REGISTERED NUMBER: 00852576 (England and Wales)

STRATEGIC REPORT, DIRECTOR'S REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

SPAW ENGINEERING LIMITED

Page

Company Information

1

Strategic Report

2

Director's Report

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10

DIRECTOR:

C R F Shield

SECRETARY:

C R F Shield

REGISTERED OFFICE:

365 Fosse Way

Syston

Leicester

Leicestershire

LE7 1NL

REGISTERED NUMBER:

00852576 (England and Wales)

AUDITORS:

Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

The director presents his strategic report for the year ended 31 October 2025.

REVIEW OF BUSINESS

The business has performed satisfactorily in this period, despite some supply chain issues and mixed customer demand. Since the previous year customer volumes have generally flatlined in tune with the global economy. Some areas of the business have been very busy, especially those serving the power generation sector, whilst other areas such as automotive have been very quiet. These various effects have limited the ability to significantly drive growth and margins however performance has been improved for the year due to a variety of internal improvements. The business has continued to keep a tight control of costs throughout this period and the Directors are pleased to report good levels of operational performance. Moving into 2026 customer volumes are forecast to be healthy which should allow the business to see some sales growth and maintain reasonable margins.

PRINCIPAL RISKS AND UNCERTAINTIES

The key risks and uncertainties affecting the company are considered to relate to competition from overseas suppliers, global demand for our customer products and energy/raw material costs. The company is well positioned with a capable supply chain, strong workforce and management team and healthy reserves to meet these challenges allowing continuing investment into the future.

ECONOMIC IMPACT OF GLOBAL EVENTS

UK businesses continue to operate in an environment characterised by heightened uncertainty arising from environmental sustainability challenges and ongoing geopolitical conflicts, including the ongoing instability in the Middle East. These global events have contributed to economic pressures, giving rise to a range of risks and uncertainties such as elevated inflation, volatile interest rates, labour market constraints, supply chain disruption and evolving working practices.

The Directors have assessed the potential impact of these ongoing global events on the Company, including the effectiveness of mitigating actions taken. The Directors have concluded that these matters represent non-adjusting events, with the most significant potential impact arising from indirect economic effects on the wider global and UK economies rather than directional operational disruption.

These considerations have been incorporated into the Directors' going concern assessment. The Directors of the Company continue to actively mitigate potential adverse impacts and, where possible, identify and realise any opportunities arising from the changing economic environment.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company's key performance indicators are as follows:

Sales

The accounts report a 9.5% increase (2024: 16% decrease) in the level of sales over the previous financial year.

Gross Margin

Gross margin for the year has increased from 12% to 14%.

OTHER KEY PERFORMANCE INDICATORS

There are no significant non-financial key performance indicators which are relevant to understanding the position of the business.

ON BEHALF OF THE BOARD:

C R F Shield - Director

12 May 2026

The director presents his report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of other parts and accessories for motor vehicles.

DIVIDENDS

Interim dividends were paid amounting to £200,000 (2024: £NIL). The directors recommend that no final dividends will be paid.

DIRECTOR

C R F Shield held office during the whole of the period from 1 November 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C R F Shield - Director

12 May 2026

Opinion

We have audited the financial statements of Spaw Engineering Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 October 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Director's Report 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 Director's Report.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

-

Discussion with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

-

Challenging assumptions made by management in their significant accounting estimates, in particular in relation to the depreciation of tangible assets and stock provisioning; and

-

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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.

Luke Turner FCA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

18 May 2026

TURNOVER

4

11,308,245

10,329,100

Cost of sales

(9,686,920

)

(9,053,594

)

GROSS PROFIT

1,621,325

1,275,506

Administrative expenses

(1,024,920

)

(1,029,131

)

596,405

246,375

Other operating income

5

9,677

10,119

OPERATING PROFIT

7

606,082

256,494

Interest receivable and similar income

16,282

18,053

622,364

274,547

Interest payable and similar expenses

8

-

(1,736

)

PROFIT BEFORE TAXATION

622,364

272,811

Tax on profit

9

(167,265

)

(81,176

)

PROFIT FOR THE FINANCIAL YEAR

455,099

191,635

Retained earnings at beginning of year

2,801,868

2,610,233

Dividends

10

(200,000

)

-

RETAINED EARNINGS AT END OF YEAR

3,056,967

2,801,868

FIXED ASSETS

Tangible assets

11

453,182

619,867

CURRENT ASSETS

Stocks

12

858,147

593,417

Debtors

13

1,679,674

1,656,726

Cash at bank

1,782,944

1,495,906

4,320,765

3,746,049

CREDITORS

Amounts falling due within one year

14

(1,657,480

)

(1,475,048

)

NET CURRENT ASSETS

2,663,285

2,271,001

TOTAL ASSETS LESS CURRENT LIABILITIES

3,116,467

2,890,868

PROVISIONS FOR LIABILITIES

17

(58,500

)

(88,000

)

NET ASSETS

3,057,967

2,802,868

CAPITAL AND RESERVES

Called up share capital

18

250

250

Capital redemption reserve

19

750

750

Retained earnings

19

3,056,967

2,801,868

SHAREHOLDERS' FUNDS

3,057,967

2,802,868

The financial statements were approved by the director and authorised for issue on 12 May 2026 and were signed by:

C R F Shield - Director

Cash flows from operating activities

Cash generated from operations

1

668,378

373,049

Interest element of hire purchase or finance lease rental payments paid

-

(1,736

)

