EAGLE SCIENTIFIC LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

T J Johnsen

V K Mehan

Mrs D L Dunn

REGISTERED OFFICE:

Regent House

Lenton Street

Sandiacre

Nottingham

Nottinghamshire

NG10 5DJ

REGISTERED NUMBER:

01446445 (England and Wales)

SENIOR STATUTORY AUDITOR:

Hari Vasdev MEng FCA

AUDITORS:

Sibbalds Limited

Chartered Accountants and Statutory Auditor

Sixth Floor

Cavendish Building

1 Agard Street

Derby

Derbyshire

DE1 1DZ

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

BUSINESS REVIEW

The Directors look at turnover, margins and profitability when monitoring business performance. The aftermath of COVID 19 within the regions the group operates has continued to affect sales with our clients rebuilding their budgets. Turnover increased within the group from £5.07m to £5.36m which is an 5.7% increase. Gross profit margins have increased from 15.7% to 34.4%. The Board also consider key statement of financial position areas in order to understand the financial position of the group, and this shows a net asset position of £3.12m at the year end which is down from £3.15m last year. Despite the decrease, the group's net asset position is stable.

Eagle Scientific Ltd

The company has continued to reduce overhead in response to the extended downturn in business caused by the COVID 19 pandemic. The company continues to work on a number of new long-term projects and is fully engaged with long-term contracts with UN agencies and NGO's. New contracts with our traditional markets have been agreed and will give a large boost to turnover during 2026. There are a number of very large contracts that will now fall into 2025-2026.

Cooper Research Technology Ltd

Cooper continues to recover from the effects of COVID 19. Trading results for the next financial year are expected to be positive. The company continues to develop new products and update the existing range.

Mercol Engineering Ltd

Mercol Engineering Ltd ceased trading at the end of the last financial year and employees of Mercol were transferred to the subsidiary Cooper Research Technology Ltd. The accounts are prepared on a basis other than going concern basis.

James Cox & Sons Inc.

The Company continues to trade well. The upturn in the USA market has continued and demand for testing in the Asphalt sector remains strong. As a domestic supplier, James Cox enjoys considerable support as the USA continues to support reshoring of manufacturing.

PRINCIPAL RISKS AND UNCERTAINTIES

The usual long-term risks exist due to financial constraints on our customers that are recovering from the knock-on effects of COVID 19. Fluctuating costs for freight continue to make the pricing of long-term projects difficult.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The group's financial assets and liabilities consist of trade debtors and creditors, cash balances, bank loans and overdrafts. The directors manage the group's exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the group's providers of finance and its other external financial advisers. Currency risk is managed by holding Dollar and Euro bank accounts and where necessary by the use of forward contracts. The group does not trade speculatively in derivatives or similar instruments.

LIQUIDITY RISK

The Eagle Scientific group ensures that sufficient funds are available for the day to day operations of its subsidiaries.

RESEARCH AND DEVELOPMENT

Cooper Research Technology Limited has continued the development of new products within the Asphalt Testing sector for both industrial and research purposes.

ON BEHALF OF THE BOARD:

T J Johnsen - Director

23 December 2025

The directors present their 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 the design, manufacture and supply of high-performance materials testing equipment plus scientific, medical, educational and vocational training solutions.

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.

T J Johnsen

V K Mehan

Mrs D L Dunn

DISCLOSURE IN THE STRATEGIC REPORT

Certain matters required by regulation to be dealt with in the Report of the Directors have been dealt with in the Strategic Report. These include financial instruments and research and development.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

T J Johnsen - Director

23 December 2025

Opinion

We have audited the financial statements of Eagle Scientific 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 Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 loss 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 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 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 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 Group 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 Group 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 Group 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 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 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 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 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 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 directors either intend to liquidate the group or the parent 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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102 and Companies Act 2006.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

-Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party and consolidated balances and transactions.

-Reviewing sensitive expense accounts for evidence of non-compliance with laws and regulations or fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

-

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

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

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

-

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

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

-	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements.

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

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.

