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Company No: 01506978 (England and Wales)

# TURNSPEED PRECISION ENGINEERING COMPANY LTD

### Annual Report and Financial Statements
For the financial year ended 31 July 2025

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## Annual Report and Financial Statements

For the financial year ended 31 July 2025

Contents

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## COMPANY INFORMATION

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## COMPANY INFORMATION (continued)

For the financial year ended 31 July 2025

DIRECTORS | Mr J Davies
| Miss K Davies
| Mr R Davies

SECRETARY | Mr J Davies

REGISTERED OFFICE | 3 Boundary Way
| Lufton Trading Estate
| Yeovil
| BA22 8HZ
| United Kingdom

COMPANY NUMBER | 01506978 (England and Wales)

AUDITOR | Old Mill Audit Limited
| Statutory Auditor
| Maltravers House
| Petters Way, Yeovil
| Somerset
| BA20 1SH
| United Kingdom

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STRATEGIC REPORT

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STRATEGIC REPORT (continued)

For the financial year ended 31 July 2025

The directors present their Strategic Report for the financial year ended 31 July 2025.

REVIEW OF THE BUSINESS

5 year summary
2025: Turnover £8,739,324 - Gross margin 43.90% - Net profit before tax £590,853
2024: Turnover £9,109,617 - Gross margin 40.77% - Net profit before tax £924,656
2023: Turnover £8,317,677 - Gross margin 38,68% - Net profit before tax £549,926
2022: Turnover £7,675,630 - Gross margin 42.51% - Net profit before tax £997,666
2021: Turnover £6,735,903 - Gross margin 36.39% - Net profit before tax £645,319
The company has delivered a strong set of results. The business continues to meet customer expectations and remains agile in the market place due to its market leading staff, processes and equipment, including at the new plating facility. Furthermore, the directors are pleased to report that the company continues to maintain a strong pipeline of work, providing confidence in the ongoing performance and stability of the business. Time and monetary investments in accounting systems continue to enhance the monitoring and management of materials, improving operational efficiency and supporting decision-making.

PRINCIPAL RISKS AND UNCERTAINTIES

Market risk
The company seeks to manage market risk from competitors by a policy of geographical and market spread.
Foreign exchange risk
Foreign exchange risk is managed by matching foreign currency receipts against foreign currency payments.
Credit risk
The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by running checks on new customers and by monitoring receipts against payment terms.
Liquidity and cash flow
The company monitors cash flow as part of its day to day control procedures. The directors consider cash flow projections on a monthly basis and ensure that facilities are available to be drawn as necessary.

Approved by the Board of Directors and signed on its behalf by:

Mr R Davies Director |

12 March 2026

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## DIRECTORS' REPORT

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## DIRECTORS' REPORT (continued)

For the financial year ended 31 July 2025

The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 July 2025.

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of precision light engineers.

DIVIDENDS

The directors paid a dividend of £196,000 in the current financial year (2024: £185,000). The directors do not recommend a payment of a final dividend.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

Mr J Davies |
Miss K Davies |
Mr R Davies |

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the companies exemption.

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Old Mill Audit Limited have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

Approved by the Board of Directors and signed on its behalf by:

Mr R Davies Director |

12 March 2026

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## DIRECTORS' RESPONSIBILITIES STATEMENT

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## DIRECTORS' RESPONSIBILITIES STATEMENT (continued)

For the financial year ended 31 July 2025

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 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 of the profit or loss of the Company for that financial 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;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* 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. The directors 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.

## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TURNSPEED PRECISION ENGINEERING COMPANY LTD

For the financial year ended 31 July 2025

## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TURNSPEED PRECISION ENGINEERING COMPANY LTD (continued)

For the financial year ended 31 July 2025

Opinion
We have audited the financial statements of Turnspeed Precision Engineering Company Ltd for the financial year ended 31 July 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 24, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements of Turnspeed Precision Engineering Company Ltd (the ‘Company’):
* Give a true and fair view of the state of the Company's affairs as at 31 July 2025 and of its profit for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; 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)). 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 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.

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 Directors' Report has 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 and the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* Adequate accounting records have not been kept, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud
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 framework(s) 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; 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. (These included the Company’s operating licence / regulatory solvency requirements / environmental regulations.)
We discussed among the audit engagement team (including significant component audit teams and relevant internal specialists such as tax, valuations, pensions, IT, forensic and industry specialists) 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, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating 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;
* enquiring of management and legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance.

