The Directors present the strategic report and financial statements for the year ended 31 December 2024.

The principal activity of the Company is to provide subsea production optimisation products and services to the oil and gas industry.

Enpro is a production optimisation specialist focused on delivering enhanced hydrocarbon production for customers through their patented range of products and services.

Enpro’s mission is to maximise ultimate recovery from subsea wells by enabling production enhancing technologies on standard hardware while structurally reducing cost and delivering first oil faster.

The Company adds value to clients through its four business streams protected by a strong patent portfolio, Flow Access Modules (FAM), Flow Intervention Services (FIS), Decommissioning (F-Decom) and Field Development (F-Dev).

The results of the Company for the year are set out on page 11. 2024 saw significant growth for the Company as the number of subsea development projects rose sharply and acceleration of customers project sanction decisions led to a large number of new orders for the Company. In addition, growth in its Decom and FIS product lines contributed to the increased revenue in the period. Revenue for the period was £17,155k (2023: £6,029k).

The shift in gross margin is due to a much more significant contribution from decommissioning projects. The compound effect of the Shell and TAQA contract against a larger FAM weighting in 2023. Operating profit in the period increased from a loss making position to £2,237k (2023: £(1,533)k).

Net assets at 31 December 2024 totalled £10,084k (2023: £8,545k).

The process of managing risk is addressed through a framework of policies and procedures and internal controls. Operational policies and procedures are subject to an ongoing review by management and subject to independent ISO certification. Compliance with regulation, health and safety, legal and ethical standards is a high priority for the Company.

Economic and market risks together with supply chain risks are managed by establishing strong partner relationships with both clients and subcontractors. The Company’s success depends on its ability to win projects, deliver them safely and to client satisfaction and respond effectively to changing client needs.

Supply chain risks are managed by the management team who rigorously control the tendering and pricing process ensuring all the risks and rewards are considered prior to tender.

The Company’s success depends in part on the continued service of its key management, and on its ability to continue to attract, motivate and retain suitably qualified employees.

1. Commodity Prices

Enpro is exposed to the influence of oil and gas prices as supply and demand for energy is a key driver of demand for the Company’s products and services. These risks are mitigated by diversification in both customers, operating basins and diversification of products and services across the lifecycle of customers assets.

2. Competition

The provision of goods and services to Operators and Tier 1 SPS companies is highly competitive. Technical alternatives, competing technologies and pricing pressure all remain features of the trading environment. Enpro focuses on both customer delivery as well as continued development of the product and service portfolio through R&D programmes to maintain its competitive advantage and to try and maintain profit margins.

3. Product and Service Quality

Failure of either a product or service has the potential for significant safety, environmental and reputational consequences due to the environments in which the Company operates. Failure of either a product or to deliver a service safely could adversely impact on Enpro’s reputation and subsequently demand for the Company’s products and services. To mitigate this, Enpro continuously monitors and measures quality assurance standards.

4. Foreign Exchange

Enpro faces risks associated with operating in foreign territories, including foreign exchange risks. The Company manages these risks by entering into hedges where possible and appropriate.

5. Climate Change

Enpro continues to monitor the impact of climate change on the upstream industry. Continued investment in R&D and applications of existing products into adjacent markets is expected to mitigate against this risk in the long term.

6. Credit Risk

Credit risk refers to the risk that a customer will default on its contractual obligations resulting in financial loss to the Company. The Company only transacts with entities that are rated the equivalent to investment grade and above. This information is supplied by independent rating agencies where available and if not available the Company uses other publicly available financial information and its own trading records to assess its major customers.

7. Liquidity Risk

The liquidity of the Company is managed by Group Treasury as part of the overall Group position. The Group managed its liquidity to ensure that entities in the Group have access to funds as required. The Group manages this process through the use of a cash pooling arrangement. The Company is in a positive cash position within this arrangement.

