197 false false false false true false false false false false false true false false false false false false 2024-07-01 Sage Accounts Production Advanced 2025 - FRS102_2025 8,271,117 7,812,339 4,665 4,665 1,048,086 52,321 1,100,407 xbrli:pure xbrli:shares iso4217:GBP 01357835 2024-07-01 2025-06-30 01357835 2025-06-30 01357835 2024-06-30 01357835 2023-07-01 2024-06-30 01357835 2024-06-30 01357835 2023-06-30 01357835 core:PatentsTrademarksLicencesConcessionsSimilar 2024-07-01 2025-06-30 01357835 core:FurnitureFittings 2024-07-01 2025-06-30 01357835 core:MotorVehicles 2024-07-01 2025-06-30 01357835 bus:RegisteredOffice 2024-07-01 2025-06-30 01357835 bus:OrdinaryShareClass1 2024-07-01 2025-06-30 01357835 bus:OrdinaryShareClass2 2024-07-01 2025-06-30 01357835 bus:LeadAgentIfApplicable 2024-07-01 2025-06-30 01357835 bus:Director1 2024-07-01 2025-06-30 01357835 bus:Director2 2024-07-01 2025-06-30 01357835 bus:Director3 2024-07-01 2025-06-30 01357835 bus:Director3 2025-06-30 01357835 core:WithinOneYear 2025-06-30 01357835 core:WithinOneYear 2024-06-30 01357835 core:PatentsTrademarksLicencesConcessionsSimilar 2025-06-30 01357835 core:LandBuildings core:OwnedOrFreeholdAssets 2024-06-30 01357835 core:PlantMachinery 2024-06-30 01357835 core:FurnitureFittings 2024-06-30 01357835 core:MotorVehicles 2024-06-30 01357835 core:LandBuildings core:OwnedOrFreeholdAssets 2025-06-30 01357835 core:PlantMachinery 2025-06-30 01357835 core:FurnitureFittings 2025-06-30 01357835 core:MotorVehicles 2025-06-30 01357835 core:DeferredTaxation 2024-07-01 2025-06-30 01357835 core:PlantMachinery 2024-07-01 2025-06-30 01357835 core:UKTax 2024-07-01 2025-06-30 01357835 core:UKTax 2023-07-01 2024-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2024-07-01 2025-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 01357835 bus:OrdinaryShareClass2 2023-07-01 2024-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2024-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2023-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2025-06-30 01357835 core:RetainedEarningsAccumulatedLosses 2024-06-30 01357835 core:ShareCapital 2025-06-30 01357835 core:ShareCapital 2024-06-30 01357835 core:AcceleratedTaxDepreciationDeferredTax 2025-06-30 01357835 core:AcceleratedTaxDepreciationDeferredTax 2024-06-30 01357835 core:AfterOneYear 2025-06-30 01357835 core:AfterOneYear 2024-06-30 01357835 core:LandBuildings core:OwnedOrFreeholdAssets 2024-06-30 01357835 core:PlantMachinery 2024-06-30 01357835 core:FurnitureFittings 2024-06-30 01357835 core:MotorVehicles 2024-06-30 01357835 core:DeferredTaxation 2024-06-30 01357835 core:DeferredTaxation 2025-06-30 01357835 bus:LeadAgentIfApplicable 2023-07-01 2024-06-30 01357835 bus:SmallEntities 2024-07-01 2025-06-30 01357835 bus:Audited 2024-07-01 2025-06-30 01357835 bus:PrivateLimitedCompanyLtd 2024-07-01 2025-06-30 01357835 bus:FullAccounts 2024-07-01 2025-06-30 01357835 bus:OrdinaryShareClass1 2025-06-30 01357835 bus:OrdinaryShareClass1 2024-06-30 01357835 bus:OrdinaryShareClass2 2025-06-30 01357835 bus:OrdinaryShareClass2 2024-06-30 01357835 bus:AllOrdinaryShares 2025-06-30 01357835 bus:AllOrdinaryShares 2024-06-30 01357835 1 2024-07-01 2025-06-30 01357835 1 2023-07-01 2024-06-30 01357835 core:ComputerEquipment 2024-07-01 2025-06-30 01357835 core:ComputerEquipment 2024-06-30 01357835 core:ComputerEquipment 2025-06-30 01357835 2 2024-07-01 2025-06-30 01357835 core:KeyManagementIndividualGroup1 2024-07-01 2025-06-30
COMPANY REGISTRATION NUMBER: 01357835