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.

David Jones MSc FCA (Senior Statutory Auditor)
For and on behalf of Old Mill Audit Limited
Statutory Auditor

Maltravers House
Petters Way, Yeovil
Somerset
BA20 1SH
United Kingdom

13 March 2026

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF COMPREHENSIVE INCOME

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF COMPREHENSIVE INCOME (continued)

For the financial year ended 31 July 2025

| Note | 2025 |  | 2024
|  | £ |  | £
Turnover | 3 | 8,739,324 |  | 9,109,617
Cost of sales |  | ( 4,902,787) |  | ( 5,395,738)
Gross profit |  | 3,836,537 |  | 3,713,879
Distribution costs |  | ( 231,925) |  | ( 199,886)
Administrative expenses |  | ( 2,711,143) |  | ( 2,323,295)
Other operating income |  | 6,668 |  | 6,406
Operating profit |  | 900,137 |  | 1,197,104
Interest receivable and similar income | 4 | 375 |  | 467
Interest payable and similar expenses | 4 | ( 309,659) |  | ( 272,915)
Profit before taxation | 5 | 590,853 |  | 924,656
Tax on profit | 9 | ( 165,292) |  | ( 246,577)
Profit for the financial year |  | 425,561 |  | 678,079
Other comprehensive income |  | 0 |  | 0
Total comprehensive income |  | 425,561 |  | 678,079

All amounts relate to continuing operations.

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## BALANCE SHEET

As at 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## BALANCE SHEET (continued)

As at 31 July 2025

| Note | 2025 |  | 2024
|  | £ |  | £
Fixed assets |  |  |  |
Intangible assets | 11 | 97,520 |  | 106,386
Tangible assets | 12 | 11,607,521 |  | 10,924,056
|  | 11,705,041 |  | 11,030,442
Current assets |  |  |  |
Stocks | 13 | 700,150 |  | 1,077,803
Debtors | 14 | 2,984,256 |  | 2,197,972
Cash at bank and in hand |  | 510 |  | 897
|  | 3,684,916 |  | 3,276,672
Creditors: amounts falling due within one year | 15 | ( 2,644,111) |  | ( 2,759,152)
Net current assets |  | 1,040,805 |  | 517,520
Total assets less current liabilities |  | 12,745,846 |  | 11,547,962
Creditors: amounts falling due after more than one year | 16 | ( 3,356,324) |  | ( 2,553,293)
Provision for liabilities | 17 | ( 1,870,443) |  | ( 1,705,151)
Net assets |  | 7,519,079 |  | 7,289,518
Capital and reserves | 19 |  |  |
Called-up share capital |  | 4,600 |  | 4,600
Profit and loss account |  | 7,514,479 |  | 7,284,918
Total shareholders' funds |  | 7,519,079 |  | 7,289,518

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements of Turnspeed Precision Engineering Company Ltd (registered number: 01506978) were approved and authorised for issue by the Board of Directors on 12 March 2026. They were signed on its behalf by:

Mr R Davies Director |

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF CHANGES IN EQUITY

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF CHANGES IN EQUITY (continued)

For the financial year ended 31 July 2025

| Called-up share capital |  | Profit and loss account |  | Total
| £ |  | £ |  | £
At 01 August 2023 | 4,600 |  | 6,791,839 |  | 6,796,439
Profit for the financial year | 0 |  | 678,079 |  | 678,079
Total comprehensive income | 0 |  | 678,079 |  | 678,079
Dividends paid on equity shares (note 10) | 0 |  | ( 185,000) |  | ( 185,000)
At 31 July 2024 | 4,600 |  | 7,284,918 |  | 7,289,518
At 01 August 2024 | 4,600 |  | 7,284,918 |  | 7,289,518
Profit for the financial year | 0 |  | 425,561 |  | 425,561
Total comprehensive income | 0 |  | 425,561 |  | 425,561
Dividends paid on equity shares (note 10) | 0 |  | ( 196,000) |  | ( 196,000)
At 31 July 2025 | 4,600 |  | 7,514,479 |  | 7,519,079

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF CASH FLOWS

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## STATEMENT OF CASH FLOWS (continued)