Financial key performance indicators

The primary key performance indicators used by the Company to assess its performance include revenue (£17,155k, 2023: £6,029k), gross profit (£7,730k, 2023: £1,787k) and operating profit (£2,237k, 2023: Loss £(1,533k)) which allow management to understand, assess and subsequently make decisions on the performance of Enpro Subsea Limited as well as tracking progress against its strategic objectives.

In the year, Enpro Subsea Limited transitioned from IFRS to FRS 101. The accounting policies detail the disclosures which the Company has taken exemption from.

The report was approved by the Board of Directors on 14 May 2026 and signed on its behalf by:

The Directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the Company is to provide subsea production optimisation products and services to the oil and gas industry.

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

No ordinary dividends were paid in either the current or prior year. The Directors do not recommend payment of a final dividend.

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

The Directors remain confident that the Company will continue to expand its customer base and revenue through:

• Continued client adoption of its FAM product line as well as continued investment in new product development.

• Broader adoption of its FIS 15k asset and service offering and development of further intervention solutions such as 10k and Shallow Water FIS.

• Continued success with F-Decom, whilst developing new opportunities for application on alternative structure types.

• Focused development of the North Sea, West Africa & Gulf of Mexico regions as well as other international opportunities such as emerging markets in Guyana and Brazil.

The Directors have received confirmation that Hunting PLC, the ultimate parent company, will support the Company to ensure it can meet its obligations as they fall due for at least one year after the financial statements are authorised for issue.

In forming their assessment as to the availability of such support should it be required, the Directors have taken account of the Group's internal financial projections which indicate that it will retain sufficient liquidity to meet its funding requirements for twelve months from the approval of the financial statements. Such projections take account of Hunting PLC's continued access to sufficient financial resources, including a $200m Revolving Credit Facility ("RCF"), which was entered into in October 2024 and is due to expire in October 2028, and a $100m term loan. The $100m term loan has been arranged with a three-year tenor and pursuant to the conditions of the facility agreement, was fully drawn on signing of the facilities. These facilities replace the now cancelled $150m Asset Based Lending ("ABL") facility, increasing the Group's access to committed liquidity and extending the maturity of bank borrowing facilities. At 31 December 2025, the Group had total cash and bank/(borrowings) of $62.9m and total undrawn facilities of $200m.

The Group's internal financial projections indicate that the Group is expected to continue to be cash-positive during. 2026 and 2027, and consequently has sufficient liquidity to meet its funding requirements over the next twelve months. The Directors have also considered the principal risks and uncertainties to which the Company is exposed as set out in the Strategic Report and those disclosed in the Group's strategic report on page 87 of the Hunting PLC 2025 Annual Report.

The Directors, having made such enquiries and on the basis of the current financial projections and the facilities available to the Hunting PLC Group, are satisfied that the Company will have adequate financial resources to continue in operation and to meet its obligations as they fall due for the foreseeable future. Accordingly, the going concern basis has continued to be applied in the preparation of these financial statements.

The Company continues to utilise its technical and materials expertise to remain at the forefront of innovative technology and produce specialist products and services to maximise the performance and capabilities of its customers. The Company maintains its links to key oilfield service companies in the United Kingdom and elsewhere and continues to work with new and existing customers and suppliers to develop its knowledge and products.

The auditor, Deloitte LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Each Director in office at the date of approval of this annual report confirms that:

• so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

• the Director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

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), including FRS 101 Reduced Disclosure Framework. 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;

• state whether applicable UK Accounting Standards have been followed; and

• prepare the financial statements on the going concern basis unless it is appropriate 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.

In our opinion the financial statements of Enpro Subsea Limited (the ‘company’):

• give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 Reduced Disclosure Framework; and

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

We have audited the financial statements which comprise:

• the income statement;

• the statement of comprehensive income;

• the statement of financial position;

• the statement of changes in equity; and

• the related notes 1 to 30.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

We have nothing to report in this regard.

