Company registration number 00144979 (England and Wales)
COLCHESTER MACHINE TOOL SOLUTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
COLCHESTER MACHINE TOOL SOLUTIONS LTD
COMPANY INFORMATION
Directors
Mr J Wright
Mr C Cattoor
Secretary
Ms S Hussain
Company number
00144979
Registered office
Lowfields Way
Lowfields Business Park
Elland
HX5 9DA
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
COLCHESTER MACHINE TOOL SOLUTIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
COLCHESTER MACHINE TOOL SOLUTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

Colchester Machine Tool Solutions Ltd is a private company limited by shares, incorporated in England and Wales, operating from Elland, West Yorkshire. The company is a wholly owned subsidiary of Incompass LLC.

The company operates across three principal areas of activity:

Machine Tools
The business has a strong and established reputation for metal cutting machines. The product range includes conventional machines, manual / CNC (computer numerical control) combination workshop machines, and CNC production machines. Manufacturing is supported by selected outsourcing partners, with machines marketed through the company’s direct sales organisation and a network of strategic distribution partners worldwide.

Precision Engineered Components
Machine tool spare parts are distributed globally to support a large installed base of machines. In addition, workholding products are supplied directly to end users and via specialist distributors, including sales to OEM (original equipment manufacturer) customers.

Industrial Permanent Laser Marking Systems
The company supplies industrial permanent laser marking systems which provide a consumable-free alternative to ink jet marking. These systems are designed for continuous, high-speed integration into customer production environments, serving applications across sectors including telecommunications, pharmaceuticals.

Principal risks and uncertainties

A formal review of commercial and operational risks is carried out annually by the management team and informs the strategic direction of the business. The principal risks affecting the company are summarised below.

Dependency on key suppliers
The unexpected withdrawal or failure of a major supplier could disrupt the company’s ability to meet customer demand. This risk is mitigated through active supplier relationship management, diversification of supply sources, and ongoing qualification of alternative partners.

Loss of key personnel
The loss of experienced employees could result in operational disruption, loss of knowledge, or weakened customer and supplier relationships. Mitigation includes competitive remuneration, succession planning, documentation of key processes, and ongoing investment in employee development.

IT systems and infrastructure failure
Failure of critical IT systems, including ERP platforms supporting inventory, order processing, and financial reporting, could materially impact operations. Controls include robust data security measures, offsite backups, disaster recovery planning, and regular system reviews.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

Financial risk management

As a wholly owned subsidiary of Incompass LLC, the company participates in the wider group risk management framework. The company is exposed to market risk, credit risk, price risk, and liquidity risk.

Market risk is mitigated through sector diversification and a balanced customer base. Fixed price arrangements with customers and suppliers are used where appropriate to manage price risk. Credit risk is controlled through credit checks, and active debtor management. Cash flow and liquidity are monitored through regular forecasting and review.

Health and safety

The company is committed to providing a safe working environment for employees, customers, and visitors, and to complying with all relevant health and safety legislation. A structured approach to training, reporting, and review is in place, with employee involvement actively encouraged.

Specialist training is provided for roles involving machine operation and manual handling. Health and safety performance is monitored through incident data and reviewed as part of regular management meetings to support continual improvement.

Key performance indicators

The directors monitor financial and operational performance using a range of key performance indicators, including revenue, operating profit, cash generation, and employee numbers. Cash flow forecasts are prepared and reviewed regularly to ensure adequate resources are available to support ongoing operations and strategic objectives.

On behalf of the board

Mr J Wright
Director
18 May 2026
COLCHESTER MACHINE TOOL SOLUTIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

Mr J Wright
Mr C Cattoor
Mr M Coleman
(Resigned 21 February 2025)
Mr A B Consdorf
(Appointed 21 February 2025 and resigned 31 December 2025)
Research and development

The company continues to invest in product design and development to support competitiveness, compliance, and long-term market relevance. Development activity during the year focused on incremental product improvements and future product pipeline initiatives.

