REGISTERED NUMBER: 02223162 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

ORBITAL FABRICATIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

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:

Mr I C Pearson

Mr P A Pearson

Mr N O A Fredell

Mr J P Bridges

Mr M T Kay

Mr A Lamb

REGISTERED OFFICE:

Unit 1

Stephenson Road

St Ives

Cambridgeshire

PE27 3WJ

REGISTERED NUMBER:

02223162 (England and Wales)

ACCOUNTANTS:

S J Kilshaw Partners Ltd

11c Kings Parade

Cambridge

Cambridgeshire

CB2 1SJ

The board of directors are pleased to provide their review of the company for the year to 31st March 2025.

REVIEW OF BUSINESS

During the year to 31 March 2025 the business experienced a more challenging trading backdrop, with turnover reducing to £13.95m from £14.79m in the prior year as market demand softened.

Despite this reduction, Orbital continued to maintain strong delivery levels across engineering and installation services. Operating profit reduced to £2.25m (2024: £3.37m). The company retains a strong balance sheet position with cash reserves of £5.3m, supporting future investment in growth.

Workforce restructuring undertaken in the prior year allowed productivity improvements while retaining key skills. Internal installation capability continues to expand, supporting strategic site project growth opportunities in 2025 and beyond.

Orbital continues to monitor opportunities in the alternative energy sector. Whilst a key potential partner entered liquidation early in 2024, the board maintains strategic focus on developing revenue in emerging and high-growth markets aligned to Orbital's specialist engineering capabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

LIQUIDITY RISK

The company seeks to manage its financial risk by ensuring sufficient cash resources are available to meet foreseeable needs.

CREDIT RISK

Credit risk associated with trade debtors is managed by the credit control functions which continually monitors the age and size of balances due.

RECRUITMENT AND RETENTION OF STAFF

The loss of key individuals is important to the delivery of the company's strategy. The company seeks to retain its key employees by providing above market rates of compensation and benefits.

CYBER SECURITY

Cyber and data security remain a key risk as technology and third-party cloud-based applications remain susceptible to the threat of cyber-attacks. A data breach or attack could result in operational disruption which could reduce the effectiveness of company IT systems. This in turn could result in the loss of income, financial, customer or employee data resulting in reputational damage. To mitigate these risks the company employees a range of proactive and reactive security controls.

INFLATIONARY COST PRESSURES

Suppliers may look to pass on inflationary increases in their input prices. Other areas may also be subject to inflationary pressure such as utility bills, staff costs and other variable costs. Such increases may be difficult to offset or fully pass on to customer. However, the board seek to mitigate this risk through the continued negotiation with suppliers to reduce the impact of price inflation and undertake regular dialogue with customers concerning pricing.

PREMISES CAPACITY

The company has fully utilised its available office and factory floor capacity and therefore this could be a limiting factor in the ability of the company to undertake further contracts. This has been mitigated in part by taking possession of a freehold industrial unit previously let to a third party by the company.

KEY PERFORMANCE INDICATORS

The directors monitor the company's progress and strategic direction by reference to certain financial key performance indicators. A summary of key performance indicators used is set out below:

2025

2024

Turnover

£13.9m

£14.8m

Gross margin

39%

46%

Operating profit margin

16%

22%

FUTURE DEVELOPMENTS

The board remains positive in its outlook for 2025/2026, supported by a solid order book which continues to average £6-£7m. However, the market is expected to remain competitive and sensitive to wider macro-economic pressures including inflation and customer investment cycles.

Following the sale of 80% of the share capital to Bergman & Beving, the business now benefits from a strong strategic parent with long-term growth. This provides the platform for Orbital to target a revenue goal of £25m within five years.

The board remains confident that recent strategic actions, the backing of the new shareholder and ongoing operational investments leave Orbital well positioned to navigate near-term challenges and achieve sustainable long-term growth.

ON BEHALF OF THE BOARD:

Mr J P Bridges - Director

12 December 2025

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

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.

Mr I C Pearson

Mr P A Pearson

Mr N O A Fredell

Other changes in directors holding office are as follows:

Mr D P King - resigned 13 February 2025

Mr J P Bridges - appointed 13 February 2025

Mr M T Kay - appointed 13 February 2025

Mr A Lamb - appointed 13 February 2025

Mr N O A Fredell, Mr M T Kay and Mr A Lamb ceased to be directors after 31 March 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Thompson Taraz Rand Audit and Assurance Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J P Bridges - Director

12 December 2025

Opinion

We have audited the financial statements of Orbital Fabrications 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 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 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 applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. Employment Legislation

