REGISTERED NUMBER: 03426761 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

FOR

KNAPP U.K. LIMITED

Page

Company Information

1

Strategic Report

2

to

5

Report of the Directors

6

to

7

Report of the Independent Auditors

8

to

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

25

DIRECTORS:

Mr N S Billing

Mr T A Driscoll

Mr C P Rollason

SECRETARY:

Mrs T M Sanderson

REGISTERED OFFICE:

Unit 60 Monument Business Park

Warpsgrove Lane

Chalgrove

Oxfordshire

OX44 7RW

REGISTERED NUMBER:

03426761 (England and Wales)

AUDITORS:

Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

The directors present their strategic report for the year ended 31 March 2026.

The Company

KUK (KNAPP U.K. Limited) is a wholly owned subsidiary of KNAPP AG (KAG) based in Hart bei Graz, Austria. KNAPP is a technology partner for the entire value chain, we develop, deliver, and support tailored logistics solutions based on our advanced technologies and leading-edge software. All solutions feature equipment of our own manufacture, under the control of software developed 'in-house.'

KNAPP AG generated revenues of around €2.1B in the fiscal year 2025-26 and employs some 9100 colleagues, of which 336 are employed by KUK.

KNAPP is a market leader within the logistics value chain and our 'in-house' developed technology is extensively used within key industries such as Healthcare, Retail, Fashion and Wholesale for customers including Next, Boots, M&S, Matalan, John Lewis, and The Very Group. The services supplied encapsulates the complete value chain from software and digital maintenance solutions through to advanced warehouse automation and labour planning software.

Mission

KUK aims to provide all support to the KNAPP group in the furtherance of the KAG strategy, to grow market share and become the go to 'Value chain technology partner'.

The KNAPP group works across a wide selection of industries, by providing intelligent, flexible solutions to meet customer's requirements, using a range of in-house technology and software solutions.

Markets

KNAPP's customers are predominantly from the retail (food/non-food), fashion, ecommerce, Healthcare, Wholesale and spare parts industry. KUK has award winning references in the fashion and retail sector and is very strong in the Healthcare intralogistics market.

All sectors are continuing to invest, to meet the challenges of 'multi' and 'omni' channel fulfilment. KNAPP expects to build upon its success and reputation in this area, in addition to supporting our existing customer base, with innovative solutions and enhancements to existing systems, to meet ever changing market and business requirements. The challenges faced by businesses in recruiting and maintaining cost efficient staffing models, continues to drive the need for technology within the value chain.

Strategy

KUK is a 'sales, technology, service and project delivery organisation' but it is by no means operating at 'arm's length' from its parent. We prefer to think of ourselves as a 'find and facilitate' organisation, tightly integrated with and complimentary to KAG and the global strategy.

We are a project orientated company, focussed on designing, selling, and implementing technology across the complete value chain and subsequently, providing smart maintenance and support services to our customers, for the entire lifecycle of a solution.

During the last fiscal year, we have increased headcount as required and where clear justification exists, to support existing business and future growth plans. This strategy also allows us to provide career progression opportunities for existing staff across multiple disciplines. We expect to secure a range of new and repeat business, additional field service contracts and at least one new resident site based maintenance contract, during the next fiscal year.

KPI's

KUK is a profitable business, which seeks to continually make positive contributions towards KAG EBIT. KUK's turnover and profitability within this fiscal year, was higher than budgeted due to increased service revenue. The quality of service which we provide to our customers is of key importance and as such our customer service team carry out regular customer feedback questionnaires, whereby the results are reviewed and used for continuous improvement purposes.

The headcount also increased during the fiscal year in support of current and future business objectives, and we plan to expand further, to around 361 employees by the end of the next fiscal year. The KUK Board of Directors work closely with the HR department to support initiatives such, employee branding, talent attraction, employee retention and people development. Our core philosophy is focussed on attracting the right calibre colleagues, and then providing development opportunities and career progression, which in turn supports business growth and low staff attrition. Training takes place at all levels from engineering apprentices, e-learning modules and Management apprenticeship training.

2026

2025

Turnover

£109,254,284

£94,519,329

Gross profit margin

9%

12%

Operating profit margin

3%

5%

Average no. of employees in the year

308

291

As part of our sustainability agenda, KUK continue to review and implement energy efficient methods of working to reduce energy consumption and emissions, such as Solar technology at the Head Office location and flexible working patterns where possible. We have also increased the use of electric vehicles, which in turn has reduced our overall energy consumption. Energy consumption for the last fiscal year was 32,223 kWh. Greenhouse gas emissions, energy consumption and energy efficiency disclosures have not been disclosed, because energy consumption is below 40,000 kWh.

