REGISTERED NUMBER: 01762383 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

T.W. WARD C.N.C. MACHINERY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTOR:

S J Whitworth

SECRETARY:

S J Whitworth

REGISTERED OFFICE:

Albion Works

Savile Street

Sheffield

South Yorkshire

S4 7UD

REGISTERED NUMBER:

01762383 (England and Wales)

AUDITORS:

Marriott Gibbs Rees Wallis Limited

Statutory Auditor

First Floor

Unit 4, Broadfield Court

Sheffield

South Yorkshire

S8 0XF

The director presents his strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The principal activities of the Company continued to be the sale of New and Used CNC Machine Tools & for the provision of Service and Spares to its customers.

Development and financial performance during the year

The financial year ending 31 March 2025, resulted in a decrease in sales revenue due to uncertainty in the markets due to UK and USA Government policies, affecting confidence for capital investments.

The reported Net loss was significantly worse than the previous financial year as a result of the reduction in Revenue, but the business continues to focus on cost control to mitigate inflationary pressure, while delivering the best customer experience.

Key performance indicators

Management use a range of performance measures to monitor and manage the business. The key performance measurements of our success are turnover, gross profit, net profit, and the continued strong partnerships with our key customers, principals and suppliers.

As reported in the Company's profit and loss account, revenue has shown a decrease of 34% from £12,154,038 to £8,030,108.

Although revenue decreased, the gross margin for the company increased to 25.0% in the year under review, from 15.2% in the prior year - although this was not enough to avoid a net loss of £541,240 for the year.

The non-financial measures the company focuses on are our current market share, customer service levels, staff turnover, long-standing customer, and principal relationships. These are monitored on an ongoing basis in conjunction with our Quality Management System (QMS) and measured around Safety, Quality & Delivery.

Financial position at the reporting date

The balance sheet shows that the Company's net assets have decreased from £6,829,307 to £6,301,318.

PRINCIPAL RISKS AND UNCERTAINTIES

The business is managed through a Quality Management System including a Quality Manual that covers People, Processes, Product, Safety and Services and as part of this the director formally reviews and documents the principal risks facing the business at least annually, these cover all elements of internal risks, financial risks but also external and macro- economic, regulatory and political risks.

FUTURE DEVELOPMENTS

The directors believe that the forthcoming financial year will still present significant challenges due to the uncertainty affecting confidence within the economy which was affected by inflation and high interest rates, but generally believe that the Company is well placed to grow profitability and support customers with a strong service proposition.

ON BEHALF OF THE BOARD:

S J Whitworth - Director

22 December 2025

The director presents his 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 sale and hire of new and used metalworking machinery specialising in the supply of new, technologically advanced CNC metalworking machine tools and late model reconditioned and re manufactured CNC machine tools.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

Ordinary £1

-

£0.46875

- 30 June 2024

Ordinary "A" £1

-

£1.125

- 30 June 2024

The total distribution of dividends for the year ended 31 March 2025 will be £ 120,000 .

FUTURE DEVELOPMENTS

The director believes that the forthcoming financial year will still present significant challenges due to the uncertainty affecting confidence within the UK economy which was evidenced by low growth levels, but generally believe that the Company is well placed to be profitable and support customers with a strong service proposition.

DIRECTOR

S J Whitworth held office during the whole of the period from 1 April 2024 to the date of this report.

FINANCIAL INSTRUMENTS

The company's principal financial instruments include a bank overdraft and a bank loan, the main purpose of which is to raise finance for the company's operations, to manage currency risks and interest rate risks arising from the company's activities.

Price risk, credit risk, liquidity risk and cash flow risk

The company manages its cash and borrowing requirements to minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of its business.

All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

The company's principal foreign currency exposure arises from trading in overseas markets. The company's exposure may be hedged in order to fix the cost in sterling. This hedging may involve the use of foreign exchange forward contracts.

