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

During the year, the company experienced strong growth to start the year, which steadied in the last quarter. This growth was delivered monthly throughout the year, in line with the planned strategic growth numbers delivering strong operating profits, and the business continued to benefit from multiple Long Term Purchase Agreements (LTA’s), which gave great forward visibility of orders, and significantly improved planning and procurement processes. The weaker end to the year was a generic reaction to the weak state of the UK economy and the uncertainty around global markets.

The growth strategy spearheaded in the Aerospace, Defence and Space (ADS) sectors continues to work well, resulting in good business activity in all these core sectors. A full 5-year business strategy review was undertaken and the new business ‘strategy on a page’ was completed. We continued to invest in our management team, to ensure that we have the relevant skills to achieve our growth plans and significant management training has taken place throughout the year to support all the on-site growth and continuous improvement activities. The business has completed its fourth year in the Sharing in Growth (SiG) aerospace business transformation programme, and remains entirely engaged with this continuous improvement journey, which runs with full SiG support until September 2025.

Operationally, we continue to see good improvements in the productivity per employee, which is working well with our continued drive to robotise appropriate operations, and three robots now operate 7 days per week, as well as driving OTIF delivery numbers to above 90% consistently. The company continues to re-invest into the site infrastructure and capital equipment, introducing new plant and increasing automation.

Through our R&D activity, the plastics recycling project concluded its proof-of-concept stage and has moved to a fund-raising stage looking for seed investment.

Also in the year, we continued into the 2nd year of our 3yr £3.6m R&D programme through the ATI for a novel way to clean aluminium prior to casting on a continuous basis. The industrial prototype has been completed and the trial process and schedule is being worked through. This project is run in collaboration with Cranfield and Sheffield Universities, as well as Alloyed Ltd, and is progressing well.

The Company’s principal risks relate to Liquidity, Credit and Foreign Exchange risk. The Board of Directors and Senior Leadership Team continually review business risks and uncertainties. Management review financial and non-financial matrices every week to understand all risks facing the business.

Financial Risk.

The Company utilises external funding to facilitate its continued growth plans and remains able to cover all its current obligations through a combination of working capital from trading cash flow, asset finance and invoice discounting facilities. Cash availability is monitored weekly by the Directors.

With high levels of export, the Company monitors foreign exchange markets and its exposures with some risk mitigated by sourcing same currency supplies. Board approved internal policies mitigate against interest rate and working capital risks. Credit risk is mitigated by the extensive use of credit reference agency reporting and monitoring services. Where credit risk is identified, the Company revises its credit terms accordingly

Market and Other Risk

The basic commodity parts for the Company’s sales profile remain competitive against European, American, and Far Eastern imports. With the growing pressures on environmental impacts, Management is increasing its focus on implementing efficiency improvements and initiating activity to understand the carbon footprint of the business. The recruitment of skilled staff is an ongoing challenge across the UK and in a rural location. Headcount at the year end sat at ~120 people.

The Board and Senior Management Team use several KPI’s to monitor the business and have created a new Business Development Information Centre to track active enquiries conversion rates across each of the business units. It also reviews attainment to forecast, performance to budget and cash generation. Other important non-financial KPI’s are used on a daily and weekly basis to measure health & safety, delivery performance to customers (OTIF), quality and operational performance / efficiencies.

The company has commenced the new financial year with a good forward order book, and will continue to invest in capital equipment, our people, core business and R&D activities. With the Companies strong heritage and trading history within the Defence sector, we are well positioned to enjoy some strong growth in 2026 and through 2027 as all the European Nations increase their GDP spending on defence. We have secured one 5yr contract and have several significant new contracts at final stages of negotiation for existing platforms that are expected to grow rapidly.

We continue to work with the apprenticeship programme recruiting several new starters each year and continue to explore KTP opportunities with local universities.

We will further enhance our growing profile through our International Prime customer base and active participation in sector specific trade organisations. Our strong export growth will continue through our international marketing campaign at trade shows in Europe and North America. The sales office in the USA is driving further sales in this important territory. We remain an alumni member of the Goldman Sachs 10,000 Small Businesses programme.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

Sylatech are specialists in the design, engineering and manufacture of passive RF/Microwave waveguide antennas, subsystems, assemblies, components and in liquid metal component forming, through our lost wax block investment casting foundry. The business also runs comprehensive CNC machining operations and has a significant Research and Development function, developing advanced capabilities and cutting-edge technology.

The results for the year are set out on page 8.

Ordinary interim dividends were paid amounting to £118,000 (2024 - £175,000). The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Armstrong Watson Audit Limited, was appointed during the period, and are deemed to be reappointed under section 487(2) of the Companies Act.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report 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.

We have audited the financial statements of Sylatech Limited (the ‘company’) for the year ended 31 March 2025 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including 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).