PRINCIPAL RISKS AND UNCERTAINTIES

Risks

Economic growth, erratic consumer confidence, cost of living pressures and the global political landscape are all factors which continue to cause business challenges and volatility within the market. In order to maintain its position as a market leader, KNAPP continue to invest more than 5% of Global turnover annually into Research and Design to provide an extensive range of technology, solutions, and services across the complete value chain in support of customers who are working towards developing new, enhanced, or streamlined supply chains. KNAPP as a 'Value chain technology partner' is well placed to support businesses to meet and exceed strategic goals, regardless of the level of complexity and scale required to address challenges. KUK maintain a stable customer base which delivers on going service and support opportunities and the ability to gain further repeat business.

Competition continues to be fierce, with existing and new entrants in the marketplace exerting pressure and challenges on margins and timescales, although KNAPP remain ever focussed on careful project selection, to dedicate resources to areas which achieve the best return on investment and future potential partnership opportunities. The comprehensive KNAPP technology offering means we are able to respond to an extensive array of customer requirements, ranging from Software only solutions to award winning robotics and high throughput picking systems.

Currency fluctuation is always a risk, bearing in mind our project costs are predominantly incurred in Euros. However, as our Service and Support business is mostly transacted in Sterling, this provides a buffer against Euro fluctuations.

With expansion, the risk of any market volatility has a greater potential impact. However, the board of KUK are conscious of this and maintain a strategy of recruiting staff who are flexible and can add value locally and internationally, when and where it is sensible and sustainable to do so.

SECTION 172(1) STATEMENT

Directors' statement of compliance with duty to promote the success of the Company

This statement by the Board of Directors describes how they have approached the responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial period ending 31 March 2026.

The Stakeholders of the business include employees, clients and suppliers of the business.

The Board of Directors consider that they have acted in good faith to promote the success of the company on behalf of its stakeholders, in relation to the matters set out in s172 of the Act.

The Board of Directors monitor and review strategic objectives, against long term growth plans. Regular reviews are held across key business areas, including; financial performance, risks and opportunities, Health & Safety, Human Resources and operations. The company's performance and progress are reviewed regularly at department and Board meetings. The fundamental overriding principle in the governance of KUK is that of ensuring transparent conduct which reflects fairness in all the dealings with employees, clients and suppliers. A testament to this, is reflected in the length of service of our employees and senior management team.

The company has a policy of equal opportunities in all aspects of employment. Employees are kept informed of matters of concern to them in a variety of ways, including newsletters, meetings and verbal communication to staff. These communications help achieve a common awareness among employees regarding the performance of the company. The company's employees are important to the success of the business. The Board of Directors understand that it is critical to engage with and understand their views and to ensure that all employees interests are considered. Throughout the Company there is consultation between management and employees on matters of concern. The consultations evolve to meet the changing needs of the business and are considered valuable by both management and staff. The policy of the company is to consult and discuss matters with employees and to resolve any problems in accordance with relevant procedures and legislation.

The company is committed to an equal opportunities policy in respect of serving customers and employing staff. Within this policy, KUK endeavour to ensure that disabled customers receive the same standards of service as all other customers, and that disabled employees and potential employees will be afforded the same treatment and opportunities as all other employees and potential employees.

The company's customers and suppliers are fundamental to the success of the business and as a leading supplier of automated order picking solutions, it is essential that the company maintains its reputation of delivering high quality solutions to exacting standards. The company strives to continually improve and strengthen its solution delivery and customer service offering for the mutual benefit of all stakeholders.

The Company has adopted a policy of only dealing with creditworthy counterparties. KUK takes an aggressive approach to debtor management and liaises closely with its client base to minimise any risk of non-payment of debts. The Company also has a Euro bank account to minimise exposure to foreign exchange risk.

The Board of Directors take environmental matters into consideration as part of their decision-making process, in order to minimise the company's impact on the environment wherever possible.

The Board of Directors intentions are to behave responsibly toward all stakeholders and to treat them fairly and equally, to ensure they all benefit from the long-term success of the company.

The directors have overall responsibility for determining the company's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the directors is to promote the long-term sustainable success of the company, generating value for stakeholders. Throughout the next financial year, the directors will continue to review and challenge how the company can improve engagement with all stakeholders.

SUMMARY

KUK has a loyal, dedicated and highly committed flexible team, which is an important component in our strategy, and a key success factor in enabling KUK to achieve its objectives. KUK maintain a sensible growth strategy, consistent with the aims and objectives of our parent KAG and underpinned with a class leading market offering in software and solutions.

