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

The directors consider that the key performance indicators are turnover, gross margin, earnings before interest, tax, depreciation and amortisation (EBITDA) and Net assets. Together these demonstrate the financial performance and strength of the company. An overview of these indicators for both the current and prior year are given below:

• Turnover £6,736,599 (2024: £8,109,267) a decrease of 16.9%.

• Gross profit £2,052,666 (2024: £3,178,284) a decrease of 35.4%.

• Gross profit margin 30.5% (2024: 39.2%).

• EBITDA £30,929 (2024: £1,430,306) a decrease of 97.8%.

• Net assets £1,994,694 (2024: £2,698,697) a decrease of 26.1%.

2025 proved to be an incredibly challenging year, with the loss of 2 of the injection moulding division's largest customers, a downturn in demand by all sectors that the group supplies, with the exception of aerospace plastics, and many large projects either cancelled or delayed due to geopolitics. This was completely unexpected and vastly different to the 20% increase that had been forecast. With the business unable to pass on the increased overheads and borrowing costs relating to the much larger new premises to customers, the group incurred significant losses. Losses were further impacted by the downward revaluation of the investment properties by £174k.

Cashflow has been a major struggle in the year but with cash injections by the directors, new funding secured on directors personal assets, the assistance of extended payment terms by some suppliers and time to pay agreement with HMRC the business has been able to carefully manage its cashflow obligations until the completion of the sale of the investment properties post year end.

A full review of all businesses has been conducted and management concluded that the companies’ sales strategies were dated and not performing, with too much reliance being placed on recurring income and changes were needed.

The continued fluctuations in costs across the business, particularly raw materials, energy and interest rates provides a challenging environment to trade in, but these will be carefully monitored by the directors so that decisions regarding pricing can be swiftly reacted to. Looking ahead they would hope to see some cost stability and with greater focus on production efficiencies it would be expected that gross profit margins across the group can be maintained and improved upon.

The Directors will continue to remain vigilant to unexpected challenges and are prepared to adapt quickly as they have done previously but, believe that the financial robustness, business strategies and management processes will enable the business to withstand any shocks or threats to its continuity in the next period or medium term.

Financial risk within the group is somewhat mitigated by the different industries in which they trade, as whilst the companies within the group complement each other they are also standalone companies offering a diverse range of products and services to different markets. To date this has had the effect that If one of the companies within the group found is underperforming, although this has an adverse effect on the financial performance of the group, the other group companies are able to financially support the other until the industry recovered.

High levels of inflation and increases in interest rates are worrying as borrowings increased significantly due to the change of premises in 2022. The group took advantage of CBIL’s after the Aerospace industry collapsed during and after COVID to help fund the move which would otherwise have been funded through cashflow. This has meant that there is more short-term debt than the Directors had initially planned and also that investment in new machinery has been put on hold for the short term.

During 2026 the group's investment properties have been sold and the short-term debt taken to fund the move in 2022 has been repaid.

The directors are very aware of the risks of making products from plastic and the reactions of the public and environmental groups. They try to use as much reprocessed material as possible in products and usage of reprocessed materials has increased year on year for the past 6 years and now nearly 95% of all PP used in production is reprocessed material or a blend.

The group was awarded the Ecovadis Silver 2022 rating and continues to achieve the same high standard annually placing it in the top 15% of companies assessed which measures performance of environment, labour, human rights & ethics and sustainable procurement.

A target has been set to achieve a 50% reduction in baseline emissions by 2025 and net zero by the end of 2030. Significant steps have been taken to record and monitor the businesses baseline and make staff and other stakeholders aware of the part they can play to reduce the carbon footprint.

Non- financial Key Performance Indicators

Non-financial KPI’s are maintained and reviewed to ensure that the business is working as efficiently as possible. These measures are used to assess performance of individual departments as well as both customer and supplier performance. The directors monitor the following:-

• Order book

• Quote turnaround

• Despatched on time

• Yield/scrap

• Non-Conformance Reports

• Complaints

The 12 months to April 2026 are projected to show a marked improvement in results. The group has already employed a new experienced salesperson for the tote bin side of the group. New markets for totes have been explored outside of our usual warehousing sector and detailed analysis of these potential sectors will be examined by the directors shortly. One of the large, expected projects for bins has been confirmed, although it has been delayed to the latter part of the coming financial year. This alone should secure a 20% increase in tote sales monthly. Sales in toolmaking have already started to increase with the level of enquiries in our aerospace and power generation toolmaking markets at unprecedented levels. The increase in activity in these areas is due to the massive requirement for power in the AI market where they have turned to gas turbines for power generation.

Over the course of the next 12 months we expect the group to return to profitability with increases in turnover in all market sectors.

Due to the nature of the financial instruments used by the group, there is limited exposure to currency, price or credit risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below:

• In respect of bank balances, the liquidity risk is managed by maintaining sufficient cash reserves to cover planned expenditure for the foreseeable future.

• Bank loans, including the confidential invoice discounting facility, are secured by means of a fixed and floating charge over the group's assets.

• Hire purchase and finance lease obligations are secured upon the assets acquired.

Certain of the group’s borrowing facilities bear interest at variable rates, giving some exposure to movements in the Bank of England base rate. Liquidity risk is managed by forecasting cash requirements and ensuring that sufficient funds are available to meet debt servicing commitments as they fall due.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2025.