We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particular relating to allocation of overhead, slow moving and obsolete stock provision and revenue recognition.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and. performed our audit in accordance with auditing standards; For example, the further· removed none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Andrew Rand BA FCA (Senior Statutory Auditor)

for and on behalf of Thompson Taraz Rand Audit and Assurance Ltd

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

12 December 2025

TURNOVER

13,948,825

14,788,775

Cost of sales

8,480,830

8,449,559

GROSS PROFIT

5,467,995

6,339,216

Administrative expenses

3,316,030

2,989,365

2,151,965

3,349,851

Other operating income

95,002

22,061

OPERATING PROFIT

4

2,246,967

3,371,912

Interest receivable and similar income

111,263

43,138

2,358,230

3,415,050

Interest payable and similar expenses

5

1,469

2,146

PROFIT BEFORE TAXATION

2,356,761

3,412,904

Tax on profit

6

582,870

883,664

PROFIT FOR THE FINANCIAL YEAR

1,773,891

2,529,240

PROFIT FOR THE YEAR

1,773,891

2,529,240

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,773,891

2,529,240

FIXED ASSETS

Tangible assets

7

731,640

728,824

CURRENT ASSETS

Stocks

8

2,860,379

2,392,661

Debtors

9

2,045,030

2,379,655

Cash and cash equivalents

5,299,411

3,547,470

10,204,820

8,319,786

CREDITORS

Amounts falling due within one year

10

(1,589,849

)

(1,474,442

)

NET CURRENT ASSETS

8,614,971

6,845,344

TOTAL ASSETS LESS CURRENT LIABILITIES

9,346,611

7,574,168

PROVISIONS FOR LIABILITIES

12

(69,097

)

(70,545

)

NET ASSETS

9,277,514

7,503,623

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Retained earnings

14

9,276,514

7,502,623

SHAREHOLDERS' FUNDS

9,277,514

7,503,623

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2025 and were signed on its behalf by:

Mr J P Bridges - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

1,000

4,973,383

4,974,383

Changes in equity

Total comprehensive income

-

2,529,240

2,529,240

Balance at 31 March 2024

1,000

7,502,623

7,503,623

Changes in equity

Total comprehensive income

-

1,773,891

1,773,891

Balance at 31 March 2025

1,000

9,276,514

9,277,514

Cash flows from operating activities

Cash generated from operations

1

2,618,503

2,987,785

Interest paid

(1,469

)

(2,146

)

Provision for retentions

(8,660

)

(1,903

)

Tax paid

(862,618

)

(771,172

)

Net cash from operating activities

1,745,756

2,212,564

Cash flows from investing activities

Purchase of tangible fixed assets

(105,390

)

(74,470

)

Sale of tangible fixed assets

312

3,078

Interest received

111,263

43,138

Net cash from investing activities

6,185

(28,254

)

Cash flows from financing activities

Amount introduced by directors

-

60,692

Amount withdrawn by directors

-

(200,000

)

Net cash from financing activities

-

(139,308

)

Increase in cash and cash equivalents

1,751,941

2,045,002

Cash and cash equivalents at beginning of year

2

3,547,470

1,502,468

Cash and cash equivalents at end of year

2

5,299,411

3,547,470

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

31.3.25

31.3.24

£

£

Profit before taxation

2,356,761

3,412,904

Depreciation charges

100,756

93,276

Loss on disposal of fixed assets

1,506

3,794

Finance costs

1,469

2,146

Finance income

(111,263

)

(43,138

)

2,349,229

3,468,982

Increase in stocks

(467,718

)

(227,021

)

Decrease in trade and other debtors

334,625

804,299

Increase/(decrease) in trade and other creditors

402,367

(1,058,475

)

Cash generated from operations

2,618,503

2,987,785

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

5,299,411

3,547,470

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

3,547,470

1,667,170

Bank overdrafts

-

(164,702

)

3,547,470

1,502,468

Included in cash and cash equivalents is £1,500,000 (2024: £1,000,000) held on group treasury that is available to the company at short notice.

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash and cash equivalents

3,547,470

1,751,941

5,299,411

3,547,470

1,751,941

5,299,411

Total

3,547,470

1,751,941

5,299,411

1.	STATUTORY INFORMATION

Orbital Fabrications 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.

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.

Critical accounting judgements and key sources of estimation uncertainty

Useful economic lives of tangible fixed assets:

Tangible fixed assets are depreciated over their expected useful lives taking into consideration residual values, where appropriate. The actual lives of the assets and residual values are assessed and amended when necessary to reflect the current estimates based on economic utilisation and physical condition of the assets.

Doubtful debts:

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing of the debtor and historical experience regarding payment history.

Slow moving stock:

Management apply judgement in evaluating stock movement and possible obsolescence. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate.

Turnover

Revenue is measured at the fair value of the consideration receivable, net of VAT, rebates and discounts.

