REGISTERED NUMBER: 08274704 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

NUDATION LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

T M Nunan

REGISTERED OFFICE:

Sarginsons Industries Ltd

Torrington Avenue

Coventry

West Midlands

CV4 9AG

REGISTERED NUMBER:

08274704 (England and Wales)

SENIOR STATUTORY AUDITOR:

Gary Chajet

AUDITORS:

Accura Audit Limited (Statutory Auditor)

Langley House,

Park Road,

East Finchley,

London

N2 8EY

The director presents his strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The primary trading subsidiary of the Group continues to be Sarginsons Industries Limited whose principal activity in the year under review was that of aluminium diecasters. There are two other subsidiaries within the group, Pattern Solutions Limited and Nu-Cents Limited. Pattern Solutions Limited was acquired in the prior financial year in 2024 and also carry out the same trade, generating around 4% of the overall Group turnover (£487K) in 2025, however, the end of year result was a loss of £117,000. Nu-Cents Limited is not generating any trading income and is used for the Group’s real estate investment activities.

Performance within Pattern Solutions Limited declined in the year, with turnover reducing by approximately 13% to £487,000 and margins tightening due to higher energy, depreciation, and administrative costs. The company reported a pre-tax loss of £126,000 (2024: £71,000 loss), reflecting ongoing cost pressures and lower sales volumes. Liquidity and gearing indicators weakened compared with the prior year, consistent with investment in plant and machinery and increased borrowing. While the business continues to face operational and cash flow challenges, the Group remains supportive of management’s plans to stabilise operations and restore profitability. Nu-Cents Limited activities during the year remained limited to the holding and management of Group property assets, generating no trading income.

Business Model

Sarginsons operates in the technology and manufacturing sectors, focusing on advanced casting solutions. Revenue comes from designing, developing, and supplying castings. Core resources include technical expertise, R&D capabilities, and relationships with OEMs and new market entrants. Value is created through the PIVOT programme, which will deliver new designs and castings. This programme is expected to bring significant operational and economic benefits to clients, driving growth for Sarginsons and representing a potential revolution in the casting industry.

Strategic Objectives and Strategy

The group aims to achieve growth by leveraging its expertise in casting technology, particularly in the electric vehicle and aerospace sectors. The PIVOT R&D programme, which concludes in 2027, is central to this strategy and is expected to deliver benefits from Q1 2026, when software development concludes and real castings are designed for the first time.

Group seeks to expand its client base, including new, specialised builders whose relatively low volumes suit the company’s production capacity and profile. Strategic initiatives include continued investment in technology, adapting production capacity to market demands, and addressing the cost base of aerospace clients facing imminent competition from China.

Performance and Key Performance Indicators

In 2024, gross margin and turnover were impacted by substantial technical resources directed toward the PIVOT programme, which reduced high-margin income from the technology division. Several substantial new contracts were won toward the end of 2024, but these were not fully reflected in turnover for the year. Start-up and development costs accrued in the same period also affected gross margin performance.

Key performance indicators focus on turnover, gross margin, and the successful completion of development milestones.

ACHIEVEMENTS OF KEY PERFORMANCE INDICATORS

2025 2024

Gross profit margin 25.2% 28.2%

Return on Capital Employed 10.8% 11.6%

EBITDA / Sales 5.2% 6.6%

PRINCIPAL RISKS AND UNCERTAINTIES

Risks include the impact of tariffs imposed by the USA, potential global recession, and competitive pressures, including Chinese EV imports. However, current sales volumes are expected to remain stable. The company is already working with one or two Chinese EV clients, so the impact of imports on Sarginsons is expected to be limited. There seems little evidence of an imminent global recession at present. Economic and industry developments, including the evolution of the EV market and competitive pressures in aerospace, are being monitored closely.

ON BEHALF OF THE BOARD:

T M Nunan - Director

12 November 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a holding company with investments in subsidiaries. The principal trading subsidiary operates as an aluminium diecaster, specialising in low-pressure, sand, and gravity diecasting, together with related design and simulation services.

DIVIDENDS

An interim dividend of £1.10 per share was paid during the year to 31 March 2025. The director recommends that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £278,200.

