382 (2024 - £1,175,179)
During the period the company had the following transactions with other entities under common control:
Purchases of servies - £395,382 (2024 - £400,972)
Trade related payables at the balance sheet date - £33,969 (2024 - £Nil)

Loans from related parties

2025 | Key management £ | Total £
At start of period | 126,800 | 126,800
Advanced | 200,000 | 200,000
Repaid | (240,000) | (240,000)
At end of period | 86,800 | 86,800

Precision Refrigeration Limited

Notes to the Financial Statements for the Year Ended 31 January 2025 (continued)

19 | Related party transactions (continued)

2024 | Key management £ | Total £
At start of period | 166,800 | 166,800
Advanced | 200,000 | 200,000
Repaid | (240,000) | (240,000)
At end of period | 126,800 | 126,800

Terms of loans from related parties

Loans from directors are interest free and repayable on demand.

20 | Ultimate controlling party

The ultimate controlling party is N Williams.

21 | Events after the financial period

Since the year end the company has invested in excess of £2m in new factory and storage facilities which have been financed from cash reserves.