REGISTERED NUMBER: 01181853 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2025

FOR

CHARCROFT ELECTRONICS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

P G Newman

L D Dilloway

Mrs D C Rowland

R Tall

Mrs V J Mellor

REGISTERED OFFICE:

Dol-y-Coed

Llanwrtyd Wells

Powys

Wales

LD5 4TH

REGISTERED NUMBER:

01181853 (England and Wales)

AUDITORS:

Streets Audit LLP

Chartered Accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Peterborough

Cambridgeshire

PE2 6LR

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

REVIEW OF BUSINESS

The company's principal activity is the supply of electronic components to the aerospace, military, oil & gas, railways, instrumentation and audio industries.

The company saw a 10% decrease in revenue during the year but the statement of financial position remained strong with net assets of £6,341,474 (2024: £6,378,847)

The company had a strong order book at the end of the year providing a good foundation for the coming year's trading.

The company acquired the business of Sensor Techniques Ltd in December 2024.

As a consequence of the strong order book and increase in business the company's stocks and debtors are expected to increase causing pressure on the company's cash flow. However this has been managed well and we have arrangements in place to cover the occasional requirement for overdraft finance.

PRINCIPAL RISKS AND UNCERTAINTIES

The company holds or issues financial instruments to finance its operations. Operations, working capital and fixed assets are all financed out of retained earnings. Various financial instruments such as trade receivables and trade payables arise directly from the company's operations. The company does not enter in to any hedging arrangements.

The company is exposed to credit risk from credit sales which it manages by operating sound credit control policies and monitoring of all major customers. It also has exposure to the risk of stock losses. These are managed by ensuring that customers underwrite large stockholdings and keeping speculative purchases to a minimum.

At the statement of financial position date there were no significant concentrations of credit risk and the risk of obsolete stock had been written off through the profit and loss account as a result of our stock valuation policies.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

The company undertakes transactions in a limited number of foreign currencies and is therefore exposed to foreign exchange risk. To manage this risk the company maintains foreign currency bank accounts and tries to ensure that foreign currency sales are matched to foreign currency purchases.

The directors carefully monitor liquidity and cash flow on a regular basis.

FUTURE DEVELOPMENTS

The directors expect a revenue to grow moderately over the next year as the overstocking within the industry is corrected and our customers return to buying to replenish stocks, having reduced overstocking in previous years, and we see a rise in business through our acquisition of the Sensor Techniques Ltd business at the end of last year.

Our order intake since the year end has been strong. We believe that our stocks will again increase slightly but should be financed from profits and our current finance facilities.

The directors as always, are actively looking at other ways in which to grow the business.

KEY PERFORMANCE INDICATORS (KPI'S)

The company employs several financial KPI's which it uses to monitor and control the business. These are split between the financial performance KPI's of margin and staff costs against gross profit and the financial position KPIs of inventory turnover days and receivables days.

2025

2024

£

£

Revenue

13,779,294

15,326,446

Gross profit

5,347,915

5,729,831

Gross profit (%)

38.8%

37.3%

Staff Costs

3,129,226

3,085,933

Staff Costs (% of gross profit)

58.5%

54%

Inventory Turnover (days)

181

170

Receivables (days)

75

69

ON BEHALF OF THE BOARD:

P G Newman - Director

31 October 2025

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

DIVIDENDS

Dividends of £879,097 were paid during the year.

The directors recommend that no further dividends be paid in respect of the year.

DIRECTORS

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

P G Newman

L D Dilloway

Mrs D C Rowland

R Tall

Mrs V J Mellor

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors Streets Audit LLP will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

P G Newman - Director

31 October 2025

Opinion

We have audited the financial statements of Charcroft Electronics Limited ('the company') for the year ended 31 January 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, 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 FRS 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 January 2025 and of its profit for the period then ended;

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

- 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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.

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 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 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.

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 company and sector in which it 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 and taxation 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.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

-Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Heather McConnell (Senior Statutory Auditor)

for and on behalf of Streets Audit LLP

Chartered Accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Peterborough

Cambridgeshire

PE2 6LR

31 October 2025

TURNOVER

3

13,779,294

15,325,446

Cost of sales

8,431,379

9,595,615

GROSS PROFIT

5,347,915

5,729,831

Administrative expenses

4,213,147

4,260,889

OPERATING PROFIT

6

1,134,768

1,468,942

Interest receivable and similar income

3,425

7,993

1,138,193

1,476,935

Interest payable and similar expenses

7

5,248

14,559

PROFIT BEFORE TAXATION

1,132,945

1,462,376

Tax on profit

8

291,221

357,360

PROFIT FOR THE FINANCIAL YEAR

841,724

1,105,016

PROFIT FOR THE YEAR

841,724

1,105,016

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

841,724

1,105,016

FIXED ASSETS

Intangible assets

10

241,354

-

Tangible assets

11

1,369,441

569,221

1,610,795

569,221

CURRENT ASSETS

Stocks

12

3,871,253

4,477,445

Debtors

13

2,982,284

3,608,490

Cash at bank

393,904

411,329

7,247,441

8,497,264

CREDITORS

Amounts falling due within one year

14

2,473,827

2,566,634

NET CURRENT ASSETS

4,773,614

5,930,630

TOTAL ASSETS LESS CURRENT LIABILITIES

6,384,409

6,499,851

CREDITORS

Amounts falling due after more than one year

15

-

(83,333

)

