ACCOUNTS - Final Accounts

Operating (loss)/profit

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

Registered number: 09137040

PCE GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

PCE GROUP LIMITED

COMPANY INFORMATION

Directors	Mr J B Cook
	Mrs S L Cook (resigned 27 February 2024)
	Mr H A Cook (appointed 20 May 2024)
	Mr O J Cook (appointed 20 May 2024)


Registered number	09137040


Registered office	Ellough Road
	Ellough
	Beccles
	Suffolk
	NR34 7TE


Independent auditors	Larking Gowen LLP
	Chartered Accountants & Statutory Auditors
	1st Floor Prospect House
	Rouen road
	Norwich
	NR1 1RE

PCE GROUP LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 4
Directors' Report	5 - 6
Independent Auditors' Report	7 - 10
Consolidated Statement of Comprehensive Income	11
Consolidated Statement of Financial Position	12 - 13
Company Statement of Financial Position	14
Consolidated Statement of Changes in Equity	15
Company Statement of Changes in Equity	16
Consolidated Statement of Cash Flows	17 - 18
Consolidated Analysis of Net Debt	19
Notes to the Financial Statements	20 - 48

PCE GROUP LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The directors present their strategic report, together with financial statements for the year ending 31st December 2024.

Business review

The principal activity of the group is the design and manufacture of automation equipment. PCE Automation operates within the market sectors of Ocular, Life Sciences, Consumer Goods, Packaging, and Build-to-Print.
The 2024 Group consolidated results include a full year of Adapt Engineering based in Dublin, and two months of Olmec -UK Ltd located at Barton near Hull.
The year began with booked sales of approximately £38 million, driven by the award of several major contracts from new blue-chip clients alongside continued growth from existing customers. Following a strong first quarter, the group experienced a significant adverse event when a customer requested a pause to work already in progress for internal operational reasons. Given the sudden nature of the request and the stage of completion at the time, it was not practicable to quickly re-adjust staffing levels and resources, resulting in a loss of anticipated revenue and material disruption costs during the year.
This position was further exacerbated by certain contracts undertaken during the year, including two projects carried over from the previous year, which proved to be more complex and costly than originally estimated. As a consequence, gross profit for the year was insufficient to absorb the overhead cost base, which had been structured to support the higher level of turnover originally budgeted. This resulted in an operating loss of £300,556 although a modest £92,260 surplus at EBITDA level. After interest and tax, the loss for the year was £125,811.
While turnover was similar to the previous year, there was a 6% increase internationally lessening reliance on the Uk and emphasising the brand reach of PCE.
The balance sheet remains strong with Reserves of £5.6m, and £3.7m cash.
During the year, the combination of reduced turnover, project disruption, and the timing of customer cash receipts resulted in periods of tighter liquidity headroom. The directors have taken, and continue to take, active steps to manage this position. These actions include enhanced cost control, resourcing adjustments, close monitoring of working capital, prioritisation of cash collection, and the re-phasing of discretionary expenditure where appropriate.
Management has also strengthened short-term cash forecasting and governance to ensure early visibility of potential risks and timely corrective action. Accounts for the current 2025 financial year indicate a return to profitability, supported by a strong order book and actions already implemented. The directors have reviewed detailed cash flow forecasts and sensitivities covering the period beyond the date of approval of the financial statements and, having regard to the group’s existing banking facilities and ongoing mitigating actions, consider that the group is well positioned to meet its obligations as they fall due.

Page 1

PCE GROUP LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Highlights of 2024

In 2024, PCE Group achieved several notable milestones and innovations:

∙The successful onboarding of Adapt Engineering in the Republic of Ireland (acquired 2023) with an increase in year on year booked sales of 104%. Sizeable investment has also been made in the Dublin office by enhancing facilities, operations, cyber security and the addition of skilled personnel to align with the parent companies Vision & Mission Statement.

∙We successfully acquired OLMEC - UK LIMITED in Q4 2024 along with its highly experienced and respected management team to enhance the parent company’s offering to the Life Science sector. Olmec provides end-to-end solutions within the growth markets of Wound Care, Ostomy Products & Wearable Technologies and aligns with PCE Automation who is already recognised as a trusted supplier within this sector. The acquisition is in sync with our strategic vision and supports our growth targets into 2025 and beyond. OLMEC also expands the PCE Group offering by bringing an unparalleled expertise in Vision & Data Management solutions.

∙We have made substantial investments in expanding our production floorspace at the Suffolk HQ, which will accommodate our booked sales and operational needs. This expansion is a critical step in supporting our future growth.

∙The industry recognition as a double Queens & Kings Award for Enterprise winner. The KAE Grant of Appointment was presented during the year by the royal official representative the Lord Lieutenant for Suffolk.

