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

Company performance in both the UK and export markets were similar to the previous financial year; the UK dumper market continues to suffer from a lack lustre housing market and poor overall economic activity.

Our site re-development project was completed by the end of financial year and has significantly improved site health and safety and an employee’s day to day work experience (e.g. upgraded employee car parking and security). The new factory space and subsequent operational moves will enable the company to increase production capacity and improve efficiencies as we plan for future expansion.

Research and Development continued as the Company invested in new products, designs and systems.

The Company produces a range of products dedicated to serving the construction industry, especially housebuilding. Although countries around the world utilise dumpers the main customer base is in the UK and wider European region. The construction industry is cyclical, and the Company is well prepared to react to changing circumstances.

We are hopeful of an increase in UK building activity during 2026 with further decreases in bank of England interest rates and resultant fall in the cost of capital and mortgage interest rates.

Product development and improvements in manufacturing methods remains core to the future of the Company. Investment in both sectors was maintained and increased during the year.

The primary key performance indicators are sales revenue and gross profit, as set out in the accounts and notes that follow. Sales revenue increased to £84.6m (2024: £79.7m), whilst gross profit increased to £13.5m (2024: £13.0m).

The directors of the company are required to act in accordance with their duty, as laid out in section 172(1) of the UK Companies Act 2006, to promote the success of the company for the benefit of its shareholders as a whole. As part of this duty, the directors' are required to have regard to:

a) The likely consequences of any decision in the long term;

b) The interests of the company’s employees;

c) The need to foster the company’s business relationships with suppliers, customers and others;

d) The impact of the company’s operations on the community and the environment;

e) The desirability of the company maintaining a reputation for high standards of business conduct; and

f) The need to act fairly as between members of the company.

The following paragraphs summarise how the directors' have satisfied these duties in respect of the year ended 31 August 2025:

The Directors hold regular board meetings to consider the Company's strategy and direction over the long term. The Company continues to diversify its revenue streams and customer base to reduce risk.

Our people

The employees of the Company are considered an integral part of our success. The Directors endeavour to ensure that open lines of communication are available throughout the Company to maintain a shared culture. The Company operates a bonus scheme to ensure that employee motivations are aligned with the direction of the Company. The majority of employees are longstanding which reflects positively on the culture of the Company and the working environment which includes pension, health scheme, sick pay and holidays with accrual of additional days for long service. The Company has worked closely with all employees to ensure a safe working environment during the current Covid pandemic.

Business relationships

The Company maintains a strong and flexible relationships with the supply chain and customers. All suppliers benefit from a well-planned production schedule and prompt payment for goods. The customer base of distributors is key to the success of the business and offer sales and service of the products to their local region or country. The majority of distributors have worked in partnership with the Company for many years.

Community and environment

The Company endeavours to keep its environmental footprint small and engage with local charities to bring a positive impact to the local community. The Company reports on key environmental issues via a formal structure. The Company remains a core part of the community with regular donations to schools and charities.

Business conduct

The values of the Company to behave with integrity are shared by all employees. The family-owned ethos which includes a long-term view remains core to the success of the Company.

Shareholder relationships

All shareholders of the Company are represented on the board and are given an opportunity to influence the strategic and operational decisions of the Company.

Energy and Carbon Reporting

The Company's senior management meet regularly to discuss strategies to reduce our carbon footprint and increase our energy efficiency.

The energy consumed by the company is measured in kWh and the resultant CO2 emissions arising from that energy use in tonnes was 0.012 (2024: 0.014) tonnes per square foot.

On behalf of the board

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

The principal activity of the company continued to be that of the design, manufacture and sale of a range of four wheel drive articulated dumpers and their associated parts support.

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

The results for the year are set out on page 11.

A final dividend of £4,002,048 was declared during the year in respect of the Ordinary and Ordinary 'B' shares (2024: £4,002,048). No interim payment was made during the year in respect of this dividend (2024: £nil). The balance will be settled in two payments, to be made on 24 April 2026 and 21 August 2026.

The company's operations expose it to a variety of risks, including: liquidity risk, foreign currency risk and credit risk. The directors have implemented policies and procedures in order to, as far as practicable, mitigate the exposure of the company to these risks.

The company manages working capital through rolling cash flow projections. Policies are in place to ensure sufficient liquidity is maintained within the cash reserves of the company.

The company’s principal foreign currency exposure arises from trading with overseas companies. The company mitigates its exposure to foreign currency exchange rate fluctuations through the use of forward currency contracts and careful management of the foreign currency cash balances held.

The company's principal financial assets are cash at bank and trade debtors. Any credit risk exposure is restricted to trade debtors, and is limited to the extent to which a customer may not be able to settle a balance falling due. The company has robust credit control policies in place to manage this risk and considers the overall risk to be low on the basis of a well diversified portfolio of customers.

The company has an ongoing research and development program targeted at continual product development. The total expenditure on research and development activities was £2,105,000 (2024: £1,930,000).

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, representative groups and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through company wide presentations, information bulletins and reports, which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

There have been no material events since the balance sheet date.

The company recognises its environmental and social responsibilities and understands the importance of its role in improvements in its environmental impact.

The company has implemented policies to cover its ambitions and set targets which are reviewed on a quarterly basis.

Energy: we recognise the importance of energy efficiency and its consequent environmental impact. The targeted reductions benefit both company profits and reduced CO2 emissions. Installation of an energy control system, supported by a programme of replacement energy efficient equipment, has enabled constant monitoring and control in order to keep energy waste to a minimum.