The directors do not envisage any cashflow difficulties over the coming year that would prevent any borrowing obligations being met as at the financial year end the company carries forward a good order book so with prudent cashflow management, strengthening balance sheet and good awareness of opportunities should be well placed to weather the economic downturn.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Marriott Gibbs Rees Wallis Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S J Whitworth - Director

22 December 2025

Opinion

We have audited the financial statements of T.W. Ward C.N.C. Machinery Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of 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 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the directors;

- making inquiries and discussing with directors as to whether the company complies with such laws and regulations;

- enquiries with the directors concerning any actual or potential litigation or claims;

- inspection of relevant legal correspondence;

- reviewing transactions around the end of the reporting period and by testing the appropriateness of journals and other adjustments;

- the performance of analytical procedures to identify unexpected changes or movements to account balances which may be indicative of fraud;

- assessing whether the judgements made in making accounting estimates are indicative of any potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 by, for example, misrepresentations, forgery or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Alan Pickstone FCCA (Senior Statutory Auditor)

for and on behalf of Marriott Gibbs Rees Wallis Limited

Statutory Auditor

First Floor

Unit 4, Broadfield Court

Sheffield

South Yorkshire

S8 0XF

22 December 2025

TURNOVER

3

8,030,108

12,154,038

Cost of sales

6,020,534

10,307,634

GROSS PROFIT

2,009,574

1,846,404

Administrative expenses

2,431,404

1,894,469

OPERATING LOSS

5

(421,830

)

(48,065

)

Interest receivable and similar income

1,047

91,364

(420,783

)

43,299

Interest payable and similar expenses

6

120,457

19,346

(LOSS)/PROFIT BEFORE TAXATION

(541,240

)

23,953

Tax on (loss)/profit

7

(133,251

)

9,199

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(407,989

)

14,754

OTHER COMPREHENSIVE INCOME

Property revaluation

-

985,370

Income tax relating to other comprehensive income

-

(237,294

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

748,076

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(407,989

)

762,830

FIXED ASSETS

Intangible assets

10

56,318

77,303

Tangible assets

11

3,797,345

3,855,092

Investments

12

1

1

3,853,664

3,932,396

CURRENT ASSETS

Stocks

13

3,720,665

4,097,941

Debtors

14

2,938,121

3,097,654

Cash at bank and in hand

55,182

586,214

6,713,968

7,781,809

CREDITORS

Amounts falling due within one year

15

3,892,357

4,414,693

NET CURRENT ASSETS

2,821,611

3,367,116

TOTAL ASSETS LESS CURRENT LIABILITIES

6,675,275

7,299,512

CREDITORS

Amounts falling due after more than one year

16

(8,877

)

-

PROVISIONS FOR LIABILITIES

20

(365,080

)

(470,205

)

NET ASSETS

6,301,318

6,829,307

CAPITAL AND RESERVES

Called up share capital

21

200,000

200,000

Revaluation reserve

22

2,203,717

2,225,186

Retained earnings

22

3,897,601

4,404,121

SHAREHOLDERS' FUNDS

6,301,318

6,829,307

The financial statements were approved by the director and authorised for issue on 22 December 2025 and were signed by:

S J Whitworth - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

200,000

4,499,214

1,487,263

6,186,477

Changes in equity

Dividends

-

(120,000

)

-

(120,000

)

Total comprehensive income

-

24,907

737,923

762,830

Balance at 31 March 2024

200,000

4,404,121

2,225,186

6,829,307

Changes in equity

Dividends

-

(120,000

)

-

(120,000

)

Total comprehensive loss

-

(386,520

)

(21,469

)

(407,989

)

Balance at 31 March 2025

200,000

3,897,601

2,203,717

6,301,318

Cash flows from operating activities

Cash generated from operations

1

(1,648,573

)

450,905

Interest paid

(119,760

)

(19,346

)

Interest element of hire purchase payments paid

(697

)

-

Tax paid

(5,302

)

(18,508

)

Net cash from operating activities

(1,774,332

)

413,051

Cash flows from investing activities

Purchase of intangible fixed assets

-

(71,751

)

Purchase of tangible fixed assets

(24,758

)

(17,939

)

Interest received

1,047

91,364

Net cash from investing activities

(23,711

)

1,674

Cash flows from financing activities

Capital repayments in year

15,143

-

Amount withdrawn by directors

(92,573

)

(323,252

)

Equity dividends paid

(120,000

)

(120,000

)

Net cash from financing activities

(197,430

)

(443,252

)

Decrease in cash and cash equivalents

(1,995,473

)

(28,527

)

Cash and cash equivalents at beginning of year

2

344,606

373,133

Cash and cash equivalents at end of year

2

(1,650,867

)