Principal risks and uncertainties

The Board of Directors review all principal risks to the business at quarterly board meetings. The management continually monitor and challenge the group's control measures and procedures to ensure all risks to the company and its employees are minimised.
Financial Performance
PCE Group's financial performance in 2024 was impacted by the rescheduling of a major contract in Q1, resulting in a 7% reduction in turnover overall, which was offset by a full year of Adapt turnover, and 2 months of Olmec. Gross profit margin improved by 1 percentage points to 24.7%, reflecting efficiency gains as a result of previous acqusitions.
Overheads increased by 50%, driven by a strategic decision to retain skilled personnel in preparation for delivering a high volume of secured orders in 2025 and 2026, along with the full year of Adapt results and Olmec acquisition. This forward-looking investment resulted in a cost to the business of over £1 million during the year.
Future Developments and Risk Management
Materials Cost Environment and Control
Toward the latter part of the year, management identified increasing volatility in certain material and component costs, reflecting wider market conditions and extended supply chains associated with bespoke automation projects. While this did not materially impact the 2024 outturn, it has been recognised as an area requiring increased management focus going forward.
In response, the group has begun strengthening its approach to material cost management, including earlier cost visibility during the design phase, closer alignment between engineering and procurement, and enhanced review of material commitments as projects progress. These measures are being embedded through 2025 and are intended to improve cost predictability and decision-making in an environment of fluctuating input costs.

Page 2

PCE GROUP LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

As these processes mature, and subject to prevailing market conditions, management expects the more tangible benefits of these changes to begin to emerge over the medium term, including into the 2026 financial year.
The group continues to benefit from an experienced management team and a skilled, committed workforce, who have responded positively and decisively to unexpected challenges and increasing customer demands. The consistent delivery of high standards in quality, technical capability, and customer service remains a key differentiator for PCE Automation and has underpinned the group’s long-standing customer relationships
.
While 2024 represented a setback, the business enters 2025 with renewed momentum. Although the outlook remains challenging against a backdrop of reduced commercial confidence in the UK and broader global economic and political uncertainty, the group is operating from a sound base, with improved operational focus, enhanced financial discipline, and a resilient platform for future growth.
Economic Risk
As a strategic policy export revenue continues to grow as an overall percentage of PCE’s business. This is seen as essential to meet the expansion of PCE’s business both domestically and on a global scale. Exposure to any currency fluctuations is systematically reviewed with forward contracts and controlled quotation validity periods to ensure any risk is minimised. As energy prices continue to rise PCE monitors its fixed contracts to ensure exposure to price fluctuations is minimised. This coupled with the benefit of solar panels on the buildings at Suffolk HQ help mitigate the economic risk.
Credit Risk
PCE Group manages credit risk by carefully assessing the creditworthiness of all customers and counterparties before extending credit terms. We employ robust credit control measures, including setting credit limits, conducting regular reviews of customer accounts, and using credit insurance when necessary. Our approach ensures a diversified customer base and reduces the likelihood of default, thereby protecting our cash flow and financial health.
Liquidity Risk
To manage liquidity risk, PCE Group maintains a strong cash position and access to multiple credit lines. We regularly review our cash flow forecasts to ensure adequate liquidity to meet short-term and long-term obligations. Additionally, we have contingency plans in place to address unforeseen liquidity needs, such as drawing on existing credit facilities or optimizing working capital management.
Cash Risk
PCE Group manages cash risk through stringent cash flow management practices, including regular forecasting and monitoring of cash balances. We ensure that surplus cash is effectively utilised or invested in short-term, low-risk instruments to maximize returns without compromising liquidity. By maintaining disciplined cash management and investing practices, we ensure financial stability and flexibility to support our strategic objectives.
Cyber Risk
Cybersecurity is also a critical concern. We will invest in robust cybersecurity measures, including our Cyber Certification, which ensures the highest levels of security for our customers' data and that of our employees. Additionally, we will provide ongoing employee training to protect our company and clients from potential threats and adopt a proactive approach to regulatory changes, ensuring compliance with evolving regulations.
Competition
Research & Development is a vital and key component ensuring the business remains at the forefront of technological advances. Investment in our Applications Department providing pre-sales consultations and Proof of Concept (PoC) work has been a major contributing factory in the high levels of booked sales in 2024. This is a critical activity, which we will continue to invest in, enforcing our competitive advantage.

Page 3

PCE GROUP LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Personnel
The skills and flexibility of the PCE employees is a crucial factor to the company’s continued success. The directors partake in a monthly companywide meeting to share business news and answer any queries within the PCE team across all sites. Employee council meetings allow two-way communication to management and ensure the direction & culture of the business is a shared responsibility. Leaver interviews are monitored by the Managing Director to ensure there are no trends or reoccurring issues that need to be addressed.

Financial key performance indicators

The directors monitor KPIs via monthly management accounts including Sales Enquiries, Revenue, 3 Month Rolling Average of Incoming Orders, Value to be Invoiced, EBITDA.
2024 2023 Change
Revenue £16,526,816 £17,587,245 (£1,060,429)
EBITDA £92,260 £1,559,588 (£1,467,328)
Health & Safety records are analysed at all Board Meetings. The Health & Safety of employees, visitors and contractors is constantly challenged as an ongoing business culture. This is recognised by the companies continued ISO9001 accreditation.