•    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 Auditor 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

Prior year not Audited

During the prior year, the company was not subject to audit, therefore the prior year figures were not audited.

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 directors’ report for the financial year for which the     financial statements are prepared is consistent with the financial statements; and

•    the strategic report and the directors’ report have been prepared in accordance with applicable legal     requirements.

In the light of the knowledge and understanding of the company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which 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 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.

As explained more fully in the directors’ responsibilities statement set out on page 4, 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 is 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.

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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

•    We obtained an understanding of laws and regulations that affect the company, focusing on those that had     a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and     regulations that we identified included the UK Companies Act and tax legislation.

•    We enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance     with relevant laws and regulations. We also reviewed controls the directors have in place to ensure     compliance.

•    We gained an understanding of the controls that the directors have in place to prevent and detect fraud.     We enquired of the directors about any incidences of fraud that had taken place during the accounting     period.

•    The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit     team and tests were planned and performed to address these risks. We identified the potential for fraud in     the following areas: revenue recognition and management override of controls.

•    We reviewed financial statements disclosures and tested to supporting documentation to assess     compliance with relevant laws and regulations discussed above.

•    We enquired of the directors about actual and potential litigation and claims.

•    We performed analytical procedures to identify any unusual or unexpected relationships that might indicate     risks of material misstatement due to fraud.

•    In addressing the risk of fraud due to management override of internal controls we tested the     appropriateness of journal entries and assessed whether the judgements made in making accounting     estimates were indicative of a potential bias.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities [frc.org.uk]. This description forms part of our auditor’s report.

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 an auditor’s report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Sylatech Limited is a private company limited by shares incorporated in England and Wales. The registered office is Foundry Buildings Kirkdale Road, Kirkbymoorside, YO62 6PX.

These financial statements have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The immediate and ultimate parent company is SRF Holdings Limited. SRF Holdings Limited is the smallest and largest group which these financial statements are consolidated, and these group accounts are available from its registered office, Sylatech Limited Kirkdale Road, York, North Yorkshire, YO62 6PX.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

All research and development expenditure is written off against profits in the year in which it is incurred.

Goodwill represents the excess of consideration over fair value of assets and liabilities acquired and is written off in equal annual installments over its estimated useful economic life of 10 years.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Assets under the course of construction are not depreciated until they are brought into use.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and 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 constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Ageing and damaged stock is scrutinised by management and provision is made to write the value of stock down where management consider it unlikely that the product will realise its initial cost value.

The valuation of work in progress requires management to exercise judgement in assessing the stage of completion, the recoverability of costs incurred, and the expected outcome of each contract. These estimates may change as projects progress, and actual results could differ from those anticipated, potentially impacting the carrying value of work in progress.

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and are therefore able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Assets under the course of construction comprise improvements to the site and construction of various large items of plant and machinery, which will not be depreciated until brought into use.

During the year, the company obtained 100% of the share capital of Flux 245 Ltd.

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Bank loans of £nil (2024 - £133,333) are secured by the UK Government under the Coronavirus Business Interruption Loan Scheme.

Invoice discounting of £642,498 (2024 - £1,421,188) are secured by way of a fixed and floating charge over all of the assets of the company.

Other loans of £138,667 (2024 - £213,667) are unsecured shareholder loan notes.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. All leases are secured against the assets to which they relate.

Bank loans and invoice discounting are secured as detailed in note 15.

Obligations under finance leases are secured as detailed in note 16.

Other borrowings are secured as detailed in note 15.

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Bank loans and other borrowings are secured as detailed in note 15.

Obligations under finance leases are secured as detailed in note 16.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Included in other deferred income is £177,453 (2024 - £177,453) of insurance proceeds, which will be used to replace the related asset.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Each ordinary share is entitled to one vote, and carries rights to any discretionary dividend payments but no rights to fixed income. Each share carries equal rights to any capital distributions made.

Each ordinary A share is entitled to one vote, and carries rights to any discretionary dividend payments but no rights to fixed income. Each share carries equal rights to any capital distributions made.

There is a cross company guarantee in place between this company and CrossCo (1377) Limited, a fellow group company, in relation to bank loans recognised by CrossCo (1377) Limited. At the year end, bank loans of the relevant group company totalled £526,228 (2024 - £571,216), against which Sylatech Limited has pledged its assets as security through a floating charge over all assets of the company, ranking behind the security disclosed in notes 17 and 18.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Dividends totalling £75,000 (2024 - £105,000) were paid in the year in respect of shares held by the company's directors.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

The immediate and ultimate parent company is SRF Holdings Limited. SRF Holdings Limited is the smallest and largest group which these financial statements are consolidated, and these group accounts are available from its registered office, Sylatech Limited Kirkdale Road, York, North Yorkshire, YO62 6PX.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).