During the last fiscal year KUK growth was in line with its strategy objectives, and in terms of the next fiscal year, we plan further development with increased profitability due to contract awards across a diverse range of projects, and enhanced revenue within all aspects of our Service and Support portfolio.

ON BEHALF OF THE BOARD:

Mr C P Rollason - Director

24 April 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply, installation and maintenance of automated materials handling equipment.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2026 will be £ 3,000,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mr N S Billing

Mr T A Driscoll

Mr C P Rollason

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by section 414C of the Companies Act 2006, certain information required to be included in the Directors' Report has been included in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, Seymour Taylor Limited, will be appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr C P Rollason - Director

24 April 2026

Opinion

We have audited the financial statements of Knapp U.K. Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 March 2026 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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.

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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities we considered the

following:

-the nature of the industry and sector, control environment and business performance including the key

drivers for directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of

irregularities;

- any matters we identified having made enquiries of management about their policies and procedures

relating to:

identifying, evaluating and complying with laws and regulations and whether they were aware of any

instances of noncompliance;

detecting and responding to the risks of fraud and whether they have knowledge of any actual,

suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and

regulations;

- the matters discussed among the audit engagement team regarding how and where fraud 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 organisation for fraud. 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 frameworks 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 included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate.

Audit response to risks identified

As a result of performing the above our procedures to respond to the risks identified included the following:

-reviewing the financial statement disclosures and testing to supporting documentation to assess compliance

with provisions of relevant laws and regulations described as having a direct effect on the financial

statements;

- enquiring of management about actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks

of material misstatement due to fraud;

- obtained an understanding of provisions and held discussions with management to understand the basis of

recognition or non-recognition of tax provisions; 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.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

Joanne Kingsnorth FCA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

24 April 2026

TURNOVER

4

109,254,284

94,519,329

Cost of sales

99,143,976

83,058,409

GROSS PROFIT

10,110,308

11,460,920

Administrative expenses

6,457,015

7,106,329

3,653,293

4,354,591

Other operating income

46

4,164

OPERATING PROFIT

6

3,653,339

4,358,755

Interest receivable and similar income

94,700

129,884

3,748,039

4,488,639

Interest payable and similar expenses

7

10,336

13,345

PROFIT BEFORE TAXATION

3,737,703

4,475,294

Tax on profit

8

906,343

1,321,150

PROFIT FOR THE FINANCIAL YEAR

2,831,360

3,154,144

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,831,360

3,154,144

FIXED ASSETS

Owned

Intangible assets

10

75,148

85,395

Tangible assets

11

151,830

91,543

Right-of-use

Tangible assets

11, 15

360,872

513,319

587,850

690,257

CURRENT ASSETS

Debtors

12

46,777,048

36,374,884

Cash at bank and in hand

10,164,068

5,084,781

56,941,116

41,459,665

CREDITORS

Amounts falling due within one year

13

50,014,340

34,354,374

NET CURRENT ASSETS

6,926,776

7,105,291

TOTAL ASSETS LESS CURRENT LIABILITIES

7,514,626

7,795,548

CREDITORS

Amounts falling due after more than one year

14

111,852

224,134

NET ASSETS

7,402,774

7,571,414

CAPITAL AND RESERVES

Called up share capital

16

50,000

50,000

Retained earnings

17

7,352,774

7,521,414

SHAREHOLDERS' FUNDS

7,402,774

7,571,414

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2026 and were signed on its behalf by:

Mr C P Rollason - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

50,000

6,367,270

6,417,270

Changes in equity

Dividends

-

(2,000,000

)

(2,000,000

)

Total comprehensive income

-

3,154,144

3,154,144

Balance at 31 March 2025

50,000

7,521,414

7,571,414

Changes in equity

Dividends

-

(3,000,000

)

(3,000,000

)

Total comprehensive income

-

2,831,360

2,831,360

Balance at 31 March 2026

50,000

7,352,774

7,402,774

1.	STATUTORY INFORMATION

Knapp U.K Limited is a private company limited by shares and incorporated in England and Wales. The address of the company's registered office is Unit 60 Monument Business Park, Warpsgrove Lane, Chalgrove, Oxfordshire, OX44 7RW. The registered number is 03426761.

The principal activity of the company is that of supplying, installing and maintaining handling equipment.

The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

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" (September 2024) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company elected to early adopt the Periodic Review 2024 amendments from 1 January 2024 at the beginning of the comparative period.

