REGISTERED NUMBER: 01858420 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

KEMMETECH LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

D C Shankland

M Maton

C D Shankland

E C Masih

D G Searle

S Turnbull

SECRETARY:

D C Shankland

REGISTERED OFFICE:

Unit 4, Arnold Business Park

Branbridges Road

East Peckham

Tonbridge

Kent

TN12 5LG

REGISTERED NUMBER:

01858420 (England and Wales)

AUDITORS:

BSR Bespoke

Chartered Accountants

Registered Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Kemmetech entered its 41st year with a long-established reputation for material innovation, manufacturing expertise and customer retention, with an average length of customer relationship approaching 20 years. Kemmetech produces a range of flexible radiation protection materials, which are widely recognised as the industry benchmark for quality and used in a variety of applications within healthcare, security and detection sectors, with a major global market share. The company possesses considerable expertise in the manufacturing of PVC-based technical foams and other specialist products, serving a variety of broad sectors, from construction and glazing to automotive and transportation, renewable energy to agriculture. Our worldwide customer base spans more than 40 countries with distribution to over 100 and includes a mature base whilst delivering growth in new and developing markets. We continue to invest significant efforts in enhancing existing products to meet the changing needs of our customers, whilst developing new product families to meet future customer requirements.

Sustainable long-term growth through innovation and growth in new markets has become a central priority for the company in 2025, whilst we continue to drive value through net profitability, increasing existing market share and reducing waste. A key part of achieving this is the investment in our staff, training, equipment, infrastructure and process improvement

We measure the following KPI's: (i) Production Volume (linear metres (L/M)), (ii) Production Value, (iii) Contribution, (iv) Contribution by L/M, (v) Gross Profit & Gross Margin, (vi) Production Hours, (vii) Production Volume/ Value by Production Hour (viii) Net Profitability, (ix) Waste Percentage, (x) EBITDA Margin,(xi) Sales Volume & Value by Customer, by Product Family & by Geographical Indicator (Region & Country).

Post pandemic trading

In FY25 the business has observed an easing of demand in certain product categories - a continuation of the FY24 trend - albeit off-set by increased demand in others and we over-achieved on our budgeted sales. The directors continue to be confident of the company's strong future position in existing markets, but remain focused on diversifying product lines, to meet not only existing customers' evolving needs, but also in looking to develop untapped, exciting new markets, using our technical expertise to innovate.

UK foam sector growth

As reported upon in previous years' reports, the company continues to benefit from growth of the UK's industrial foams sector. The 'on-shoring' trend that has gathered pace since the pandemic years continues as British manufacturers seek to source components and materials from domestic suppliers where possible and competitive. We will keep a watching brief on how the current government's policies impact the manufacturing industry, with additional strain on staff costs likely to slow investment, growth and dampen optimism. We continue to innovate and have implemented a Continuous Improvement approach to systems, controls and processes throughout our production, warehousing and operations functions.

Cost of raw materials drive inflationary pressure in parts of the business

As reported in previous periods, the business has continued to see profit margins pressured as a result of the aggressive and volatile increases in the cost of certain raw materials (predominantly driven by macro global political conditions), despite general inflationary easing experienced across the UK and other economies in the last two years. In FY23 we reported that metals, resins and plasticisers had seen prices more than double over the previous 24 months and that whilst we had seen some signs of easing, which we expected to continue, prices remained at significantly higher levels than in the past. During FY24 we saw some continued easing of some raw material prices, however this has been offset by significant market volatility and large price increases of some key metals, including Antimony and Bismuth, which continued, and in some cases significantly increased, in FY25.

As in previous years our customers continue to face price pressure from end users, resulting in a challenging environment for all upstream and downstream business, placing evermore importance on the protection and generation of 'marginal gains' in profit wherever possible. Given the specialist nature of some of our raw materials, where possible the business has sought to diversify supply chains, including the on-shoring of supply where possible. In FY25 we saw a slight strengthening of the Pound, which coupled with on-shoring of certain key raw material supply, eased foreign exchange risks to a certain extent.