For the financial year ended 31 July 2025

| 2025 |  | 2024
| £ |  | £
Net cash flows from operating activities (note 22) | 1,221,020 |  | 1,374,220
Cash flows from investing activities |  |  |
Proceeds from sale of plant and machinery | 10,619 |  | 19,664
Purchase of plant and machinery | ( 10,766) |  | ( 138,527)
Interest received | 375 |  | 467
Net cash flows from investing activities | 228 |  | ( 118,396)
Cash flows from financing activities |  |  |
Repayments of borrowings | ( 13,698) |  | ( 5,707)
Proceeds from borrowings | 0 |  | 41,096
Repayment of bank loans | (111,321) |  | (98,609)
Payment of finance leases obligations | (876,274) |  | (1,096,374)
Amounts withdrawn by directors | (214,701) |  | (166,974)
Net cash flows from financing activities | ( 1,215,994) |  | ( 1,326,568)
Net increase/(decrease) in cash and cash equivalents | 5,254 |  | ( 70,744)
Cash and cash equivalents at beginning of year | ( 90,440) |  | ( 19,696)
Cash and cash equivalents at end of year | ( 85,186) |  | ( 90,440)
Reconciliation to cash at bank and in hand: |  |  |
Cash at bank and in hand at end of year | 510 |  | 897
Cash equivalents | ( 85,696) |  | ( 91,337)
Cash and cash equivalents at end of year | ( 85,186) |  | ( 90,440)

TURNSPEED PRECISION ENGINEERING COMPANY LTD

## NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2025
TURNSPEED PRECISION ENGINEERING COMPANY LTD

## NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2025

##### 1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

##### General information and basis of accounting

Turnspeed Precision Engineering Company Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 3 Boundary Way, Lufton Trading Estate, Yeovil, BA22 8HZ, United Kingdom.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

##### Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

##### Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.
Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise except for:
* exchange differences on transactions entered into to hedge certain foreign currency risks (see above); and
* exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

##### Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

##### Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.
Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

##### Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
When the amount that can be deducted for tax for an asset that is recognised in a business combination is less (more) than the value at which it is recognised, a deferred tax liability (asset) is recognised for the additional tax that will be paid (avoided) in respect of that difference. Similarly, a deferred tax asset (liability) is recognised for the additional tax that will be avoided (paid) because of a difference between the value at which a liability is recognised and the amount that will be assessed for tax.
Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and associates, except where the Company is able to control the reversal of the timing difference and it is probable that it will not reverse in the foreseeable future.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.
Where items recognised in the Statement of Comprehensive Income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the Company and the Company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which signiﬁcant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

##### Intangible assets

Goodwill | 15 years straight line

###### Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

##### Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings | 50 years straight line
Plant and machinery | 15 % reducing balance
| 5 - 25 years straight line
Vehicles | 25 % reducing balance
Fixtures and fittings | 25 % reducing balance
Other property, plant and equipment | not depreciated

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Depreciation is not applied to land held within freehold property.

##### Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Comprehensive Income over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

##### Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income as described below.

Financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

##### Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

##### Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

##### Cash and cash equivalents

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

##### Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

##### Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
Derivative financial instruments
The Company uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Company does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the Statement of Comprehensive Income immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the Statement of Comprehensive Income depends on the nature of the hedge relationship.

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

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

##### Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

#### 2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based 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 financial year in which the estimate is revised if the revision affects only that period, or in the financial year of the revision and future periods if the revision affects both current and future periods.

Critical judgement - Revenue recognition
Revenue from contracts for the building of machinery is recognised by reference to the stage of completion. The stage of completion is determined by reference to a percentage of sales invoices raised in the weeks following the reporting date. The carrying amount of work in progress as at 31 July 2025 was £507,373 (2024: £627,945).

Critical judgement – Stock provisions
The Company provides for defective stock and slow moving stock. The amount recognised as a provision is the best estimate of the stock write off required based on historical experience and current evidence available. At 31 July 2025 , the stock provision totalled £65,525 (2024: £Nil).

Key source of estimation on uncertainty – useful economic lives of tangible assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. Determination of appropriate useful economic lives is a key judgement and the useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount of fixed assets as at 31 July 2025 was £11,607,521 (2024: £10,924,056) and the depreciation charged in the year was £735,132 (2024: £683,141).

