Laser Wire Solutions Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2025

DIRECTORS:

J C Baldwin

P Taylor

M J Humber

REGISTERED OFFICE:

QED Centre

Main Avenue

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

REGISTERED NUMBER:

07800816

SENIOR STATUTORY AUDITOR:

Andrew Miller FCA

AUDITORS:

BPU Limited

Chartered Accountants

Statutory Auditor

Radnor House

Greenwood Close

Cardiff Gate Business Park

Cardiff

CF23 8AA

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

Overview

Laser Wire Solutions Ltd ("LWS" or "the Company") continued its transition into a specialist, medical-focused precision laser processing business. The year represents a step-change in financial performance, operational maturity, and strategic positioning, with the Company now firmly aligned to the structural growth drivers within the global medical device sector.

LWS operates at the intersection of advanced laser processing and highly regulated manufacturing environments, serving leading global medical device OEMs alongside selected non-medical industrial customers. The business model continues to combine capital equipment supply with outsourced manufacturing, underpinned by a shared engineering capability and quality system.

Financial Performance and Growth

FY2025 marked a significant improvement in profitability and operational efficiency, despite broadly stable revenue compared with the prior year.

-

Operating Profit increased to approximately £2.0m, up from £0.7m in FY2024

-

OP margin expanded materially from 7% to 21%

-

This improvement was achieved without revenue growth, reflecting a stronger product mix, improved gross margins, and tighter cost control

This performance demonstrates the effectiveness of the strategic repositioning undertaken during 2024-2025. The business has transitioned from a mixed industrial model toward a higher-margin, medically focused revenue base.

The Company also entered FY2026 with strong momentum, supported by:

-

A substantial forward order book

-

Improved gross material margins trending toward ~70%

-

Increasing contribution from higher-value medical programmes

The Directors consider FY2025 to represent a foundation year, where the benefits of prior investment in capability, systems, and organisation began to translate into financial outcomes.

Business Development and Market Position

During the year, LWS strengthened its position as a specialist supplier to the medical device industry, with increasing engagement across six of the top ten global OEMs.

The Company benefits from several structural market drivers:

-

Increasing automation in medical device manufacturing

-

Growing device complexity and miniaturisation

-

Regulatory requirements favouring validated, repeatable processes

-

Expansion of electrophysiology and catheter-based therapies

Customer relationships remain long-standing, technically embedded, and typically expand across multiple divisions within each OEM. Once LWS processes are validated into a programme, they tend to remain for the life of the product, providing a durable and compounding revenue base.

Strategic Direction

1. Alignment to Core Business Segments

During FY2025, the Company clarified and aligned its operations around three core segments:

-

Medical Device Components (MDC)Outsourced manufacturing of laser-processed components for medical OEMs

-

Machines - MedicalDesign and manufacture of bespoke laser systems for medical device production

-

Machines - Non-MedicalSupply of laser systems to selected industrial customers

Strategically:

-

MDC is expected to become the primary driver of growth and profitability, supported by high retention and strong margins

-

Machines - Medical provides both revenue and a pathway to deeper customer integration

-

Machines - Non-Medical remains a stable, non-core revenue stream with limited incremental investment

The Directors have prioritised resource allocation toward the medical segments, where long-term growth, margin, and defensibility are strongest.

2. Expansion of Medical Device Components (MDC)

A central strategic priority is the expansion of MDC as a scalable, high-margin manufacturing activity.

During FY2025:

-

Key programmes progressed from development toward production readiness

-

Customer relationships deepened, particularly within electrophysiology applications

-

The operational and quality infrastructure required for scaled manufacturing was further established

MDC offers:

-

High customer retention due to regulatory barriers

-

Strong margin characteristics

-

Direct exposure to end-market volume growth

The Directors view MDC as the core long-term value driver of the business.

3. ISO 9001/13485 and Quality Systems

The Company maintained and strengthened its quality systems and expects to achieve ISO 13485 approval in Q1 2026, the international standard for medical device manufacturing.

This accreditation is:

-

A prerequisite for supplying medical device OEMs

-

A barrier to entry for competitors

-

A foundation for scalable growth in MDC

During FY2025, the Company continued to invest in:

-

Process validation capability

-

Documentation and traceability systems

-

Quality and compliance infrastructure

-

Additional laser technology and production capacity

These investments position LWS to support increasing production volumes and more complex medical applications.