DIRECTOR

T M Nunan held office during the whole of the period from 1 April 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS

The auditors, Accura Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T M Nunan - Director

12 November 2025

Opinion

We have audited the financial statements of Nudation Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Fraud - Identifying and responding to risks of material misstatement due to fraud

Fraud risk assessment

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure by management to commit, or provide an opportunity to commit, fraud. Our risk assessment procedures included;

- enquiries of management and internal accounting staff, concerning the company's policies and procedures relating to:

- detecting and responding to the risks of fraud; and

- internal controls established to mitigate risks related to fraud;

- enquiries of management and internal accounting staff as to whether they had knowledge of any actual, suspected or alleged fraud;

- discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes the audit partner and manager who have commercial knowledge and experience of such an entity, and this experience was relevant to the discussion about where fraud risks may arise.

Risk communications

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

Fraud risks

As required by auditing standards we addressed the risk of management override of controls and the risk of fraudulent revenue recognition. In particular we considered the risk that revenue is recorded in the wrong period and the risk that the management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgments.

Procedures to address fraud risks

Our audit procedures included evaluating the design and implementation, and operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures including;

- Comparing journal entries to supporting documentation and review for any unusual journal descriptions;

- Assessing significant accounting estimates and judgements for bias;

- Obtaining third party confirmations for all bank balances and material debtors and creditors balances; and

- Testing journal entries to identify unusual transactions.

Laws and regulations

- Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations.

Risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered included the following;

- discussion with the management (as required by auditing standards);

- inspection of regulatory and legal correspondence; and

- discussions with the management about the policies and procedures regarding compliance with laws and regulations.

Risk communication

Our communication of laws and regulations risks was made throughout our team and we remained alert to any indications of non-compliance throughout the audit.

Direct laws context and link to audit

The potential effect of laws and regulations on the financial statements varies considerably. The company is subject to United Kingdom laws and regulations, such as the Companies Act 2006. Other relevant rules and regulations include the following:

- Financial reporting legislation (including related UK companies' legislation).

- Taxation legislation (direct and indirect) in the countries of operation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Most significant indirect law/ regulation areas

The company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or harm to the company's ability to operate.

We identified the following areas as those most likely to have such an effect:

- Health, safety, welfare and fire safety.

- Anti-bribery fraud and corruption.

- Anti-money laundering regulations.

- European Union and United Kingdom employment law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of law or regulations is not disclosed to us or evident from relevant correspondence, our audit will not detect that breach.

We considered the extent to which the audit was considered capable of detecting irregularities: There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the 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 from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, 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.

Gary Chajet (Senior Statutory Auditor)

for and on behalf of Accura Audit Limited (Statutory Auditor)

Langley House,

Park Road,

East Finchley,

London

N2 8EY

12 November 2025

TURNOVER

3

13,678,267

14,259,104

Cost of sales

(10,231,691

)

(10,235,870

)

GROSS PROFIT

3,446,576

4,023,234

Distribution costs

(650,707

)

(528,038

)

Administrative expenses

(3,379,689

)

(3,285,217

)

(583,820

)

209,979

Other operating income

4

1,076,235

66,634

OPERATING PROFIT

6

492,415

276,613

Gain/loss on revaluation of investment property

430,000

-

922,415

276,613

Interest payable and similar expenses

8

(327,248

)

(244,985

)

PROFIT BEFORE TAXATION

595,167

31,628

Tax on profit

9

(163,160

)

127,268

PROFIT FOR THE FINANCIAL YEAR

432,007

158,896

FIXED ASSETS

Intangible assets

12

118,547

178,245

Tangible assets

13

3,331,030

3,164,373

Investments

14

-

-

3,449,577

3,342,618

CURRENT ASSETS

Stocks

15

2,044,710

1,970,632

Debtors

16

4,665,626

3,752,572

Cash at bank and in hand

377,817

293,323

7,088,153

6,016,527

CREDITORS

Amounts falling due within one year

17

6,218,604

5,082,955

NET CURRENT ASSETS

869,549

933,572

TOTAL ASSETS LESS CURRENT LIABILITIES

4,319,126

4,276,190

CREDITORS

Amounts falling due after more than one year

18

(495,025

)