##### 3. Turnover

Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.

Breakdown by business class

An analysis of the Company's turnover by class of business is set out below.

| 2025 |  | 2024
| £ |  | £
Other engineering activities | 8,596,412 |  | 8,931,276
Plating | 142,912 |  | 178,341
| 8,739,324 |  | 9,109,617

Breakdown by geographical market:

An analysis of the Company's turnover by geographical market is set out below.

| 2025 |  | 2024
| £ |  | £
United Kingdom | 6,392,287 |  | 6,894,996
European Union | 1,646,206 |  | 1,545,115
Rest of World | 700,831 |  | 669,506
| 8,739,324 |  | 9,109,617

#### 4. Interest receivable and interest payable

| 2025 |  | 2024
| £ |  | £
Interest receivable and similar income | 375 |  | 467
Interest payable and similar expenses | ( 309,659) |  | ( 272,915)
| (309,284) |  | (272,448)

Interest receivable and similar income

| 2025 |  | 2024
| £ |  | £
Bank interest | 0 |  | 429

Interest payable and similar expenses

| 2025 |  | 2024
| £ |  | £
Bank loans and overdrafts | ( 96,485) |  | ( 100,887)
Finance leases and hire purchase contracts | ( 213,174) |  | ( 172,028)
| ( 309,659) |  | ( 272,915)

#### 5. Profit before taxation

Profit before taxation is stated after charging/(crediting):

| 2025 |  | 2024
| £ |  | £
Depreciation of tangible fixed assets (note 12) | 735,132 |  | 683,141
Impairment of tangible fixed assets (note 12) | 463,913 |  | 0
Amortisation of intangible assets (note 11) | 8,866 |  | 8,866
Operating lease rentals | 63,414 |  | 58,958
Foreign exchange losses | 1,723 |  | 2,728
(Gain)/loss on disposal of fixed assets | ( 221) |  | 19,679
Fees payable to the Company's auditor for the audit of the Company's annual financial statements | 18,711 |  | 17,652

#### 6. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

| 2025 |  | 2024
| £ |  | £
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 18,711 |  | 17,652
Total audit fees | 18,711 |  | 17,652

#### 7. Staff number and costs

| 2025 |  | 2024
| Number |  | Number
The average monthly number of employees (including directors) was: |  |  |
Management and office | 16 |  | 17
Production | 47 |  | 46
| 63 |  | 63

Their aggregate remuneration comprised:

| 2025 |  | 2024
| £ |  | £
Wages and salaries | 2,254,663 |  | 2,185,578
Social security costs | 241,045 |  | 221,938
Other retirement benefit costs | 215,006 |  | 199,348
| 2,710,714 |  | 2,606,864

#### 8. Directors' remuneration

| 2025 |  | 2024
| £ |  | £
Directors' emoluments | 25,123 |  | 40,696
Company contributions to money purchase pension schemes | 24,000 |  | 24,000
| 49,123 |  | 64,696

| 2025 |  | 2024
| Number |  | Number
Members of a money purchase pension scheme | 2 |  | 2

#### 9. Tax on profit

| 2025 |  | 2024
| £ |  | £
Current tax on profit |  |  |
UK corporation tax | 0 |  | 0
Total current tax | 0 |  | 0
Deferred tax |  |  |
Origination and reversal of timing differences | 165,292 |  | 246,577
Total deferred tax | 165,292 |  | 246,577
Total tax on profit | 165,292 |  | 246,577

Tax reconciliation

The tax assessed for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK:

| 2025 |  | 2024
| £ |  | £
Profit before taxation | 590,853 |  | 924,656
Tax on profit at standard UK corporation tax rate of 25% (2024: 25%) | 147,713 |  | 231,164
Effects of: |  |  |
Expenses not deductible for tax purposes | 1,226 |  | 729
Depreciation on assets not qualifying for tax allowances | 16,353 |  | 14,684
Total tax charge for year | 165,292 |  | 246,577

#### 10. Dividends on equity shares

| 2025 |  | 2024
| £ |  | £
Amounts recognised as distributions to equity holders in the financial year: |  |  |
Interim dividend for the financial year | 196,000 |  | 185,000

#### 11. Intangible assets

| Goodwill |  | Total
| £ |  | £
Cost |  |  |
At 01 August 2024 | 132,984 |  | 132,984
At 31 July 2025 | 132,984 |  | 132,984
Accumulated amortisation |  |  |
At 01 August 2024 | 26,598 |  | 26,598
Charge for the financial year | 8,866 |  | 8,866
At 31 July 2025 | 35,464 |  | 35,464
Net book value |  |  |
At 31 July 2025 | 97,520 |  | 97,520
At 31 July 2024 | 106,386 |  | 106,386

Amortisation of intangible fixed assets is included in administrative expenses.