Tax paid

(172,567

)

(92,541

)

Net cash from operating activities

495,811

278,772

Cash flows from investing activities

Purchase of tangible fixed assets

(25,031

)

(39,968

)

Sale of tangible fixed assets

-

9,344

Interest received

16,282

18,053

Net cash from investing activities

(8,749

)

(12,571

)

Cash flows from financing activities

Intercompany loan repayments

(24

)

(124,180

)

Capital repayments in year

-

(41,551

)

Equity dividends paid

(200,000

)

-

Net cash from financing activities

(200,024

)

(165,731

)

Increase in cash and cash equivalents

287,038

100,470

Cash and cash equivalents at beginning of year

2

1,495,606

1,395,136

Cash and cash equivalents at end of year

2

1,782,644

1,495,606

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

2025

2024

£

£

Profit before taxation

622,364

272,811

Depreciation charges

191,716

204,538

Loss on disposal of fixed assets

-

331

Finance costs

-

1,736

Finance income

(16,282

)

(18,053

)

797,798

461,363

(Increase)/decrease in stocks

(264,730

)

96,767

(Increase)/decrease in trade and other debtors

(22,924

)

86,539

Increase/(decrease) in trade and other creditors

158,234

(271,620

)

Cash generated from operations

668,378

373,049

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 October 2025

31/10/25

1/11/24

£

£

Cash and cash equivalents

1,782,944

1,495,906

Bank overdrafts

(300

)

(300

)

1,782,644

1,495,606

Year ended 31 October 2024

31/10/24

1/11/23

£

£

Cash and cash equivalents

1,495,906

1,395,436

Bank overdrafts

(300

)

(300

)

1,495,606

1,395,136

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/24

Cash flow

At 31/10/25

£

£

£

Net cash

Cash at bank

1,495,906

287,038

1,782,944

Bank overdrafts

(300

)

-

(300

)

1,495,606

287,038

1,782,644

Total

1,495,606

287,038

1,782,644

1.	STATUTORY INFORMATION

Spaw Engineering Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is 365 Fosse Way, Syston, Leicester, Leicestershire, England, LE7 1NL and its registered number is 00852576.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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 £.

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 are included in the profit and loss account for the period.

Going concern

The company had positive net current assets at the year end of £2.66m. The directors believe that it is appropriate to adopt the going concern basis in the preparation of the financial statements. 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts and is recognised when goods are dispatched.

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.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant & machinery

12.5% straight line

Fixtures & fittings

20-25% straight line

Motor vehicles

25% straight line

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete the sale. Cost is based on the most recent purchase price, with all stock being revalued to cost each quarter.

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of it's liabilities.

Basic 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.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at constant rate on the carrying amount. Issue cost are initially recognised as a reduction in the proceeds of the associated capital instruments.

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Pension costs and other post-retirement benefits

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.

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

Operating leases

Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the term of the lease.

3.	CRITICAL ACCOUNTING 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual lives of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the assets and the tangible fixed asset accounting policy for the useful economic lives for each class of asset.

Stock provisioning

Slow moving stock provisions are based on estimates of the likely recoverable amounts.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

10,218,335

9,479,748

Rest of World

1,089,910

849,352

11,308,245

10,329,100

5.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

8,840

9,840

Government grants

837

279

9,677

10,119

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,579,527

2,333,550

Social security costs

290,959

223,833

Other pension costs

54,236

49,563

2,924,722

2,606,946

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

2025

2024

Production

72

68

Administration

10

10

Management

1

1

83

79

2025

2024

£

£

Director's remuneration

48,000

48,000

7.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

191,716

174,544

Depreciation - assets on hire purchase contracts or finance leases

-

29,994

Loss on disposal of fixed assets

-

331

Auditors' remuneration

9,460

9,800

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Hire purchase interest

-

1,736

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

196,765

110,176

Deferred tax

(29,500

)

(29,000

)

Tax on profit

167,265

81,176

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

622,364

272,811

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

155,591

68,203

Effects of:

Expenses not deductible for tax purposes

11,054

14,769

Depreciation in excess of capital allowances

30,120

27,204

Movement in deferred tax

(29,500

)

(29,000

)

Total tax charge

167,265

81,176

10.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

200,000

-

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 November 2024

1,597,776

218,230

8,040

1,824,046

Additions

25,031

-

-

25,031

At 31 October 2025

1,622,807

218,230

8,040

1,849,077

DEPRECIATION

At 1 November 2024

1,017,498

186,020

661

1,204,179

Charge for year

178,756

10,950

2,010

191,716

At 31 October 2025

1,196,254

196,970

2,671

1,395,895

NET BOOK VALUE

At 31 October 2025

426,553

21,260

5,369

453,182

At 31 October 2024

580,278

32,210

7,379

619,867

12.

STOCKS

2025

2024

£

£

Raw materials

827,792

578,497

Work-in-progress

30,355

14,920

858,147

593,417

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,013,348

985,027

Amounts owed by participating interests

578,500

581,146

Prepayments and accrued income

87,826

90,553

1,679,674

1,656,726

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 15)

300

300

Trade creditors

760,777

679,215

Amounts owed to group undertakings

2,670

2,694

Amounts owed to participating interests

248,597

234,508

Corporation tax

134,374

110,176

Social security and other taxes

143,115

77,155

Other creditors

-

2,909

Accruals and deferred income

367,647

368,091

1,657,480

1,475,048