We continue to closely monitor raw material pricing, negotiate where appropriate and maximise production efficiencies in an effort to be as nimble as possible with customer pricing, which is now reviewed and communicated on a quarterly basis. Over the past 12 months, materials have generally been reviewed and contracted on a quarterly basis with a view to securing the best possible price without long-term commitments during an evidently volatile period, driven largely by geo-political economics.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of Kemmetech's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business and are of the opinion that where possible, processes are in place to mitigate such risks.

Credit risk

Kemmetech is fortunate to have many strong, long-standing customer relationships with whom we enjoy repeat business. In respect of these customers, we are confident of their credit worthiness, although we continue to review the payment history and credit history of existing customers to determine whether levels remain reasonable or need to be revised, as customer circumstances change, or business conditions warrant a more general review of credit risk exposure.

For new customers, typically a period of time is taken whereby limited (or zero) credit is extended, whilst the customer and Kemmetech establish a working relationship. This is reviewed on a regular basis by the directors.

Foreign exchange risk

As described above, where it is prudent or necessary to source raw materials from overseas suppliers, the business may face some uncertainty surrounding foreign exchange fluctuations and the associated cost of supply.

Whilst the default position is to agree pricing in Pound Sterling with suppliers, this is sometimes not possible. In these circumstances, the Company agrees payment currency in either US$ or Euro. Forward looking cashflow forecasting and working capital management on a weekly basis identifies future requirements for supplier payment in foreign currency and purchasing of sufficient funds to cover these payments are made as needed.

The directors do not believe the level of foreign currency risk warrants more formal instruments (e.g. currency hedging) to be used, however as the business continues to develop this will be reviewed regularly.

Environmental risks

The directors recognise that lack of understanding of the nature, scale and environmental impacts of Kemmetech's activities may lead to negative environmental incidents, causing damage to our reputation, potential loss of business and profit, and possible prosecution.

We therefore strive to comply with all relevant statutory, regulatory and compliance obligations, codes of practice and other requirements applicable to our activities. Our focus is on the reduction of hazards, prevention of injury, ill health and protection of the environment and sustainable resource use where relevant to the context of our business.

Supply chain issues

Many of the materials used by the business are UK-sourced or procured from suppliers in non-EU jurisdictions, with whom we have developed well-established long-standing relationships. Where materials are sourced from or travel through the EU, the business continues to monitor the post-Brexit situation; albeit we now have a number of years' experience of trading under these circumstances and have developed excellent relationships with specialist logistical partners to assist us with the import of raw materials and export of our finished products from/ to the EU.

ON BEHALF OF THE BOARD:

C D Shankland - Director

10 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of vinyl foam, x-ray protective sheeting, noise control sheeting, photo-luminescent and radiation protection sheeting.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

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

D C Shankland

M Maton

C D Shankland

E C Masih

D G Searle

S Turnbull

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments, research and development and financial instruments.

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, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C D Shankland - Director

10 December 2025

Opinion

We have audited the financial statements of Kemmetech Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 March 2025 and of its profit for the year then ended;

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

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

Basis for 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant are:

-

the form and content of the financial statements, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006;

-

UK Corporate tax laws;

-

UK REACH;

-

UK Employment Law and data protection, and

-

International Organisation for Standardisation, including ISO9001.

We gathered an understanding of how the entity is complying with the above frameworks by enquiring and observing management and those charged with governance, ensuring there is a culture of honesty with an emphasis on fraud prevention which may reduce opportunities for fraud to occur as well as acting as a deterrent.

We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment.

We designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error.

We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above, 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. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.

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.