This report was approved by the board and signed on its behalf.

Mr J B Cook

Director

Date: 19 December 2025

Page 4

PCE GROUP LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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.

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £118,008 (2023 - profit £1,155,614).

The directors recommended payment of dividends totalling £470,000 (2023 - £157,216) during the year.

Directors

The Directors who served during the year were:

Mr J B Cook

Mrs S L Cook (resigned 27 February 2024)

Mr H A Cook (appointed 20 May 2024)

Mr O J Cook (appointed 20 May 2024)

Matters covered in the Group Strategic Report

Information on exposure to risk, future developments and going concern are covered in the Strategic Report.

Page 5

PCE GROUP LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr J B Cook

Director

Date: 19 December 2025

Page 6

PCE GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED

Opinion

We have audited the financial statements of PCE Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 December 2024 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 United Kingdom, including the Financial Reporting Council'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 or 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.

Page 7

PCE GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' Report 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 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 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.

Page 8

PCE GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 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 an Auditors' 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 Group 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:

Due to the field in which the Company operates, we identified the areas most likely to have a direct material impact on the financial statements as UK accounting standards and the Companies Act 2006; health and safety; and employment law.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:

∙Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace and fraud;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Challenging assumptions and judgements made by management in their significant accounting estimates;

∙Auditing the risk of management override of controls, including through testing journal entries and adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and

∙Reviewing controls surrounding payments to suppliers and employees, and testing a sample of purchases and payments to ensure these are bona fide business expenses.

There are inherent limitations in our audit procedures described above. The more removed that laws are from
financial transactions, the less likely it is that we would become aware of such non-compliance. Auditing
standards also limit the audit procedures required to identify non-compliance with laws and regulations to
enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if
any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.

Page 9

PCE GROUP LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PCE GROUP LIMITED (CONTINUED)

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 Auditors' 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 Auditors' 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.

John Atkins ACA FCCA (Senior Statutory Auditor)

for and on behalf of

Larking Gowen LLP

Chartered Accountants

Statutory Auditors

1st Floor Prospect House

Rouen road

Norwich

NR1 1RE

19 December 2025

Page 10

PCE GROUP LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	16,526,816	17,587,245
Cost of sales		(12,436,947)	(13,403,001)
Gross profit		4,089,869	4,184,244
Administrative expenses		(4,406,181)	(2,945,491)
Other operating income	5	15,756	26,736
Operating (loss)/profit	6	(300,556)	1,265,489
Interest receivable and similar income	9	36,276	28,474
Interest payable and similar expenses	10	(144,279)	(42,064)
(Loss)/profit before taxation		(408,559)	1,251,899
Tax on (loss)/profit	11	282,748	(20,115)
(Loss)/profit for the financial year		(125,811)	1,231,784

(Loss)/profit for the year attributable to:
Non-controlling interests	(7,803)	76,170
Owners of the parent Company	(118,008)	1,155,614
	(125,811)	1,231,784

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 20 to 48 form part of these financial statements.

Page 11

PCE GROUP LIMITED

REGISTERED NUMBER: 09137040

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	12		2,270,033		278,469
Tangible assets	13		3,998,105		2,758,453
Investments	14		1		1
Investment property	15		552,619		-
			6,820,758		3,036,923
Current assets
Stocks	16	1,505,607		1,139,568
Debtors: falling due within one year	17	7,140,111		5,477,695
Cash at bank and in hand	18	3,707,727		2,380,061
		12,353,445		8,997,324
Creditors: falling due within one year	19	(10,303,572)		(4,747,566)
Net current assets			2,049,873		4,249,758
Total assets less current liabilities			8,870,631		7,286,681
Creditors: falling due after more than one year	20		(3,238,719)		(909,398)
Provisions for liabilities
Deferred taxation	23		(13,027)		(162,587)
Net assets			5,618,885		6,214,696

Page 12

PCE GROUP LIMITED

REGISTERED NUMBER: 09137040

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Capital and reserves
Called up share capital	24	5,000	5,000
Capital redemption reserve	25	10,000	10,000
Profit and loss account	25	5,435,472	6,023,480
Equity attributable to owners of the parent Company		5,450,472	6,038,480
Non-controlling interests		168,413	176,216
		5,618,885	6,214,696

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J B Cook

Director

Date: 19 December 2025

The notes on pages 20 to 48 form part of these financial statements.