KMG Systems Limited

Financial Statements

30 June 2025

KMG Systems Limited

Financial Statements

Year ended 30 June 2025

Contents | Page

Strategic report | 1

Directors' report | 2

Independent auditor's report to the members | 4

Statement of income and retained earnings | 8

Statement of financial position | 9

Statement of cash flows | 10

Notes to the financial statements | 11

KMG Systems Limited

Strategic Report

Year ended 30 June 2025
Principal activity The principal activity of the company in the year under review was that of design and manufacture of seasoning and conveying systems. Business review The company continues to maintain its position as a global leader in the design and manufacture of food handling systems as a result of continual development of its products. Turnover increased to £37m (2024: £35m). Gross profit margin improved slightly to 39.4% from 38.3%. The directors are again pleased with the year’s results and the credit for this goes to the company's first class management team and highly skilled workforce who continue to perform well. Principal risks and uncertainties The directors are of the opinion that the company does not face any risks or uncertainties over and above the normal trading risks facing many similar companies, being exchange rates, credit risks and Brexit implications. Financial key performance indicators At the year end the company's position was sound, having sufficient resources to fulfil the needs of its customers. Shareholders' funds at 30 June 2025 were £35,727,270 (2024: £32,844,689).

|  | 2025 | 2024 | 2023
| Turnover | 37,158,361 | 35,538,444 | 35,334,710
| Gross profit margin | 39 | 38 | 42

This report was approved by the board of directors on 19 February 2026 and signed on behalf of the board by:

Mrs H L Weatherley
Director

Registered office:
Station Road
Gamlingay
Sandy
Bedfordshire
SG19 3HE

KMG Systems Limited

Directors' Report

Year ended 30 June 2025
The directors present their report and the financial statements of the company for the year ended 30 June 2025 .
Directors
The directors who served the company during the year were as follows:

Mrs H L Weatherley |
Ms J K Maddocks |
Mr K L Maddocks | (Resigned 4 July 2024)

Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company will continue to invest in the development of new and existing products and the directors are confident that the company will maintain its trading position in the forthcoming year.
Events after the end of the reporting period
There have been no significant events affecting the Company since the year end.
Research and development
During the year the company has continued developing and evolving their products and have been able to benefit from preparing a claim for enhanced research and development corporation tax relief.
Qualifying indemnity provision
A policy of third party indemnity insurance has been in place during the year for the benefit of the directors.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 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 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 19 February 2026 and signed on behalf of the board by:

Mrs H L Weatherley
Director

Registered office:
Station Road
Gamlingay
Sandy
Bedfordshire
SG19 3HE

KMG Systems Limited

Independent Auditor's Report to the Members of KMG Systems Limited

Year ended 30 June 2025
Opinion
We have audited the financial statements of KMG Systems Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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 FRS 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 June 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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, 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that: - had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pension and tax legislation; and - do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the following: - reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and - enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Robert Upton
(Senior Statutory Auditor)

For and on behalf of
Collett Hulance Accountants Limited
Chartered Certified Accountants & statutory auditor
40 Kimbolton Road
Bedford
MK40 2NR

19 February 2026

KMG Systems Limited

Statement of Income and Retained Earnings

Year ended 30 June 2025

| 2025 | 2024
Note | £ | £
Turnover | 4 | 37,158,361 | 35,538,444

Cost of sales | 22,616,652 | 21,894,594
| ------------- | -------------
Gross profit | 14,541,709 | 13,643,850

Administrative expenses | 4,886,934 | 4,762,046
|  | ------------- | -------------
Operating profit | 5 | 9,654,775 | 8,881,804

Other interest receivable and similar income | 9 | 588,615 | 748,275
Interest payable and similar expenses | 10 | – | 12,275
| ------------- | -------------
Profit before taxation | 10,243,390 | 9,617,804

Tax on profit | 11 | 1,972,273 | 1,805,465
| ------------- | ------------
Profit for the financial year and total comprehensive income | 8,271,117 | 7,812,339
| ------------- | ------------

Dividends paid and payable | 12 | ( 5,390,000) | ( 5,375,000)

Retained earnings at the start of the year | 32,744,689 | 30,307,350
| ------------- | -------------
Retained earnings at the end of the year | 35,625,806 | 32,744,689
| ------------- | -------------

All the activities of the company are from continuing operations.