344,606

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

as

restated

£

£

(Loss)/profit before taxation

(541,240

)

23,953

Depreciation charges

103,490

87,910

Finance costs

120,457

19,346

Finance income

(1,047

)

(91,364

)

(318,340

)

39,845

Decrease/(increase) in stocks

377,276

(428,301

)

Decrease in trade and other debtors

257,408

1,077,573

Decrease in trade and other creditors

(1,964,917

)

(238,212

)

Cash generated from operations

(1,648,573

)

450,905

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

55,182

586,214

Bank overdrafts

(1,706,049

)

(241,608

)

(1,650,867

)

344,606

Year ended 31 March 2024

31.3.24

1.4.23

as restated

£

£

Cash and cash equivalents

586,214

654,979

Bank overdrafts

(241,608

)

(281,846

)

344,606

373,133

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

586,214

(531,032

)

55,182

Bank overdrafts

(241,608

)

(1,464,441

)

(1,706,049

)

344,606

(1,995,473

)

(1,650,867

)

Debt

Finance leases

-

(15,143

)

(15,143

)

-

(15,143

)

(15,143

)

Total

344,606

(2,010,616

)

(1,666,010

)

1.	STATUTORY INFORMATION

T.W. Ward C.N.C. Machinery 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.

Preparation of consolidated financial statements

The financial statements contain information about T.W. Ward C.N.C. Machinery Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken advantage of the exemption available under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as all of its subsidiary undertakings could be excluded from consolidation under Section 405(2).

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based upon 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.

Critical judgements in applying the company's accounting policies

There are no critical accounting judgements, apart from those involving estimations (which are dealt with separately below) that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

In line with the company policy, the warranty provision is calculated by the directors based upon total contract values and their historical experience and other factors that are considered to be relevant.

The recognition of revenue and profits on significant contracts rely on estimates by the directors in relation to forecast total costs of each contract. Contracts are reviewed on a regular basis throughout their life and amounts are re-estimated until the outcome of the contract is known.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets.

Turnover

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

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the company’s activities described below.

Sales of goods

The company sells new and used metalwork machinery, specialising in the supply of new, technologically advanced CNC metalworking machine tools and late model reconditioned and re-manufactured CNC machine tools. Sales of goods are recognised when the company has delivered machines to the customer and no other significant obligation remains unfulfilled that may affect the customer's acceptance of the products. When installation is required, revenue is recognised when machine installation is complete and the risk and rights of ownership transfer to the customer. The risk of obsolescence and loss of the machines are considered to have been transferred to the customer when the products are shipped to the location specified by the customer, or are installed if required, and the customer has accepted them.

Where a contract for supply of machinery overlaps the year end and is of such a significance to the company that not to recognise any activity thereon would distort turnover and profits; turnover on these contracts is recognised based on the value of work carried out during the year including amounts not yet invoiced.

Amounts recoverable on contracts, which are included in debtors are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account.

Profit is taken only when their outcome can be foreseen with reasonable certainty and it based on the value of work performed less expenditure incurred to the year end. Full provision is made for all known or expected losses, taking a prudent view of future income, immediately such losses are foreseen.

Rendering of services

The company repairs and services machines. Income is invoiced and recognised once the work has been completed.

Intangible assets

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

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

Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset Class

Depreciation rate and method

Freehold land

Nil

Freehold property

2% on cost

Plant and machinery

10% - 33% on cost

Fixtures and fittings

20% - 33% on cost

Motor vehicles

25% on cost

Investments in subsidiaries

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 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.

Warranties for goods sold

Provision is made for the estimated liability relating to machines sold with a warranty period. When calculating the provision required, management considers its obligation to make good eligible issues within the relevant warranty period and takes into account historical data and known performance issues.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

as

restated

£

£

Sale of goods

6,333,475

9,952,029

Rendering of services

1,696,633

2,202,009

8,030,108

12,154,038

An analysis of turnover by geographical market is given below:

2025

2024

as

restated

£

£

United Kingdom

7,544,339

11,525,261

Europe

460,547

185,574

Rest of the World

25,222

443,203

8,030,108

12,154,038

4.	EMPLOYEES AND DIRECTORS

2025

2024

as

restated

£

£

Wages and salaries

1,349,460

1,009,047

Social security costs

160,807

130,806

Other pension costs

171,924

110,400

1,682,191

1,250,253