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

The principal activity of the company is an investment holding company for a number of subsidiaries as detailed in note 18 (“the Group”). The principal activities of its subsidiaries are the research and development, design, prototyping, manufacture and sale of high mobility vehicles, trailers and other systems together with the provision of engineering services and engineered equipment.

The Group's operating profit remained stable in comparison to the prior year. The Group’s operating profit for the year was £7.9m (2024: £7.9m profit). Turnover was £83.4m (2024: £70.2m) –18.9% higher than the prior year. Our adjusted earnings before interest, tax, depreciation amortisation and impairment of non-financial assets increased by 4.9% from £10.1m to £10.6m. The gross profit margin was 25.0% (2024: 27.6%) – 2.6% lower than the prior year.

The increase in revenue compared to 2024 primarily reflects the impact of the delivery of the prime project that the Group’s main subsidiary has been engaged in over the last couple of years together with the commencement of a subsequent follow-on project for the same customer.

Unfortunately, supply chain issues on the main project over the current and previous year, together with inflationary increases and contractual delays, has continued to erode the resulting margin of the subsidiary and as a result, the group as a whole.

The group remains focused on controlling overheads; however, some cost increases have been out of the business’s control. For example, gross margins have deteriorated due to continued rising prices and delays in completion of projects, not always under the control of the business. The conflict in Ukraine, has also affected the cost of utilities and fuel which has led to increased costs.

The group continues to look at developing new products to add to its existing offering and so £3.0m (2024: £1.2m) has been spent on research and development activities. Depreciation, amortisation, and impairment of non-financial assets increased by £0.4m to £2.6m (2024: £2.2m).

The net asset position of the Group is £30.2m (2024: £24.4m).

Current assets have increased from £32.0m to £37.6m, an increase of £5.6m. Of this, £6.3m relates to an increase in trade and other receivables due to large deliveries to customers at the year end. There has been no change from the prior year to concentration of credit risk and our experience of bad debts remains comparatively low. This increase has been partially offset by a decrease in stocks from £10.9m to £9.7m due to the increased delivery of product to customers before the year end.

Current liabilities have increased from £18.1m to £19.5m. This is mainly due to an increase of £3.4m in trade creditors due to the procurement of materials for the main supplementary UK MoD contract. This increase together with an increase in other taxation and social security at the yearend has been offset by a reduction in bank loans and overdrafts of £3.1m from £3.7m to £0.6m, together with a reduction in corporation tax payable from £1.4m to £0.1m. Non-current liabilities have increased by £0.9m from £5.1m to £6.0m.

The Group’s strategy is to remain operating within the defence and Aerospace engineering sector for the medium to long term. In the shorter term the Group is looking to win more business by engaging with large Defence primes. Historically, the Group has focussed on primarily on direct involvement with end customers.

Considering the capabilities of the businesses within the Group, the Board considers that the Group has the expertise to work with large primes as well as continuing to maintain the Group’s position as a premier supplier of all-terrain vehicles in its chosen markets.

Management makes use of certain alternative performance measures (APMs) that are non-UK GAAP measures. The Board uses these to assess performance of the business and considers them to provide useful supplementary information to the statutory results. The Board does not consider APMs to be more relevant or reliable than UK GAAP measures and notes that their definition and basis of calculation may differ from other companies. The business’s APMs are defined and a reconciliation to the most directly comparable UK GAAP measure is shown below. EBITDA is operating profit as measured using UK GAAP principles adjusted for the effects of depreciation, amortisation and impairment of non-financial assets. EBITDA is reported to the Board as management considers that it provides a useful proxy for the Group’s operating profit excluding non-cash items. It can be reconciled to the operating profit measure reported in the profit and loss account as shown below:

Principal risks and uncertainties

Macro economic conditions

Potential impact on the Group

The company operates primarily in the defence and aerospace sector with its principal customers being Government organisations. As a result, the business is at risk of global economic and political conditions, cuts in government spending and competitor pressures particularly around tender pricing.

Mitigating actions

The business continues to look to differentiate its product as market leading and aims to price its products appropriately. In depth discussions with prospective customers and detailed market analysis is undertaken to ensure that contracting risks are mitigated before engaging in contract negotiations.

Cyber Security

Potential impact on the Group

Given that the company operates within the sector that it does, the directors believe that there is a significant risk to the business from Cyber attack.

Mitigating actions

The Company has strengthened its cyber security protocols and has obtained the Cyber essentials plus accreditation and continues to monitor its internal systems. The business has also invested in mirroring the site infrastructure to ensure that should the business be compromised; the reserve system can be invoked with minimal disruption.

Margin erosion - Raw Materials, subcontract costs

Potential impact on the Group

The current global economic situation is resulting in rising prices of raw materials. This has led to the erosion of profit margins in the short to medium term, particularly since the business tends to operate of fixed and firm price contracts with customers.

