The company continues to trade successfully under the ownership of the Addtech Group.

The Directors are pleased to be able to report a very strong performance of the company as shown in the results. The principal activities are the design, manufacture, and sale of electromechanical low voltage swithchgear. Approximately 75% being sold in the UK market and a further 25% is sold around the world to both the Middle East and Europe. Core business annualised sales were 9.9% up on the previous year. Overall sales were down 0.8% although the previous year benefited from a very large exceptional sale with almost £1.3m value, this exceptional item will not be repeated and is not considered core business. As anticipated, the absence of this unique sale in this year resulted in a small decrease in GM compared to last year, although this was limited by strict management and ongoing cost control. EBITA and ROS remained strong and within budget. Throughout 2024 and into 2025, the directors and management team focussed on ensuring colleague safety, sustainability and cyber security, while also controlling overhead and implementing activities to increase sales and production capacity.

The UK construction industry in the industrial and commercial sector has remained steady although the residential sector continues to suffer from a decline. The rail sector has shown a recovery through 2024 and early 2025 albeit not as robustly as the construction sector. Europe and the GCC territory have followed the UK industrial recovery although the UK recovery outperformed the export regions. The marketplace for Craig & Derricott industrial switchgear remains robust and shows evidence of some ongoing organic growth. The company are aware that there is an increasing demand for more specialised and customised switchgear. Therefore, the strategy of great customer service and the ability to offer bespoke solutions remain our primary focus and strength, winning business from the competition. Investment in new products has continued over the past 12 months with the introduction of our new SPD's and PV Isolators alongside ongoing development of specialised Automatic Transfer Switches which continue to be specified in volume for life safety applications. New equipment and space utilisation brings increased levels of value add alongside the ongoing value engineering of our existing products to maintain our strength, market share and competitive position in the market. Railway products for rolling stock show steady demand. The company continues to invest in this sector in both the UK and export markets, by increasing the number of bespoke solutions and continuously playing to our engineering strength.

The company sales were £12.21m in the year to 31 March 2025, compared to £12.31m in the previous year. While the gross margin for the year ended 31 March 2025 at almost 39% compared to 41% in the previous year. Global Industrial sales accounted for just over 80% of Revenue with Rail at 20%.

Ongoing recruitment of new specialist technical sales staff and investment in equipment to support our customer demands and new product development work remains fundamental to the company's growth plans. The company have remained true to the mantra of best customer service while offering customised and bespoke solutions where we command an exceptionally strong brand reputation. While continuing the requirement for; productivity developments, finished goods stockholding, rigorous testing, value engineering and product innovation.

The company has established a risk and financial management framework which continues to thrive within the Addtech group. We aim to limit counterparty exposure and ensure sufficient working capital exists to run the business whilst protecting the company from any events that would hinder the achievement of the performance objectives. As core element of this strategy continues to be maintaining a wide customer base spread across the three core sectors of UK Industrial, Railway rolling stock and Export. We have minimal dependency on any single customer or sector, and we spread our development equally across all three. The company continues to offset international trading risk through currency hedging, balancing currency flows to create natural hedges wherever practical with ongoing reductions in component sourcing from Europe. The directors continue to pursue a strategy of all sector growth and the development of new sectors whilst monitoring closely any evolving situation that may affect local or overseas trading. Strong working relationships with the company's principal suppliers have aided the company in material cost control and minimising the impact of increasing commodity prices.

The company predominantly serves the construction, electrical distribution and rail industries, all of which are classified as "essential industries". The company is particularly strong and well respected in each of these sectors, which are all long-term strategic and economic growth sectors for the UK and World economies. The company is very aware of the importance of stakeholder feedback and opinion and the company is in continuous communication with all key stakeholders to ensure maximum market and sector engagement and awareness of any significant trends or changes in the marketplace. Networking with Addtech and other Addtech businesses also provides valuable, UK and Global; political, economic and sector feedback. As a result, the company is well informed and well placed to continue and grow supply to these essential industries. Fundamentally, Addtech has maintained the same business concept for more than 100 years and recently celebrated 20 years as a public limited company listed on the stock market in Sweden. Through over 150 businesses in more than 20 countries, Addtech looks to increase value through organic growth whilst continually looking to expand through acquisitions. This growth strategy is primarily funded from the cashflow generated through the subsidiaries and transferred via capital transfers such as group contributions and dividends.

The financial statements have been prepared on the historical cost basis The financial statements are prepared in sterling, which is the functional currency of the entity. Research and development Research and development expenditure is written off in the year in which it is incurred. Judgements and key sources of estimation uncertainty 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. Significant judgements 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 follows: Exchange rate fluctuations The directors have taken a decision to hedge against exchange fluctuations caused by uncertainty surrounding Brexit and other factors outside of their control. The company continues to invoice in the Middle East in US Dollars which provides a natural hedge against purchases in this currency. Key sources of estimation uncertainty 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 follows: Pension obligations The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. 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 the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Taxation The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Included in debtors is an amount due from the company's parent company, Craig & Derricott Holdings Limited of £1,315,356 (2024 £887,382) which carries interest at market rate. Interest of £42,500 was received during the year. A management charge of £42,500 was paid to this company. Expenses and fees totalling £195,485 were paid to Addtech Nordic AB, the company's ultimate parent company.

The parent company is Craig & Derricott Holdings Limited, whose registered office and principal place of business is 46 Hall Lane, Walsall Wood, Walsall, WS9 9DP. Craig & Derricott Holdings Limited controls 90% of the company and the remaining 10% is owned by Addtech Nordic AB. The ultimate parent company is Addtech Nordic AB, a company incorporated and listed in Sweden, which controls 100% of the issued share capital of Craig & Derricott Holdings Limited. A copy of the group accounts are publocally available from Addtech's website.