Future developments

During 2026, the company will continue to focus on organic growth, particularly through strengthening international distributor performance and expanding selected market sectors. Planned activities include new product introductions, continued investment in engineering capability, and cross-selling opportunities with other group companies.

Strategic report

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 principal risks and uncertainties.

Statement of disclosure to auditor

Each of the directors who held office at the date of approval of these financial statements confirms that:

- so far as they are aware, there is no relevant audit information of which the company’s auditors are unaware; and

- they have taken all steps that they ought to have taken as directors to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Going Concern

At 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.

When assessing the foreseeable future, the directors have looked at the period of 12 months following the signing of these financial statements, considering factors likely to affect the future development and performance including cash flows, liquidity and principal risks and uncertainties relating to its business activities. The directors continue to monitor the ever‑changing situation and continue to evaluate the company’s ability to continue to trade on an ongoing and foreseeable basis.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Political donations

There were no political donations in the financial year.

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
Mr J Wright
Director
18 May 2026
COLCHESTER MACHINE TOOL SOLUTIONS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

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

COLCHESTER MACHINE TOOL SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLCHESTER MACHINE TOOL SOLUTIONS LTD
- 6 -
Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

COLCHESTER MACHINE TOOL SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLCHESTER MACHINE TOOL SOLUTIONS LTD (CONTINUED)
- 7 -

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.

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

Auditor 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 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:

- enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business;

- challenging assumptions and judgements made by management in their key accounting estimates;

- auditing the risk of management override of controls, including thorough testing of journal entries and other adjustments made by management for appropriateness;

- reviewing board minutes and legal and professional expenditures to identify any evidence of ongoing litigation or enquiries; and

- auditing the risk of fraud in revenue by selecting a sample of source entries and testing specific transactions to determine the occurrence of revenue.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLCHESTER MACHINE TOOL SOLUTIONS LTD (CONTINUED)
- 8 -

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Alexander Kelly BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
18 May 2026
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
COLCHESTER MACHINE TOOL SOLUTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
13,431,888
12,859,706
Cost of sales
(8,387,302)
(8,207,491)
Gross profit
5,044,586
4,652,215
Distribution costs
(1,505,396)
(2,063,321)
Administrative expenses
(2,014,758)
(2,100,521)
Other operating income
46,500
46,575
Operating profit
4
1,570,932
534,948
Interest receivable and similar income
7
14,664
5,480
Profit before taxation
1,585,596
540,428
Tax on profit
8
(65,579)
(1,111)
Profit for the financial year
1,520,017
539,317

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 25 form part of these financial statements.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
9
-
0
419
Tangible assets
10
233,936
265,022
233,936
265,441
Current assets
Stocks
11
4,381,951
4,506,402
Debtors
12
7,195,574
6,476,132
Cash at bank and in hand
3,224,730
2,484,633
14,802,255
13,467,167
Creditors: amounts falling due within one year
13
(1,960,563)
(2,176,997)
Net current assets
12,841,692
11,290,170
Net assets
13,075,628
11,555,611
Capital and reserves
Called up share capital
16
100,000
100,000
Profit and loss reserves
12,975,628
11,455,611
Total equity
13,075,628
11,555,611

The notes on pages 13 to 25 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 18 May 2026 and are signed on its behalf by:
Mr J Wright
Director
Company registration number 00144979 (England and Wales)
COLCHESTER MACHINE TOOL SOLUTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2024
100,000
10,916,294
11,016,294
Year ended 31 December 2024:
Profit and total comprehensive income
-
539,317
539,317
Balance at 31 December 2024
100,000
11,455,611
11,555,611
Year ended 31 December 2025:
Profit and total comprehensive income
-
1,520,017
1,520,017
Balance at 31 December 2025
100,000
12,975,628
13,075,628

The notes on pages 13 to 25 form part of these financial statements.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
747,889
1,103,328
Income taxes paid
(1,111)
-
0
Net cash inflow from operating activities
746,778
1,103,328
Investing activities
Purchase of tangible fixed assets
(21,345)
(17,761)
Interest received
14,664
5,480
Net cash used in investing activities
(6,681)
(12,281)
Net increase in cash and cash equivalents
740,097
1,091,047
Cash and cash equivalents at beginning of year
2,484,633
1,393,586
Cash and cash equivalents at end of year
3,224,730
2,484,633

The notes on pages 13 to 25 form part of these financial statements.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Company information

Colchester Machine Tool Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Lowfields Way, Lowfields Business Park, Elland, HX5 9DA.