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act and tax legislation; and

• did not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included UK employment law and Health and Safety regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in revenue recognition on long-term contracts, driven by management's percentage of completion calculation. Our audit procedures involved: independent recalculation of recognised revenue using audited contract values and costs; challenge of the accuracy of estimated costs to complete; and reconciliation of contract asset and liability balances against cumulative revenue recognised and billed through 2025.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• reading minutes of meetings of those charged with governance.

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 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 any material misstatements in the strategic report or the directors’ report.

Under the Companies Act 2006 we are required to report in respect of the following matters 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.

We have nothing to report in respect of these matters.

Use of our report

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

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

Enpro Subsea Limited is a private Company limited by shares incorporated in Scotland. The registered office is c/o Hunting Energy Services, Badentoy Avenue, Portlethen, Aberdeen, AB12 4YB. The Company's principal activities and nature of its operations are disclosed in the directors' report.

The nature of the Company's operations and its principal activities are set out in the Strategic Report on pages 1 to 3.

The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. These financial statements for the year ended 31 December 2024 are the first financial statements of Enpro Subsea Limited prepared in accordance with FRS 101. The company transitioned from UK-adopted IFRS to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2024.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of key management personnel compensation;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was determined and their effect on profit or loss and the financial position;

• comparative narrative information;

• for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and

• related party disclosures for transactions with the parent or wholly owned members of the group.

The financial statements have been prepared under the historical cost convention as modified by financial instruments recognised at fair value. The principal accounting policies adopted are set out below.

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

The primary indicators of functional currency are the currency that mainly influences the sales price and cash inflows of the Company which is GBP, as this determines the pricing even of USD sales, which is the denomination only.

The Company's purchased goods and services are multi-currency including USD and EUR but the largest proportion of purchases are made in GBP. The competitive and regulatory forces to which the sales of Enpro Subsea Limited (ESL) are mainly exposed is also GBP. With regards the secondary indicators, ESL is funded in GBP and is an autonomous UK entity. As such management has concluded functional currency is GBP.

The Directors havetrue received confirmation that Hunting PLC, the ultimate parent company, will support the Company to ensure it can meet its obligations as they fall due for at least one year after the financial statements are authorised for issue.

In forming their assessment as to the availability of such support should it be required, the Directors have taken account of the Group's internal financial projections which indicate that it will retain sufficient liquidity to meet its funding requirements for twelve months from the approval of the financial statements. Such projections take account of Hunting PLC's continued access to sufficient financial resources, including a $200m Revolving Credit Facility ("RCF"), which was entered into in October 2024 and is due to expire in October 2028, and a $100m term loan. The $100m term loan has been arranged with a three-year tenor and pursuant to the conditions of the facility agreement, was fully drawn on signing of the facilities. These facilities replace the now cancelled $150m Asset Based Lending ("ABL") facility, increasing the Group's access to committed liquidity and extending the maturity of bank borrowing facilities. At 31 December 2025, the Group had total cash and bank/(borrowings) of $62.9m and total undrawn facilities of $200m.

The Group's internal financial projections indicate that the Group is expected to continue to be cash-positive during. 2026 and 2027, and consequently has sufficient liquidity to meet its funding requirements over the next twelve months. The Directors have also considered the principal risks and uncertainties to which the Company is exposed as set out in the Strategic Report and those disclosed in the Group's strategic report on page 87 of the Hunting PLC 2025 Annual Report.

The Directors, having made such enquiries and on the basis of the current financial projections and the facilities available to the Hunting PLC Group, are satisfied that the Company will have adequate financial resources to continue in operation and to meet its obligations as they fall due for the foreseeable future. Accordingly, the going concern basis has continued to be applied in the preparation of these financial statements.

Revenue from contracts with customers is measured as fair value of the consideration received or receivable for the provision of goods and services in the ordinary course of business, net of trade discounts, volume rebates, and sales taxes.

Revenue is recognised when control of the promised goods or services is transferred to the customer. Consequently, revenue for the sale of a product is recognised piecemeal over time during the period that control incrementally transfers to the customer while the good is being manufactured or the service is being performed.

