REGISTERED NUMBER: 15439020 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

Comet SPV 1 Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Profit and Loss Account

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

M Caetano

B Mota

AP Antunes

T Vieira

REGISTERED OFFICE:

Hamilton Road

Sutton-in-Ashfield

Nottingham

Nottinghamshire

NG17 5LN

REGISTERED NUMBER:

15439020 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

Financial Overview

The loss on ordinary activities before taxation was £1,892,009, reflecting the significant costs associated with the acquisition of the Meteor Holdco Limited group. The directors are satisfied with the results of the operating subsidiary during the period, although 2025 was a year of moderate economic growth in the United Kingdom, slightly above or in line with 2024, but marked by structural challenges such as persistent inflation, difficulties in the youth labor market, and external risks that limited more robust economic dynamism. Performance remains "positive, yet contained," reflecting a balance between expansion and challenges across various sectors.

Financial Performance

Period to

Period to

31 Dec 2025

31 Dec 2024

£'000

£'000

Turnover

18,644

16,319

Gross Profit

3,639

3,186

Loss on ordinary activities before taxation

1,892

3,307

Strategy

During the period, as in the previous year, further progress was made to ensure that the operating subsidiary continues to maintain a balance across its product ranges and strives to increase its market share, particularly in the bespoke segment of its market, namely Lighting Poles and Guardrails.

Turnover

Total sales of the operating subsidiary decreased during the period. Selling prices are closely linked to steel purchase costs: when purchase prices decline, selling prices tend to follow, directly affecting the overall sales value. Additionally, there was a modest 3% reduction in production volume compared to the previous year, primarily in Guardrails, reflecting prevailing market conditions.

Gross Margin

Overall margins for the operating subsidiary improved by 1.7 percentage points in 2025 compared to the previous year, reversing the trend observed in recent years. This improvement was driven by enhanced performance and the resulting increase in sales value in the bespoke products market, which was more dynamic during the year. However, competition in the conventional products market has continued and will continue to put pressure on margins in this sector.

Operating Costs

Operating costs of the trading subsidiary in 2025 were in line with the previous year and consistent with market standards. Personnel expenses saw a slight increase, reflecting the growth in staff for the bespoke products market and salary adjustments aimed at ensuring the continuity of production levels.

Research and Development

The trading subsidiary continues to invest in the quality and design of its products believing that continued investment in research and development is fundamental to the growth of the business.

Capital Expenditure

The directors consider investment in material handling capacity to be necessary and have continued to invest. Some upgrades to more modern equipment have been made, improving production process times, as well as investments in the factory's roofing and cladding, which are expected to motivate employees through a substantial improvement in working conditions.

Summary of Key Performance Indicators

2025

2025

2024

Actual

Target

24 Jan 2024 to 31 Dec 2024

Sales £'000

18,644

21,030

16,318

Sales growth % compared to prior year

14.25%

-10.50%

Gross Profit Margin %

19.50%

13.30%

19.50%

Net Profit Before Tax Margin %

-10.15%

11.20%

-20.30%

Future Developments for the Business/Future Outlook

The directors believe that continuing to place emphasis on quality, design and delivery will enable the business to improve both its already strong reputation and market position as the market improves.

Principal Risks and Uncertainties

The management of the business and the nature of the trading subsidiary's strategy are subject to a number of risks.

The directors feel that the principal risk is that of not achieving turnover and the directors closely monitors this. There is also the risk of gross profit reduction and cost increases against anticipated performance. This again is closely monitored by the directors with any necessary action undertaken.

Financial risk management objectives and policies

The group uses basic financial instruments, comprising bank borrowings and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to maintain finance for the group's operations. The main risks arising from the group financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below:

Interest rate risk

The group finances its operations through a mixture of retained profits, intercompany accounts and bank borrowings. The company's exposure to interest rate fluctuations on its overdraft is managed on a group basis.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Primarily this was achieved through bank borrowings. The group policy throughout the period has been to ensure continuity of funding and short term flexibility was achieved by overdraft facilities.