Hari Vasdev MEng FCA (Senior Statutory Auditor)

for and on behalf of Sibbalds Limited

Chartered Accountants and Statutory Auditor

Sixth Floor

Cavendish Building

1 Agard Street

Derby

Derbyshire

DE1 1DZ

23 December 2025

TURNOVER

3

5,360,002

5,067,095

Cost of sales

3,517,616

4,271,341

GROSS PROFIT

1,842,386

795,754

Administrative expenses

2,535,578

2,936,905

(693,192

)

(2,141,151

)

Other operating income

689,529

736,278

Gain/loss on revaluation of investment property

-

(54,000

)

OPERATING LOSS

5

(3,663

)

(1,458,873

)

Interest receivable and similar income

4,319

2,553

656

(1,456,320

)

Interest payable and similar expenses

7

227,584

134,617

LOSS BEFORE TAXATION

(226,928

)

(1,590,937

)

Tax on loss

8

(196,206

)

(69,668

)

LOSS FOR THE FINANCIAL YEAR

(30,722

)

(1,521,269

)

Loss attributable to:

Owners of the parent

(30,722

)

(1,521,269

)

LOSS FOR THE YEAR

(30,722

)

(1,521,269

)

OTHER COMPREHENSIVE INCOME

Foreign exchange differences

(3,358

)

(2,255

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(3,358

)

(2,255

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(34,080

)

(1,523,524

)

Total comprehensive income attributable to:

Owners of the parent

(34,080

)

(1,523,524

)

FIXED ASSETS

Intangible assets

10

37,452

67,415

Tangible assets

11

929,684

975,725

Investments

12

-

-

Investment property

13

76,000

76,000

1,043,136

1,119,140

CURRENT ASSETS

Stocks

14

1,516,406

1,338,441

Debtors

15

2,883,341

3,208,778

Cash at bank and in hand

508,270

556,779

4,908,017

5,103,998

CREDITORS

Amounts falling due within one year

16

2,344,389

2,329,984

NET CURRENT ASSETS

2,563,628

2,774,014

TOTAL ASSETS LESS CURRENT LIABILITIES

3,606,764

3,893,154

CREDITORS

Amounts falling due after more than one year

17

486,579

738,889

NET ASSETS

3,120,185

3,154,265

CAPITAL AND RESERVES

Called up share capital

22

150,000

150,000

Capital redemption reserve

23

50,000

50,000

Retained earnings

23

2,920,185

2,954,265

SHAREHOLDERS' FUNDS

3,120,185

3,154,265

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

T J Johnsen - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

567,379

561,296

Investments

12

1,424,281

1,424,281

Investment property

13

76,000

76,000

2,067,660

2,061,577

CURRENT ASSETS

Stocks

14

125,900

99,467

Debtors

15

2,415,719

2,403,570

Cash at bank and in hand

426,244

444,020

2,967,863

2,947,057

CREDITORS

Amounts falling due within one year

16

754,321

716,824

NET CURRENT ASSETS

2,213,542

2,230,233

TOTAL ASSETS LESS CURRENT LIABILITIES

4,281,202

4,291,810

CAPITAL AND RESERVES

Called up share capital

22

150,000

150,000

Capital redemption reserve

23

50,000

50,000

Retained earnings

23

4,081,202

4,091,810

SHAREHOLDERS' FUNDS

4,281,202

4,291,810

Company's loss for the financial year

(10,608

)

(891,001

)

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

T J Johnsen - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

150,000

4,477,789

50,000

4,677,789

Changes in equity

Total comprehensive income

-

(1,523,524

)

-

(1,523,524

)

Balance at 31 March 2024

150,000

2,954,265

50,000

3,154,265

Changes in equity

Total comprehensive income

-

(34,080

)

-

(34,080

)

Balance at 31 March 2025

150,000

2,920,185

50,000

3,120,185

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

150,000

4,982,811

50,000

5,182,811

Changes in equity

Total comprehensive income

-

(891,001

)

-

(891,001

)

Balance at 31 March 2024

150,000

4,091,810

50,000

4,291,810

Changes in equity

Total comprehensive income

-

(10,608

)

-

(10,608

)

