REGISTERED NUMBER: 03107118 (England and Wales)

LYON EQUIPMENT LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

Directors:

Mr M Bergerud

Mr J B Capper

Mr R J Cockayne

Mr P A Cornthwaite

Registered office:

Units 3-7

Tebay Business Park

Old Tebay

PENRITH

CA10 3SS

Registered number:

03107118 (England and Wales)

Auditors:

Xeinadin Audit Limited

Accountants and Statutory Auditors

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

Bankers:

National Westminster Bank plc

55 Main Street

Kirkby Lonsdale

CARNFORTH

LA6 2WY

Accountants:

Xeinadin

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

The directors present their strategic report for the year ended 30 April 2025.

Review of business

Like all businesses in the UK, we continue to face many challenges, some of which are outside of anyone's control, most of which are a result of the governments repeated own-goals and mismanagement of the economy.

We cannot overstate the effect the ongoing cost of living crisis is having on the retail sector and beyond. That, plus the increased cost of running a business, for example, the increase in employers' national insurance contributions and the ever-increasing cost of transport to name but two reasons, is the ideal recipe for restricting growth.

Although nobody in government is willing to deal with it directly, the train crash that is BREXIT continues to be a massive drag on business, we know we are not alone in this. Our sales to Europe were decimated virtually overnight and only now, are we beginning to overcome the insanity of making it harder to do business in Europe when the government should be doing everything within their power to make it easier.

So, given the on-going headwinds, we continue to navigate the good ship Lyon, a task made easier by our fantastic and talented team working at all levels. Our business model has become more flexible, enabling us to identify and open new markets quickly. We have also been working hard to develop more channels to these markets. For example, traditionally, we have been a distributor to our retail customers. This will continue to be a core part of our business and we will continue to strive to provide a "gold standard" service. We also sell direct to consumer (D2C) using a variety of digital facias, either developed in-house by ourselves or provided to us by our valued suppliers. We also have exciting plans for expansion to be actioned when appropriate.

Our Work and Rescue division continues to forge close ties with the rescue sector in particular and we have recently invested significantly in our training department which we believe to be one of the UK's leading facilities in the rope access market. We continue to partner closely with our suppliers and we are fortunate to represent the world's leading brands.

Our production department is a barometer of the health of our Work and Rescue division and we are pleased to see how busy our production team are. The strength of this department lies, of course, in the skilled and dedicated workforce we have, but also in the fact we are large enough to handle significant volume but small enough to provide bespoke, specialist solutions for our customers.

We are delighted to report the on-going success of having transitioned to Employee Ownership Trust (EOT) status. We now approach our fourth year of employee ownership and we are witnessing a healthy sense of ownership from our team and a greater sense of engagement at all levels. Long may this continue.

In conclusion, like most businesses, we have experienced another tough year. However, we remain in a strong position to meet head-on whatever challenges may be on the horizon next year.

On behalf of the board:

Mr J B Capper - Director

24 December 2025

The directors present their report with the financial statements of the company for the year ended 30 April 2025.

Principal activity

The principal activity of the company in the year under review was that of the distribution of outdoor sport, recreation and vertical access equipment. Secondary activities include the manufacture of some of the items distributed and safety and access training for workers at height and rescue. There are also third party logistic operations.

Dividends

The total distribution of dividends paid in the year ended 30 April 2025 was £144,277.

Directors

The directors shown below have held office during the whole of the period from 1 May 2024 to the date of this report.

Mr M Bergerud

Mr J B Capper

Mr R J Cockayne

Mr P A Cornthwaite

Financial instruments

Objectives and policies

The company aims to achieve steady growth and maintain a good profit margin.

This is achieved by all means possible, including realistic pricing, strict cost controls and efficient stock management.

Foreign exchange currency fluctuations could have a direct impact upon margins and profitability, however, foreign currency is forward bought where appropriate to minimise this particular risk.

The company also looks to adopt pro-active policies to meet the changes required by their distributor brands as when they are required.

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

Due to realistic pricing, sensible credit limits along with good credit controls and efficient stock management these risks have been minimised by the company.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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.

Statement as to disclosure of information to auditors

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

Auditors

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr J B Capper - Director

24 December 2025

Opinion

We have audited the financial statements of Lyon Equipment Limited (the 'company') for the year ended 30 April 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 April 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 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:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

- Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery, money laundering and employment law compliance recognising the nature of the Company's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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 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.

T M Preece F.C.C.A (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Accountants and Statutory Auditors

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

5 January 2026

Turnover

3

16,433,558

16,504,524

Cost of sales

10,952,270

11,114,982

Gross profit

5,481,288

5,389,542

Distribution costs

1,780,243

1,703,987

Administrative expenses

3,767,553

3,245,287

5,547,796

4,949,274

(66,508

)

440,268

Other operating income

48,795

60,732

Operating (loss)/profit

5

(17,713

)

501,000

Interest receivable and similar income

35,476

19,789

17,763

520,789

Interest payable and similar expenses

7

1,678

-

Profit before taxation

16,085

520,789

Tax on profit

8

15,143

57,900

Profit for the financial year

942

462,889

Other comprehensive income

Lyon Equipment Employee Ownership Trust

(235,123

)

(327,119

)

Income tax relating to other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

(235,123

)

(327,119

)

Total comprehensive income for the year

(234,181

)