ON BEHALF OF THE BOARD:

AP Antunes - Director

18 March 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.

M Caetano

B Mota

AP Antunes

T Vieira

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

AP Antunes - Director

18 March 2026

Opinion

We have audited the financial statements of Comet SPV 1 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Profit and Loss Account, 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 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 loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the group and industry in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

-

Enquiry of management around actual and potential litigation and claims;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Wayne Thomas FCA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

27 April 2026

TURNOVER

18,644,363

16,318,912

Cost of sales

15,005,284

13,133,408

GROSS PROFIT

3,639,079

3,185,504

Distribution costs

1,319,777

1,013,809

Administrative expenses

2,830,324

2,446,891

4,150,101

3,460,700

OPERATING LOSS

5

(511,022

)

(275,196

)

Interest receivable and similar income

314

-

(510,708

)

(275,196

)

Interest payable and similar expenses

6

1,381,301

3,031,762

LOSS BEFORE TAXATION

(1,892,009

)

(3,306,958

)

Tax on loss

7

(567,000

)

(431,000

)

LOSS FOR THE FINANCIAL YEAR

(1,325,009

)

(2,875,958

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,325,009

)

(2,875,958

)

Loss attributable to:

Owners of the parent

(1,325,009

)

(2,875,958

)

Total comprehensive income attributable to:

Owners of the parent

(1,325,009

)

(2,875,958

)

FIXED ASSETS

Intangible assets

9

12,481,266

14,009,584

Tangible assets

10

2,570,791

1,293,516

Investments

11

-

-

15,052,057

15,303,100

CURRENT ASSETS

Stocks

12

2,657,344

2,438,301

Debtors

13

3,337,692

2,657,013

Cash at bank

1,100,693

2,459,676

7,095,729

7,554,990

CREDITORS

Amounts falling due within one year

14

14,041,518

8,497,918

NET CURRENT LIABILITIES

(6,945,789

)

(942,928

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,106,268

14,360,172

CREDITORS

Amounts falling due after more than one year

15

(12,056,235

)

(16,985,130

)

PROVISIONS FOR LIABILITIES

19

(250,000

)

(250,000

)

NET LIABILITIES

(4,199,967

)

(2,874,958

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

(4,200,967

)

(2,875,958

)

SHAREHOLDERS' FUNDS

(4,199,967

)

(2,874,958

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2026 and were signed on its behalf by:

AP Antunes - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

12,983,256

12,983,256

12,983,256

12,983,256

CURRENT ASSETS

Debtors

13

8,383,815

8,099,163

Cash at bank

532,893

918,788

8,916,708

9,017,951

CREDITORS

Amounts falling due within one year

14

10,454,461

5,146,821

NET CURRENT (LIABILITIES)/ASSETS

(1,537,753

)

3,871,130

TOTAL ASSETS LESS CURRENT LIABILITIES

11,445,503

16,854,386

CREDITORS

Amounts falling due after more than one year

15

(10,920,000

)

(16,948,922

)

PROVISIONS FOR LIABILITIES

19

(250,000

)

(250,000

)

NET ASSETS/(LIABILITIES)

275,503

(344,536

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

274,503

(345,536

)

SHAREHOLDERS' FUNDS

275,503

(344,536

)

Company's profit/(loss) for the financial year

620,039

(345,536

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2026 and were signed on its behalf by:

AP Antunes - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,000

Total comprehensive income

-

(2,875,958

)

(2,875,958

)

Balance at 31 December 2024

1,000

(2,875,958

)

(2,874,958

)

Changes in equity

Total comprehensive income

-

(1,325,009

)

(1,325,009

)

Balance at 31 December 2025

1,000

(4,200,967

)

(4,199,967

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,000

Total comprehensive income

-

(345,536

)

(345,536

)

Balance at 31 December 2024

1,000

(345,536

)

(344,536

)

Changes in equity

Total comprehensive income

-

620,039

620,039

Balance at 31 December 2025

1,000

274,503

275,503

Cash flows from operating activities

Cash generated from operations

23

1,047,051

8,231,775

Interest paid

(1,086,212

)

(2,561,287

)

