REGISTERED NUMBER: 01671841 (England and Wales)

LINKAM SCIENTIFIC INSTRUMENTS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

10

Balance Sheet

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr A C F Kamp

Mr V B Kamp

Mr R Browne

SECRETARY:

Mrs H Kenward

REGISTERED OFFICE:

Unit 9 Perrywood Industrial Park

Honeycrock Lane

Salfords

Redhill

Surrey

RH1 5DZ

REGISTERED NUMBER:

01671841 (England and Wales)

AUDITORS:

Bessler Hendrie LLP

Chartered Accountants

Statutory Auditor

Ashbourne House

The Guildway

Old Portsmouth Road

Guildford

Surrey

GU3 1LR

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

REVIEW OF BUSINESS

The company's core activity remains the design, manufacture, and trading of scientific instruments, predominantly those used in microscopy. That will stay our focus, and we expect to release several new products over the coming year.

It proved a difficult trading period, and one that did not reflect the initial optimism of many distribution partners and economic indicators. Starting with a smaller order book than the previous period and with sales falling by 4.1% resulted in a 20% drop in revenue.

With key distribution partners reporting increasingly difficult markets and competitors discounting, we held our prices. Material and staffing costs continued to rise much more sharply than was typical pre-COVID, so pressure on margins increased.

Lower revenue, and margins, resulted in a 56% drop in operating profit before exceptional items, and although the R&D team are working on new products to supplement our existing range, those products either came too late or remain under development.

In the first half of the period sales in the US started very positively, slowing as the US election approached, while limited research funding had an impact in Europe and Asia. Distributors in the Indian, Japanese and South Korean markets also had to contend with weakening local currencies.

The second half of the period saw inauguration in the US, closely followed by US Department of Government Efficiency (DOGE) reforms of research spending and then trade tariffs. The prolonged uncertainty of fluctuating tariffs hit that market and eventually ended with a 10% price uplift for our US customers. Whilst that dampened opportunity in the US the general picture in Europe and Asia improved, Japan does though have an ongoing cost of living crisis, one that has required their government to intervene.

The level of sales opportunities did though remain encouraging, with many customers and distributors reporting that projects had been agreed subject to funding being released. Our sales team also focused on finding new distribution partners in emerging or poorly represented markets and have successfully brought new partners on board and received orders from them.

Our R&D and Production Teams remained focused on internal efficiencies, meaning we have been able to reduce staff numbers. We have continued to investment in the business, including areas such as updating our IT infrastructure, a mark of confidence going forward.

Despite distributors across the world reporting difficult trading conditions the board is pleased to report a positive outlook with several new products on the horizon. Cash flow remained strong throughout the year, and we finish the period on a sound financial position.

PRINCIPAL RISKS AND UNCERTAINTIES

We continue to see a high level of uncertainty in the sales projections provided by our distribution partners, making budgeting problematic. At the same time staffing and material costs continue to challenge margins.

There has been a rapid increase in environmental compliance requests from customers, along with a flow of new standards being introduced. We are reviewing how this function needs to be resourced going forward.

Those extra costs come at a time when we have again felt it prudent to hold our prices, due to US tariffs, the Japanese economy, limited research funding and increasing competition. That situation will though need to be closely monitored.

The principal risk remains supply chain, particularly the semiconductor market. The tension between China and Taiwan is still evident, along with the threat from the US for 100% tariffs on foreign semiconductor products. With manufacturers moving their production from Asia to the US and Europe there is a risk that they will consolidate their offerings, and the potential knock on for our products.

Longer-term the impact of US trade tariffs on key market economies, along with increasing defence and welfare spending will likely decrease available research funding. We continue to work on new products in an effort to offset that coming storm.

We continue to work closely with some of our Original Equipment Manufacturers (OEM) partners, to be as flexible as possible with our delivery dates, as the downturn is meaning that their cashflows are stretched. We are also seeing that the projections for some of the OEM forward orders were far from accurate, and those customers are needing longer to call off their deliveries. We are though making sure that any risk to our business is managed to safeguard our cash position.

We have seen an increase in copying of our products, especially in the US and Asia, and while local distributors do not feel that there is too much impact at the moment, it is certainly something we will need to monitor.

After Corporation Tax and NI increases over the last couple of years, we watch to see what the UK Government will do in the Autumn Budget to reduce the UK deficit.

KEY PERFORMANCE INDICATORS

The directors considers that the key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole and relate to turnover, gross profit and the net asset position.

As disclosed within the financial statements, the key reported figures are as follows:

Year Ended

Year Ended

31.5.25

31.5.24

£

£

Turnover

6,376,232

7,928,184

Gross profit

2,602,282

3,903,701

Net assets

10,493,521

11,547,787

FINANCIAL RESULTS

A summary of the results of the year's trading is given on page 10 of the financial statements.

FUTURE DEVELOPMENTS

Our R&D teams are focused on longer term planning, to deliver more frequent product releases. Our Sales team continues to look for new opportunity and manage an increasing order cycle.