The company’s revenue arises from engineering design services, manufacturing of spool assemblies and gas delivery systems, CNC machining, welding, installation work and related services.

Contract revenue is recognised over time where:

the customer controls the asset being created or enhanced, or

the company’s work does not create an asset with an alternative use and the company has an enforceable right to payment for performance completed to date.

Where these conditions are met, revenue is recognised using the percentage-of-completion method, measured by reference to costs incurred to date relative to total estimated contract costs.

For contracts where control passes at a point in time (typically sale of manufactured components), revenue is recognised when the goods are delivered and the performance obligation is satisfied.

Contract assets and retentions

Amounts recoverable on contracts, including retentions, are recognised as contract assets within debtors.

Retentions represent amounts due but not invoiced and are not recognised as revenue until the associated performance obligations are satisfied and the entity has an enforceable right to payment.

Variable consideration (including retentions, discounts, price adjustments) is included in the transaction price only to the extent that it is highly probable that a significant reversal will not occur when uncertainties are resolved.

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.

Freehold property

-

2% on cost

Improvements to property

-

20% on reducing balance

Plant and machinery

-

33% on cost and 20% on reducing balance

Motor vehicles

-

20% on reducing balance

Stocks

Stocks 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.

Work in progress is valued at the cost of materials, plus direct labour and an apportionment of overheads.

Slow moving stock:

Management apply judgement in evaluating stock movement and possible obsolescence concerning stock items that have been held for a period of 2 years. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate using management best estimate of the likely usage of the stock line.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets or financial liabilities or equity instruments.

Basic financial assets:

Basic financial assets which include assets and such as debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of future receipts are discounted at a market rate of interest. Assets receivable within one year are not discounted.

Basic financial liabilities:

Basic financial liabilities. including creditors, are initially measured at transaction price net of transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not discounted.

Impairment of financial assets

At each reporting date the company assesses whether there is objective evidence of impairment.

Impairment losses are measured as the difference between the carrying amount and the present value of estimated future cash flows. Losses are recognised in profit or loss

Offsetting of financial assets and liabilities

Financial assets and liabilities are only offset where the company has a legally enforceable right to do so.

Financial risk management

Credit risk: monitored through credit checks, ageing reviews and retention management.

Liquidity risk: managed through cash flow forecasting and maintaining adequate cash reserves.

Market risk: the company has limited exposure, mainly relating to interest rate movements on cash holdings.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 material 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.

Leasing commitments

Leases where substantially all the risks and rewards incidental to ownership remain with the lessor are classified as operating leases.

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, even if payments are not made on this basis.

Lease incentives are recognised as a reduction of rental expense over the lease term.

The company considers the lease term to include any options to extend where it is reasonably certain these will be exercised

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 made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Cash and cash equivalents

Cash equivalents represent ‘short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value’, and,shall include any investments with a maturity of three months or less from acquisition.

Going concern

The financial statements have been prepared on the going concern basis.

In assessing going concern, the directors have considered the company’s financial position, cash reserves of £5.3m, historic profitability, forecast trading performance and the continued support of the ultimate parent undertaking.

The directors have reviewed cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. Based on this review, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties which cast significant doubt over the company’s ability to continue as a going concern.

3.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

3,991,577

3,811,481

Social security costs

472,010

429,493

Other pension costs

122,608

73,451

4,586,195

4,314,425

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

31.3.25

31.3.24

Admin

26

28

Production

48

59

74

87

31.3.25

31.3.24

£

£

Directors' remuneration

564,367

562,032

Directors' pension contributions to money purchase schemes

11,216

2,642

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

Money purchase schemes

4

2

Information regarding the highest paid director is as follows:

31.3.25

31.3.24

£

£

Emoluments etc

404,961

356,312

Pension contributions to money purchase schemes

1,321

1,321

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.25

31.3.24

£

£

Hire of plant and machinery

65,633

22,006

Other operating leases

73,666

49,750

Depreciation - owned assets

100,756

93,275

Loss on disposal of fixed assets

1,506

3,794

Auditors' remuneration

14,000

17,670

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank interest

651

579

HMRC interest

818

1,567

1,469

2,146

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

598,348

869,842

R & D tax refund for 2022

(22,690

)

-

Total current tax

575,658

869,842

Deferred tax

7,212

13,822

Tax on profit

582,870

883,664

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.25

31.3.24

£

£

Profit before tax

2,356,761

3,412,904

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

589,190

853,226

Effects of:

Expenses not deductible for tax purposes

10,677

9,437

Capital allowances in excess of depreciation

(1,519

)

-

Depreciation in excess of capital allowances

-

7,179

R & D tax refund for 2022

(22,690

)

-

Deferred tax

7,212

13,822

Total tax charge

582,870

883,664

The current and future tax charge is likely to be affected by qualifying research and development claims.