The Directors consider the quality system not only a compliance requirement but a strategic asset, enabling deeper integration with customers and supporting long-term contractual relationships.

4. Technology and Capability Development

LWS continued to expand its technical capability beyond its core wire stripping applications into broader laser processing technologies, including:

-

Micromachining

-

Welding

-

Surface treatment and roughening

These developments:

-

Increase the addressable market within medical devices

-

Strengthen the Company's position as a solutions provider

-

Support cross-selling across existing customer relationships

The business remains differentiated by its application knowledge, built over more than 15 years, rather than by hardware alone.

5. Operational Leverage and Scalability

A key theme of FY2025 has been the development of organisational capacity ahead of revenue growth.

The Company has:

-

Built engineering and manufacturing capability

-

Strengthened its management structure

-

Invested in systems and infrastructure

As a result, the business is positioned to scale with limited incremental cost, creating significant operational leverage.

Future revenue growth is therefore expected to translate disproportionately into profitability.

Principal Risks, Uncertainties and Mitigations

The Directors recognise several key risks:

-

Customer concentration within MDCGrowth is currently driven by a limited number of major programmes

-

Execution risk on scaling operationsDelivering increased volumes while maintaining quality standards

-

Margin sensitivityMaintaining gross material margins as volumes increase

-

Dependence on key personnelTechnical expertise remains concentrated within a highly skilled team

Mitigations include diversification of the customer base, continued investment in systems and people, and active management of margins and operational processes.

Outlook

The Directors view the outlook for the Company as highly positive.

LWS enters the next financial period with:

-

Strong order visibility

-

Increasing exposure to high-growth medical markets

-

A scalable operating model

-

Established quality and regulatory credentials

The business is expected to benefit from:

-

Production ramp-up of existing medical programmes

-

Continued adoption of laser processing in new device applications

-

Expansion of MDC as a core revenue stream

The Directors believe that the strategic repositioning completed over the past two years has created a platform for sustained growth and materially improved profitability.

Conclusion

FY2025 represents a pivotal year in the development of Laser Wire Solutions Ltd.

The Company has:

-

Delivered a significant improvement in financial performance

-

Strengthened its position within the medical device sector

-

Established clear strategic alignment across MDC and machine-based activities

-

Reinforced its quality and regulatory foundation through ISO 13485

With these elements in place, the business is well positioned to deliver continued growth and increasing shareholder value in the years ahead.

Moreover, we have continued to enjoy the backing of Development Bank of Wales, a testament to the confidence they have in our business and growth potential

Our efforts to develop key strategic supplier partnerships continue to strengthen our competitive edge. With our unwavering commitment to growth, we aim to maintain and exceed a 25% profitable, cash-generative year-on-year increase. The future is bright, and we are poised to capitalize on the opportunities ahead.

In conclusion, I want to express my gratitude to our dedicated employees, customers, and shareholders for their invaluable contributions. Together, we have achieved remarkable results and positioned our company for continued growth and prosperity. With a strong foundation and strategic initiatives in place, we look forward to an exciting future.

THIS REPORT WAS APPROVED BY THE BOARD:

P Taylor - Director

20 May 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £1,053,576 (2024: £488,682).

DIRECTORS

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

J C Baldwin

P Taylor

Other changes in directors holding office are as follows:

M J Humber - appointed 24 April 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

THIS REPORT WAS APPROVED BY THE BOARD:

P Taylor - Director

20 May 2026

Opinion

We have audited the financial statements of Laser Wire Solutions Limited (the 'company') for the year ended 31 December 2025 which comprise the Profit & Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

The laws and regulations that we determined were most significant to the company were the Companies Act, UK corporate tax laws, Employment Rights Act, Health and Safety regulations and ISO9001 Quality Management System standard.

We obtained an understanding of how the company is complying with those laws and regulations by making enquiries to the management, and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year.

We assessed the susceptibility of the companys financial statements to material misstatement, including how fraud might occur, and did not identify any key audit matters relating to irregularities, including fraud. We assessed the effectiveness of internal controls that management has in place to prevent and detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates.