#### 12. Tangible assets

| Land and buildings |  | Plant and machinery |  | Vehicles |  | Fixtures and fittings |  | Other property, plant and equipment |  | Total
| £ |  | £ |  | £ |  | £ |  | £ |  | £
Cost |  |  |  |  |  |  |  |  |  |  |
At 01 August 2024 | 2,640,046 |  | 22,186,435 |  | 53,651 |  | 1,471,633 |  | 1,500 |  | 26,353,265
Additions | 16,559 |  | 1,873,594 |  | 0 |  | 2,755 |  | 0 |  | 1,892,908
Disposals | 0 |  | 0 |  | 0 |  | ( 10,619) |  | 0 |  | ( 10,619)
At 31 July 2025 | 2,656,605 |  | 24,060,029 |  | 53,651 |  | 1,463,769 |  | 1,500 |  | 28,235,554
Accumulated depreciation |  |  |  |  |  |  |  |  |  |  |
At 01 August 2024 | 585,755 |  | 13,453,419 |  | 41,544 |  | 1,348,491 |  | 0 |  | 15,429,209
Charge for the financial year | 46,049 |  | 657,518 |  | 3,027 |  | 28,538 |  | 0 |  | 735,132
Impairment losses | 0 |  | 463,913 |  | 0 |  | 0 |  | 0 |  | 463,913
Disposals | 0 |  | 0 |  | 0 |  | ( 221) |  | 0 |  | ( 221)
At 31 July 2025 | 631,804 |  | 14,574,850 |  | 44,571 |  | 1,376,808 |  | 0 |  | 16,628,033
Net book value |  |  |  |  |  |  |  |  |  |  |
At 31 July 2025 | 2,024,801 |  | 9,485,179 |  | 9,080 |  | 86,961 |  | 1,500 |  | 11,607,521
At 31 July 2024 | 2,054,291 |  | 8,733,016 |  | 12,107 |  | 123,142 |  | 1,500 |  | 10,924,056
Leased assets included above: |  |  |  |  |  |  |  |  |  |  |
Net book value |  |  |  |  |  |  |  |  |  |  |
At 31 July 2025 | 24,660 |  | 5,147,935 |  | 7,449 |  | 0 |  | 0 |  | 5,180,044
At 31 July 2024 | 8,686 |  | 5,883,009 |  | 9,933 |  | 0 |  | 0 |  | 5,901,628

Included in cost of land and buildings is freehold land of £350,000 which is not depreciated.
During the year, the directors reviewed the fixed asset register and assessed that an asset's recoverable amount was lower than its historical cost. As such, an impairment loss was recognised in the year against plant and machinery to write down the asset to its recoverable amount.

#### 13. Stocks

| 2025 |  | 2024
| £ |  | £
Stocks | 192,777 |  | 449,858
Work in progress | 507,373 |  | 627,945
| 700,150 |  | 1,077,803

#### 14. Debtors

| 2025 |  | 2024
| £ |  | £
Trade debtors | 2,784,769 |  | 2,051,791
Other debtors | 4,244 |  | 0
Prepayments | 185,258 |  | 146,181
Amounts owed by directors (note 23) | 9,985 |  | 0
| 2,984,256 |  | 2,197,972

#### 15. Creditors: amounts falling due within one year

| 2025 |  | 2024
| £ |  | £
Bank loans and overdrafts | 183,971 |  | 200,129
Obligations under finance leases and hire purchase contracts | 926,885 |  | 838,550
Directors loans (note 23) | 214,981 |  | 224,070
Trade creditors | 888,179 |  | 1,139,168
Payroll taxes payable | 71,790 |  | 67,033
Taxation and social security | 3,244 |  | 0
VAT | 181,305 |  | 104,672
Other creditors | 173,756 |  | 185,530
| 2,644,111 |  | 2,759,152

