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Registered number: SC190923 PESECO LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
PESECO LIMITED COMPANY INFORMATION
Directors | Mrs Ilirjana Bradley
| Global Renewable Energy Investments B.V.
Company secretary | Raeburn Christie Clark & Wallace LLP
Registered number | SC190923
Registered office | Suite L1
| Badentoy Avenue
| Badentoy Park
| Portlethen
| Aberdeen
| AB12 4YB
Trading Address | Suite L 1
| Badentoy Avenue
| Badentoy Park
| Portlethen
| Aberdeen
| AB12 4YB
Auditor | MHA
| Aberdeen
| United Kingdom
PESECO LIMITED CONTENTS
| Page
Strategic report | 1 - 2
Directors' report | 3 - 4
Independent auditors' report | 5 - 8
Consolidated Statement of Comprehensive Income | 9
Group balance sheet | 10
Company balance sheet | 11
Group statement of changes in equity | 12
Company statement of changes in equity | 13
Group statement of cash flows | 14
Notes to the financial statements | 15 - 34
PESECO LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present the strategic report and audited financial statements for the year ended 31 December 2025. The company's principal activity is the provision of consultant engineering services and sale of oilfield equipment.
Review of the business
The results of the group show a comprehensive income for the year of $267,513 (2024 - $17,679) and turnover of $13,385,522 (2024 - $13,115,978).
Principal risks and uncertainties
The key risks and uncertainties affecting both the group and the company are considered to relate to the international energy sector in general, where a continuation of a sustained downturn in oil and gas prices, coupled with continued reduction in exploration levels would have a negative impact on future profitability. To meet these challenges,both the group and the company continue to strive to develop and deepen both customer and supplier relationships, and to expand the customer base. In addition to this, the group, the company and the AEX Developments DMCC are actively supplying to, and investing in, the geothermal energy market.
Financial risks
Price Risk: The group has no significant exposure to price risk which will affect the valuation of its financial assets and liabilities. Credit Risk: The group’s exposure to credit risk arises from trade and other receivables, margin deposits and cash and cash equivalents placed with the banks. Banking transactions are limited to the branches of international banks operating in the countries of operation. The group has policies and procedures in place to ensure that it is not exposed to undue credit risk and for monitoring and follow up of the debtors. The group's exposure to credit risk on trade receivables is influenced mainly by the individual characteristics of each customer and the demographics of customer's customer base, including the default risk of the industry and country in which customers operate. Liquidity Risk: Liquidity Risk is managed locally with group support available should the company need it. Cash flow forecasts are maintained and monitored daily in order to effectively manage liquidity.
Key performance indicators
Given the straightforward nature of the business, the group's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
Future outlook
The outlook is positive for the foreseeable future. The directors regularly review the cost base and the operational structure of the group to ensure maximum efficiency. The groups members have complimentary activities and support each company in the group well. Page 1
PESECO LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 On behalf of the board.
Mrs Ilirjana Bradley Director
Date: 16 April 2026
Page 2
PESECO LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The directors present their report and the financial statements for the year ended 31 December 2025. Financial risk management and future outlook are outlined in the strategic report.
Results and dividends
The results for the year are set out on page 10. The financial statements are prepared in US dollars. No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who served during the year and up to the date of signature of the financial statements were as follows:
Mrs Ilirjana Bradley
Global Renewable Energy Investments B.V.
Post reporting date events
There are no events that have occurred after the reporting date of 31 December 2025 that require to be disclosed by the directors in this report.
Future developments
This has been disclosed in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the group's financial statements 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 group 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 group and parent company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 3
PESECO LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Auditor
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. MHA will be proposed for reappointment as auditor in accordance with section 485 of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the group is aware of that information.
Going concern
Both the group and the company meet their day-to-day working capital requirements through its cash reserves and continued trading. Both continue to work closely with Barclays and makes use of a trade loan facility which helps with cashflow management. The group's and the company's forecasts and projections, taking account of potential changes in trading performance, show that they both will be able to operate within the level of its current cash reserves. After making enquiries, the directors have a reasonable expectation that both the group and the company have adequate resources to continue in operational existence for the foreseeable future. The group and the company can also rely on financial support from its parent company, if required. Both therefore continue to adopt the going concern basis in preparing financial statements.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium sized companies exemption. On behalf of the board
Mrs Ilirjana Bradley Director
Date: 16 April 2026
Page 4
PESECO LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PESECO LIMITED
Opinion
We have audited the financial statements of PESECO Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and the notes to the financial, including significant accounting policies. The financial reporting framework that has been applied in their presentation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 5
PESECO LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PESECO LIMITED (CONTINUED)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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.
Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the group and 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 Directors' Report
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 parent company or to cease operations, or have no realistic alternative but to do so. Page 6
PESECO LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PESECO LIMITED (CONTINUED)
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 an auditors' 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 Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙Agreement of the financial statements disclosure to underlying supporting documentation, review of correspondence and enquiries of management and those charged with governance; ∙Enquiry of management and those charged with governance around actual and potential litigation and claims; ∙Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; ∙Reviewing financial statement calculations disclosures and discussing the applicability of those disclosures with relevant finance staff, the appropriateness of accounting policies as they apply to the company; and ∙Audited the risk of management override of controls, including through testing manual accounting entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. In particular, our testing focussed on revenue recognition, the recognition of purchases in the correct financial period and the calculation of accrued and deferred income. 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 auditors' 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 auditors' 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. Page 7
PESECO LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PESECO LIMITED (CONTINUED) Stuart MacPherson ACCA (Senior Statutory Auditor) For and on behalf of MHA, Statutory Auditor Aberdeen United Kingdom 16 April 2026
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542) Page 8
PESECO LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024
Note | $ | $
Turnover | 4 | 13,385,522 | 13,115,978
Cost of sales |  | (10,978,358) | (11,164,888)
Gross profit |  | 2,407,164 | 1,951,090
Administrative expenses |  | (1,897,466) | (1,858,041)
Operating profit | 5 | 509,698 | 93,049
Interest receivable and similar income |  | 307 | 1,996
Interest payable and similar expenses |  | (60,218) | (35,106)
Profit before taxation |  | 449,787 | 59,939
Tax on profit | 10 | (139,680) | 10,872
Profit for the financial year |  | 310,107 | 70,811
Currency translation differences |  | (42,594) | (53,132)
Other comprehensive income for the year |  | (42,594) | (53,132)
Total comprehensive income for the year |  | 267,513 | 17,679
Profit for the year attributable to: |  |  |
Owners of the Parent Company |  | 310,107 | 70,811
|  | 310,107 | 70,811
Total comprehensive income for the year is all attributable to the owners of the parent company.
Page 9
PESECO LIMITED REGISTERED NUMBER: SC190923 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | $ |  | $
Fixed assets |  |  |  |  |
Intangible assets | 11 |  | 187,749 |  | 241,391
Tangible assets | 12 |  | 3,693 |  | 1,707
|  |  | 191,442 |  | 243,098
Current assets |  |  |  |  |
Stocks | 15 | 2,348,599 |  | 2,363,841 |
Debtors: amounts falling due within one year | 16 | 9,028,335 |  | 2,669,752 |
Bank and cash balances |  | 1,266,773 |  | 103,632 |
|  | 12,643,707 |  | 5,137,225 |
Creditors: amounts falling due within one year | 17 | (10,718,010) |  | (3,530,697) |
Net current assets |  |  | 1,925,697 |  | 1,606,528
Total assets less current liabilities |  |  | 2,117,139 |  | 1,849,626
Provisions for liabilities |  |  |  |  |
Net assets excluding pension asset |  |  | 2,117,139 |  | 1,849,626
Net assets |  |  | 2,117,139 |  | 1,849,626
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 140 |  | 140
Foreign exchange reserve |  |  | (95,726) |  | (53,132)
Profit and loss account |  |  | 2,212,725 |  | 1,902,618
Equity attributable to owners of the Parent Company |  |  | 2,117,139 |  | 1,849,626
|  |  | 2,117,139 |  | 1,849,626
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 April 2026.
Mrs Ilirjana Bradley
Director
Page 10
PESECO LIMITED REGISTERED NUMBER: SC190923 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | $ |  | $
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 3,693 |  | 1,707
Fixed asset investments | 13 |  | 1 |  | 1
|  |  | 3,694 |  | 1,708
Current assets |  |  |  |  |
Stocks | 15 | 19,201 |  | 34,443 |
Debtors: amounts falling due within one year | 16 | 8,987,333 |  | 4,902,421 |
Bank and cash balances |  | 788,345 |  | 103,581 |
|  | 9,794,879 |  | 5,040,445 |
Creditors: amounts falling due within one year | 17 | (7,586,331) |  | (3,251,090) |
Net current assets |  |  | 2,208,548 |  | 1,789,355
Net assets |  |  | 2,212,242 |  | 1,791,063
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 140 |  | 140
Profit and loss account brought forward |  | 1,790,923 |  | 1,831,807 |
Profit/(loss) for the year |  | 421,179 |  | (40,884) |
Profit and loss account carried forward |  |  | 2,212,102 |  | 1,790,923
|  |  | 2,212,242 |  | 1,791,063
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 April 2026.