We continue our journey for ISO9001 quality approval, to help us to drive efficient processes and ease trade with larger corporations, and a continued focus on environmental issues will help maintain an edge over startups copying our products.

More challenging times ahead, but still, plenty of opportunity.

ON BEHALF OF THE BOARD:

Mr R Browne - Director

15 October 2025

The directors present their report with the financial statements of the company for the year ended 31 May 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacturing and development of scientific instruments. These accounts include the results of the company's branch located in Holland.

DIVIDENDS

Dividends of £Nil were distributed during the year. No dividends were paid in the prior year.

DIRECTORS

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

Mr A C F Kamp

Mr V B Kamp

Mr R Browne

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the report of the directors' have been omitted as they are included in the Strategic Report on pages 2 to 4. These matters relate to likely future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 auditors, Bessler Hendrie LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:

Mr R Browne - Director

15 October 2025

Opinion

We have audited the financial statements of Linkam Scientific Instruments Limited (the 'company') for the year ended 31 May 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 May 2025 and of its loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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, and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with management. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our approach was as follows:

-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates and determined that the significant frameworks, which are directly relevant to specific assertions in the financial statements, are those that relate to the reporting framework (FRS 102 including the Companies Act 2006) and the relevant tax regulations in the UK. This included discussions amongst the members of the audit team and tax specialists.

-

We understood how the company is complying with those frameworks through enquiry with management.

-

We assessed the risks related to the control environment and in particular those related to management override of controls given the size of the business.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

-

Inquire of management regarding their knowledge and actions relating to any non-compliance with laws and regulations that could affect the financial statements.

-

Reviewing the financial statement disclosures and testing supporting documentation.

-

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

-

Reading minutes of meetings of management.

-

Obtaining and reading correspondence from legal and regulatory bodies including HMRC.

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal adjustments, accounting estimates and judgements made

-

Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Matthew Oliver (Senior Statutory Auditor)

for and on behalf of Bessler Hendrie LLP

Chartered Accountants

Statutory Auditor

Ashbourne House

The Guildway

Old Portsmouth Road

Guildford

Surrey

GU3 1LR

15 October 2025

TURNOVER

5

6,376,232

7,928,184

Cost of sales

(3,773,950

)

(4,024,483

)

GROSS PROFIT

2,602,282

3,903,701

Administrative expenses

(3,556,715

)

(1,457,917

)

OPERATING (LOSS)/PROFIT

8

(954,433

)

2,445,784

Interest receivable and similar income

11

145,062

113,319

(LOSS)/PROFIT BEFORE TAXATION

(809,371

)

2,559,103

Tax on (loss)/profit

12

(244,895

)

(563,281

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,054,266

)

1,995,822

Retained earnings at beginning of year

11,537,787

9,541,965

RETAINED EARNINGS AT END OF YEAR

10,483,521

11,537,787

FIXED ASSETS

Tangible assets

13

3,839,910

6,052,370

CURRENT ASSETS

Stocks

14

1,020,770

1,164,673

Debtors

15

1,077,531

1,123,649

Cash at bank and in hand

5,672,310

4,846,799

7,770,611

7,135,121

CREDITORS

Amounts falling due within one year

16

(708,299

)

(1,203,859

)

NET CURRENT ASSETS

7,062,312

5,931,262

TOTAL ASSETS LESS CURRENT LIABILITIES

10,902,222

11,983,632

PROVISIONS FOR LIABILITIES

17

(408,701

)

(435,845

)

NET ASSETS

10,493,521

11,547,787

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Retained earnings

19

10,483,521

11,537,787

SHAREHOLDERS' FUNDS

10,493,521

11,547,787

The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2025 and were signed on its behalf by:

Mr A C F Kamp - Director

Cash flows from operating activities

Cash generated from operations

1

1,091,528

3,266,772

Tax paid

(329,394

)

(620,218

)

Net cash from operating activities

762,134

2,646,554

Cash flows from investing activities

Purchase of tangible fixed assets

(80,365

)

(363,158

)

Sale of tangible fixed assets

-

11,667

Interest received

144,422

113,319

Net cash from investing activities

64,057

(238,172

)

Cash flows from financing activities

Amount introduced by directors

-

535

Amount withdrawn by directors

(680

)

-

Net cash from financing activities

(680

)

535

Increase in cash and cash equivalents

825,511

2,408,917

Cash and cash equivalents at beginning of year

2

4,846,799

2,437,882

Cash and cash equivalents at end of year

2

5,672,310

4,846,799

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(809,371

)

2,559,103

Depreciation charges

262,759

224,815

Loss/(profit) on disposal of fixed assets

3,002

(7,837

)

Movement in warranty provision

2,057

(4,385

)

Impairment of freehold property

2,027,064

-

Finance income

(145,062

)

(113,319

)

1,340,449

2,658,377

Decrease/(increase) in stocks

143,903

(153,307

)

Decrease in trade and other debtors

46,118

792,313

Decrease in trade and other creditors

(438,942

)

(30,611

)

Cash generated from operations

1,091,528

3,266,772

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

5,672,310

4,846,799

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

4,846,799

2,437,882

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank and in hand

4,846,799

825,511

5,672,310

4,846,799

825,511

5,672,310

Total

4,846,799

825,511

5,672,310

1.	STATUTORY INFORMATION

Linkam Scientific Instruments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

The company's principal place of business is Unit 9 Perrywood Industrial Park, Honeycrock Lane, Salfords, Redhill, Surrey, RH1 5DZ.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention. Monetary amounts in these financial statements are rounded to the nearest £.