There is a bank loan of £82,872 (2024: £74,800) included within bank loans and overdrafts, along with hire purchase liabilities of £501,516 (2024: £399,221) included within obligations under finance leases, which are secured by:
a) Debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future, dated 2 September 2005.
b) First legal charge over the freehold property known as 3 Boundary Way, Lufton Trading Estate, Yeovil, Somerset, BA22 8HZ, dated 29 July 2011.
Included within the remaining amount in bank loans and overdrafts is £15,404 (2024: £33,992) relating to an unsecured loan.
The remaining £425,369 (2024: £439,329) included within obligations under finance leases is secured over the assets to which the liabilities relate.

#### 16. Creditors: amounts falling due after more than one year

| 2025 |  | 2024
| £ |  | £
Bank loans and overdrafts | 513,273 |  | 614,077
Obligations under finance leases and hire purchase contracts | 2,835,057 |  | 1,917,524
Other creditors | 7,994 |  | 21,692
| 3,356,324 |  | 2,553,293

Bank loans of £513,273 (2024: £598,674) included within bank loans and overdrafts, and hire purchase liabilities of £2,274,571 (2024: £1,025,682) included within obligations under finance leases, are secured by:
a) Debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future, dated 2 September 2005.
b) First legal charge over the freehold property known as 3 Boundary Way, Lufton Trading Estate, Yeovil, Somerset, BA22 8HZ, dated 29 July 2011.
The remaining £Nil (2024: £15,403) included within bank loans and overdrafts is unsecured.
The remaining £560,484 (2024: £891,842) included within obligations under finance leases is secured over the assets to which the liabilities relate.

Bank loans |  |  |
| 2025 |  | 2024
| £ |  | £
Between one and two years | 88,862 |  | 96,412
Between two and five years | 306,936 |  | 285,551
After five years | 117,475 |  | 232,114
| 513,273 |  | 614,077
On demand or within one year | 98,275 |  | 108,792
| 611,548 |  | 722,869

Finance leases |  |  |
| 2025 |  | 2024
| £ |  | £
Between one and two years | 835,470 |  | 676,315
Between two and five years | 1,519,945 |  | 1,241,209
After five years | 479,642 |  | 0
| 2,835,057 |  | 1,917,524
On demand or within one year | 926,885 |  | 838,550
| 3,761,942 |  | 2,756,074

Directors loans |  |  |
| 2025 |  | 2024
| £ |  | £
Between one and two years | 0 |  | 0
Between two and five years | 0 |  | 0
After five years | 0 |  | 0
| 0 |  | 0
On demand or within one year | 214,981 |  | 224,070
| 214,981 |  | 224,070

Total borrowings including finance leases |  |  |
| 2025 |  | 2024
| £ |  | £
Between one and two years | 924,332 |  | 772,727
Between two and five years | 1,826,881 |  | 1,526,760
After five years | 597,117 |  | 232,114
| 3,348,330 |  | 2,531,601
On demand or within one year | 1,240,141 |  | 1,171,412
| 4,588,471 |  | 3,703,013

#### 17. Provision for liabilities

| Deferred taxation |  | Total
| £ |  | £
At 01 August 2024 | 1,705,151 |  | 1,705,151
Charged to the Profit and Loss Account | 165,292 |  | 165,292
At 31 July 2025 | 1,870,443 |  | 1,870,443

Deferred tax

| 2025 |  | 2024
| £ |  | £
Accelerated capital allowances | 2,047,209 |  | 1,786,429
Tax losses available | ( 172,115) |  | ( 77,049)
Other timing differences | ( 4,651) |  | ( 4,229)
Provision for deferred tax | 1,870,443 |  | 1,705,151

#### 18. Deferred tax

| 2025 |  | 2024
| £ |  | £
At the beginning of financial year | ( 1,705,151) |  | ( 1,458,574)
Charged to the Profit and Loss Account | ( 165,292) |  | ( 246,577)
At the end of financial year | ( 1,870,443) |  | ( 1,705,151)

#### 19. Called-up share capital and reserves

| 2025 |  | 2024
| £ |  | £
Allotted, called-up and fully-paid |  |  |
4,500 Ordinary shares of £ 1.00 each | 4,500 |  | 4,500
100 Ordinary A shares of £ 1.00 each | 100 |  | 100
| 4,600 |  | 4,600
Presented as follows: |  |  |
Called-up share capital presented as equity | 4,600 |  | 4,600

Each ordinary share is entitled to one vote in any circumstances and each ordinary share is also entitled pari passu to dividend payments or any other distribution, including a distribution from a winding up of the company.
Class 'A' ordinary shares are entitled to dividends. They do not carry any voting rights. On winding up or on a reduction in share capital they are entitled to the repayment of the capital paid up, they are not entitled to any other distributions.