Mrs Ilirjana Bradley
Director
Page 11
PESECO LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
| Share Capital | Currency translation reserve | Profit and loss reserves | Total equity
| $ | $ | $ | $
At 1 January 2024 | 140 | - | 1,831,807 | 1,831,947
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 70,811 | 70,811
Currency translation differences | - | (53,132) | - | (53,132)
Total comprehensive income for the year | - | (53,132) | 70,811 | 17,679
At 1 January 2025 | 140 | (53,132) | 1,902,618 | 1,849,626
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 310,107 | 310,107
Currency translation differences | - | (42,594) | - | (42,594)
Total comprehensive income for the year | - | (42,594) | 310,107 | 267,513
At 31 December 2025 | 140 | (95,726) | 2,212,725 | 2,117,139
Page 12
PESECO LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
| Share capital | Profit and loss reserves | Total equity
| $ | $ | $
At 1 January 2024 | 140 | 1,831,807 | 1,831,947
Comprehensive income for the year |  |  |
Loss for the year | - | (40,884) | (40,884)
Total comprehensive income for the year | - | (40,884) | (40,884)
At 1 January 2025 | 140 | 1,790,923 | 1,791,063
Comprehensive income for the year |  |  |
Profit for the year | - | 421,179 | 421,179
Total comprehensive income for the year | - | 421,179 | 421,179
At 31 December 2025 | 140 | 2,212,102 | 2,212,242
Page 13
PESECO LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025
|  |  | 2025 | 2024
|  |  | $ | $
Cash flows from operating activities |  |
Profit for the financial year | 310,107 | 70,811
Adjustments for: |  |
Amortisation of intangible assets | 53,642 | 26,821
Depreciation of tangible assets | 1,586 | 709
Interest paid | 60,218 | 35,106
Interest received | (307) | (1,996)
Taxation charge | 139,680 | (10,872)
Decrease in stocks | 15,242 | 12,209
(Increase)/decrease in debtors | (6,362,639) | 3,452,016
Increase/(decrease) in creditors | 7,032,037 | (4,004,892)
Interest paid | (60,218) | (35,106)
Income taxes paid | (98,140) | (108,585)
Net cash generated from operating activities | 1,091,208 | (563,779)
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (3,572) | (1,151)
Purchase of fixed asset investments | - | 74,928
Interest received | 307 | 1,996
Net cash from investing activities | (3,265) | 75,773
Cash flows from financing activities |  |
New secured loans | 2,602,158 | -
Repayment of loans | (2,484,366) | (15,297)
Net cash used in financing activities | 117,792 | (15,297)
Net increase/(decrease) in cash and cash equivalents | 1,205,735 | (503,303)
Cash and cash equivalents at beginning of year | 103,632 | 660,067
Foreign exchange gains and losses | (42,594) | (53,132)
Cash and cash equivalents at the end of year | 1,266,773 | 103,632
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 1,266,773 | 103,632
| 1,266,773 | 103,632
Page 14
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | Company information
PESECO Limited (the company) is a private company limited by shares incorporated and domiciled in Scotland. The company’s principal activities are the provision of consultant engineering services and sale of oilfield equipment. The company's principal place of business is Badentoy Park, Portlethen, United Kingdom, same as the company's registered office. The parent company is AEX Developments DMCC, incorporated and domiciled in the UAE. The group consists of PESECO Limited and its subsidiary PESECO B.V. Summary of Significant Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.Accounting policies
| 2.1 | Accounting convention
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 US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $. The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
| 2.2 | Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment. Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. Page 15
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.3 | Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company PESECO Limited together with all entities controlled by the parent company (its subsidiaries). All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
| 2.4 | Going concern
The principal activities, risks and uncertainties and future outlook are set out in the Strategic and Directors’ Report on pages 1 to 4. Both the group and the company meet its day-to-day working capital requirements through its cash reserves and continued trading. Both the group and the company continue to work closely with Barclays and makes use of a trade loan facility which helps with cash flow management. The group's and the company's forecasts and projections, taking account of potential changes in trading performance, show that the company will be able to operate within the level of its current cash reserves. The group can also rely on financial support from its parent company, if required. After making enquiries, the directors have a reasonable expectation that both the group and the company have adequate resources to continue in operational existence for the foreseeable future. Both the group and the company therefore continue to adopt the going concern basis in preparing financial statements.