Balance at 31 March 2025

150,000

4,081,202

50,000

4,281,202

Cash flows from operating activities

Cash generated from operations

29

340,489

(1,108,631

)

Interest paid

(227,584

)

(134,617

)

Tax paid

27,759

172,778

Net cash from operating activities

140,664

(1,070,470

)

Cash flows from investing activities

Purchase of tangible fixed assets

(32,405

)

(25,976

)

Sale of tangible fixed assets

7,084

(691

)

Interest received

4,319

2,553

Net cash from investing activities

(21,002

)

(24,114

)

Cash flows from financing activities

New loans in year

250,000

800,000

Loan repayments in year

(672,940

)

(69,888

)

Amount introduced by directors

256,239

130,000

Amount withdrawn by directors

(1,470

)

-

Net cash from financing activities

(168,171

)

860,112

Decrease in cash and cash equivalents

(48,509

)

(234,472

)

Cash and cash equivalents at beginning of year

30

556,779

791,251

Cash and cash equivalents at end of year

30

508,270

556,779

1.	STATUTORY INFORMATION

Eagle Scientific 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.

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.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all of its subsidiary undertakings. The acquisition method of accounting has been adopted.

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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions regarding the carrying amounts of the group's assets and liabilities. These are based on historical experience and other factors that are considered relevant. They are reviewed on a regular basis and changes recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical accounting judgements and key sources of estimation uncertainty:

Intangible and tangible fixed assets are amortised or depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular charge.

The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken into account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised when the group has transferred the significant risks and rewards of ownership to the buyer and it is probable that the group will receive the previously agreed upon payment.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

33% on reducing balance and 25% on reducing balance

Fixtures and fittings

-

33% on reducing balance, 25% on reducing balance and 4% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance, 25% on reducing balance and 15% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks and work in progress

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.

For certain work in progress and finished goods manufactured by the group, cost is taken as production cost, which includes an appropriate proportion of attributable overheads.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Financial assets and liabilities

Short term debtors are measured at transaction price, less any impairment. Other financial assets, including loans to group companies are measured initially at fair value, net of transactions cost and are subsequently measured at amortised cost using the effective interest method, less any impairment.

Short term creditors are measured at transaction price. Other financial liabilities, including loans from group companies are measured initially at fair value, net of transaction cost and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Going concern

The Directors have prepared budgets and cashflow forecasts for a period of at least 12 months from the date of these financial statements. These forecasts are based on current market and economic conditions. The results of these forecasts show good improvement in both turnover and gross profit margins and thus cash generation. The historic trading results have included the impact in downturn of trading following flooding that damaged premises in November 2023. The impact of this flooding has now finished and per forecasts assessed, after support from insurers as well as a pick up in trading post recovery from the floods, the company is expected to continue to trade positively in the future and providing confidence of the companies ability to continue as a going concern.

The business continues to take on new contracts therefore the Directors are confident that the business will actually exceed the prepared budgets which have been prepared cautiously and thus be able to fulfil its financial obligations. The business therefore continues to adopt the going concern policy in preparing its financial statements.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

471,423

533,404

Europe

593,388

722,314

Rest of the world

4,295,191

3,811,377

5,360,002

5,067,095

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,793,601

1,918,110

Social security costs

170,106

170,489

Other pension costs

37,686

52,551

2,001,393

2,141,150

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

2025

2024

Administrative

36

36

Operational

16

17

52

53

2025

2024

£

£

Directors' remuneration

140,057

37,890

Directors' pension contributions to money purchase schemes

1,185

1,137

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

Money purchase schemes

1

1

5.	OPERATING LOSS

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

2025

2024

£

£

Operating lease payments

20,505

26,054

Other operating leases

51,054

94,608

Depreciation - owned assets

75,967

88,939

(Profit)/loss on disposal of fixed assets

(4,834

)

8,821

Goodwill amortisation

29,963

29,963

Auditors' remuneration

21,500

33,100

Foreign exchange differences

34,635

59,227

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional items

(5,990

)

(36,776

)

The above in the prior year relates to costs incurred in clearing up the warehouse following the flooding of the premises in late 2023.