The Company's other reserves are as follows:
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

#### 20. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

| 2025 |  | 2024
| £ |  | £
within one year | 45,033 |  | 29,716
between one and five years | 144,506 |  | 73,120
after five years | 181,000 |  | 116,000
Total future minimum lease payments under non-cancellable operating leases | 370,539 |  | 218,836

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

| 2025 |  | 2024
| £ |  | £
Unpaid contributions due to the fund (inc. in other creditors) | 18,638 |  | 17,030

#### 21. Net debt reconciliation

| Balance at 01 August 2024 |  | Cash flows |  | New finance leases |  | Balance at 31 July 2025
| £ |  | £ |  | £ |  | £
Cash at bank and in hand | 897 |  | ( 387) |  | 0 |  | 510
Bank overdrafts | ( 91,337) |  | 5,641 |  | 0 |  | ( 85,696)
| ( 90,440) |  | 5,254 |  | 0 |  | ( 85,186)
Bank loans | ( 758,258) |  | 125,019 |  | 0 |  | ( 633,239)
Finance leases | ( 2,756,074) |  | 876,274 |  | ( 1,882,142) |  | ( 3,761,942)
| ( 3,514,332) |  | 1,001,293 |  | ( 1,882,142) |  | ( 4,395,181)
Net debt | ( 3,604,772) |  | 1,006,547 |  | ( 1,882,142) |  | ( 4,480,367)

#### 22. Statement of Cash Flows

| 2025 |  | 2024
| £ |  | £
Operating profit | 900,137 |  | 1,197,104
Adjustment for: |  |  |
Impairment loss on property, plant and equipment | 463,913 |  | 0
Depreciation and amortisation | 743,998 |  | 692,007
(Profit)/(loss) on sale of plant and equipment | ( 221) |  | 19,679
Amounts withdrawn by directors | 214,701 |  | 166,974
Operating cash flows before movement in working capital | 2,322,528 |  | 2,075,764
Decrease/(increase) in stocks | 377,653 |  | ( 82,507)
(Increase)/decrease in debtors | ( 832,284) |  | 80,545
Decrease in creditors | ( 337,218) |  | ( 439,696)
Cash generated by operations | 1,530,679 |  | 1,634,106
Income taxes received | 0 |  | 13,029
Interest paid | ( 309,659) |  | ( 272,915)
Net cash flows from operating activities | 1,221,020 |  | 1,374,220

#### 23. Related party transactions

Transactions with the entity’s directors (or members of its governing body)

Amounts owed by directors

| 2025 |  | 2024
| £ |  | £
Director's Current Account | 9,985 |  | 0

During the year £73,890 was advanced to a director, £46,000 was subsequently repaid and interest of £373 was charged. The balance owed by the director at the beginning of the year was (£18,278). The balance owed by the director at the end of the year was £9,985. This loan is interest bearing at 2.25%, unsecured and has no repayment terms.

Amounts owed to directors

| 2025 |  | 2024
| £ |  | £
Director's Current Account | 100,595 |  | 109,458
Director's Current Account | 114,386 |  | 96,334
Director's Current Account | 0 |  | 18,278
| 214,981 |  | 224,070

During the year £83,863 was advanced to a director, £75,000 was subsequently repaid and interest of £Nil was charged. The balance owed by the director at the beginning of the year was (£109,458). The balance owed by the director at the end of the year was (£100,595). This loan is interest bearing at Nil%, unsecured and has no repayment terms.
During the year £56,948 was advanced to a director, £75,000 was subsequently repaid and interest of £Nil was charged. The balance owed by the director at the beginning of the year was (£96,334). The balance owed by the director at the end of the year was (£114,386). This loan is interest bearing at Nil%, unsecured and has no repayment terms.

#### 24. Controlling party

The controlling party is Mr R Davies.