REGISTERED NUMBER: 00807091 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

HARMON (FORM TOOLS) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

R Harmon

D Harmon

I C Harmon

R A Harmon

N L Harmon

REGISTERED OFFICE:

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

REGISTERED NUMBER:

00807091 (England and Wales)

AUDITORS:

Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

The directors review the performance of the group of manufacturing companies on a regular basis.

REVIEW OF BUSINESS

The Harmon Group continues to provide high quality engineering services to the Aerospace and associated industries. This year we have continued to service these industries to the highest levels expected from our client base and our own professional methodology.

The year has started strongly, with the industries we are involved with remaining very active, and Harmon continuing to be a key supplier to many of them.

During 2025, the Group has made significant strategic investments to support future growth and capability. This includes the continued development of a new Chrome line, alongside the acquisition of advanced machinery, including 5-axis machining centres and grinding capabilities. These investments will allow the Harmon Group to further enhance capacity, improve efficiencies, and broaden the range of services we can offer to our customers.

As mentioned above 2026 has started well, and the directors believe that by the end of 2026 we will be achieving significant growth in annual turnover. This includes securing longer term business that will expand into 2027, 2028 and onwards.

We have continued to see strong uptake in the expanded areas of the business, with customers keen to work with us to develop our capabilities and strengthen our position as a key partner.

Whilst completing this, we have maintained all our key KPIs in terms of Quality and Delivery above our targets:-

On time delivery

Target - 95%

Actual 97.9%

Quality

Target - 95%

Actual 98.3%

The directors recognise that 2024 and the preceding years presented challenges, 2025 has been a year of positive progression. We expect 2026 to bring further challenges; however, these are viewed as opportunities to strengthen our market position and stabilise long-term relationships to support continued growth.

We have maintained order intake levels in line with previous peak years and are now positioned for substantial growth moving forward.

The Group continues to recognise the benefit of investment in both equipment and the training of staff members, ensuring ongoing improvements in efficiency, capability, and profitability.

We have achieved high levels of accreditation within the Aerospace industry and these have been maintained.

Our Rail approval continues to deliver positive results, with existing customers responding well and further opportunities being created.

The Group is currently operating with the continued support of its bankers and asset finance providers.

PRINCIPAL RISKS AND UNCERTAINTIES

After careful consideration, the directors have not identified any material exposure to financial risk. However in common with many groups of similar size, it is reliant on the continued support of its bankers and creditors.

The directors recognise that a major risk to the continued success of the group would arise from an adverse report from the Health and Safety Executive and the management team continue to ensure compliance with current appropriate standards.

ON BEHALF OF THE BOARD:

N L Harmon - Director

29 April 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

R Harmon

D Harmon

I C Harmon

R A Harmon

N L Harmon

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Carter & Coley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N L Harmon - Director

29 April 2026

Opinion

We have audited the financial statements of Harmon (Form Tools) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept 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.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the group's and the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit testing included testing complete populations of certain transactions and balances, and using data auditing techniques.

Our audit procedures comprise investigating a limited number of items for testing, rather than testing complete populations.

We based our audit samples following a comprehensive audit plan after reviewing the accounts and discussing them with the directors. The level of testing will then be based on our observations of controls and responses with the work targeting particular items for testing based on their size or risk characteristics.

In other cases, we used audit sampling to enable us to draw a conclusion about the population from which the sample is selected.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew A Clark FCA (Senior Statutory Auditor)

for and on behalf of Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

29 April 2026

TURNOVER

11,509,783

9,010,719

Cost of sales

7,952,974

6,215,882

GROSS PROFIT

3,556,809

2,794,837

Administrative expenses

3,002,143

2,464,320

554,666

330,517

Other operating income

17,977

48,661

OPERATING PROFIT

4

572,643

379,178

Interest receivable and similar income

2,235

-

574,878

379,178

Interest payable and similar expenses

5

306,636

186,127

PROFIT BEFORE TAXATION

268,242

193,051

Tax on profit

6

(34,184

)

16,658

PROFIT FOR THE FINANCIAL YEAR

302,426

176,393

Profit attributable to:

Owners of the parent

302,426

176,393

PROFIT FOR THE YEAR

302,426

176,393

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

-

177,020

Income tax relating to other comprehensive income

-

(44,255

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

132,765

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

302,426

309,158

Total comprehensive income attributable to:

Owners of the parent

302,426

309,158

FIXED ASSETS

Intangible assets

8

(26,910

)

(26,910

)

Tangible assets

9

5,630,908

4,852,635

Investments

10

-

-

5,603,998

4,825,725

CURRENT ASSETS

Stocks

11

897,087

1,174,615

Debtors

12

3,601,599

3,210,479

Cash at bank and in hand

348,323

138,715

4,847,009

4,523,809

CREDITORS

Amounts falling due within one year

13

4,225,011

3,556,863

NET CURRENT ASSETS

621,998

966,946

TOTAL ASSETS LESS CURRENT LIABILITIES

6,225,996

5,792,671

CREDITORS

Amounts falling due after more than one year

14

(1,010,720

)