Stephen Pocock FCCA (Senior Statutory Auditor)

for and on behalf of BSR Bespoke

Chartered Accountants

Registered Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

12 December 2025

TURNOVER

3

12,086,840

12,581,657

Cost of sales

7,592,675

7,771,272

GROSS PROFIT

4,494,165

4,810,385

Distribution costs

244,521

208,505

Administrative expenses

958,179

864,000

1,202,700

1,072,505

3,291,465

3,737,880

Other operating income

4

132,194

106,950

OPERATING PROFIT

6

3,423,659

3,844,830

Interest receivable and similar income

53,893

59,113

3,477,552

3,903,943

Interest payable and similar expenses

7

24,000

147

PROFIT BEFORE TAXATION

3,453,552

3,903,796

Tax on profit

8

871,216

1,041,779

PROFIT FOR THE FINANCIAL YEAR

2,582,336

2,862,017

PROFIT FOR THE YEAR

2,582,336

2,862,017

OTHER COMPREHENSIVE INCOME

Revaluation of freehold land & buildings

4,700

-

Income tax relating to other comprehensive income

(1,175

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

3,525

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,585,861

2,862,017

FIXED ASSETS

Tangible assets

10

3,330,663

3,163,216

CURRENT ASSETS

Stocks

11

1,083,767

1,008,285

Debtors

12

2,566,504

2,666,118

Cash at bank and in hand

1,601,748

1,924,921

5,252,019

5,599,324

CREDITORS

Amounts falling due within one year

13

1,556,677

1,871,903

NET CURRENT ASSETS

3,695,342

3,727,421

TOTAL ASSETS LESS CURRENT LIABILITIES

7,026,005

6,890,637

PROVISIONS FOR LIABILITIES

14

470,668

421,161

NET ASSETS

6,555,337

6,469,476

CAPITAL AND RESERVES

Called up share capital

15

20,324

20,324

Revaluation reserve

1,439,610

1,443,715

Capital redemption reserve

113,219

113,219

Retained earnings

4,982,184

4,892,218

6,555,337

6,469,476

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

C D Shankland - Director

Capital

Called up

Revaluat-

redempti-

share

Retained

ion

on

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

20,324

5,364,941

1,508,975

113,219

7,007,459

Changes in equity

Total comprehensive income

-

2,927,277

(65,260

)

-

2,862,017

Transfer to employee ownership

trust

-

(3,400,000

)

-

-

(3,400,000

)

Balance at 31 March 2024

20,324

4,892,218

1,443,715

113,219

6,469,476

Changes in equity

Total comprehensive income

-

2,589,966

(4,105

)

-

2,585,861

Transfer to employee ownership

trust

-

(2,500,000

)

-

-

(2,500,000

)

Balance at 31 March 2025

20,324

4,982,184

1,439,610

113,219

6,555,337

Cash flows from operating activities

Cash generated from operations

1

3,656,745

4,322,252

Interest paid

(24,000

)

(147

)

Tax paid

(1,216,103

)

(898,115

)

Net cash from operating activities

2,416,642

3,423,990

Cash flows from investing activities

Purchase of tangible fixed assets

(292,317

)

(145,601

)

Sale of tangible fixed assets

-

50,000

Interest received

53,893

59,113

Net cash from investing activities

(238,424

)

(36,488

)

Cash flows from financing activities

Amount introduced by directors

291

327

Amount withdrawn by directors

(1,682

)

(1,645

)

Transfer of retained earning to EOT

(2,500,000

)

(3,400,000

)

Net cash from financing activities

(2,501,391

)

(3,401,318

)

Decrease in cash and cash equivalents

(323,173

)

(13,816

)

Cash and cash equivalents at beginning of year

2

1,924,921

1,938,737

Cash and cash equivalents at end of year

2

1,601,748

1,924,921

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

31.3.25

31.3.24

£

£

Profit before taxation

3,453,552

3,903,796

Depreciation charges

129,570

108,344

Profit on disposal of fixed assets

-

(50,000

)

Finance costs

24,000

147

Finance income

(53,893

)

(59,113

)

3,553,229

3,903,174

(Increase)/decrease in stocks

(75,482

)

892,846

Decrease/(increase) in trade and other debtors

101,005

(635,607

)