KMG Systems Limited

Statement of Financial Position

30 June 2025

| 2025 | 2024
Note | £ | £

Fixed assets

Tangible assets | 14 | 18,582,014 | 18,521,724

Current assets

Stocks | 15 | 5,550,934 | 5,900,218
Debtors | 16 | 8,125,475 | 8,459,157
Cash at bank and in hand | 18,801,880 | 19,164,225
| ------------- | -------------
| 32,478,289 | 33,523,600

Creditors: amounts falling due within one year | 17 | 14,234,090 | 18,152,549
| ------------- | -------------
Net current assets | 18,244,199 | 15,371,051
| ------------- | -------------
Total assets less current liabilities | 36,826,213 | 33,892,775

Provisions | 18 | 1,100,407 | 1,048,086
| ------------- | -------------
Net assets | 35,725,806 | 32,844,689
| ------------- | -------------

Capital and reserves

Called up share capital | 21 | 100,000 | 100,000
Profit and loss account | 35,625,806 | 32,744,689
| ------------- | -------------
Shareholders funds | 35,725,806 | 32,844,689
| ------------- | -------------

These financial statements were approved by the board of directors and authorised for issue on 19 February 2026 , and are signed on behalf of the board by:

Mrs H L Weatherley
Director

Company registration number: 01357835

KMG Systems Limited

Statement of Cash Flows

Year ended 30 June 2025

| 2025 | 2024
| £ | £

Cash flows from operating activities

Profit for the financial year | 8,271,117 | 7,812,339

Adjustments for: |  |
Depreciation of tangible assets | 738,024 | 677,791
Other interest receivable and similar income | ( 588,615) | ( 748,275)
Interest payable and similar expenses | – | 12,275
Gains on disposal of tangible assets | ( 3,250) | ( 13,631)
Tax on profit | 1,972,273 | 1,805,465

Changes in: |  |
Stocks | 349,284 | 190,782
Trade and other debtors | 333,682 | ( 1,187,855)
Trade and other creditors | ( 3,980,899) | 1,682,232
| ------------ | -------------
Cash generated from operations | 7,091,616 | 10,231,123

Interest paid | – | ( 12,275)
Interest received | 588,615 | 748,275
Tax paid | ( 1,857,512) | ( 1,773,863)
| ------------ | -------------
Net cash from operating activities | 5,822,719 | 9,193,260
| ------------ | -------------

Cash flows from investing activities

Purchase of tangible assets | ( 814,731) | ( 1,088,380)
Proceeds from sale of tangible assets | 19,667 | 20,756
| ------------ | -------------
Net cash used in investing activities | ( 795,064) | ( 1,067,624)
| ------------ | -------------

Cash flows from financing activities

Dividends paid | ( 5,390,000) | ( 5,375,000)
| ------------ | -------------
Net cash used in financing activities | ( 5,390,000) | ( 5,375,000)
| ------------ | -------------

Net (decrease)/increase in cash and cash equivalents | ( 362,345) | 2,750,636
Cash and cash equivalents at beginning of year | 19,164,225 | 16,413,589
| ------------- | -------------
Cash and cash equivalents at end of year | 18,801,880 | 19,164,225
| ------------- | -------------

KMG Systems Limited

Notes to the Financial Statements

Year ended 30 June 2025
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Station Road, Gamlingay, Sandy, Bedfordshire, SG19 3HE.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The directors believe that the critical accounting policies where judgements or estimates are necessarily applied are summarised below: Stock and work in progress To determine values for stock, work in progress, amounts recoverable on long-term contracts and payments on account, the directors perform an assessment of the services and goods provided to the customer by project at the year end. Income is released when the goods are dispatched, which can be measured reliably.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is recognised when revenue from the rendering of services can be reliably estimated. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

| Patents and licences | - | 20% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

| Plant and machinery | - | 50% and 10% straight line
| Fixtures and fittings | - | 10% straight line
| Motor vehicles | - | 25% straight line
| Equipment | - | 25% straight line