| 2.5 | Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the group’s activities. Turnover is shown net of value-added tax, returns, rebates and discounts. The group recognises revenue when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of the arrangement. Sale of goods is recognised when the group has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is reasonably assured. Revenue from services is recognised in the periods services are provided and accrued if delivered but not invoiced at the year end. Where the products have not been delivered or the services have not been performed, but settlements have been received in advance, revenue recognition is deferred until completion of delivery of the products or performance of the services. Page 16
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.6 | Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years. For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
| 2.7 | Tangible fixed assets
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: Plant and machinery 25% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
| 2.8 | Fixed asset investment
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. Page 17
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.9 | Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
| 2.10 | Stocks
Stocks are stated at the lower of cost and estimated net realisable value, after making due allowance for obsolete and slow moving items. Cost is determined using the first-in, first-out (FIFO) method. Costs are specifically identified against each item of inventory. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
| 2.11 | Cash and cash equivalents
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.
| 2.12 | Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Page 18
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.12 | Financial instruments (continued)
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets 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. Impairment of financial assets 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. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Page 19
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.12 | Financial instruments (continued)
Basic financial liabilities Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, 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. 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. Derecognition of financial liabilities Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
| 2.13 | Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
| 2.14 | Taxation
The tax expense for the period 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. In this case, the tax is also recognised in equity. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax 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. Page 20
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued) The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
| 2.15 | Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
| 2.16 | Retirement benefits
The company 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 company has no further payment obligations. The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
| 2.17 | Leases
As lessee Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Page 21
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.18 | Foreign exchange
Foreign Currency Translation (a) Functional and Presentation Currency: Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). This is also the presentation currency of the company. The financial statements are presented in United States Dollars (USD), which is the company's functional currency. (b) Transactions and Balances: Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. Foreign exchange gains and losses are presented in the profit and loss account within "Administrative Expenses". (c) Translation of subsidiary balances Changes in the fair value of derivative financial instruments that are designed and effective as hedges Foreign exchange gains and losses that arise as a result of translating subsidiary transactions where that subsidiary uses a different functional currency are reported in other comprehensive income and recorded direct to equity as a currency translation reserve. Page 22
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Judgments and key sources of estimation uncertainty
In the application of both the group's and 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. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates may, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (a) Impairment of trade and other receivables The impairment charge reflects estimates of losses arising from the failure or inability of the parties concerned to make the required payments. The charge is based on aging of the customers' accounts, the customers' creditworthiness and the historic write-off experience. Changes to the estimated impairment charge may be required if the financial condition of the customers was to improve or deteriorate. (b) Income tax The company is subject to income taxes in the UK. Significant judgement is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. (c) Provision for inventory write-down The company carries out a review of all items held in inventory each year, focussing on the carrying value of each item. Professional judgement is used to determine whether a provision should be made and, if so, the value of the write-down. When arriving at a decision, consideration is made as to the current marketconditions, the age and condition of the material, the storage location and the demand and availability of the product. (d) Functional currency The company considers the functional currency that should be applied to the financial statements. The parent company is judged to have US dollars as its functional currency by virtue of the level of revenue and cost of sales transactions conducted in that currency. For the same reason, the subsidiary is considered to have its functional currency as Euros and the subsidiary results are translated to US dollars for the purposes of the consolidation. Page 23