Company's activities that require revenue recognition over time comprise:

• Work undertaken to enhance customer-owned products.

• The manufacture of goods that are specifically designed for and restricted to the use of a particular customer.

• The provision of services in which the customer obtains the benefit while the service is being performed.

Enpro uses an input method for measuring the progress towards completion of its performance obligations and consequently for measuring the amount of revenue that is recognised. Specifically, revenue is recognised in proportion to the total expected consideration that mirrors the costs incurred to date relative to the total expected costs to complete the performance. This method is considered to be the most appropriate as the inclusion of all cost, being materials, labour and direct overheads, best reflects the activities required in performing the promise to the customer.

When revenue from a customer is recognised, the amount is reported on the balance sheet as a contract asset if the performance obligation is incomplete as this asset reflects that it is conditional upon the Company completing the work. The revenue is recognised on the balance sheet as a trade receivable if a sales invoice has been issued as this asset reflects that it is unconditional other than the passage of time. The revenue is reported on the balance sheet as accrued income if the performance obligation has been completed but a sales invoice has not yet been issued. The Company recognises a contract liability on the balance sheet when amounts received and receivable from the customer exceed the value of the work done to date, reflecting that the Company is obligated to transfer goods or services in order to settle the prepayment from the customer.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is charged so as to write off the cost of the asset to their residual value, over their estimated useful lives. Assets are amortised using the straight-line method at the rates detailed below.

The estimated useful lives range as follows:

• Patents & licences - 10 years

• Development costs - 10 years

• Trademarks - 10 years

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Critical spare parts are not consumed in production nor are they available for resale and therefore are determined to be capital in nature and depreciation brought into service.

Assets are depreciated to their expected residual values on a straight-line basis over their estimated useful lives, at the rates set out below:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of comprehensive income.

At each reporting 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.

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.

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average cost method. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary. The Company’s financial assets at amortised cost includes trade and other receivables, amounts due from related parties, and cash and cash equivalents.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises. This category includes derivative instruments.

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting 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 of the investment have been affected.

For trade and other receivables, the Company applies a simplified approach in calculating expected credit losses (ECLs). Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. Due to the nature of the balances the Company has determined that a provisions matrix is not appropriate and applies a scenario based approach to estimate lifetime ECL.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The Company recognises financial debt when the Company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of selling or repurchasing it in the near term, or

• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit taking, or

• it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the Company’s obligations are discharged, cancelled, or they expire.

The Company measures the fair value of financial assets and liabilities on a recurring basis, defining fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value is based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of our own non-performance risk on our liabilities. Fair value measurements are classified and disclosed in one of the following categories:

Level 1: Fair value is based on actively-quoted market prices.

Level 2:    In the absence of actively-quoted market prices, the Company seeks price information from external sources, including broker quotes and industry publications. Substantially all of these inputs are observable in the marketplace during the entire term of the instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace.

Level 3:    If valuations require inputs that are both significant to the fair value measurement and less observable from objective sources, the Company shall estimate prices based on available historical and near-term future price information and certain statistical methods that reflect the Company's market assumptions.

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.

The taxation recognised in the Income Statement comprises current tax and deferred tax arising on the current year’s result before tax and adjustments to tax arising on prior years’ results before tax.

Current tax is the expected tax payable or receivable arising in the current year on the current year’s result before tax, using tax rates enacted or substantively enacted at the balance sheet date, plus adjustments to tax in respect of prior years’ results.

Deferred tax is the tax that is expected to arise when the assets and liabilities recognised in the Company’s balance sheet are realised, using tax rates enacted or substantively enacted at the balance sheet date that are expected to apply when the asset is realised or the liability is settled. Full provision is made for deferred taxation, using the liability method, on all taxable temporary differences. Deferred tax assets and liabilities are recognised separately on the balance sheet, unless offsetting is required, and are reported as non-current assets and liabilities. Deferred tax assets and liabilities are offset, and recognised net on the balance sheet, where the entity has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to income taxes, levied by the same taxation authority, that can be settled on a net basis.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The recoverability of deferred tax assets is reviewed at each balance sheet date and deferred tax assets are recognised to the extent that sufficient taxable profit is expected to be available to allow the deferred tax asset to be utilised.

