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

The principal activity of the Company in the year under review was to perform research and development services in core technology, specialising in analytical instrumentation including mass spectrometry, surface analysis and software informatics.

Review of business

The Company is a wholly-owned subsidiary of Shimadzu Corporation. A detailed review of the business of the Group headed by Shimadzu Corporation ("the Group") is included in the Group’s annual report and financial statements, which are published on the Group website, www.shimadzu.com.

As shown in the Company’s income statement on page 8, the Company’s turnover for the year ended 31 March 2025 was £2,363,755 (2024: £1,761,063) and the profit before tax for the year ended 31 March 2025 was £184,672 (2024: loss of £154,465). Some projects that were approved in the previous year, have steadily increased turnover of the Company in the current year.

The Statement of financial position on page 10 of the financial statements shows that the Company’s net assets at 31 March 2025 were £4,401,097 (2024: £4,320,015), the increase is due to increase in debtors (intercompany receivables) and pension surplus assets in the current year. The average number of employees in the year was 23 (2024: 23). No dividends were paid during the year (2024: £189,627). Cash decreased in 2025 to £970,958 (2024: £1,049,168) due to timing of cash receipt for certain sales invoices issued to the customer close to the year end date. Cash has increased since post year end, as amount receivables have been recovered post year end.

Supply activities were re-tendered to drive efficiencies and minimise the impact of macro environment factors such as rising commodity prices during the year.

The Company’s main activity is research and development in the core technology of analytical instruments, mainly mass spectrometers and the needs for mass spectrometers, particularly in pharmaceutical/medical industry/clinical field, is likely to be unchanged or even increase, however in December 2025, the directors decided to transfer the trade and assets of the Company to another group entity - Kratos Analytical Ltd (“KAL”) and after the transfer, the Company will be liquidated. On 1 April 2026, the directors completed the transfer of the trade and assets of the Company to Kratos Analytical Ltd (“KAL”). Please refer to going concern section of this report for further details.

The Company respects all the rules and regulations in the communities where it operates. The directors are aware of the industry environmental impact and support the government and suppliers long term goals on factors such as CO2 emissions.

The results for the year are set out on page 8. No final dividends were paid nor proposed by the Company in the current year (2024: £189,627).

The directors who held office during the year and up to the date of signature of the financial statements, except as noted, are as follows:

Going concern

In December 2025, the directors decided to transfer the trade and assets of the Company to another group entity - Kratos Analytical Ltd (“KAL”), and after the transfer, the Company will be liquidated. On 1 April 2026, the directors completed the transfer of the trade and assets of the Company to Kratos Analytical Ltd (“KAL”). Hence, the Company will be liquidated. This transfer of operations and liquidation resulted in a fundamental change in the Company’s activities.

Accordingly, the directors have concluded that the going concern basis is no longer appropriate. These financial statements have therefore been prepared on a basis other than that of a going concern. No adjustments arose as a result of adopting this basis.

Financial risk management objectives and policies

The Company's activities expose it to a number of financial risks including market risk, credit risk and liquidity risk. The Board reviews and agrees policies on a regular basis for managing the risks associated with these assets and liabilities.

Market risk

The Company’s activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Foreign exchange risk

Although project budgets are prepared in GBP, the Company is exposed to foreign exchange risk through the actual billing and expense transactions denominated in foreign currencies, as well as foreign‑currency receivables and payables arising during project delivery. Fluctuations in exchange rates between the transaction date and the settlement date may result in gains or losses, which could impact project profitability and overall financial performance. This risk is mitigated by regular annual and 3 year budgets agreed between the Company and head office, Shimadzu corporation (the customer) with target revenue levels in GBP.

The Company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

On 1 April 2026, the directors completed the transfer of the trade and assets of the Company to Kratos Analytical Ltd (“KAL”). Hence, the Company will be liquidated. This transfer of operations and liquidation resulted in a fundamental change in the Company’s activities.

The trade and assets of the Company were transferred by the directors to Kratos Analytical Ltd (“KAL”), another group entity, on 1 April 2026. Following this transfer, the Company will be liquidated.

Research and development

The Company continues to carry out research projects in the field of analytical measuring instrumentation, principally in the discipline of mass spectrometry. These projects were completed according to plan and indicate progress towards the improvement of technical specifications (and competitiveness) of future commercial systems.  The technology developed indicates the potential for increased speed, sensitivity and accuracy of analytical measurements.