Waste: we work with our suppliers to reduce the amount of waste in their packaging by encouraging the use of returnable pallets and containers. Where possible we re-use packaging for our own shipments and remnants are appropriately recycled or disposed. We continue to monitor these activities and actively challenge improvement to our waste streams.

The company is committed to making careful assessments of its levels of energy consumption, and of the resultant carbon dioxide emissions on the environment. The company’s senior management meet regularly to discuss strategies to reduce our carbon footprint and increase our energy efficiency.

This includes, for example, ensuring the maximisation of supplier returnable packaging, the routine replacement of energy saving light fittings and site monitoring of potential water leaks across the site. Additionally, a natural gas supply was added to the site in the previous financial year, enabling the transition away from bottled propane gas, which has provided a more efficient, and reliable, supply.

Energy usage covered in this disclosure covers the entire company site and is primarily electricity and oil heating. The reporting period is the year to 31 August 2025.

Energy usage has been calculated based on gas and electricity meter readings, extrapolated where readings were not available.

The company has followed the 2019 UK Government environmental reporting guidance and we have used the UK Government conversion factors relating to the applicable year.

Saffery LLP have expressed their willingness to continue in office.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, the need to foster the company's business relationships and employee engagement.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Thwaites Limited (the 'company') for the year ended 31 August 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 August 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Thwaites Limited is a private company limited by shares incorporated in England and Wales. The registered office is Welsh Road, Cubbington, Leamington Spa, Warwickshire, CV32 7NQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research and development expenditure is written off against profits in the year in which it is incurred.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and assets under construction are not depreciated.

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

At each reporting period end date, the company 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.

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

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

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

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

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 company after deducting all of its liabilities.

Basic financial liabilities, including trade and other creditors 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company 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 company.

The company enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company designs, manufactures and sells construction equipment and is subject to market demands and regulatory requirements. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provision required. When calculating the stock provision, management consider the nature and condition of stock held, and apply assumptions around the anticipated saleability of finished goods and the future usage of raw materials. See note 14 for the net carrying amount of stock and the value of the associated provision.

The company designs, manufactures and sells construction equipment with certain products having a warranty period associated with their sale. As a result, the company considers the expected future cost of warranty claims and the provision arising. When calculating the provision required, management considers its obligation to make good eligible issues within the relevant warranty period for those products with warranty conditions attached, and takes into account historical data and known warranty issues. See note 19 for the movement in the warranty provision and the value provided at the balance sheet date.

An analysis of the company's turnover is as follows:

In the opinion of the directors it would be seriously prejudicial to disclose turnover by geographical market.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024: 1).

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

Freehold land of £610,000 (2024: £610,000) has not been depreciated.

Stocks are stated net after provisions for impairment of £1,187,000 (2024: £1,138,000).

The company has a bank facility with HSBC granting the bank a fixed and floating charge over certain assets of the business.

Amounts borrowed under the bank loan are secured by way of a fixed charge over the property of the company.

The loan accrues interest at a rate of 2.4% per annum above the Bank of England base rate. The loan interest is repayable quarterly from the initial drawdown of funds.

Capital repayments commence 27 months following the initial drawdown of funds. The initial capital repayment is therefore due in July 2026.

It is expected that most warranty expenditure will be incurred in the following financial year and nearly all will be incurred within two years of the balance sheet date. The time value of money is considered immaterial.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The rate at which deferred tax is calculated is 25.00% (2024: 25.00%).

The deferred tax liability set out above is not expected to reverse until such time when the depreciation charged on fixed assets exceeds the capital allowances available.

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

There are no rights, preferences and restrictions attached to either class of share.

All classes of shares shall rank pari passu in all respects, except that the profits of the company which are resolved to be divided amongst the members in any year shall be applied in paying to the holders of the respective classes of shares dividends at such respective rates (if any) as the company in general meeting shall determine and so that a dividend or dividends may be declared on one or several classes of shares to the exclusion of any class or classes and that dividends at different rates may be declared on the respective classes of shares. The directors may pay an interim dividend or dividends on one or several classes of shares to the exclusion of any class or classes and may pay interim dividends at different rates on the respective classes of shares.

The 'B' Ordinary shares have full and equal rights to participate in voting in all circumstances.

The capital redemption reserve represents the nominal value of shares repurchased by the company.

Amounts contracted for but not provided in the financial statements:

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

Total lease payments recognised as an expense in the year were £190,397 (2024: £178,118).

The remuneration of key management personnel, including directors, is as follows.

Dividends for the year of £1,695,573 (2024: £1,695,573) are receivable by close members of directors' families by virtue of their shareholdings. Included in dividends payable within creditors at the year-end is a balance of £1,695,573 (2024: £1,695,573) payable to close members of directors' families.

Dividends for the year of £2,306,475 (2024: £2,306,475) are receivable by directors, by virtue of their shareholdings. Included in dividends payable within creditors at the year end is a balance of £2,306,475 (2024: £2,306,475) payable to directors of the company, by virtue of their shareholdings.

At 31 August 2025, included within other debtors, is a loan balance of £nil (2024: £4,080,000) due from a connected company. The company is connected by virtue of being controlled by a director of the company. This loan was fully repaid during the financial year.

Total loan interest receivable of £41,123 (2024: £80,000) was recognised on this loan during the year.

The directors are of the opinion that there is no controlling party.