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
4. | Turnover
| Turnover analysed by class of business
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Equipment sales and rentals | 12,720,530 | 12,655,450
| Engineering services | 664,992 | 460,528
|  | 13,385,522 | 13,115,978
Turnover analysed by geographical market
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Rest of the World | 13,385,522 | 13,115,978
|  | 13,385,522 | 13,115,978
5. | Operating profit
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Operating profit for the year is stated after charging: |  |
| Exchange losses | 80,813 | 18,628
| Fees payable to the group's auditor for the audit of the group's financial statements | 23,750 | 22,000
| Depreciation - plant and machinery | 1,586 | 709
| Amortisation - intangible fixed assets | 53,642 | 26,821
| T Operating lease charges | 139,928 | 149,457
Page 24
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
6. | Employees
| The average monthly number of persons (including directors) employed by the group and company during the year was:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | Number | Number | Number | Number
| Directors | 2 | 2 | 1 | 1
| Management | 1 | 1 | 1 | 1
| Sales Support/ Administration | 6 | 8 | 6 | 7
| Total | 9 | 11 | 8 | 9
| Their aggregate remuneration comprised:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Wages and salaries | 526,538 | 534,404 | 526,539 | 496,585
| Social security costs | 43,856 | 34,359 | 43,856 | 34,359
| Pension costs | 36,924 | 32,827 | 36,924 | 32,827
|  | 607,318 | 601,590 | 607,319 | 563,771
7. | Interest receivable and similar income
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Interest income |  |
| Interest receivable | 307 | 1,996
8. | Interest payable and similar expense
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Interest on financial liabilities measured at amortised cost: |  |
| Interest payable on bank overdrafts and loans | 60,218 | 35,106
Page 25
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
9. | Auditors' remuneration
| During the year, the group obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 23,750 | 22,000
10. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Corporation tax |  |
| Current tax on profits for the year | 139,680 | (12,939)
| Adjustments in respect of previous periods | - | 2,067
|  | 139,680 | (10,872)
| Total current tax | 139,680 | (10,872)
| Factors affecting tax charge for the year
| The tax assessed for the year is the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Profit on ordinary activities before tax | 449,787 | 59,939
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 112,447 | 14,985
| Effects of: |  |
| Expenses not deductible in determining taxable profit | 18,178 | (11,234)
| Utilisation of tax losses not previously recognised | - | (16,690)
| Adjustments to tax charge in respect of prior periods | - | 2,067
| Short-term timing difference leading to an increase (decrease) in taxation | 9,055 | -
| Total tax charge for the year | 139,680 | (10,872)
Page 26
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
11. | Intangible assets
| Group and Company
|  | Goodwill
|  | $
| Cost |
| At 1 January 2025 | 268,212
| At 31 December 2025 | 268,212
| Amortisation |
| At 1 January 2025 | 26,821
| Charge for the year | 53,642
| At 31 December 2025 | 80,463
| Net book value |
| At 31 December 2025 | 187,749
| At 31 December 2024 | 241,391
The company's intangible fixed assets represent goodwill at 31 December 2025 which has been assessed and considered to be free from impairment. Goodwill represents the amount paid for the subsidiary in excess of the net liabilities of the subsidiary on date of acquisition. Goodwill is being amortised over a period of five years. Page 27
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
12. | Tangible fixed assets
| Group
|  | Plant and machinery
|  | $
| Cost |
| At 1 January 2025 | 103,339
| Additions | 3,572
| At 31 December 2025 | 106,911
| Depreciation |
| At 1 January 2025 | 101,632
| Depreciation charged in the year | 1,586
| At 31 December 2025 | 103,218
| Net book value |
| At 31 December 2025 | 3,693
| At 31 December 2024 | 1,707
Page 28
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 12.Tangible fixed assets (continued)
| Company
|  | Plant and machinery
|  | $
| Cost or valuation |
| At 1 January 2025 | 103,339
| Additions | 3,572
| At 31 December 2025 | 106,911
| Depreciation |
| At 1 January 2025 | 101,632
| Depreciation charged in the year | 1,586
| At 31 December 2025 | 103,218
| Net book value |
| At 31 December 2025 | 3,693
| At 31 December 2024 | 1,707
Page 29
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
13. | Fixed asset investments
| Group The net book value of the investments in subsidiaries was $nil (2024 - $nil) in the consolidated accounts.
| Company
|  | Unlisted investments
|  | $
| Cost or valuation |
| At 1 January 2025 | 1
| At 31 December 2025 | 1
14. | Subsidiaries
Details of the company's subsidiaries at 31 December 2025 are as follows: Name of undertaking Registered Office Class of % Held Shares held Direct PESECo B.V. Concertgebouwplein 25 Ordinary 100.00 1071 LM Amsterdam The Netherlands The subsidiary generated turnover of $29,677 (2024 -$3,622,245) and a loss of $90,968 (2024 - profit $66,757).