Increase in trade and other creditors

77,993

161,839

Cash generated from operations

3,656,745

4,322,252

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 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,601,748

1,924,921

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,924,921

1,938,737

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,924,921

(323,173

)

1,601,748

1,924,921

(323,173

)

1,601,748

Total

1,924,921

(323,173

)

1,601,748

1.	STATUTORY INFORMATION

Kemmetech 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 as modified by the revaluation of certain assets.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

The company manufactures to order: vinyl foam, x-ray protective sheeting, noise control sheeting, photo-luminescent and radiation protection sheeting. Revenue is recognised when it is probable that future economic benefits will flow to the company from the provision of contracts for the sale of those goods and is measured as the fair value of consideration which the company expects to receive from those transactions. Revenue is recognised as control of the goods is passed over to the customer which is for the vast majority of cases is considered to be once the goods have been manufactured and the company has a right to payment for those goods. Revenue is recognised net of returns and of trade discounts and is shown exclusive of value added tax.

Interest income

Interest income is recognised in the profit and loss using the effective interest method.

Tangible fixed assets

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

Plant and machinery

-

10% on cost

Fixtures and fittings

-

20% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets are initially measured at cost price, this can include transport, installation, legal and other such associated costs. After initial recognition the asset is subsequently measured under the cost model of cost, less depreciation, less any impairment losses.

Subsequent day-to-day servicing of the assets will be recognised in the profit or loss in the period they are incurred. Only subsequent expenditure that can provide an incremental benefit will be capitalised.

Land and buildings are shown at their most recent valuation.

Government grants

Grants relating to revenue shall be recognised in the profit and loss on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments

The company enters into basic financial instruments that give rise to financial assets and financial liabilities including trade and other debtors, trade and other creditors, bank account balances, bank loans and other loans and borrowings and investments in certain non puttable and non convertible equity instruments.

Debt instruments which are not payable or receivable within one year are initially accounted for at the transaction price and are subsequently accounted for at amortised cost using the effective interest method. Debt instruments payable and receivable within one year are measured at their undiscounted cash amounts. Where the debt instruments are treated as a financing transaction, then the financial asset or liability is measured at the present value of future cash flows based on a market rate of interest. Debt instruments which are treated as financial assets and accounted for at amortised cost are also assessed for impairment.

Equity instruments are initially accounted for at transaction price. They are subsequently accounted for at cost unless they can be accounted for at fair value based on a readily available market price in an active market. Equity instruments which are treated as financial assets and accounted for at cost are also assessed for impairment.

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.

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 rate of exchange ruling at the date of transaction. 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.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.3.25

31.3.24

£

£

United Kingdom

5,038,570

4,288,750

Europe

2,745,104

2,209,134

Rest of the World

4,303,166

6,083,773

12,086,840

12,581,657

4.	OTHER OPERATING INCOME

During the year the company benefited from £119,554 (2024: £104,710) of government grants in the form of the Research and Development expenditure credit (RDEC). In accordance with the company's accounting policy, this credit is included in other operating income within the profit and loss over the same period as the costs for which it compensates.

5.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

1,423,317

1,219,145

Social security costs

157,657

134,910

Other pension costs

10,864

12,108

1,591,838

1,366,163

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

31.3.25

31.3.24

Factory

18

15

Admin

1

1

Sales

1

1

Pension scheme

-

1

Directors

5

6

25

24

31.3.25

31.3.24

£

£

Directors' remuneration

771,150

665,779

Directors' pension contributions to money purchase schemes

3,963

3,963

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

31.3.25

31.3.24

£

£

Emoluments etc

175,750

166,600

6.	OPERATING PROFIT

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

31.3.25

31.3.24

£

£

Depreciation - owned assets

129,570

108,344

Profit on disposal of fixed assets

-

(50,000

)

Auditors' remuneration

14,250

13,500

Auditors' remuneration for non audit work

7,000

7,000

Foreign exchange differences

(3,347

)

16,749