(668,582

)

PROVISIONS FOR LIABILITIES

22

(664,487

)

(601,801

)

NET ASSETS

3,159,614

3,005,807

CAPITAL AND RESERVES

Called up share capital

23

251,601

251,601

Revaluation reserve

24

714,375

391,875

Retained earnings

24

2,193,638

2,362,331

SHAREHOLDERS' FUNDS

3,159,614

3,005,807

The financial statements were approved by the director and authorised for issue on 12 November 2025 and were signed by:

T M Nunan - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

2,794

3,287

Investments

14

204,021

204,021

206,815

207,308

CURRENT ASSETS

Debtors

16

1,049,878

648,137

Cash in hand

1

2

1,049,879

648,139

CREDITORS

Amounts falling due within one year

17

533,460

123,196

NET CURRENT ASSETS

516,419

524,943

TOTAL ASSETS LESS CURRENT LIABILITIES

723,234

732,251

CAPITAL AND RESERVES

Called up share capital

23

251,601

251,601

Retained earnings

24

471,633

480,650

SHAREHOLDERS' FUNDS

723,234

732,251

Company's profit for the financial year

269,183

74,989

The financial statements were approved by the director and authorised for issue on 12 November 2025 and were signed by:

T M Nunan - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

26,453

2,328,435

391,875

2,746,763

Changes in equity

Issue of share capital

225,148

-

-

225,148

Dividends

-

(125,000

)

-

(125,000

)

Total comprehensive income

-

158,896

-

158,896

Balance at 31 March 2024

251,601

2,362,331

391,875

3,005,807

Changes in equity

Dividends

-

(278,200

)

-

(278,200

)

Total comprehensive income

-

109,507

322,500

432,007

Balance at 31 March 2025

251,601

2,193,638

714,375

3,159,614

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

25,601

530,661

556,262

Changes in equity

Issue of share capital

226,000

-

226,000

Dividends

-

(125,000

)

(125,000

)

Total comprehensive income

-

74,989

74,989

Balance at 31 March 2024

251,601

480,650

732,251

Changes in equity

Dividends

-

(278,200

)

(278,200

)

Total comprehensive income

-

269,183

269,183

Balance at 31 March 2025

251,601

471,633

723,234

Cash flows from operating activities

Cash generated from operations

1

1,403,394

855,887

Interest paid

(235,047

)

(345,076

)

Interest element of hire purchase payments paid

(92,201

)

(54,169

)

Tax paid

(657,943

)

687,007

Net cash from operating activities

418,203

1,143,649

Cash flows from investing activities

Purchase of intangible fixed assets

-

(151,755

)

Purchase of tangible fixed assets

(261,323

)

(189,105

)

Sale of tangible fixed assets

105,441

-

Net cash from investing activities

(155,882

)

(340,860

)

Cash flows from financing activities

Loan repayments in year

-

(209,099

)

Capital repayments in year

(248,528

)

(276,395

)

Amount introduced by directors

364,528

65,000

Amount withdrawn by directors

(181,168

)

15,350

Other adjustments

165,541

18,055

Equity dividends paid

(278,200

)

(125,000

)

Net cash from financing activities

(177,827

)

(512,089

)

Increase in cash and cash equivalents

84,494

290,700

Cash and cash equivalents at beginning of year

2

293,323

2,623

Cash and cash equivalents at end of year

2

377,817

293,323

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

31.3.25

31.3.24

£

£

Profit before taxation

595,167

31,628

Depreciation charges

442,408

409,902

Loss on disposal of fixed assets

36,767

-

Gain on revaluation of fixed assets

(430,000

)

-

-

154,261

Government grants

(138,374

)

-

Finance costs

327,248

244,985

833,216

840,776

Increase in stocks

(74,078

)

(431,747

)

Increase in trade and other debtors

(342,281

)

(197,889

)

Increase in trade and other creditors

986,537

644,747

Cash generated from operations

1,403,394

855,887

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

377,817

293,323

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

293,323

2,623

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

293,323

84,494

377,817

293,323

84,494

377,817

Debt

Finance leases

(925,708

)

248,528

(677,180

)

Debts falling due within 1 year

(294,477

)

(58,669

)

(353,146

)

Debts falling due after 1 year

(31,250

)

31,250

-

(1,251,435

)

221,109

(1,030,326

)

Total

(958,112

)

305,603

(652,509

)

1.	STATUTORY INFORMATION

Nudation 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 General Information page.