Page 13

PCE GROUP LIMITED

REGISTERED NUMBER: 09137040

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	13		2,087,611		1,726,478
Investments	14		87,600		87,600
			2,175,211		1,814,078
Current assets
Debtors: amounts falling due within one year	17	470,559		586,906
Cash at bank and in hand	18	18,873		100,579
		489,432		687,485
Creditors: amounts falling due within one year	19	(1,032,639)		(661,678)
Net current (liabilities)/assets			(543,207)		25,807

Creditors: amounts falling due after more than one year	20		(1,162,043)		(909,398)
Provisions for liabilities
Deferred taxation	23		(50,316)		(40,592)
Net assets			419,645		889,895

Capital and reserves
Called up share capital	24		5,000		5,000
Capital redemption reserve	25		10,000		10,000
Profit and loss account brought forward		874,895		716,380
Loss/(profit) for the year		(250)		315,731
Dividends paid and payable		(470,000)		(157,216)
Profit and loss account carried forward			404,645		874,895
			419,645		889,895

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr J B Cook

Director

Date: 19 December 2025

The notes on pages 20 to 48 form part of these financial statements.

Page 14

PCE GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital redemption reserve	Profit and loss account	Equity attributable to owners of parent Company	Non-controlling interests	Total equity
	£	£	£	£	£	£
At 1 January 2023	5,000	10,000	5,025,082	5,040,082	182,310	5,222,392

Profit for the year	-	-	1,155,614	1,155,614	76,170	1,231,784
Dividends: Equity capital	-	-	(157,216)	(157,216)	(82,264)	(239,480)

At 1 January 2024	5,000	10,000	6,023,480	6,038,480	176,216	6,214,696

Loss for the year	-	-	(118,008)	(118,008)	(7,803)	(125,811)
Dividends: Equity capital	-	-	(470,000)	(470,000)	-	(470,000)
At 31 December 2024	5,000	10,000	5,435,472	5,450,472	168,413	5,618,885

The notes on pages 20 to 48 form part of these financial statements.

Page 15

PCE GROUP LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	5,000	10,000	716,380	731,380

Profit for the year	-	-	315,731	315,731
Dividends: Equity capital	-	-	(157,216)	(157,216)

At 1 January 2024	5,000	10,000	874,895	889,895

Loss for the year	-	-	(250)	(250)
Dividends: Equity capital	-	-	(470,000)	(470,000)
At 31 December 2024	5,000	10,000	404,645	419,645

The notes on pages 20 to 48 form part of these financial statements.

Page 16

PCE GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(125,811)	1,231,784
Adjustments for:
Amortisation of intangible assets	64,325	10,777
Depreciation of tangible assets	328,491	283,322
Interest paid	144,279	42,064
Investment income	(36,276)	(28,474)
Taxation charge	(282,748)	20,115
(Increase) in stocks	(166,039)	(114,845)
Decrease in debtors	658,490	58,034
Increase in creditors	3,186,304	1,150,381
Corporation tax (paid)/received	(26,863)	98
Foreign exchange	922	-
Net cash generated from operating activities	3,745,074	2,653,256

Cash flows from investing activities
Purchase of tangible fixed assets	(999,166)	(1,741,580)
Purchase of investment properties	(552,619)	-
Interest received	36,276	28,474
HP interest paid	(9,025)	(2,461)
Net cash paid on acquisition of subsidiary	(2,829,917)	(395,965)
Deferred consideration paid in the year	(82,420)	-
Net cash from investing activities	(4,436,871)	(2,111,532)
Cash flows from financing activities
New bank loans	2,808,091	886,778
Repayment of bank loans	(130,152)	-
Repayment of other loans	(14,699)	(14,698)
Repayment of finance leases	(38,523)	(1,442)
Dividends paid to owners of the parent company	(470,000)	(157,216)
Interest paid	(135,254)	(39,603)
Dividends paid to non-controlling interests	-	(82,264)
Net cash used in financing activities	2,019,463	591,555

Page 17

PCE GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£


Net increase in cash and cash equivalents	1,327,666	1,133,279
Cash and cash equivalents at beginning of year	2,380,061	1,246,782
Cash and cash equivalents at the end of year	3,707,727	2,380,061

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	3,707,727	2,380,061
	3,707,727	2,380,061

The notes on pages 20 to 48 form part of these financial statements.

Page 18

PCE GROUP LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	Acquisition and disposal of subsidiaries	New finance leases	Other non-cash changes	At 31 December 2024
£	£	£	£	£	£

Cash at bank and in hand	2,380,061	4,240,003	(2,912,337)	-	-	3,707,727
Debt due after 1 year	(909,398)	(2,311,357)	-	-	116,063	(3,104,692)
Debt due within 1 year	(80,270)	253,191	(705,074)	-	(116,063)	(648,216)
Finance leases	-	38,523	(155,905)	(111,830)	-	(229,212)
	1,390,393	2,220,360	(3,773,316)	(111,830)	-	(274,393)

The notes on pages 20 to 48 form part of these financial statements.