(845,637

)

PROVISIONS FOR LIABILITIES

18

(572,846

)

(607,030

)

NET ASSETS

4,642,430

4,340,004

CAPITAL AND RESERVES

Called up share capital

19

150,000

150,000

Retained earnings

20

4,492,430

4,190,004

SHAREHOLDERS' FUNDS

4,642,430

4,340,004

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2026 and were signed on its behalf by:

N L Harmon - Director

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

4,824,789

4,556,537

Investments

10

40,500

40,500

4,865,289

4,597,037

CURRENT ASSETS

Debtors

12

820,311

853,107

Cash at bank and in hand

6,409

6,614

826,720

859,721

CREDITORS

Amounts falling due within one year

13

303,630

229,977

NET CURRENT ASSETS

523,090

629,744

TOTAL ASSETS LESS CURRENT LIABILITIES

5,388,379

5,226,781

CREDITORS

Amounts falling due after more than one year

14

(986,143

)

(811,675

)

PROVISIONS FOR LIABILITIES

18

(564,134

)

(607,030

)

NET ASSETS

3,838,102

3,808,076

CAPITAL AND RESERVES

Called up share capital

19

150,000

150,000

Retained earnings

20

3,688,102

3,658,076

SHAREHOLDERS' FUNDS

3,838,102

3,808,076

Company's profit for the financial year

30,026

24,205

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2026 and were signed on its behalf by:

N L Harmon - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

150,000

3,880,846

4,030,846

Changes in equity

Total comprehensive income

-

309,158

309,158

Balance at 31 December 2024

150,000

4,190,004

4,340,004

Changes in equity

Total comprehensive income

-

302,426

302,426

Balance at 31 December 2025

150,000

4,492,430

4,642,430

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

150,000

3,501,106

3,651,106

Changes in equity

Total comprehensive income

-

156,970

156,970

Balance at 31 December 2024

150,000

3,658,076

3,808,076

Changes in equity

Total comprehensive income

-

30,026

30,026

Balance at 31 December 2025

150,000

3,688,102

3,838,102

Cash flows from operating activities

Cash generated from operations

1

1,396,563

339,155

Interest paid

(218,388

)

(153,780

)

Interest element of hire purchase payments paid

(88,248

)

(32,347

)

Net cash from operating activities

1,089,927

153,028

Cash flows from investing activities

Purchase of tangible fixed assets

(1,089,722

)

(172,074

)

Sale of tangible fixed assets

17,509

-

Interest received

2,235

-

Net cash from investing activities

(1,069,978

)

(172,074

)

Cash flows from financing activities

HP advances in the year

397,517

-

Loan repayments in year

(184,206

)

(192,426

)

New loans in year

-

250,000

Capital repayments in year

(23,652

)

(32,687

)

Net cash from financing activities

189,659

24,887

Increase in cash and cash equivalents

209,608

5,841

Cash and cash equivalents at beginning of year

2

138,715

132,874

Cash and cash equivalents at end of year

2

348,323

138,715

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

268,242

193,051

Depreciation charges

300,684

211,428

Profit on disposal of fixed assets

(6,745

)

-

Amounts recoverable under contract

(188,388

)

(172,923

)

Finance costs

306,636

186,127

Finance income

(2,235

)

-

678,194

417,683

Decrease/(increase) in stocks

277,528

(61,518

)

(Increase)/decrease in trade and other debtors

(202,732

)

310,801

Increase/(decrease) in trade and other creditors

643,573

(327,811

)

Cash generated from operations

1,396,563

339,155

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

348,323

138,715

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

138,715

132,874

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

138,715

209,608

348,323

138,715

209,608

348,323

Debt

Finance leases

(77,623

)

(373,865

)

(451,488

)

Debts falling due within 1 year

(249,849

)

25,376

(224,473

)

Debts falling due after 1 year

(788,054

)

158,831

(629,223

)

(1,115,526

)

(189,658

)

(1,305,184

)

Total

(976,811

)

19,950

(956,861

)

1.	STATUTORY INFORMATION

Harmon (Form Tools) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared on a going concern basis. This assumes that the existing bank borrowing and invoice financing facilities will be renewed when the current facilities expire or be replaced by alternative lenders.

The directors are confident that the group will continue as a going concern.

Basis of consolidation

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 the business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent considerations after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for the final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at at cost less impairment.

Deferred tax is recognised on differences between the value of the assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Harmon (Form Tools) Limited and all its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All the financial statements are made up to 31st December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring accounting policies used into line with those used by other members of the group.

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Turnover

The turnover shown in the profit and loss account represents amounts earned during the year, exclusive of Value Added Tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Intangible assets

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