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 as modified by the revaluation of certain assets.

Functional and presentation currency

The Group's functional and presentation currency is £ sterling. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis. In forming this view, the Director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

This assessment is supported by forecasts demonstrating that the company is expected to continue to operate successfully. Margins have strengthened, supported by a combination of increased sale prices and a reduction in scrap rates. Turnover is also projected to increase following the planned launch of the Group's unique technology in January 2026, which is expected to enhance the competitiveness of its product offering. Sales projections for this new technology have been prepared on a prudent basis, reflecting the early stage of market introduction, although growth is anticipated to accelerate as market awareness develops.

The Director has considered the Group’s trading dependencies and financial commitments and is satisfied that these have been appropriately reflected in the forecasts supporting the going concern assessment.

The Group is headed by Nudation Limited and the subsidiaries are Sarginsons Industries Ltd, Pattern Solutions Ltd, Nu-Cents Ltd and, shortly, Numachine Ltd. The Group is well established and is expected to achieve productivity improvements at a rate that exceeds the associated cost increases.

Accordingly, the Board is satisfied that there are no material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern and remains confident in its future performance.

Basis of consolidation

The consolidated financial statements present the results of the Parent Company and its subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group Companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of the acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are excluded from the consolidated financial statements from the date control ceases.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In applying the company’s accounting policies, the directors are required to make judgements and estimates that affect the amounts recognised in the financial statements.

Judgements involve decisions made when applying accounting policies in situations where the outcome is uncertain. The uncertainty is about how the accounting policy should be applied, rather than the numerical amount to report.

Estimates involve assumptions about future events or conditions that are inherently uncertain. The uncertainty is about quantifying an amount in the financial statements.

The directors base their judgements and estimates on historical experience and other factors they consider reasonable under the circumstances. Actual outcomes may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period of revision if they affect only that period, or in the period of revision and future periods if both are affected.

Judgements

The directors have not made any critical judgements in applying the company’s accounting policies that are expected to have a material effect on the financial statements.

Estimates

The key sources of estimation uncertainty that could materially affect the financial statements are:

Doubtful Debt Provisions

Provisions for doubtful debts are determined based on the directors’ assessment of the recoverability of individual receivables. This assessment considers the ageing of balances, specific knowledge of customers’ financial circumstances, and historical patterns of default. The directors apply a prudent approach in estimating the likelihood of non-recovery.

Provisions for Obsolete or Slow-moving Stock

Stock is reviewed regularly, and provisions are made where the directors consider that the net realisable value of certain stock lines is lower than cost. The estimated net realisable value is determined by reference to actual selling prices achieved post year-end or, where unavailable, to the directors’ best estimates informed by historical sales trends and current market conditions.

Investment Property

The carrying value of investment property is a significant estimate. Investment property is measured at fair value, which is determined by reference to market evidence, independent valuations, and assumptions about future market conditions. Changes in these assumptions could materially affect the carrying value of investment property in the financial statements.

Turnover

Turnover represents revenue arising from the company’s principal activities of aluminium diecasting and related design and simulation services. Revenue is measured at the fair value of the consideration received or receivable, net of value added tax, rebates and discounts.

Revenue is recognised as follows:

Sale of goods (castings and components): Revenue is recognised when control of the goods passes to the customer, usually on delivery in accordance with the terms of the contract.

Design, simulation and other services: Revenue from services is recognised upon delivery of the services.

Tooling and development contracts: Revenue from the design and supply of bespoke tooling is recognised when the significant risks and rewards of ownership transfer to the customer, normally on completion and acceptance of the tooling.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery - 10% on cost

Fixture and fittings - 10% & 33% on cost

Motor vehicle - 33% on cost

Computer equipment - 33% on cost

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 calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.