Page 19

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

PCE Group Limited is a private company limited by shares, registered in England and Wales. The address of the registered office is Ellough Road, Ellough, Beccles, Suffolk, NR34 7TE.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 20

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Going concern

The financial statements have been prepared on a going concern basis. In assessing the appropriateness of this basis due to the nature of operations, the directors have considered the Group’s current and forecast financial position, cash flows, and liquidity.
During 2024 and into 2025, the Group increased staff levels and overheads to support anticipated growth in customer orders. However, due to delays in certain contracts, activity levels have not grown, or been delivered at the expected rate. In response, management is actively reviewing the cost base and implementing measures to align expenditure with current trading levels.
As part of their assessment, the directors have prepared forecasts until December 2026, taking into consideration expected trading performance, profitability, and potential cost saving measures they may take.
The Group’s current working capital facilities include several bank loans and an overdraft facility with HSBC. In addition, there is a £700k invoice financing agreement with another provider. The directors maintain regular dialogue with the bank and maintain a positive working relationship. The overdraft facility, currently at £750k, is renewed annually, to which the next renewal is due in March 2026, and the bank have indicated their continued support with this facility at the current level, with the potential for the facility to increase.

The directors have planned various different scenarios over the next 12 months, some of which include several cost-saving measures, to which the above banking facilities will be utilised in the short term, to ensure the long term sustainability of the business. These forecasts show that the Group are expected to return to profitability and generate sufficient cash flows to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements.
Based on this assessment, the directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.

Page 21

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.5

Turnover

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.
In the case of long-term contract work, turnover reflects the contract activity of the year once contractual obligations have been met and is based on the directors' valuation of work carried out on each contract.
Turnover reflects costs incurred to date in establishing and managing the contracts plus the directors' best estimate of attributable profits which include a proportion of the total profits anticipated to be made on the contract, to the extent that their realisation is reasonably foreseeable.
Provision is made for foreseeable losses on all contracts based on the loss which is currently estimated to arise over the duration of any contract, irrespective of the amount of work carried out at the balance sheet date.
Sales of spare parts are recognised on despatch.

Page 22

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.6

Operating leases: the Group as lessee

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

2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
If it is not possible to distinguish between the research phase and the development phase of an
internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.8

Interest income

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

2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.

The estimated useful lives range as follows:

Goodwill

10% straight line

2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 24

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Land and buildings	-	2% straight line on buildings
Leasehold warehouse	-	10% straight-line
Plant and machinery	-	10-15% straight-line
Motor vehicles	-	25% straight-line
Fixtures and fittings	-	15% straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets in the course of construction are not subject to depreciation.

2.14

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated statement of financial position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.

Page 25

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 26

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgments, 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.
Critical judgments
The following judgments have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
The Company uses a percentage-of-completion method in accounting for its fixed price contracts to produce the machinery. Use of the percentage-of-completion method requires the Company to estimate the services performed to date as a proportion of the total services to be performed.

Turnover

Turnover for the year was derived from the principal activities of the company and the group.

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	5,733,768	7,427,819
Rest of Europe	2,172,897	2,606,920
Rest of the world	8,620,151	7,552,506
	16,526,816	17,587,245

Page 27

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Other operating income
		2024	2023
		£	£

Other operating income	15,756	26,736
	15,756	26,736

Depreciation and amortisation	393,339	294,099
Exchange differences	(96,074)	90,287
Other operating lease rentals	225,455	217,909
Auditors' remuneration	50,000	24,910

Page 28

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

7.	Employees
	Staff costs, including Directors' remuneration, were as follows:

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Wages and salaries	6,058,118	5,457,465	-	-
Social security costs	560,349	449,579	-	-
Cost of defined contribution scheme	266,493	293,346	-	-
	6,884,960	6,200,390	-	-

The average monthly number of group employees, including the directors, during the year was as follows:
	2024	2023
	£	£


Directors	9	8
Administration	10	8
Manufacturing	136	115
	155	131

The Company has no employees other than the directors.

8.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	203,738	79,504
Group contributions to defined contribution pension schemes	14,727	109,087
	218,465	188,591

	During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.
	The highest paid Director received remuneration of £97,292 (2023 - £NIL).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £4,494 (2023 - £NIL).

The amount payable in the year in relation to Key Management Personnel, considered to be the directors of the group companies, was £600,502 (2023 - £645,797).

Page 29

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Interest receivable
		2024	2023
		£	£

Other interest receivable

36,276

28,474

10.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	123,963	31,512
Other loan interest payable	7,310	8,091
Finance leases and hire purchase contracts	9,025	(187)
Other interest payable	3,981	2,648
	144,279	42,064

Corporation tax
Current tax on profits for the year	-	47,210
Adjustments in respect of previous periods	(104,433)	(52,273)
	(104,433)	(5,063)

Total current tax	(104,433)	(5,063)

Deferred tax
Origination and reversal of timing differences	(178,350)	147,936
Adjustments in respect of previous periods	35	(122,758)
Total deferred tax	(178,315)	25,178


	Tax on (loss)/profit	(282,748)	20,115

Page 30

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.Taxation (continued)

(Loss)/profit on ordinary activities before tax

(408,559)