When items of income and expense are recognised in other comprehensive income, the current and deferred tax relating to those items is also recognised in other comprehensive income.

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 inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

The Company participates in the Hunting PLC performance-based share awards, which are granted annually to senior employees of the Hunting PLC Group, under the HPSP rules. Awards are granted at nil cost under the HPSP rules. The performance-based HPSP awards are divided into five tranches of differing proportions. Each tranche is subject to a three-year vesting period and Hunting PLC performance is measured against various performance measures.

The Company also participated in the Hunting PLC time-based share awards under the HPSP. Annual awards of shares may be made to employees subject to continued employment during the vesting period. There are no performance conditions attached. Awards are granted at nil cost under HPSP.

The fair value of awards granted under the HPSP is calculated using two separate models. The fair value of awards subject to a market-related performance condition, specifically Hunting PLC Group performance against the TSR of a bespoke peer group, is calculated using the Stochastic pricing model (also known as the "Monte Carlo" model). The fair value of performance-based awards not subject to a market-related performance condition, specifically Hunting PLC Group performance against EPS and ROCE targets, and the time-based HPSP awards is calculated using the Black-Scholes pricing model.

The methods to calculate the assumptions for both models are:

• The expected volatility is calculated using historic weekly volatility, equal in length to the remaining portion of the performance period at the date of grant.

• The expected life of the award is calculated commensurate with the vesting period. The risk-free rate is based on the UK gilt rate commensurate with the vesting period prevailing at the date of grant.

• Participants are entitled to a dividend equivalent over the number of share that make up their award. It is accumulated over the vesting period and released subject to the achievement of performance conditions. This is factored into the fair value calculation and as a result the dividend yield assumption is set to zero.

• The initial accounting charge of the performance-based HPSP awards granted under the HPSP incorporates an estimate of the number of shares that are expected to lapse for those participants who cease employment during the vesting period. The estimate of the expected forfeiture rate is 5% per annum. The subsequent accounting charge includes an adjustment to the initial accounting charge to allow for actual lapses rather than estimated lapses.

The Company is charged by the Group for its participation in the share-based payment schemes. The Company settles the share-based payment charge with the Group through the intercompany netting agreement.

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

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

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

Revenue on unfulfilled contracts is recognised based on the estimated stage of completion and only when the outcome of the contract can be estimated reliably. At 31 December 2024 there were 16 contracts (2023: 9) in the course of completion which required an assessment of the stage of completion and expected profitability. The stage of completion is reviewed on a contract by contract basis.

In making this judgement, management have considered the detailed criteria for the recognition of revenue from the sale of goods set outlined IFRS 15 - Revenue from Contracts with Customers. Management have concluded that the most reliable measure of completion against performance obligations is based on the proportion of the total contract costs incurred to date.

No such items have been identified.

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

Their aggregate remuneration comprised:

Interest income represents interest charged on intercompany balances.

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

Current tax receivable or payable balances are calculated considering the overall aggregated UK entity position. The UK entities are part of a group relief group for tax purposes and are also part of a group payment arrangement with HMRC, where payments are made on behalf of the group to HMRC and are then distributed between the UK entities after all tax returns are submitted for a particular period. Any UK entities who have current year tax losses will surrender these to the other UK group entities who have taxable profits, to the extent available, through group relief, and are paid for these tax losses at the prevailing statutory tax rate for the period. Current tax balances disclosed at the balance sheet date are the best estimate of that entity’s contribution to the overall aggregated UK entities tax position with HMRC. Where a company is in an overall receivable position due to current year tax losses, it is expected that when the tax returns are finalised for that period, they will receive payment from another UK group entity for current year tax losses they have surrendered for group relief.