15. | Stocks
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Finished goods and goods for resale | 2,348,599 | 2,363,841 | 19,201 | 34,443
Page 30
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
16. | Debtors
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Amounts falling due within one year |  |  |  |  |
| Trade debtors |  | 1,053,392 | 1,082,350 | 1,053,392 | 664,590
| Corporation tax repayable |  | - | 564 | - | -
| Amounts owed by group undertakings |  | 2,115,379 | 1,113,850 | 2,115,379 | 4,122,659
| VAT repayable |  | 25,790 | 43,631 | 25,790 | 43,631
| Prepayments and accrued income |  | 5,765,024 | 384,861 | 5,765,026 | 71,541
| Other debtors |  | 27,746 | - | 27,746 | -
| Deferred tax asset | 21 | 41,004 | 44,496 | - | -
|  |  | 9,028,335 | 2,669,752 | 8,987,333 | 4,902,421
17. | Creditors: amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Bank loans | 20 | 649,792 | 532,000 | 649,792 | 532,000
| Payments received on account |  | - | 60,558 | - | 60,558
| Trade creditors |  | 1,089,652 | 2,510,982 | 1,077,894 | 2,233,986
| Amounts owed to group undertakings |  | - | - | 1,979,893 | -
| Corporation tax payable |  | 118,425 | 80,941 | 118,425 | 80,941
| Other taxation and social security |  | 529,179 | 8,915 | 41,548 | 8,915
| Other creditors |  | 13,774 | 2,611 | - | -
| Accruals and deferred income |  | 8,317,188 | 334,690 | 3,718,779 | 334,690
|  |  | 10,718,010 | 3,530,697 | 7,586,331 | 3,251,090
18. | Retirement benefit schemes
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
| Defined contribution schemes |  |
| Charged to profit or loss in respect of defined contribution schemes | 36,924 | 32,827
| A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Page 31
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
19. | Related party transactions
As a wholly owned subsidiary of AEX Developments FZCO, the company has taken advantage of the exemption in section 33.1 of FRS 102 not to disclose transactions with wholly owned group companies. During the year, services totalling $393,107 (2024 - $399,606) were provided by the corporate director or company controlled by the natural director. During the year, sales totalling $3,746 (2024 - $nil) were made to companies which have the same common control as AEX Developments group.
20. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Amounts falling due within one year |  |  |  |
| Bank loans | 649,792 | 532,000 | 649,792 | 532,000
| Bank loans represent the balance due at 31 December 2025 on a trade loan facility with Barclays Bank PLC.The bank holds a floating charge over the assets of the company.
21. | Deferred taxation
| Group
|  | 2025
|  | $
| At beginning of year | (44,496)
| Charged to profit or loss | 3,492
| At end of year | (41,004)
Page 32
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 21.Deferred taxation (continued)
| Company
|  | 2025 $
| At 1 January & 31 December 2025 | -
|  | Group | Group
|  | 2025 | 2024
|  | $ | $
| Accelerated capital allowances | 41,004 | 44,496
|  | 41,004 | 44,496
22. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | $ | $
|  | Group and company Allotted, called up and fully paid |  |
|  | 100 (2024 - 100) A Ordinary shares of $1.40 each | 140 | 140
All shares rank pari pasu in all respects.
23. | Commitments under operating leases
| At 31 December 2025 the group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | $ | $ | $ | $
| Not later than 1 year | 56,243 | 52,139 | 56,243 | 52,139
| Later than 1 year and not later than 5 years | 8,367 | 27,704 | 8,367 | 27,704
|  | 64,610 | 79,843 | 64,610 | 79,843
| During the year $139,928 (2024 - $149,457) of lease payments were recognised as an expense.
Page 33
PESECO LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
24. | Events after the reporting date
There are no events that have occurred after the reporting date of 31 December 2025 that require to be disclosed in these financial statements.
25. | Controlling party
The ultimate parent undertaking is AEX Developments FZCO, a company incorporated in the UAE. The address is Jumeirah Lakes Towers, JBC 1, 25th Floor, Office 2504, Dubai, United Arab Emirates. Their accounts can be obtained from their office. Until 30 June 2024 the company's parent undertaking was IPS Group Holding B.V. a company incorporated in The Netherlands. The ultimate controlling party throughout the whole year is Bart Duijndam.
26. | Analysis of changes in net funds/(debt)-group
|  | 1 January 2025 | Cash flows | 31 December 2025
|  | $ | $ | $
| Cash at bank and in hand | 103,632 | 1,163,141 | 1,266,773
| Borrowings excluding overdrafts | (532,000) | (117,792) | (649,792)
|  | (428,368) | 1,045,349 | 616,981
Page 34