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Long-term contracts
Where the outcome of long-term contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of long-term contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
The turnover and profit before taxation are attributable to the one principal activity of the company, undertaken in the United Kingdom. The company's turnover is attributable to substantially different geographical markets. The directors are of the opinion that disclosure would be seriously prejudicial to the company's interest.
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:

| 2025 | 2024
| £ | £
Depreciation of tangible assets | 738,024 | 677,791
Gains on disposal of tangible assets | ( 3,250) | ( 13,631)
Research and development charged as an expense | 444,290 | 529,274
| --------- | ---------

6. Auditor's remuneration

| 2025 | 2024
| £ | £
Fees payable for the audit of the financial statements | 18,150 | 16,500
| -------- | --------

7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:

| 2025 | 2024
| No. | No.
Production staff | 103 | 96
Office, management and sales | 94 | 90
| ---- | ----
| 197 | 186
| ---- | ----

The aggregate payroll costs incurred during the year, relating to the above, were:

| 2025 | 2024
| £ | £
Wages and salaries | 10,540,906 | 9,310,114
Social security costs | 1,209,261 | 1,065,880
Other pension costs | 486,544 | 531,391
| ------------- | -------------
| 12,236,711 | 10,907,385
| ------------- | -------------

8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:

| 2025 | 2024
| £ | £
Remuneration | 174,688 | 164,800
| --------- | ---------

9. Other interest receivable and similar income

| 2025 | 2024
| £ | £
Interest on bank deposits | 588,615 | 748,275
| --------- | ---------

10. Interest payable and similar expenses

| 2025 | 2024
| £ | £
Other interest payable and similar charges | – | 12,275
| ---- | --------

11. Tax on profit
Major components of tax expense

| 2025 | 2024
| £ | £

Current tax:

UK current tax expense | 1,919,952 | 1,657,067
Adjustments in respect of prior periods | – | 3,566
| ------------ | ------------
Total current tax | 1,919,952 | 1,660,633
| ------------ | ------------

Deferred tax:

Origination and reversal of timing differences | 52,321 | 144,832
| ------------ | ------------
Tax on profit | 1,972,273 | 1,805,465
| ------------ | ------------

Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

| 2025 | 2024
| £ | £
Profit on ordinary activities before taxation | 10,243,390 | 9,617,804
| ------------- | ------------
Profit on ordinary activities by rate of tax | 2,560,848 | 2,404,451
Adjustment to tax charge in respect of prior periods | – | 3,566
Effect of expenses not deductible for tax purposes | 430 | 4,737
Adjustment in research and development tax credit leading to an increase / (decrease) in the tax charge | ( 66,643) | ( 113,794)
Patent box deductions | ( 522,362) | ( 493,495)
| ------------- | ------------
Tax on profit | 1,972,273 | 1,805,465
| ------------- | ------------

12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

| 2025 | 2024
| £ | £
Dividends on B ordinary shares | 390,000 | 375,000
| --------- | ---------

Dividends proposed before the year end and recognised as a liability:

| 2025 | 2024
| £ | £
Dividends on A ordinary shares | 5,000,000 | 5,000,000
| ------------ | ------------

13. Intangible assets

| Patents, trademarks and licences
| £
Cost |
At 1 July 2024 and 30 June 2025 | 4,665
| -------
Amortisation |
At 1 July 2024 and 30 June 2025 | 4,665
| -------
Carrying amount |
At 30 June 2025 | –
| -------
At 30 June 2024 | –
| -------