1,251,899

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)	(102,140)	294,456
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	18,557	7,338
Capital allowances for year in excess of depreciation	15,469	10,482
Adjustments to tax charge in respect of prior periods	(16,745)	-
Deduction for R&D expenditure	(121,284)	(148,432)
RDEC credit	(7,319)	-
Adjustment in research and development leading to an increase (decrease) in the tax charge for the prior year	-	(172,322)
Effect of difference between current and deferred tax rates	-	8,674
Other differences leading to an increase (decrease) in the tax charge	(69,286)	19,919
Total tax charge for the year	(282,748)	20,115

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 31

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 January 2024	307,469
	Additions	2,055,889
	At 31 December 2024	2,363,358
	Amortisation
	At 1 January 2024	29,000
	Charge for the year on owned assets	64,325
	At 31 December 2024	93,325
	Net book value
	At 31 December 2024	2,270,033
	At 31 December 2023	278,469

Page 32

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Tangible fixed assets
	Group

	Land and buildings	Leasehold warehouse	Plant and machinery	Motor vehicles	Fixtures, fittings and equipment
	£	£	£	£	£
Cost
At 1 January 2024	2,050,053	291,711	570,825	119,746	1,010,216
Additions	389,823	176,965	48,841	116,831	371,536
Acquisition of subsidiary	-	16,520	408,484	-	33,065
Transfers between classes	(116,442)	-	-	-	-
Exchange adjustments	-	-	-	-	(3,936)
At 31 December 2024	2,323,434	485,196	1,028,150	236,577	1,410,881
Depreciation
At 1 January 2024	53,938	122,178	364,364	83,266	660,352
Charge for the year	40,168	42,606	60,609	35,444	149,664
Exchange adjustments	-	-	-	-	(3,014)
At 31 December 2024	94,106	164,784	424,973	118,710	807,002
Net book value
At 31 December 2024	2,229,328	320,412	603,177	117,867	603,879
At 31 December 2023	1,996,115	169,533	206,461	36,480	349,864

Page 33

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.Tangible fixed assets (continued)

	Assets in the course of construction	Total
	£	£
Cost
At 1 January 2024	-	4,042,551
Additions	7,000	1,110,996
Acquisition of subsidiary	-	458,069
Transfers between classes	116,442	-
Exchange adjustments	-	(3,936)
At 31 December 2024	123,442	5,607,680
Depreciation
At 1 January 2024	-	1,284,098
Charge for the year	-	328,491
Exchange adjustments	-	(3,014)
At 31 December 2024	-	1,609,575
Net book value
At 31 December 2024	123,442	3,998,105
At 31 December 2023	-	2,758,453

Included within group land and buildings is freehold land costing £469,290 (2023 - £469,290) which is not depreciated.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Plant and machinery	273,334	-
Motor vehicles	95,508	-
	368,842	-

Page 34

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.Tangible fixed assets (continued)

	Company

	Land and buildings	Fixtures, fittings and equipment	Other fixed assets	Total
	£	£	£	£
Cost
At 1 January 2024	1,766,137	8,000	-	1,774,137
Additions	389,823	-	7,000	396,823
Transfers between classes	(116,442)	-	116,442	-
At 31 December 2024	2,039,518	8,000	123,442	2,170,960
Depreciation
At 1 January 2024	42,259	5,400	-	47,659
Charge for the year on owned assets	34,490	1,200	-	35,690
At 31 December 2024	76,749	6,600	-	83,349
Net book value
At 31 December 2024	1,962,769	1,400	123,442	2,087,611
At 31 December 2023	1,723,878	2,600	-	1,726,478

Included within land and buildings is freehold land costing £469,290 (2023 - £469,290) which is not depreciated.

Page 35

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Fixed asset investments
	Group

		Investments in associates
		£
	Cost
	At 1 January 2024	1
	At 31 December 2024	1

	Company

		Investments in subsidiary companies
		£
	Cost
	At 1 January 2024	87,600
	At 31 December 2024	87,600

Page 36

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

PCE Automation Limited	Ordinary	94.44%
D B Automation Limited *	Ordinary	94.44%
Premier Feeders Limited *	Ordinary	94.44%
Premier Bowlfeeders Limited *	Ordinary	94.44%
Adapt Engineering Limited *	Ordinary	94.44%
Olmec - UK Limited *	Ordinary	94.44%

PCE Automation Limited, D B Automation Limited, Premier Feeders Limited and Premier Bowlfeeders Limited are registered in the United Kingdom and thier registered office is Ellough Airfield, Ellough, Beccles, Suffolk NR34 7TE.
Adapt Engineering Limited is registered in Ireland and its registered office is Unit D1, Weatherwell Business Park, Clondalkin D 22, Dublin.
Olmec - UK Limited is registered in the United Kingdom and its registered office is Unit 4 Falkland Way, Barton Upon Humber, North Lincolnshire, DN18 5RL.
*Indirect subsidiary undertaking

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit / (Loss)
	£	£

PCE Automation Limited	5,517,702	31,834
D B Automation Limited *	1,500	-
Premier Feeders Limited *	1	-
Premier Bowlfeeders Limited *	100	-
Adapt Engineering Limited *	166,986	10,840
Olmec - UK Limited *	1,638,807	674,304

Associated undertakings
The Company owns 1 share (50%) of G-IPCE Aviation Limited, whose registered office is the same as the Company's.