The directors have assessed expected future cashflows, giving due consideration to all relevant factors affecting the company. The directors have considered the potential impact on the company as well as its capital resources and believe that the company has adequate resources in place to continue in operation for at least twelve months from the date of approval of the financial statements. Consequently, the company continues to adopt the going concern basis in preparing these financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Knapp AG as at 31 March 2026 and these financial statements may be obtained from Knapp AG, Gunter-Knapp-Strasse 5-7, 8075 Hart/Graz, Austria.

Turnover

Turnover comprises the value of work performed during the period on contracts with customers to supply, install and maintain automated materials handling equipment. Turnover from longer term projects are recognised by reference to labour and material costs incurred to date as a percentage of the total contract cost for each project. Where the contract outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied::

- The entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

- The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- The amount of turnover can be measured reliably;

- The stage of completion of the contract at the end of the reporting period 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

Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on business combinations are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition.

Intangible assets are amortised on a straight line basis over their useful economical lives as follows:

Software costs

-

10 years straight line

The directors review for impairment annually and subsequently a provision is recognised if required.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimate useful life:

Office equipment

-

10 years straight line

Improvements to property

-

5 years straight line

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern bu which the company expects to consume an asset's future economic benefits.

Financial instruments

The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the statement of financial position date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities at the period end denominated in a foreign currency are translated into Sterling at the rate of exchange ruling at the statement of financial position] date. Exchange differences are taken into account when arriving at the operating profit.

Leasing agreements

The company assesses at contract inspection whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration.

Right of use asset

The Company recognises right of use asset at the commencement date of the lease. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Property leases

-

over the period of the lease (7 years

)

Motor leases

-

over the period of the lease (4 years

)

Lease Liabilities

At the commencement date of the lease, the group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivables, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the group and payments of any penalties for terminating the lease, if the lease term reflects the group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as an expense in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the group uses the incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of the lease liability is increased to reflect the accretion of interest and reduced for lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase to purchase the underlying asset.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of turnover, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the management's best judgment at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

The area for which significant estimation has been applied is considered to be as follows:

Depreciation of tangible fixed assets

Depreciation is provided in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Management reassess the depreciation methods, useful lives and residual values where there is an indication of a significant change in pattern by which the company expects to consume an asset's future economic benefit.

Bad debt provision

Management make provision against any debtor which is deemed to be potentially irrecoverable. This provision is reviewed on an annual basis and assessed for reasonableness.

Long term contracts

The profit included is calculated on a cautious basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Revenue is calculated as the proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. The value of accrued income at the statement of financial position date is £4,520,146 (2025: £5,074,275) and is within prepayments and accrued income within note 12 debtors of these financial statements. The value of deferred income at the statement of financial position date is £17,330,573 (2025: £9,506,034) and is within accruals and deferred income within note 13 creditors: amount falling due within one year of these financial statements.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

109,254,284

94,519,329

109,254,284

94,519,329

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

19,502,278

17,828,058

Social security costs

2,019,098

1,526,505

Other pension costs

839,422

751,186

22,360,798

20,105,749

The average number of employees during the year was as follows:

2026

2025

Salaries and service support

296

276

Administration

12

15

308

291

2026

2025

£

£

Directors' remuneration

681,293

638,550

Directors' pension contributions to money purchase schemes

36,125

33,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2026

2025

£

£

Emoluments etc

309,996

312,554

Pension contributions to money purchase schemes

6,403

4,144

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2026

2025

£

£

Operating leases, rentals and hire of plant and machinery

227,451

754,021

Depreciation of owned assets

44,222

46,365

Depreciation of right of use assets

303,170

274,371

Amortisation of intangible assets

10,247

10,247

Auditors' remuneration

47,250

37,796

Auditors' remuneration for non-audit services

8,700

7,702

Foreign exchange losses / (gains)

812,502

(1,043,508

)

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Leasing

10,336

13,345

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2026

2025

£

£

Current tax:

UK corporation tax

1,043,884

1,330,791

Over/under provision in prior year

(137,541

)

(9,641

)

Tax on profit

906,343

1,321,150

UK corporation tax was charged at 25%) in 2025.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2026

2025

£

£

Profit before tax

3,737,703

4,475,294

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

934,426

1,118,824

Effects of:

Expenses not deductible for tax purposes

118,656

246,511

Capital allowances in excess of depreciation

(9,198

)

(34,544

)

Adjustments to tax charge in respect of previous periods

(137,541

)

(9,641

)

Total tax charge

906,343

1,321,150

9.

DIVIDENDS

2026

2025

£

£

Interim

3,000,000

2,000,000