Turnover

Turnover represents net invoiced sales of goods, namely scientific instruments, excluding value added tax.

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

-

the company has transferred to the buyer the significant risks and rewards of ownership of the goods, which is upon dispatch;

-

the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of revenue can be measured reliably;

-

it is probable that the economic benefits associated with the transaction will flow to the company; and

-

the costs incurred or to be incurred in respect of the transaction will flow to the company.

Tangible fixed assets

Tangible fixed assets are stated at their historic cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The assets residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date.

The company has a policy to capitalise purchased assets of over £500. Any expenditure below this value will be expensed to the profit and loss account.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under finance lease, over the lease term, whichever is the shorter.

Land and buildings

- 2% on cost (excluding the cost attributable to land)

Plant and machinery

- 33% on cost, 20% on cost and 10% on cost

Fixture and fittings

- 20% on cost and 10% on cost

On disposal, the difference between net proceeds and the carrying amount of the item disposed of is recognised in the profit and loss account.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is measured on a first in first out basis.

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

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. 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 and subsequently measured at amortised cost. The company has no financial assets nor liabilities which are measured at fair value through profit or loss.

Trade and other debtors are recognised and carried forward at invoiced amounts less provision for any doubtful debts. Bad debts are written off when identified.

Cash and cash equivalents comprise of cash at bank and in hand, and are included in the balance sheet at cost.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

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

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Research and development

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rates of exchange during the year. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

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

Holiday pay

The company recognises an accrual for holiday entitlement earned by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the subsequent financial year. The provision is measured at the salary cost payable for the period of absence including employers national insurance costs.

Provisions for liabilities

Provisions are recognised in the financial statements for all expected future cash outflows arising in respect of warranty provisions.

A provision is made for the estimated liability on all products which are the subject of warranty agreements. The amount recognised is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, based on the estimated risks and uncertainties surrounding the obligation.

4.	SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities and profit and loss. In preparing these financial statements, management have made the following key judgements and estimates which are significant to the financial statements.

Impairment of fixed assets

Management assess the impairment of non-current assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Assessment of useful lives of property, plant and equipment

The estimated useful life of assets reflect management's estimate of the period that the company intends to derive future economic benefit from the use of the company's property, plant and equipment. These are assessed annually by management with reference to the expected level of usage, historical experience and expected level of technological developments that could affect the useful economic lives of these assets.

5.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

738,157

928,078

Europe

2,092,578

3,011,564

United States of America

1,333,789

1,294,874

Asia

2,062,464

2,246,135

Rest of world

149,244

447,533

6,376,232

7,928,184

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,371,726

2,550,007

Social security costs

257,251

264,680

Other pension costs

250,483

152,086

2,879,460

2,966,773

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

2025

2024

Production and R&D

39

43

Sales and administration

13

14

52

57

7.	DIRECTORS' EMOLUMENTS

Year Ended

Year Ended

31.5.25

31.5.24

£

£

Emoluments etc.

208,524

264,063

Pension contributions to money purchase schemes

14,792

20,643

Information regarding the highest paid director is as follows:

Year Ended

Year Ended

31.5.25

31.5.24

£

£

Emoluments etc.

131,347

149,462

Pension contributions to money purchase schemes

-

-

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

Defined contribution schemes

2

2

8.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

262,759

224,815

Loss/(profit) on disposal of fixed assets

3,002

(7,837

)

Foreign exchange differences

14,578

16,992

Overseas taxes

7,009

6,313

Auditor's remuneration (note 9)

40,773

42,438

9.	AUDITORS' REMUNERATION

Year Ended

Year Ended

31.5.25

31.5.24

£

£

Fees payable to the company's auditor for the audit of the company's annual accounts

24,750

23,750

Tax compliance services

7,000

7,000

Advisory services

2,500

5,900

Other non-audit services

6,523

5,788

40,773

42,438

10.	EXCEPTIONAL ITEMS

2025

2024

£

£

Impairment loss

(2,027,064

)

-

An impairment loss has been recognised during the year in respect of the freehold property. This charge has been classified as exceptional due to its material size and non-recurring nature. Further details are provided in the tangible fixed assets note.

11.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

144,422

112,364

Other interest received

640

955

145,062

113,319

All interest receivable relates to financial assets measured at amortised cost.