Each director in office at the date of approval of this annual 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 he / she 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.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. The Company is exempt from preparing a Strategic Report.

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 101 "Reduced Disclosure Framework". Under company law, the directors must not approve the financial statements unless theyare satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

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; 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. 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.

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Shimadzu Research Laboratory (Europe) Ltd. (the 'Company'):

• give a true and fair view of the state of the Company’s affairs as at 31 March 2025 and of its loss for the year then ended;

• have been properly prepared in accordance United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 "Reduced Disclosure Framework; and

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

We have audited the financial statements which comprise:

• the Income statement;

• the Statement of comprehensive income;

• the Statement of financial position;

• the Statement of changes in equity; and

• the Related notes 1 to 25.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).

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 Financial Reporting Council’s (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.

Emphasis of matter – Financial statements prepared other than on a going concern basis

We draw attention to note 1.2 in the financial statements, which indicates that the financial statements have been prepared on a basis other than that of a going concern. Our opinion is not modified in respect of this matter.

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.

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.

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.

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 and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the Company’s business sector.

We obtained an understanding of the legal and regulatory framework 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, Pensions legislation 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. This included Health and Safety at work legislation.

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.

As a result of performing the above, we identified the greatest potential for fraud was in relation to turnover recognition and specifically the calculation of work in progress which involves management judgement regarding the stage of completion for each contract which is ongoing at year-end. Our audit procedures included the following (but not limited to):

• reviewed signed contracts and completion statements for contracts completed during the year;

• recalculated cost to date, turnover to date, percentage of completion and work in progress for ongoing contracts; - and;

• tested management's estimate of future costs to complete the ongoing contracts as at year end by checking actual costs incurred post year end.

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;

• enquiring of management 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.

Report on other legal and regulatory requirements

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

• the directors’ report has been prepared in accordance with applicable legal requirements.

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 any material misstatements in the directors’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters 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 or

• the directors were not entitled to take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

We have nothing to report in respect of these matters.

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.

Tax relating to items reclassified above relates to deferred tax charge on actuarial differences.

All amounts relate to continuing operations.

Shimadzu Research Laboratory (Europe) Ltd. is a private company, limited by shares, incorporated in the UK under the Companies Act 2006 and registered in England and Wales . The address of the registered office is given on Company information page. The nature of the Company’s operations and its principal activities are set out in the Directors' report on page 1.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The Company qualifies as a qualifying entity under FRS 100 "Application of Financial Reporting Requirements", as issued by the Financial Reporting Council ("FRC"). Accordingly, these financial statements have been prepared in compliance with FRS 101 "Reduced Disclosure Framework" and the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

The Company transitioned from IFRS to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 April 2024. There has been no change in the Company’s accounting policies as a result of adopting FRS 101. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 101.

The Company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 101 'Reduced Disclosure Framework':

• the requirements of IFRS 7 Financial Instruments: Disclosures;

• the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

• the requirements of paragraph's 88C and 88D of IAS 12 Income Taxes;

• the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present

comparative information in respect of:

- paragraph 79(a)(iv) of IAS 1;

- paragraph 73(o) of IAS 16 Property, Plant and Equipment;

- paragraph 118(e) of IAS 38 Intangible Assets;

- paragraphs 76 and 79(d) of IAS 40 Investment Property;Ÿ

• the requirements of paragraphs 10(d), 10(o), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements;

• the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;

• the requirements of IAS 7 Statement of Cash Flows;

• the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting

Estimates and Errors;

• the requirements of paragraphs 17 and 18A of lAS 24 Related Party Disclosures;

• the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered

into between two or more members of a group;

• IAS 36, 'Impairment of assets' paragraphs 134 and 135;

• IFRS 15, 'Revenue from contracts with customers': second sentence of paragraph 110, and

paragraphs 113(a), 114, 115, 118, 119 (a) to (c), 120 to 127 and 129; and

• IFRS 16, 'Leases': paragraph 52, the second sentence of paragraph 89 and paragraphs 90, 91 and

93. Paragraph 58, provided that the disclosure of details of indebtedness required by paragraph 61(c) of Schedule 1 of the Regulations is presented separately for lease liabilities and other liabilities in

total.

Where required, equivalent disclosures are given in the Group accounts of Shimadzu Corporation. The Group accounts of Shimadzu Corporation are available to the public and can be obtained as set out in note 25.