135,770

Fixed assets

Intangible assets

11

67,083

102,083

Tangible assets

12

2,955,524

2,992,283

Investments

13

266

266

3,022,873

3,094,632

Current assets

Stocks

14

5,478,478

6,609,261

Debtors

15

2,065,747

2,086,279

Cash at bank and in hand

2,096,268

1,367,415

9,640,493

10,062,955

Creditors

Amounts falling due within one year

16

1,119,369

1,267,162

Net current assets

8,521,124

8,795,793

Total assets less current liabilities

11,543,997

11,890,425

Creditors

Amounts falling due after more than one year

17

(17,316

)

-

Provisions for liabilities

20

(274,278

)

(259,564

)

Net assets

11,252,403

11,630,861

Capital and reserves

Called up share capital

21

510,000

510,000

Share premium

22

113,912

113,912

Retained earnings

22

10,628,491

11,006,949

Shareholders' funds

11,252,403

11,630,861

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

Mr J B Capper - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 May 2023

510,000

11,052,165

113,912

11,676,077

Changes in equity

Profit for the year

-

462,889

-

462,889

Other comprehensive income

-

(327,119

)

-

(327,119

)

Total comprehensive income

-

135,770

-

135,770

Dividends

-

(180,986

)

-

(180,986

)

Balance at 30 April 2024

510,000

11,006,949

113,912

11,630,861

Changes in equity

Profit for the year

-

942

-

942

Other comprehensive income

-

(235,123

)

-

(235,123

)

Total comprehensive income

-

(234,181

)

-

(234,181

)

Dividends

-

(144,277

)

-

(144,277

)

Balance at 30 April 2025

510,000

10,628,491

113,912

11,252,403

Cash flows from operating activities

Cash generated from operations

1

1,422,558

925,589

Interest paid

(595

)

-

Interest element of hire purchase payments paid

(1,083

)

-

Tax paid

(164,219

)

(206,085

)

Net cash from operating activities

1,256,661

719,504

Cash flows from investing activities

Purchase of tangible fixed assets

(224,445

)

(173,828

)

Sale of tangible fixed assets

11,833

9,500

Interest received

35,476

19,789

Net cash from investing activities

(177,136

)

(144,539

)

Cash flows from financing activities

Capital repayments in year

28,728

-

Lyon Equipment Employee Ownership Trust

(235,123

)

(327,119

)

Equity dividends paid

(144,277

)

(180,986

)

Net cash from financing activities

(350,672

)

(508,105

)

Increase in cash and cash equivalents

728,853

66,860

Cash and cash equivalents at beginning of year

2

1,367,415

1,300,555

Cash and cash equivalents at end of year

2

2,096,268

1,367,415

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

as restated

£

£

Profit before taxation

16,085

520,789

Depreciation charges

290,704

281,601

Profit on disposal of fixed assets

(6,333

)

(9,500

)

Finance costs

1,678

-

Finance income

(35,476

)

(19,789

)

266,658

773,101

Decrease/(increase) in stocks

1,130,783

(228,587

)

Decrease in trade and other debtors

20,532

529,661

Increase/(decrease) in trade and other creditors

4,585

(148,586

)

Cash generated from operations

1,422,558

925,589

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 April 2025

30/4/25

1/5/24

£

£

Cash and cash equivalents

2,096,268

1,367,415

Year ended 30 April 2024

30/4/24

1/5/23

as restated

£

£

Cash and cash equivalents

1,367,415

1,300,555

3.	Analysis of changes in net funds

At 1/5/24

Cash flow

At 30/4/25

£

£

£

Net cash

Cash at bank and in hand

1,367,415

728,853

2,096,268

1,367,415

728,853

2,096,268

Debt

Finance leases

-

(28,728

)

(28,728

)

-

(28,728

)

(28,728

)

Total

1,367,415

700,125

2,067,540

1.	Statutory information

Lyon Equipment Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

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

Tangible fixed assets

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

Freehold property

-

2% Straight line

Short leasehold

-

Over the life of the lease

Plant and machinery

-

15% Reducing balance

Fixtures and fittings

-

10% Reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Financial instruments

The company uses forward foreign exchange contracts to manage its exposure to foreign currency risk. These financial instruments are not designated as hedge accounting relationships.

Forward contracts are recognised at fair value at the reporting date. Any gains or losses arising from changes in the fair value of forward contracts are recognised in the profit and loss account. The asset or liability included in the balance sheet is calculated as the difference between the total foreign currency commitment at the forward date and the total foreign currency commitment at the year end exchange rate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

as restated

£

£

United Kingdom

16,051,002

16,207,669

Europe

302,062

233,364

Rest of world

80,494

63,491

16,433,558

16,504,524

4.	Employees and directors

2025

2024

as restated

£

£

Wages and salaries

3,247,734

3,041,699

Social security costs

317,120

304,831

Other pension costs

222,875

207,525

3,787,729

3,554,055

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

2025

2024

as restated

Administration

15

15

Distribution

7

8

Sales and marketing

39

38

Production

20

16

Reprocessing

2

2

Training

11

8

Work and rescue

7

7

101

94

2025

2024

as restated

£

£

Directors' remuneration

257,000

264,000

Directors' pension contributions to money purchase schemes

32,786

32,786

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2025

2024

as restated

£

£

Emoluments etc

70,000

77,000