The Finance Act 2021 enacted an increase in the mainstream corporation tax rate from 19% to 25% with effect from 1 April 2023. The impact in 2023 is a blended rate of 23.5% resulting from this change.

Development expenditure relates to engineering and testing of new applications for the existing product lines which is not complete and in use at year end. Amortisation is not currently being charged but will be charged once the applications have been completed and are commercially available.

The investments in subsidiaries are all stated at cost. The cost of the investments is £2.

Details of the Company's subsidiaries at 31 December 2024 are as follows:

Registered office addresses:

The financial statements of the above entities are made up to 30 September 2024.

Hunting Energy Holdings Limited is the Company's immediate parent undertaking. The results of the Company are included in the consolidated Group statutory financial statements of Hunting PLC which is the ultimate parent Company and controlling party, it is the smallest and largest group to consolidate the Company.

The Company applies the simplified approach for trade receivables and applies a provision matrix taking into account history of default and forward looking factors. Materially all trade receivables are under one year and within normal payment terms. There is no history of defaults and no forward looking factors that imply a risk for credit loss, therefore no expected credit loss has been recognised.

The intercompany balances are trading in nature unless stated otherwise. Interest is charged at a market rate of 6.75% (2023: 7.25%) on the loan from Hunting Knightsbridge Holdings Limited and the source currency is USD.

There is no interest charged on trading balances and the balances are payable on demand.

The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon during the current and prior reporting period.

Deferred tax assets of £nil (2023: £422) have been recognised as the Company has assessed that the realisation of the benefit is probable.

Currency Derivatives

The Company uses derivatives for economic hedging purposes and no speculative positions are entered into by the Company. However, where derivatives do not meet the hedge accounting criteria, they are classified as “held for trading” for accounting purposes and are accounted for at fair value through profit or loss. The Company has used spot and forward foreign exchange contracts to hedge its exposure to exchange rate movements during the year. Foreign exchange outright contracts are used to manage exposures, with funding swaps being used to produce required currencies when needed.

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £233k (2023: £195k).

Performance-based awards

The Company participated in the Hunting PLC performance-based share awards, which are granted annually to senior employees of the Hunting PLC Group, under the HPSP rules. Awards are granted at nil cost under the HPSP rules. The performance-based HPSP awards are divided into five tranches of differing proportions. Each tranche is subject to a three-year vesting period and Hunting PLC performance is measured against various performance measures.

The performance period for the 2024 awards granted under the HPSP is 1 January 2023 to 31 December 2025. The vesting date of the 2024 awards is 6 March 2026 and, for share options, the option holder has seven years in which to exercise their vested awards. Share awards can only be exercised by the employees to whom they were granted.

Options outstanding

Details of the performance-based HPSP awards outstanding at 31 December are as follows:

The options outstanding at 31 December 2024 had a remaining contractual life of 7.68 years. No shares were exercised during the year so there is no weighted average share price.

The options outstanding at 31 December 2024 had a remaining contractual life of 7.68 years. No shares were exercised during the year so there is no weighted average share price.

The amount recognised in the income statement attributable to the HPSP awards is a £186k charge (2023: £217k). These are recognised in administrative expenses.

The Company's hedging strategy is defined by the group treasury function and gains/losses on cashflow hedges are as a result of the hedging activity within the year.

Under Financial Reporting Standard 101, the Company is exempt from disclosing related party transactions with fellow group undertakings, as 100% of the voting rights are controlled by the ultimate parent undertaking, Hunting plc.

The Company’s ultimate parent company is Hunting PLC (registered number: 00974568), a public limited company registered in England. The Directors regard Hunting PLC as the ultimate parent and controlling party. The smallest and largest group in which the results of the Company are consolidated is that headed by Hunting PLC. A copy of these accounts are available at the registered office of Hunting PLC at 30 Panton Street, London, SW1Y 4AJ.

The Company is a wholly owned subsidiary of Hunting Energy Holdings Limited, a company registered in England, which is the immediate parent company.