The material accounting policies applied are listed below:

In December 2025, the directors decided to transfer the trade and assets of the Company to another group entity - Kratos Analytical Ltd (“KAL”), and after the transfer, the Company will be liquidated. trueOn 1 April 2026, the directors completed the transfer of the trade and assets of the Company to Kratos Analytical Ltd (“KAL”). Hence, the Company will be liquidated. This transfer of operations and liquidation resulted in a fundamental change in the Company’s activities.

Accordingly, the directors have concluded that the going concern basis is no longer appropriate. These financial statements have therefore been prepared on a basis other than that of a going concern. No adjustments arose as a result of adopting this basis.

The Company perform research and development services in core technology, specialising in analytical instrumentation including mass spectrometry, surface analysis and software informatics. Consistent with the industry, contracts are typically short-term in nature and the Company is generally entitled to payment for work performed to date.

Turnover represents amounts recognised over the period of contracts for the provision of services which fall within the Company’s ordinary activities after deduction of value added tax. As per IFRS 15, the performance obligations are to be satisfied in respect of the following:

Where the outcome of a contract can be estimated reliably, turnover and costs are recognised by reference to the stage of completion of the contract activity at the Statement of financial position date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. Majority of projects are invoiced on the quarterly schedule to the stage of completion of the contract activity and are paid timely.

Where the outcome of a contract cannot be estimated reliably, contract turnover is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

If the services rendered exceed the payments, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are recognised when the Company obtains control of the rights associated with the asset and it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

• Patents & licences        3-5 years

The amortisation period and method are reviewed at each reporting date and adjusted if necessary. Where indicators of impairment exist, the carrying amount of the asset is assessed and written down to its recoverable amount if lower.

Tangible fixed assets are stated at cost, less depreciation and provision for impairment where appropriate.

Tangible fixed assets are depreciated by equal annual instalments (straight line basis) to write down the assets to their estimated disposal value at the end of their useful lives as follows:

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 recognised in the Income statement.

Assets are de-recognised when no future economic benefits will flow to the Company.

At each Statement of financial position date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of any impairment loss. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

Cash at bank and in hand comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value.

Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at amortised cost:

• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets held by the Company are classified as ‘loans and trade receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of the initial recognition. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Recognition and measurement

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period.

For financial assets other than purchased or originated credit-impaired financial assets (i.e. assets that are credit-impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition. For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated by discounting the estimated future cash flows, including expected credit losses, to the amortised cost of the debt instrument on initial recognition.

The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.

The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost, trade debtors and contract assets. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Company always recognises Lifetime Expected Credit Loss (ECL) for trade debtors and contract assets. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

(i) Significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Company’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Company’s core operations.

In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:

• an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;

• significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which the fair value of a financial asset has been less than its amortised cost;

• existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;

• an actual or expected significant deterioration in the operating results of the debtor;

• significant increases in credit risk on other financial instruments of the same debtor;

• an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.

Irrespective of the outcome of the above assessment, the Company presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Company has reasonable and supportable information that demonstrates otherwise.

Despite the foregoing, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if:

• the financial instrument has a low risk of default;

• the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and

• adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.

The Company considers a financial asset to have low credit risk when the asset has external credit rating of investment grade’ in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of ‘performing’. Performing means that the counterparty has a strong financial position and there is no past due amounts.

The Company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

(ii) Definition of default

The Company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

• when there is a breach of financial covenants by the debtor; or

• information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Company, in full (without taking into account any collateral held by the Company).

Irrespective of the above analysis, the Company considers that default has occurred when a financial asset is more than 90 days past due unless the Company has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

(iii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

• significant financial difficulty of the issuer or the borrower;

• a breach of contract, such as a default or past due event (see (ii) above);

• the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

• it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

• the disappearance of an active market for that financial asset because of financial difficulties.

(iv) Write-off policy

The Company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade debtors, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the Income statement.

(v) Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date.

For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate.

If the Company has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Company measures the loss allowance at an amount equal to 12-month ECL at the current reporting date, except for assets for which simplified approach was used.

If the Company has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Company measures the loss allowance at an amount equal to 12-month ECL at the current reporting date, except for assets for which simplified approach was used.