Page 37

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	Additions at cost	552,619
	At 31 December 2024	552,619

The 2024 valuations were made by the directors, on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2024	2023
	£	£

	Historic cost	552,619	-
		552,619	-

16.	Stocks
		Group	Group
		2024	2023
		£	£

	Raw materials and consumables	1,505,607	1,139,568

The carrying value of stocks are stated net of impairment losses totalling £263,431 (2023 - £45,140) due to slow-moving and obsolete stock.

Page 38

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.

Debtors

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Trade debtors	3,667,647	1,718,105	-	-
Amounts owed by joint ventures and associated undertakings	72,257	110,000	-	-
Other debtors	1,109,822	653,436	470,559	422,378
Amounts recoverable on contracts	890,695	1,639,532	-	-
Prepayments and accrued income	1,384,574	1,356,622	-	164,528
Tax recoverable	15,116	-	-	-
	7,140,111	5,477,695	470,559	586,906

An impairment charge of £Nil (2023 - £2,155) was recognised against debtors.

18.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

	Cash at bank and in hand	3,707,727	2,380,061	18,873	100,579

Page 39

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	633,517	65,571	111,315	65,571
Other loans	14,699	14,699	14,699	14,699
Trade creditors	2,651,029	1,182,642	-	51,712
Amounts owed to group undertakings	-	-	746,255	475,400
Corporation tax	10,346	47,310	10,346	-
Other taxation and social security	347,939	189,229	-	-
Obligations under finance lease and hire purchase contracts	95,185	-	-	-
Customer payments on account	4,393,721	2,677,668	-	-
Other creditors	899,258	180,988	96,288	-
Accruals and deferred income	1,257,878	389,459	53,736	54,296
	10,303,572	4,747,566	1,032,639	661,678

All hire purchase creditors are secured on the related assets.
A bank loan was taken out in the prior year from HSBC UK, amounting to £562,500, with an interest rate of 2.75% plus Bank of England Base Rate. The loan is repayable in monthly instalments over 20 years.
A bank loan was taken out in the prior year from HSBC UK, amounting to £350,000, with an interest rate of 2.75% plus Bank of England Base Rate. The loan is repayable in monthly instalments over 5 years.
A bank loan was taken out during the year from HSBC UK, amounting to £400,000, with an interest rate of 2.75% plus Bank of England Base Rate. The loan is repayable in monthly instalments over 5 years.
A bank loan was taken out during the year from HSBC UK, amounting to £2,400,000, with an interest rate of 2.98% plus Bank of England Base Rate. The loan is repayable in monthly instalments over 5 years.
A bank loan was inherited as part of the acquisition of subsidiary Olmec-UK Limited on 29 October 2024 with an original amount of £400,000, with an interest rate of 3.99% plus Bank of England Base Rate. The loan is repayable in monthly instalments over 5 years.
The loans are secured by a fixed charge on the Company’s freehold property, and a fixed and floating charge over all of the Company’s assets as well as a personal guarantee by the directors limited to £40,000.

Page 40

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	3,031,200	821,207	1,088,551	821,207
Other loans	73,492	88,191	73,492	88,191
Net obligations under finance leases and hire purchase contracts	134,027	-	-	-
	3,238,719	909,398	1,162,043	909,398

Bank loans are secured, as described in note 19.

Page 41

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Amounts falling due within one year
Bank loans	633,517	65,571	111,315	65,571
Other loans	14,699	14,699	14,699	14,699
	648,216	80,270	126,014	80,270
Amounts falling due 1-2 years
Bank loans	639,205	62,925	119,986	62,925
Other loans	14,699	14,699	14,699	14,699
	653,904	77,624	134,685	77,624
Amounts falling due 2-5 years
Bank loans	1,671,099	258,541	247,669	258,541
Other loans	58,793	44,096	58,793	44,096
	1,729,892	302,637	306,462	302,637
Amounts falling due after more than 5 years
Bank loans	720,896	499,741	720,896	499,741
Other loans	-	29,396	-	29,396
	720,896	529,137	720,896	529,137
	3,752,908	989,668	1,288,057	989,668

All loans are repayable by instalments.