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

Use of our report

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

Andrew Miller FCA (Senior Statutory Auditor)

for and on behalf of BPU Limited

Chartered Accountants

Statutory Auditor

20 May 2026

TURNOVER

2

9,603,490

9,958,839

Cost of sales

(4,115,297

)

(5,087,378

)

GROSS PROFIT

5,488,193

4,871,461

Administrative expenses

(3,694,659

)

(4,253,233

)

1,793,534

618,228

Other operating income

3

219,445

89,651

OPERATING PROFIT

5

2,012,979

707,879

Interest receivable & similar income

15,155

-

2,028,134

707,879

Interest payable and similar expenses

6

(181,402

)

(218,273

)

PROFIT BEFORE TAXATION

1,846,732

489,606

Tax on profit

7

(416,287

)

(150,546

)

PROFIT FOR THE FINANCIAL YEAR

1,430,445

339,060

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,430,445

339,060

FIXED ASSETS

Intangible assets

9

-

11,977

Tangible assets

10

2,263,571

2,434,324

2,263,571

2,446,301

CURRENT ASSETS

Stocks

11

1,315,609

2,106,479

Debtors

12

2,037,669

2,643,242

Cash at bank

2,328,480

1,874,365

5,681,758

6,624,086

CREDITORS

Amounts falling due within one year

13

4,173,122

5,362,833

NET CURRENT ASSETS

1,508,636

1,261,253

TOTAL ASSETS LESS CURRENT LIABILITIES

3,772,207

3,707,554

CREDITORS

Amounts falling due after more than one year

14

(2,043,223

)

(2,367,039

)

PROVISIONS FOR LIABILITIES

17

(74,500

)

(62,900

)

NET ASSETS

1,654,484

1,277,615

CAPITAL AND RESERVES

Called up share capital

18

48,497

48,497

Share premium

19

399,518

399,518

Retained earnings

19

1,206,469

829,600

SHAREHOLDERS' FUNDS

1,654,484

1,277,615

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2026 and were signed on its behalf by:

P Taylor - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

45,502

979,222

399,518

1,424,242

Changes in equity

Issue of share capital

2,995

-

-

2,995

Dividends

-

(488,682

)

-

(488,682

)

Total comprehensive income

-

339,060

-

339,060

Balance at 31 December 2024

48,497

829,600

399,518

1,277,615

Changes in equity

Dividends

-

(1,053,576

)

-

(1,053,576

)

Total comprehensive income

-

1,430,445

-

1,430,445

Balance at 31 December 2025

48,497

1,206,469

399,518

1,654,484

Cash flows from operating activities

Cash generated from operations

1

1,484,097

1,690,228

Interest paid

(181,402

)

(218,273

)

Tax paid

(38,186

)

8

Net cash from operating activities

1,264,509

1,471,963

Cash flows from investing activities

Purchase of intangible fixed assets

(20,825

)

(14,903

)

Purchase of tangible fixed assets

(340,870

)

(184,531

)

Sale of tangible fixed assets

11,667

44,130

Interest received

15,155

-

Net cash from investing activities

(334,873

)

(155,304

)

Cash flows from financing activities

Loan repayments in year

(330,878

)

(308,755

)

Share issue

-

2,995

Equity dividends paid

(144,643

)

(183,132

)

Net cash from financing activities

(475,521

)

(488,892

)

Increase in cash and cash equivalents

454,115

827,767

Cash and cash equivalents at beginning of year

2

1,874,365

1,046,598

Cash and cash equivalents at end of year

2

2,328,480

1,874,365

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,846,732

489,606

Depreciation charges

509,051

513,182

Loss/(profit) on disposal of fixed assets

23,707

(8,624

)

Finance costs

181,402

218,273

Finance income

(15,155

)

-

2,545,737

1,212,437

Decrease/(increase) in stocks

790,870

(454,896

)

Decrease/(increase) in trade and other debtors

605,573

(1,288,201

)

(Decrease)/increase in trade and other creditors

(2,458,083

)

2,220,888

Cash generated from operations

1,484,097

1,690,228

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

2,328,480

1,874,365

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,874,365

1,046,598

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

1,874,365

454,115

2,328,480

1,874,365

454,115

2,328,480

Debt

Debts falling due within 1 year

(326,769

)

7,062

(319,707

)

Debts falling due after 1 year

(2,367,039

)

323,816

(2,043,223

)

(2,693,808

)

330,878

(2,362,930

)

Total

(819,443

)

784,993

(34,450

)

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover 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.

Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

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

Freehold property

-

33% straight line and 6.66% straight line

Plant and machinery

-

at variable rates on straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amounts 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.

A stock provision is made for any stock that has not had any movement in or out in the previous 12 months.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.