Interest element of hire purchase payments paid

(9,657

)

(1,611

)

Finance costs paid

(285,432

)

(468,864

)

Tax paid

152,881

278,119

Net cash from operating activities

(181,369

)

5,478,132

Cash flows from investing activities

Purchase of subsidiary

-

(15,283,183

)

Purchase of tangible fixed assets

(1,520,209

)

(1,438,073

)

Sale of tangible fixed assets

1,200

-

Interest received

314

-

Net cash from investing activities

(1,518,695

)

(16,721,256

)

Cash flows from financing activities

New loans in year

1,350,000

13,650,000

Loan repayments in year

(1,365,000

)

-

Capital received in year

70,648

51,800

Share issue

-

1,000

Finance cost

285,433

-

Net cash from financing activities

341,081

13,702,800

(Decrease)/increase in cash and cash equivalents

(1,358,983

)

2,459,676

Cash and cash equivalents at beginning of year

24

2,459,676

-

Cash and cash equivalents at end of year

24

1,100,693

2,459,676

1.	STATUTORY INFORMATION

Comet SPV 1 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.

Basis of consolidation

The consolidated accounts incorporate the accounts of Comet SPV 1 Limited and all of its subsidiary undertakings for the period commencing from its acquisition date 6 March 2024. The acquisition method of accounting has been adopted. No profit or loss account is presented for Comet SPV 1 Limited as permitted by section 408 of the Companies Act 2006.

In the company's financial statements, investments in subsidiary undertakings are stated at cost less amounts written off.

Turnover

Turnover from the sales of goods is recognised when the group has transferred the significant risks and rewards of ownership to the buyer and it is probable that the group will receive the previously agreed amounts upon payment. These criteria are considered to be met when the goods are delivered to the buyer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

Tangible fixed assets are stated at historical cost or deemed cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Freehold property

- Straight line over 33 years

Plant and machinery

- 20% on cost

Motor vehicles

- 25% on cost

Office equipment

- 20% on cost

Freehold land is not depreciated.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the profit and loss account.

Stocks and work in progress

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 determined on a first in first out basis.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate transaction.

Exchange gains and losses are recognised in the profit and loss account.

Leasing commitments

Rentals paid under operating leases are charged to the profit and loss account as incurred.

Hire purchase

Those held under hire purchase contracts are depreciated over their estimated useful lives. The

interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals on the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial 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 balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. 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.

Bank financing arrangements

The company has a factoring arrangement without recourse to manage its working capital and liquidity needs. Under such arrangements, trade receivables are sold or assigned to a third-party factor in exchange for immediate cash. Factored receivables are derecognised from the balance sheet when the company has transferred substantially all the risks and rewards of ownership to the factor. The proceeds from factoring are recognised as cash received. The interest element and other facility provider's charges are recognised within the profit and loss account as they accrue.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as interest expense.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The cost of certain stock is estimated based on weight.

The valuation of work in progress and finished goods is based on direct and indirect costs to date, indirect costs are estimated based on a multiple of labour costs which is reassessed each year.

Stock that has not been replenished for 12 months is considered to be obsolete and is written off to the Profit and Loss account.

4.	EMPLOYEES AND DIRECTORS

Period

24.1.24

Year Ended

to

31.12.25

31.12.24

£

£

Wages and salaries

4,130,755

3,330,049

Social security costs

513,919

387,451

Other pension costs

75,919

68,299

4,720,593

3,785,799

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

Period

24.1.24

Year Ended

to

31.12.25

31.12.24

Production staff

94

95

Administrative staff

7

7

101

102

Period

24.1.24

Year Ended

to

31.12.25

31.12.24

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

Period

24.1.24

Year Ended

to

31.12.25

31.12.24

£

£

Depreciation - owned assets

232,981

144,557

Loss on disposal of fixed assets

8,753

-

Goodwill amortisation

1,528,318

1,273,599

Auditors' remuneration

20,000

17,500

Foreign exchange differences

28,925

-

Hire of plant and machinery

-

32,243

Auditors remuneration for non-audit work

10,500

8,250