The principal activity of the company and the group continued to be that of the manufacture of injection moulded products and tool making.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Simpkins Edwards Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable United Kingdom 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 group and parent company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Investment Casting Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, 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:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent 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.

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. In so doing, we considered the following:-

• The nature of the company, its control environment and performance indicators;

• Results of our enquiries of management and directors regarding their own identification and assessment of the risks of irregularities; and

• the matters discussed among the audit engagement team regarding how and where irregularities might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in relation to the recognition of revenue and valuation of stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context relate to Health and Safety and the UK Companies Act.

Our procedures in response to the risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation;

• understanding and evaluating the design and implementation of management controls;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to income recognition and stock valuation; and

• 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.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £44,569 (2024 - £27,054 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Investment Casting Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Systems House, 1 Claylands Way, Paignton, Devon, TQ4 7TY.

The group consists of Investment Casting Systems Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of 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 the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Investment Casting Systems Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 30 April 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

The group suffered a loss for the year and associated cash flow challenges as a result of a reduction in its turnover relative to recent years. Those years have seen large contracts for the manufacture of products for blue chip customers. However, the same level of demand was not seen in 2024/25.

Payment terms were agreed with certain creditors and the company and group were able to secure additional borrowing to fund working capital requirements, supported by security offered on personal assets of the company directors. The directors also advanced further loans to the company and group. Additionally, a cash injection was achieved by the group late in the financial year from an external investor, which brought most creditor obligations back within normal terms shortly after year end.

Investment properties owned by the company have been sold in the period since year end and the proceeds of approximately £2.1m applied in reducing group borrowings and future servicing obligations.

New sources of work have been secured in the latter part of 2024/25, which are projected to add significant growth in turnover and profitability over the next 3 years and a return to cash positive trading. Strategies are being implemented to further build on sales with exciting opportunities arising as major UK-based companies introduce automated fulfilment centres, which are expected to increase demand for the plastic storage boxes produced by the group.

The directors have prepared profit and loss and cash flow projections at company and group level, allowing for the new sources of income. Those projections demonstrate the company and group’s ability to continue to trade as a going concern for the foreseeable future. As with all projections, there are potential variances in the timing and value of future cash flows. Nevertheless, the directors are confident that the company and group have access to appropriate financing facilities in the event that financial support is required.

Based on the above, the directors are satisfied that the company and group are a going concern and have prepared the financial statements on that basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

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 profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group 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 the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

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 current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 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 group after deducting all of its 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.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 reporting end date 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 profit and loss account, 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 if, and only if, there is 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.

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 stock 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors have implemented a continual maintenance programme for various plant, machinery and tooling. This programme has the effect of extending the economic life of various items of plant and machinery, beyond the normal expectations. The depreciation policies used are detailed above.

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

Their aggregate remuneration comprised:

As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided for that year.

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Investment property comprises freehold property held for rental income and its investment potential. The fair value of the investment property has been arrived at with reference to post year end sales values of the properties. The properties were sold to third parties who are not connected with the group.

Details of the company's subsidiaries at 30 April 2025 are as follows:

Group

The value of trade debtors which are secured under a confidential discounting agreement is £1,154,526 (2024: £709,022). The cash advanced by the invoice discounting company is included within creditors falling due within one year.

Company

The value of trade debtors which are secured under a confidential discounting agreement is £504,742 (2024: £154,454). The cash advanced by the invoice discounting company is included within creditors falling due within one year.

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Other creditors include loans from the directors of £406,613 (2024: £297,761) which are unsecured and repayable on demand. Interest of 72,776 (2024: £72,776) has been accrued in relation to directors' loans.

Other creditors include loans from a related party of £75,927 (2024: £69,025) which are unsecured and repayable on demand. Interest is charged at 10% per annum.

The following group bank loan facilities existed at the year end:-

• A mortgage of £773,997 (2024: £851,566) repayable by instalments with a variable interest rate. This is a rolling facility which is renewed every 5 years with the next renewal date being April 2027. The loan is secured by a charge over the group's investment properties.

• Coronavirus Business Interruption Loans totalling £436,460 (2024: £692,820), which are unsecured and repayable by instalments over the period to March 2027. The loans bear interest at rates between 3% and 8% per annum.

• A Coronavirus Business Interruption Loan of £270,003 (2024: 345,574), repayable by instalments over the period to July 2027 and with a fixed interest rate. The loan is secured by charges over investment properties owned by the company, and a cross company guarantee over the assets held in Casting Support Systems Limited and Technical Composites Systems Limited.

• Confidential invoice discounting agreements of £656,274 (2024: £532,362) (Company: £291,422 2024: £101,759). These are secured upon the trade debts to which they relate.

Other short term loans include £575,066 from unconnected investors which are repayable on demand and a flexible finance facility of £342,951, secured on the assets of the company.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Finance leases obligations are secured on the assets acquired.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above relates to accelerated capital allowances and unrealised gains on investment properties, netted against tax losses which are expected to be relieved against profits of future periods.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The Ordinary, Ordinary A and Ordinary B shares are all entitled to dividends and all are entitled to vote at meetings.

The below relates to a property lease that expires in 2046.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent leases of investment properties to third parties. The leases are negotiated over terms of 5 years and rentals are fixed for 5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.

Dividends totalling £0 (2024 - £167,037) were paid in the year in respect of shares held by the company's directors.

The ultimate controlling party is Mr E J Head by virtue of his shareholding.