The directors present the strategic report for the year ended 31 December 2025.

Strategic objectives:

The core business of Knowsley S.K. Limited remains rooted in the oil, gas and petrochemical sectors with exports accounting for 43% (2024: 41%) of turnover. The company will continue to focus on foam system project and product solutions within their existing UK customer base, and grow their traditional product offerings through their distribution partner network. The previous strategy of tracking high value opportunities with the Engineering Procurement Construction (EPC) contractors is no longer a priority.

Order intake increased by 14% in 2025 to £7.4m (2024: £6.5m), with project order intake decreasing slightly from £2.3m in 2024 to £2.0m in 2025. Order intake on product and other recurring revenue streams increased from £4.2m in 2024 to £5.4m in 2025.

Overall, the company reported a 52% increase in revenue for the year, with total revenue of £7.9m (2024: £5.2m). Project revenue increased by 107% to £2.7m (2024: £1.3m), with product and other recurring revenues up by 33% to £5.3m (2024: £4.0m). Total gross profit margin remained at 36% (2024: 37%). Revenue growth in our core products and foam solutions, is expected to continue through our existing distribution channel and new strategic partnerships formed with suppliers and sprinkler contractors.

In 2025, project revenues accounted for 34% of the total revenue (2024: 25%), and are expected to increase to 40% of total company revenue by 2026, with new opportunities pursued outside of our traditional oil & gas markets.

Profit before tax for 2025 amounts to £1,112,800 (2024: £710,725). As at December 2025 the company has net assets of £2,313,528 (2024: £1,470,850). In addition to the oil & gas market, Knowsley is targeting opportunities in the Industrial, Sprinkler & Waste markets. The company will continue to assess its cost base and supply chain to drive margin improvement as well as pursuing sales growth. See KPI’s below for further details.

Trends and factors affecting performance:

The company remains focused on monitoring its production costs and margins in light of changing costs in energy and raw materials such as copper and nickel, and the exchange rate fluctuations seen against both the United States Dollar and the Euro since the EU referendum.

The company continues to develop its supply chain in respect of these challenges including strategic sourcing and local procurement and manufacture when appropriate.

Commercial risk

The manufacturing process utilising subcontract partners continues to form a predominant risk and careful checks are in place to ensure the financial viability of our sub suppliers. Equally, enhanced commercial discussion with our clients continues at pre-contract stage to secure satisfactory payment terms and stage payments where possible to spread the risk and contribute to strong cash flow.

Operational risk

The company has an experienced management team in place who are able to combine their knowledge and expertise to react swiftly and effectively to any risk situation.

The company employs third party expertise in the area of health and safety management to ensure full compliance with prevailing legislation and to provide proactive planning. The Safety Management team meets regularly to review and implement these policies.

Knowsley S.K. Limited regularly reviews overall policies regarding the control and management of risk.

Credit risk

Knowsley S.K. Limited’s principal financial assets are bank balances and cash, and trade and other receivables. The company’s credit risk is primarily attributable to its trade receivables and accrued incomes.

Our general clientele is formed of the oil and gas “majors” and the Engineering Procurement Construction (EPC) contracting companies.

Ongoing volatility in certain export markets, for example in North Africa and in certain parts of the Middle East, and a general degree of nervousness in those markets has led to the company taking a more conservative approach to credit risk, including pre-contract negotiation of stage payments on projects, pro-forma terms when appropriate, and payment by letter of credit to safeguard receipt of funds.

Foreign exchange risk

Knowsley S.K. Limited’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The use of financial derivatives is governed by the company’s policies approved by the board of directors which provide written principles on the use of financial derivatives to manage these risks. The company does not use derivative financial instruments for speculative purposes.

The following KPIs for the business are seen as crucial to its short, medium and long term financial strength:

• Gross profit margin is 36.4% (2024: 36.9%);

• Return on sales, calculated as loss/profit before tax/sales, is profit 14.0% (2024: profit 13.6%); and

• Net current assets excluding deferred tax, as a percentage of turnover is 28.3% (2024: 21.6%).

The company has taken strategic decisions with the goal of lowering its cost base and aligning the structure to facilitate continued growth across all revenue streams. Further growth and development in these revenue streams is expected to show continued improvement in these indicators in 2026 and beyond. Working capital management remains a key focus for the business.

Dividend

The directors have not paid a dividend in the year (2024: £nil).

No dividends have been proposed post year end.    

Political and charitable contributions

The company made no political contributions during the year (2024: £nil). Donations to UK charities amounted to £nil (2024: £nil).

Future developments

After the market crash of 2014 the price of crude oil fell considerably from over $120 per barrel to less than $40, taking several years to stabilize in the range of $60-$80 per barrel. Oil price volatility continued during 2022, with prices ranging from $83 per barrel to over $120 per barrel during January - June 2022, before dropping to end the year at $82 per barrel.