14. Tangible assets

| Freehold property | Plant and machinery | Fixtures and fittings | Motor vehicles | Equipment | Total
| £ | £ | £ | £ | £ | £
Cost |  |  |  |  |  |
At 1 Jul 2024 | 14,857,732 | 5,618,889 | 661,727 | 404,580 | 565,819 | 22,108,747
Additions | – | 447,488 | 35,356 | 118,091 | 213,796 | 814,731
Disposals | – | ( 84) | – | ( 89,616) | – | ( 89,700)
| ------------- | ------------ | --------- | --------- | --------- | -------------
At 30 Jun 2025 | 14,857,732 | 6,066,293 | 697,083 | 433,055 | 779,615 | 22,833,778
| ------------- | ------------ | --------- | --------- | --------- | -------------
Depreciation |  |  |  |  |  |
At 1 Jul 2024 | – | 2,581,401 | 345,232 | 282,328 | 378,062 | 3,587,023
Charge for the year | – | 493,808 | 57,436 | 73,255 | 113,525 | 738,024
Disposals | – | ( 84) | – | ( 73,199) | – | ( 73,283)
| ------------- | ------------ | --------- | --------- | --------- | -------------
At 30 Jun 2025 | – | 3,075,125 | 402,668 | 282,384 | 491,587 | 4,251,764
| ------------- | ------------ | --------- | --------- | --------- | -------------
Carrying amount |  |  |  |  |  |
At 30 Jun 2025 | 14,857,732 | 2,991,168 | 294,415 | 150,671 | 288,028 | 18,582,014
| ------------- | ------------ | --------- | --------- | --------- | -------------
At 30 Jun 2024 | 14,857,732 | 3,037,488 | 316,495 | 122,252 | 187,757 | 18,521,724
| ------------- | ------------ | --------- | --------- | --------- | -------------

Freehold property is continually maintained and improved. The directors consider that the value of freehold property at the balance sheet date is stated at net realisable value and has not diminished in value. In addition, property is considered to have a remaining long estimated useful life which deems a depreciation charge and related accumulated depreciation as immaterial. On this basis depreciation has not been charged on freehold property.
15. Stocks

| 2025 | 2024
| £ | £
Raw materials and consumables | 2,320,501 | 2,832,744
Work in progress | 2,525,706 | 2,426,373
Finished goods and goods for resale | 704,727 | 641,101
| ------------ | ------------
| 5,550,934 | 5,900,218
| ------------ | ------------

The carrying value of stocks are stated net of impairment losses totalling £nil (2024: £nil ) Impairment losses totalling £nil (2024: £nil ) were recognised in profit and loss.
16. Debtors

| 2025 | 2024
| £ | £
Trade debtors | 6,904,348 | 5,995,182
Amounts owed by customers on construction contracts | 279,185 | 1,075,935
Prepayments and accrued income | 151,037 | 315,331
Other debtors | 790,905 | 1,072,709
| ------------ | ------------
| 8,125,475 | 8,459,157
| ------------ | ------------

The debtors above include the following amounts falling due after more than one year:

| 2025 | 2024
| £ | £
Other debtors | 643,262 | 637,764
| --------- | ---------

17. Creditors: amounts falling due within one year

| 2025 | 2024
| £ | £
Payments received on account | 6,822,312 | 9,981,059
Trade creditors | 962,448 | 1,853,988
Accruals and deferred income | 19,952 | 19,952
Corporation tax | 1,101,969 | 1,039,529
Social security and other taxes | 312,260 | 236,585
Dividends payable | 5,000,000 | 5,000,000
Other creditors | 15,149 | 21,436
| ------------- | -------------
| 14,234,090 | 18,152,549
| ------------- | -------------

There have been guarantees given by the company for a total of £570,000.
18. Provisions

| Deferred tax (note 19)
| £
At 1 July 2024 | 1,048,086
Additions | 52,321
| ------------
At 30 June 2025 | 1,100,407
| ------------

19. Deferred tax
The deferred tax included in the statement of financial position is as follows:

| 2025 | 2024
| £ | £
Included in provisions (note 18) | 1,100,407 | 1,048,086
| ------------ | ------------

The deferred tax account consists of the tax effect of timing differences in respect of:

| 2025 | 2024
| £ | £
Accelerated capital allowances | 1,100,407 | 1,048,086
| ------------ | ------------

20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 486,544 (2024: £ 531,391 ).
21. Called up share capital
Issued, called up and fully paid

| 2025 | 2024
| No. | £ | No. | £
Ordinary A shares of £ 1 each | 25,000 | 25,000 | 25,000 | 25,000
Ordinary B shares of £ 1 each | 75,000 | 75,000 | 75,000 | 75,000
| --------- | --------- | --------- | ---------
| 100,000 | 100,000 | 100,000 | 100,000
| --------- | --------- | --------- | ---------

22. Related party transactions
During the year dividends were declared to directors of £5,260,000 (2024: £5,050,000). £5,000,000 (2024: £5,000,000) was outstanding at the year end and included within creditors.
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 178,678 (2024: £ 164,800 ).
23. Controlling party
The company is under the joint control of Mrs H L Weatherley and Mrs J K Maddocks.