Page 42

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2024	2023
		£	£

Within one year	95,185	-
Between 1-5 years	134,027	-
	229,212	-

23.	Deferred taxation
	Group

		2024
		£

	At beginning of year	162,587
	Charged to profit or loss	(178,315)
	Arising on business combinations	28,755
	At end of year	13,027

Page 43

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

23.Deferred taxation (continued)

Company

		2024
		£

	At beginning of year	40,592
	Charged to profit or loss	9,724
	At end of year	50,316

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£

Accelerated capital allowances	321,339	162,587	65,847	40,592
Tax losses carried forward	(298,211)	-	(15,531)	-
Other short term timing differences	(10,101)	-	-	-
	13,027	162,587	50,316	40,592

24.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

5,000 (2023 - 5,000) Ordinary shares of £1.00 each	5,000	5,000

25.

Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss account

This reserve records retained earnings and accumulated losses.

Page 44

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26.	Business combinations

On 29 October 2024, the Group acquired 100% of the issued share capital of Olmec - UK Limited for a total consideration of £3,776,926. The acquisition has been accounted for using the purchase method in accordance with FRS 102 Section 19.

Fixed Assets
Tangible	458,069	458,069
	458,069	458,069
Current Assets
Stocks	200,000	200,000
Debtors	2,305,790	2,305,790
Cash at bank and in hand	259,515	259,515
	3,223,374	3,223,374
Creditors
Due within one year	(1,300,560)	(1,300,560)
Due after more than one year	(93,806)	(93,806)
Deferred taxation	(107,971)	(107,971)
Total Identifiable net assets	1,721,037	1,721,037


	Goodwill	2,055,889
	Total purchase consideration	3,776,926

	Consideration
					£


	Cash	3,000,000
	Contingent consideration	687,494
	Directly attributable costs	89,432
	Total purchase consideration	3,776,926

Page 45

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26.Business combinations (continued)

	Cash outflow on acquisition
					£


	Purchase consideration settled in cash, as above	3,000,000
	Directly attributable costs	89,432
		3,089,432
	Less: Cash and cash equivalents acquired	(259,515)
	Net cash outflow on acquisition	2,829,917

	The goodwill arising from the acquisition is attributable to the synergies expected between Olmec - UK Limited and the existing PCE Group, as well as their customers, which are anticipated to benefit both companies and drive greater geographical coverage and overall growth.
	The results of Olmec - UK Limited since acquisition are as follows:
				Current period since acquisition
				£

	Turnover	320,506
	(Loss) for the period since acquisition	(82,230)

27.	Pension commitments

The pension cost charge represents contibutions payable to defined contribution pension plans and amounted to £266,493 (2023 - £293,346). Contributions totalling £44,637 (2023 - £31,242) were payable at the balance sheet date.

Page 46

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

28.	Commitments under operating leases
	At 31 December 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2024	2023
		£	£

Not later than 1 year	221,495	166,174
Later than 1 year and not later than 5 years	380,540	187,179
	602,035	353,353

The Company had no commitments under non-cancellable operating leases at the reporting date.

At 31 December 2024 the future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:
	Company	Company
	2024	2023
	£	£

Not later than 1 year	161,615	174,043
Later than 1 year and not later than 5 years	367,238	531,753
	528,853	705,796

The Group had no obligations under non-cancellable operating leases as a lessor at the reporting date.

29.	Controlling party

The ultimate controlling party is James Cook, by virtue of his majority shareholding in PCE Group Limited.

Page 47

PCE GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

30.

Related party transactions

Group
Included in other loans at year end is a loan due to close family of a director totalling £88,191 (2023 - £102,890). Interest of £8,094 (2023 - £8,091) was charged during the year.
Included in other debtors at year is a loan due from close family of a director totalling £30,655 (2023 - £Nil).
During the year, rent was paid to former directors and their close family members totalling £50,319 (2023 - £39,657), paid to the directors pension scheme totalling £81,922 (2023 - £77,850) and between group companies totalling £169,916 (2023 - £104,494).
Included in other debtors is £72,257 (2023 - £110,000) owed to the Group by an associate company.
Included in other debtors is £305,580 (2023 - £233,960) owed to the Group by a company under common control. Interest of £19,610 (2023 - £16,732) was charged during the year.
Included in other debtors are directors' loan accounts totalling £35,843 (2023 - £44,337).
Included in other creditors are directors' loan accounts totalling £93,220 (2023 - £Nil).
Company
Included in other creditors at year end is a loan due to close family of a director totalling £88,191 (2023 - £102,890). Interest of £8,094 (2023 - £8,091) was charged during the year.
Dividends paid by PCE Automation Limited to PCE Group Limited for the year totalled £Nil (2023 - £364,528). By year end amounts owing from PCE Group Limited to PCE Automation totalled £746,255 (2023 - £475,400).
Included in other debtors is £72,257 (2023 - £110,000) owed to the Company by an associate company.
Included in other debtors is £305,580 (2023 - £233,960) owed to the Group by a company under common control. Interest of £19,610 (2023 - £16,732) was charged during the year.
Included in other debtors are directors' loan accounts totalling £66,498 (2023 - £44,337).
Included in other creditors are directors' loan accounts totalling £93,220 (2023 - £Nil).

Page 48