PROVISIONS FOR LIABILITIES

19

(42,935

)

(37,671

)

NET ASSETS

6,341,474

6,378,847

CAPITAL AND RESERVES

Called up share capital

20

912

912

Capital redemption reserve

21

88

88

Retained earnings

21

6,340,474

6,377,847

SHAREHOLDERS' FUNDS

6,341,474

6,378,847

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2025 and were signed on its behalf by:

P G Newman - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2023

912

6,018,391

88

6,019,391

Changes in equity

Dividends

-

(745,560

)

-

(745,560

)

Total comprehensive income

-

1,105,016

-

1,105,016

Balance at 31 January 2024

912

6,377,847

88

6,378,847

Changes in equity

Dividends

-

(879,097

)

-

(879,097

)

Total comprehensive income

-

841,724

-

841,724

Balance at 31 January 2025

912

6,340,474

88

6,341,474

Cash flows from operating activities

Cash generated from operations

1

2,418,844

1,053,673

Interest paid

(5,248

)

(14,559

)

Tax paid

(359,916

)

(245,249

)

Net cash from operating activities

2,053,680

793,865

Cash flows from investing activities

Purchase of intangible fixed assets

(248,250

)

-

Purchase of tangible fixed assets

(918,750

)

(241,831

)

Sale of tangible fixed assets

-

5,000

Interest received

3,425

7,993

Net cash from investing activities

(1,163,575

)

(228,838

)

Cash flows from financing activities

Loan repayments in year

(199,999

)

(200,000

)

Amount introduced by directors

500,000

-

Amount withdrawn by directors

(20,000

)

-

Equity dividends paid

(879,097

)

(745,560

)

Net cash from financing activities

(599,096

)

(945,560

)

Increase/(decrease) in cash and cash equivalents

291,009

(380,533

)

Cash and cash equivalents at beginning of year

2

102,895

483,428

Cash and cash equivalents at end of year

2

393,904

102,895

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

2025

2024

£

£

Profit before taxation

1,132,945

1,462,376

Depreciation charges

125,426

147,743

Profit on disposal of fixed assets

-

(2,644

)

Finance costs

5,248

14,559

Finance income

(3,425

)

(7,993

)

1,260,194

1,614,041

Decrease/(increase) in stocks

606,192

(137,825

)

Decrease/(increase) in trade and other debtors

626,206

(218,657

)

Decrease in trade and other creditors

(73,748

)

(203,886

)

Cash generated from operations

2,418,844

1,053,673

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 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

393,904

411,329

Bank overdrafts

-

(308,434

)

393,904

102,895

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

411,329

713,133

Bank overdrafts

(308,434

)

(229,705

)

102,895

483,428

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank

411,329

(17,425

)

393,904

Bank overdrafts

(308,434

)

308,434

-

102,895

291,009

393,904

Debt

Debts falling due within 1 year

(200,000

)

116,666

(83,334

)

Debts falling due after 1 year

(83,333

)

83,333

-

(283,333

)

199,999

(83,334

)

Total

(180,438

)

491,008

310,570

1.	STATUTORY INFORMATION

Charcroft Electronics 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 (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared in accordance with provisions applicable to companies subject to the medium companies regime.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as disclosed in the accounting policies.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as disclosed within the accounting policies.

1 Depreciation charge

The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors.

2 Stock provision

Stock and work in progress are stated net of a provision for slow moving and obsolete stock. The directors review this provision periodically to ensure slow moving and obsolete stock is identified and the provisions are appropriately calculated.

Turnover

Turnover is the amount derived from ordinary activities, stated after trade discounts, other sales taxes and net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of goods.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

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

Freehold property - 2% per annum

Fixtures & fittings - 25% on reducing balance

Motor vehicles - 25% on reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all cost of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Stock lines that have not moved during the financial year are written down to nil value.

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.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

13,779,294

15,325,446

13,779,294

15,325,446

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

10,257,626

11,129,130

Europe

2,325,931

2,849,767

Rest of the world

1,195,737

1,346,549

13,779,294

15,325,446

4.	EMPLOYEES AND DIRECTORS

The average number of persons employed by the company during the year, includingthe directors, amounted

to:

2025

2024

Sales & purchasing

20

20

Administration & accounts

12

12

Manufacturing & stores

51

58

83

90

The aggregate payroll costs during the year were:

2025

2024

£

£

Wages & salaries

2,528,889

2,460,203

Social security costs

351,802

244,900

Other pension costs

248,535

380,830

3,129,226

3,085,933