The Company recognises an impairment gain or loss in the Income statement for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account and does not reduce the carrying amount of the financial asset in the Statement of financial position.

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in the Income statement.

Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in the Income statement, sale, issue or cancellation of the Company’s own equity instruments.

The Company recognises financial liabilities when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'. All financial liabilities are measured subsequently at amortised cost using the effective interest method.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the Income statement.

Long-term contracts

Amounts due from contract customers, which are included in trade and other receivables, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in trade and other payables as amounts due to contract customers.

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

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

The Company claims research and development tax credits for qualifying expenditure which is recognised within operating profit or loss.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the Statement of financial position liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each Statement of financial position and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority and the Company intends to settle its current tax assets and liabilities on a net basis.

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

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

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

Retirement benefit costs

For defined benefit retirement benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations or updates thereof being carried out at the end of each reporting period.

Remeasurements comprising actuarial gains and losses and the return on scheme assets (excluding interest) are recognised immediately in the Statement of financial position with a charge or credit to the Statement of Comprehensive Income in the period in which they occur. Remeasurement recorded in the Statement of Comprehensive Income is not recycled. Usual practice in the UK is for the remeasurement, included in the Statement of Comprehensive Income, to be taken to retained earnings but this is not a requirement of the standard. Past service cost is recognised in the Income statement in the period of scheme amendment. Net-interest is calculated by applying a discount rate to the net defined benefit liability or asset. Defined benefit costs are split into three categories:

•    current service cost, past-service cost and gains and losses on curtailments and settlements;

•    net interest cost or income; and

•    remeasurement.

The Company presents the first component of defined benefit costs within cost of sales and in its Income statement. Curtailments gains and losses are accounted for as past-service cost. Net interest cost is recognised within finance costs.

The retirement benefit obligation recognised in the Statement of financial position represents the deficit or surplus in the Company’s defined benefit scheme. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the scheme or reductions in future contributions to the scheme.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

Further details concerning pension arrangements are set out in note 22 to the financial statements.

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented within the tangible fixed assets line in the Statement of financial position.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• The amount expected to be payable by the lessee under residual value guarantees;

• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the Statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘impairment of tangible and intangible assets’ policy.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient. For a contract that contain a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components.

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. Government grants relating to tangible fixed assets are treated as deferred grant within creditors and released to the Income Statement over the expected useful lives of the assets concerned.

Transactions denominated in foreign currencies are translated into Sterling at rates prevailing at the dates of the individual transactions. Foreign currency monetary assets and liabilities are translated at the rates prevailing at the Statement of financial position date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange gains and losses arising are charged or credited in the period in which they arise to the Income statement within operating expenses. Foreign currency non-monetary amounts are translated at rates prevailing at the time of establishing the fair value of the asset or liability.

Other Operating income

Income from recharged expenses are recognised evenly over the period to which the income relates.

Interest income is recognised when it is probable that the economic benefits will flow to the Company. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

Research and development expenditure credit are recognised (RDEC) as other income above the line in the income statement. The RDEC credit is recognised as taxable income in the period in which the qualifying research and development expenditure is incurred. The credits are recognised when there is reasonable assurance of receipt and the amount can be reliably estimated. As RDEC is taxable, the associated tax impact is recognised within the tax charge in the income statement in the period of recognition.

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is recharged to the ultimate parent company, Shimadzu Corporation and recognised as an asset by Shimadzu Corporation.

Pension policy

For defined benefit schemes the amounts charged to operating profit are the costs arising from employee services rendered during the period and the cost of plan introductions, benefit changes, settlements and curtailments. They are included as part of staff costs. The net interest cost on the net defined benefit liability is charged to the Statement of Comprehensive Income and included within finance costs. Remeasurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the Statement of Comprehensive Income.

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Company, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method. Actuarial valuations are obtained at least triennially and are updated at each Statement of financial position date.

UK-Adopted IFRSs that were effective for accounting periods ending on or before 31 December 2024, have been applied in the preparation of these financial statements. The following standards, amendments, and interpretations were effective for accounting periods beginning on or after 1 January 2024 and these have been adopted in these financial statements where relevant:

• Amendments to IAS 1 - Classification of liabilities as current and non-current

• Amendments to IAS 1 - Non-current liabilities with covenants

• Amendments to IFRS 16 - Lease liability in a sale and leaseback

• Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements

The adoption of the above did not have a material effect on these financial statements.