1.1
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 sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, normally on an ex-works basis, 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

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:

Development costs
Straight line over useful life between 2 and 5 years
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.6
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 provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and Machinery
10 to 25%
Fixtures and fittings
10 to 33% and/or over the residual term of the lease

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.

Repair and maintenance costs are recognised in the income statement unless they provide enhancing features and then shall be capitalised as per the firm's capitalisation policy.

1.7
Impairment of fixed assets

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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

1.10
Financial instruments

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 balance sheet 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

Basic financial assets, which include debtors 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 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.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.11
Taxation

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

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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.

1.12
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.

1.13
Retirement benefits

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

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.14
Leases

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 lease s asset are consumed.

1.15

Customer deposits

On machine sales (in both lasers and machine tools), it is usual when the sale is to an individual customer, rather than a distributor or dealer, for a deposit with order to be taken and then further payments to be received before despatch of the goods - often 90 to 100%. Deposits are also common with distribution sales of customer specific 'custom' machines.

Customer deposits are not recognised in revenue and are shown in current liabilities within trade and other payables in the statement of financial position and separately identified as other creditors in note 14.

1.16

Government grants

Where possible, the company makes use of grant schemes available by the government. Government grants are recognised at the fair value of the asset received ore receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

1.17

Foreign currency

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the contract or at contract rates. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date or at the contract rate where covered by foreign exchange contracts and the gains or losses on translation are included in the profit and loss account.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

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

Stock Provision
The directors review the stock held for slow moving stock items which may indicate impairment. For items which have not been sold for a period of greater than 5 years, a provision is generally made. Items which have not been sold for more than a period of 10 years are provided for in full unless there is a specific reason not to.
Please refer to note 11.
Deferred Tax Asset

Significant judgement is required in evaluating whether sufficient taxable profits will be generated in future periods. In making this assessment, management considers both positive and negative evidence, including the nature of recent losses, industry outlook, and any non-recurring events.

Where the entity has a history of losses, deferred tax assets are recognized only if there is convincing evidence that future taxable profits will be available.

Please refer to note 14.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Sale of Goods
13,431,888
12,859,706
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Turnover and other revenue
(Continued)
- 19 -
2025
2024
£
£
Turnover analysed by geographical market
UK
7,893,613
8,712,715
Rest of Europe
4,240,344
3,385,421
Rest of World
1,297,931
761,570
13,431,888
12,859,706
2025
2024
£
£
Other revenue
Interest income
14,664
5,480
Management Fee Income
46,500
46,575
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
2,478
35,584
Fees payable to the company's auditor for the audit of the company's financial statements
43,650
41,500
Depreciation of tangible fixed assets
52,431
63,440
(Profit)/loss on disposal of tangible fixed assets
-
102,626
Amortisation of intangible assets
419
1,000
(Profit)/loss on disposal of intangible assets
-
580
Operating lease charges
373,339
405,157
5
Employees

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

2025
2024
Number
Number
Management & administration
3
5
Production
18
23
Selling & distribution
13
14
Total
34
42
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,535,037
1,912,333
Social security costs
180,428
212,328
Pension costs
100,081
126,020
1,815,546
2,250,681
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
154,923
162,736
Company pension contributions to defined contribution schemes
15,273
11,667
170,196
174,403

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

7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
14,664
5,480
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
3,545
1,111
Deferred tax
Origination and reversal of timing differences
62,034
-
0
Total tax charge
65,579
1,111
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
8
Taxation
(Continued)
- 21 -

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:

2025
2024
£
£
Profit before taxation
1,585,596
540,428
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
396,399
135,107
Tax effect of expenses that are not deductible in determining taxable profit
56,493
13,926
Effect of change in corporation tax rate
(121)
(259)
Deferred tax not provided
(388,274)
(148,774)
Fixed asset differences
1,082
1,111
Taxation charge for the year
65,579
1,111
9
Intangible fixed assets
Development costs
£
Cost
At 1 January 2025 and 31 December 2025
38,420
Amortisation and impairment
At 1 January 2025
38,001
Amortisation charged for the year
419
At 31 December 2025
38,420
Carrying amount
At 31 December 2025
-
0
At 31 December 2024
419
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
10
Tangible fixed assets
Plant and Machinery
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2025
463,963
260,000
723,963
Additions
9,863
11,482
21,345
At 31 December 2025
473,826
271,482
745,308
Depreciation and impairment
At 1 January 2025
362,284
96,657
458,941
Depreciation charged in the year
33,956
18,475
52,431
At 31 December 2025
396,240
115,132
511,372
Carrying amount
At 31 December 2025
77,586
156,350
233,936
At 31 December 2024
101,679
163,343
265,022
11
Stocks
2025
2024
£
£
Finished goods and goods for resale
4,381,951
4,506,402

The carrying value of stock is stated net of impairment losses totalling £797,386 (2024: £1,005,548 )

12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,220,785
1,435,329
Amounts owed by group undertakings
1,979,810
1,019,704
Other debtors
8,264
618,161
Prepayments and accrued income
1,121,948
476,137
4,330,807
3,549,331
Deferred tax asset (note 14)
430,331
492,365
4,761,138
4,041,696
COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
12
Debtors
(Continued)
- 23 -
2025
2024
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
2,434,436
2,434,436
Total debtors
7,195,574
6,476,132
13
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
600,947
776,912
Amounts owed to group undertakings
413,526
53,016
Corporation tax
3,545
1,111
Other taxation and social security
254,386
164,387
Other creditors
379,703
625,070
Accruals and deferred income
308,456
556,501
1,960,563
2,176,997
14
Deferred taxation

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

Assets
Assets
2025
2024
Balances:
£
£
Accelerated capital allowances
446,262
508,296
Tax losses
2,418,505
2,418,505
2,864,767
2,926,801
2025
Movements in the year:
£
Asset at 1 January 2025
(2,926,801)
Charge to profit or loss
62,034
Asset at 31 December 2025
(2,864,767)

The deferred tax asset set out above is expected to reverse within 7 years and relates to the utilisation of tax losses against future expected profits of the same period.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,081
126,020

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.

16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100,000
100,000
100,000
100,000
17
Operating lease commitments
As lessee

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:

2025
2024
£
£
Within 1 year
380,359
385,000
Years 2-5
1,361,059
1,403,000
After 5 years
1,043,838
1,382,000
2,785,256
3,170,000
18
Related party transactions

At 31 December 2025, related party debt relates to an amount due to Colchester Machine Tool Solutions Ltd of £1,979,810 (2024: £1,019,703). All balances due are from companies incorporated within the Incompass LLC group.

19
Ultimate controlling party

The Company's parent organisation is Timesavers Acquisition LLC, incorporated in the US. The results of the Company are included in the consolidated accounts of the above mentioned parent. The consolidated accounts are not available to the public.

COLCHESTER MACHINE TOOL SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
20
Cash generated from operations
2025
2024
£
£
Profit after taxation
1,520,017
539,317
Adjustments for:
Taxation charged
65,579
1,111
Investment income
(14,664)
(5,480)
(Gain)/loss on disposal of tangible fixed assets
-
102,626
(Gain)/loss on disposal of intangible assets
-
580
Amortisation and impairment of intangible assets
419
1,000
Depreciation and impairment of tangible fixed assets
52,431
63,440
Movements in working capital:
Decrease/(increase) in stocks
124,451
(67,611)
(Increase)/decrease in debtors
(781,476)
114,320
(Decrease)/increase in creditors
(218,868)
354,025
Cash generated from operations
747,889
1,103,328
21
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank
2,484,633
740,097
3,224,730
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