In 2025, oil prices experienced a significant downward trend, initially trading in the low $70 - $80 per barrel range and dropping nearly 20% over the course of the year to trade at a high $50 – low $60 per barrel. Oil prices for 2026 are expected to average between $60 - $80 per barrel. Oil and gas markets in 2026 are being pulled in different directions, with immediate political chaos driving prices up and a looming surplus dragging them down. While prices spiked in early 2026 due to tensions in the Middle East, briefly surpassing $100 per barrel due to the closure of the Strait of Hormuz, prices are expected to retreat as supply chains normalize. Supply surpluses, slowing demand from China, and with the global transition to electric vehicles (EVs) beginning to have a measurable impact on transport fuel consumption, prices are expected to remain at the low $60 per barrel. However, whilst the fundamentals point to lower prices, continued escalation in the Middle East or further disruptions to Russian supply could trigger temporary price spikes upwards of $80 per barrel.

The UK oil and gas sector has entered a period of "managed decline," marked by a significant production cliff where output is expected to drop below 1 million boe/d after 2026. The year ahead will be challenging for the industry, with continued high taxes, an investment slump as operators pivot toward more stable regulatory environments like the Norwegian Continental Shelf, a shift toward decommissioning mature North Sea assets and supporting the government’s "Clean Power 2030" goals through offshore wind and hydrogen development.

In addition to the oil & gas market, Knowsley will continue to grow our services and foam transition / system solutions offering to the Industrial, Sprinkler & Waste markets. The company continues to actively trade in different geographical locations and is better positioned to manage risks associated in any one specific area.

Keen pricing and a low cost, approach for project business is and will remain the model for success in the short to medium term, coupled with continuing the work which the company is doing with regards to its cost base and strategic supply chain development.

On behalf of the board

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

The principal activity of the company continued to be that of the design and manufacture of firefighting systems and equipment.

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

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

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

DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

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). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that 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; 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.

Under section 414C (11) of the Companies Act 2006 the directors have opted to disclose information regarding principal risks and uncertainties, results and dividends and future developments in the Strategic Report.

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 company’s auditor 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 company’s auditor is aware of that information.

We have audited the financial statements of Knowsley S.K. Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, the statement of financial position 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 company's affairs as at 31 December 2025 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

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.

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

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Management of Health and Safety at Work regulations 1999, Employment Act 2008 and National Minimum Wage 1998.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant or unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to useful economic life of fixed assets, impairment of stock, lease categorisation, and provision for bad debts.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key turnover lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

- Verifying the existence of key assets, including stock.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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 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.

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

Knowsley S.K. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Centrepoint, Marshall Stevens Way, Trafford Park, Manchester, United Kingdom, M17 1AE.

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. The principal accounting policies adopted are set out below.

This 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:

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

• Section 11 ‘Basic Financial Instruments’;

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, excluding Value Added Tax and trade discounts.

Non-contract turnover is recognised at point of despatch, shipment or delivery, dependent on the timing of the transfer of risks and rewards of ownership as governed by the terms agreed with the customer.

Contract turnover is recognised on a percentage of completion basis across the length of the contract. Percentage of completion is calculated based on costs incurred. Amounts recoverable on contracts are included within other debtors.

Expenditure on research and development is written off in the year in which it is incurred, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the company is expected to benefit, which is 5 years on a straight line basis in relation to currently capitalised amounts. Provision is made for any impairment.

Assets, other than those measured at fair value, are assessed for indicators of impairment at each statement of financial position date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

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 acquired on business combinations are recognised separately from goodwill at the acquisition date where 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:

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

Depreciation 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:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The residual values, estimated useful lives and depreciation method of tangible fixed assets are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the average cost method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

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

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

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 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.

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

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 leases asset are consumed.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the statement of financial position date.

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

In the application of the company’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 outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key in calculating an appropriate depreciation charge.

Estimating the useful economic life of development costs capitalised is considered key in calculating an appropriate amortisation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Making judgements based on historical experience on the level of provision required for impairment of stock and bad debts. Further information received after the statement of financial position date may impact on the level of provision required.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

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

Interest was charged at 3.70% on amounts owed to group undertakings.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At 31 December 2025, performance bonds and indemnities to customers to the value of £54,424 (2024: £68,450) were outstanding.

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

The immediate parent company is Knowsley SK Holdings limited, a company incorporated in England and Wales, with registered office at Centrepoint, Marshall Stevens Way, Trafford Park, Manchester, M17 1AE.

The ultimate controlling party and parent of the group is API Group Corporation, a company incorporated in USA, with registered office at 1100 Old Highway 8 North West, New Brighton, Minnesota, 55112, USA. Consolidated financial statements are available from https://ir.apigroupcorp.com/overview/default.aspx