No significant impact on the Company’s financial statements has been identified because of these additional standards and amendments.

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.

Estimates and assumptions are used to assess the recoverability of intangible assets, receivables, taxation, turnover and provisions for various purposes. These estimates and assumptions are based on data that reflects the knowledge currently available. They are revised periodically and the effects of any changes are recognised in the Income statement. Management periodically evaluates and updates the estimates based on the conditions which influence these variables. The assumptions and conditions for determining impairments reflect management’s best assumptions and estimates, but these items involve inherent uncertainties described below, many of which are not under management’s control. As a result, the accounting for such items could result in different estimates or amounts if management used different assumptions or if different conditions occur in future accounting periods.

The following are the critical judgements and estimates that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in financial statements:

Critical accounting judgement

The directors do not consider there to be any critical areas of judgment in applying the Company's accounting policies in the current year.

Key sources of estimation uncertainty

Retirement benefit obligations assumptions

The directors have made estimates around the assumptions to adopt in relation to the valuation of retirement benefit obligations under IAS 19 (revised). The key assumptions made include retail price index assumption for future pension increases in payment, consumer price index for increases in the revaluation rates in deferment, mortality (life expectancy) assumptions to estimates how long members are expected to live, both pre‑ and post‑retirement and guaranteed minimum pensions equalisation reserve for the cost of equalising benefits between males and females. The results under IAS 19R are sensitive to the assumptions adopted. The results are most sensitive to the net relationship between the financial assumptions, the valuation rate of interest, salary increases, inflation, and also to the mortality assumptions. See note 22 for more details.

Turnover stage of completion

In determining turnover on customer engagements, management makes certain estimates as to the stage of completion of those engagements. Management estimates the remaining time and external costs to be incurred in completing the engagements and the customer's willingness and ability to pay for the services provided. A different assessment of the outcome on an engagement may result in a different value being determined for turnover and also a different carrying value being determined for contract assets.

Turnover is recognised based on the estimated stage of completion of a project taking into account the costs incurred to date as a percentage of total costs to complete the project. In making its judgement, management considered the detailed criteria for the recognition of turnover from the rendering of services set out in IFRS 15.'Revenue’ and, in particular, when the outcome of a transaction involving the rendering of services can be estimated reliably. Turnover recognised based on the stage of completion for the eleven contracts not completed at 31 March 2025 was £1,726,365 (2024: £850,976 for seven open contracts).

Turnover from contracts with customers

The business operates in one primary segment, being the provision of research and development services.

The Company operates primarily in the UK, with no other geographical segment being material for disclosure.

The grant received above relates to Selective Finance for Investment in England (SFIE), a regional aid grant which helps fund new investment projects that lead to long-term improvements in productivity, skills and employment.

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

Their aggregate remuneration comprised:

Pension costs include only those defined benefit plan costs included within operating costs.

No director is a member of the Company's defined benefit pension scheme (2024: £nil).

Income above relates to assets held at amortised cost, unless stated otherwise.

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

Following the substantive enactment of the Finance Act 2021 on 24 May 2021, the main rate of Corporation Tax increased to 25% with effect from 1 April 2023 for companies with profits over £250,000. A small profits rate of 19% applies to companies with profits of £50,000 or less, with marginal relief available on profits between £50,000 and £250,000, resulting in a gradual increase in the effective tax rate.

These rates remain in force, and no further changes to Corporation Tax rates have been substantively enacted after the year end. The Finance Act 2025 confirms that the main rate (25%) and small profits rate (19%) will continue to apply for the financial year 2026, with the marginal relief fraction remaining at 3/200.

Deferred tax has been calculated using these rates based on the timing of when each individual deferred tax balance is expected to reverse in the future. The entity is not within the scope of Pillar Two legislation.

Amortisation is included within administrative expenses in the income statement.

Tangible fixed assets includes right-of-use assets, as follows:

The average lease term is 120 months (2024: 120 months).

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No allowance for expected credit losses made as the amounts are recovered subsequently and no history of bad debts or significant delays in recoveries.

Amounts owed by group undertakings are unsecured and repayable on demand. The directors consider that the amount remains recoverable for the amounts owed on contracts and by group undertakings.

Cash at bank and in hand includes cash held by the Company and cash equivalent of short term bank deposit bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value.

The directors consider that the carrying amount of trade creditors approximates to their fair value.

Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. All amounts are interest free and are repayable on demand. Amounts owed to group undertakings are unsecured, repayable on demand and interest free.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The Company does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Company’s treasury function.

The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon during the current and prior reporting period.

The Company has recognised deferred tax assets of £545k in connection with trading losses brought forward. This amount recognised, is only up to the amount of its deferred tax liabilities. The Company has accumulated trading losses for which a deferred tax asset of £365k has not been recognised in the current year.

The recognition of these assets is contingent upon the generation of future taxable income, and these assets can be carried forward indefinitely.

Employees of the Company have access to membership of the Shimadzu Research Laboratory (Europe) Ltd. Pensions Scheme. The Company operates a defined benefit plan scheme for its employees and is administered by a separate fund that is legally separated from the Company. The scheme is a UK registered trust‑based defined benefit pension scheme. It is governed by the scheme’s Trust Deed and Rules and must comply with UK pensions legislation, including oversight by The Pensions Regulator (TPR). The trustees of the pension fund are required by law to act in the interest of the fund and of all relevant stakeholders in the scheme. The trustees of the pension fund are responsible for the investment policy with regard to the assets of the fund, managing the scheme’s investments and regularly reviewing the investment strategy and ensuring compliance with legal and regulatory requirements.

From 1 April 1997 to 31 December 2014, the Company participated in the Kratos Pension & Life Assurance Scheme ("the Kratos scheme"). The Kratos scheme is a Shimadzu group plan and the related costs of the Kratos scheme were assessed in accordance with the advice of a qualified independent actuary.

On 1 January 2015 the liability for current active members and former members who had been employed by the Company transferred to the Shimadzu Research Laboratory (Europe) Ltd. Pensions Scheme. As the members’ benefits have been unchanged as a result of the move, a single disclosure has been prepared reflecting the movement in the Company’s liability in the Kratos Scheme at the start of the year and the Company’s liability in the Shimadzu Research Laboratory (Europe) Ltd. Pension Scheme at the Statement of financial position date.

The Company prepares accurate and up-to date financial reporting that reflects the impact of its defined benefit plans on future cash flows. This includes disclosing the plan's funding status, liability, and any necessary adjustments to the financial statements.

There is a Trustee in place to provide governance and oversight to the pension scheme but the day-to-day asset management is delegated to Legal & General Asset Management (L&G).

The Trustee employs a holistic approach to risk management in formulating the Scheme’s investment strategy, considering liabilities, asset class risks, employer contributions, and Sponsoring Employer strength. The current strategy, implemented with L&G, allocates 10% to Passive Global Equity, 40% to Investment Grade Asset Backed Securities, and 50% to Liability Driven Investments (LDI) and cash. This strategy uses equities and asset-backed securities for return generation, alongside significant interest rate and inflation hedging via government bonds and LDI funds, targeting 100% hedging of interest rate and inflation expectations on the 2024 Technical Provisions liability basis. The Trustee manages investment, funding, and covenant risks, alongside specific underlying risks such as interest rates, inflation, liquidity, market, credit, ESG, and currency. A collateral waterfall process is in place for LDI, prioritising the US Securitised Credit Fund and then the World Equity Index Fund. The Trustee monitors investment managers on performance, strategy, risk, and ESG factors, with a commitment to review and potentially terminate arrangements if improvements are not observed. The Scheme avoids employer-related investments, except within collective investment schemes, where exposure is capped at 5%.

On 1 April 2026, the directors completed the transfer of the trade and assets of the Company to Kratos Analytical Ltd (“KAL”). Hence, the Company will be liquidated. This transfer of operations and liquidation resulted in a fundamental change in the Company’s activities.

The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly owned subsidiaries. Transactions between group companies are conducted on an arm's length basis.

The directors remuneration details are disclosed in note 7.

The directors consider that the Company’s immediate and ultimate parent undertaking is Shimadzu Corporation, a company incorporated in Japan. The smallest and largest group of which the Company is a member and for which the Group accounts are drawn up is Shimadzu Corporation which is the ultimate controlling party. The registered address for Shimadzu Corporation is 1, Nishinokyo Kuwabara-cho, Nakagyo-ku, Kyoto 604-8511, Japan. The financial statements of the Group are publicly available and may be obtained from the Company secretary at the registered office shown on the Company information page, and on the Group's website, www.shimadzu.com.