Mitigating actions

The company will not seek to win business at any price and will include price escalation risk within any negotiations for individual contracts.

Supply chain

Potential impact on the Group

Again, the current global economic situation is impacting on the supply chain. This is having a negative impact of project profitability as delays in delivery of raw materials impact production runs, leading to delays in completion and subsequently increases in cost.

Mitigating actions

The business looks to build strong relationships with suppliers and where possible, for our significant raw material supplies, we look to secure long term supply contracts to ensure availability. However, to avoid disruption in the current climate we have also looked to increase our buffer stock levels.

Competition in our markets

Potential impact on the Group

The company operates in a competitive market environment and the continuing development of new product ranges is key to success.

Mitigating actions

The business continues to monitor the use of its products with customers to identify areas for improvement and development. In addition, the business also reviews the marketplace against customers’ needs with a view to identifying gaps in the market for new product.

The directors have had due regard for their duties under section 172 of the UK Companies Act 2006 and consider the interests of the company's main stake holders, being employees, suppliers, and customers in their decisions. Regular dialogue is held with these parties to understand their needs and all decisions are taken with the view that they will result in long term benefits.

On behalf of the board

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

The results for the year are set out in page 13.

During the year, the company declared a cash dividend to ordinary shareholders of £1,053 per share and was paid on the 31st January 2025.

The directors who held office during the year were as follows:

The Group's activities expose it to a number of financial risks including price risk, credit risk, liquidity risk and foreign exchange risk which are managed as follows.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of long-term and short-term debt finance.

The Group is exposed to currency risk on revenue and purchases that are denominated in a currency other than sterling. The Group seeks to reduce foreign currency exchange exposures through a policy of matching and the use of forward currency contracts as considered necessary.

The Group’s principal financial assets are bank balances and cash, trade debtors and other receivables. The credit risk on liquid funds is mitigated because the counterparties are banks with high credit-ratings. Trade debtors and other receivables are managed in respect of credit risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and limits. A significant part of the Group’s operations are with national governments which have low credit risks.

The Group is engaged in long term contracts where the prices are often fixed. The Group is therefore exposed to sub-contractor and supplier price risk. The Group manages its exposure to these risks by engaging in ongoing negotiations with sub-contractors and suppliers over prices. The Group looks to fix prices where possible to reduce exposure to price fluctuations on contracts. The Group also continues to improve its systems to ensure that the Group manages the risks associated with contract costs, which will help ensure that the Group's results continue to improve into the future.

The group continues to design and develop the HMT family of vehicles. The group also continued the development of a number of vehicle platforms, including a closed cab variant HMT, a Lightweight Mobility Vehicle (LMV) Tactical and the continuation of the development of an autonomous ATMP vehicle. In addition, research continues on hybrid electric drive systems for both the land and marine environments.

Regular meetings are held between local management and employees to allow a free flow of information and ideas.

The directors recognise that there have been challenges during the year due to political and global economics which will continue into the future. However, opportunities are beginning to present themselves to the Group and as a result, the directors remain confident about the future.

The section below presents the energy usage and associated carbon dioxide emissions for the SC Group-Global Limited operations that are based and reportable in the UK. The Group has taken the exemption available from including overseas subsidiaries. This section has been prepared in compliance with the SECR Framework as implemented in the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

The chosen intensity measurement ratio is total gross emissions in metric kilograms CO2e per man hour.

The HM Government Environmental Reporting Guidelines including Streamlined Energy and Carbon Reporting guidance published in March 2019 has been followed. Carbon emissions have been calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard using the DESNZ23 emissions factors.

The Group continues to focus on reducing energy consumption and carbon emissions. To date the Group has:

• Undertaken and continues to subscribe to Green Energy Tariffs.

• Introduced Solar Panels producing approximately 15,731 kWh per annum.

• Promotes and encourages employee uptake in relation to an Electric Car Scheme.

• Developed a Green Hosted Website.

• Encouraged 'Zero waste to landfill' from our waste service providers.

• Invested in a rainwater harvesting system to reduce mains water consumption, lower utility overheads and strengthen the environmental sustainability strategy.

• Invested significantly, in the conversion to LED lighting in key areas of the business. This activity, will continue through a rolling maintenance programme.

In addition, a committee headed up by the Group CEO has been assembled to ensure our commitment to Net Zero, and an external consultant has been employed to assist the Group with that journey.

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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 United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

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

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

Identifying and assessing risks related to irregularities:

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

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

Audit response to risks identified

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

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

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

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

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

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,220,807 (2024 - £3,598,452 profit).

SC Group-Global Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is The Airfield, Dunkeswell, Honiton, Devon, England, EX14 4LF.

The group consists of SC Group-Global Limited and all of its subsidiaries.

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

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

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company SC Group-Global Limited together with all entities controlled by the parent company (its subsidiaries) with the exception of Supacat GmbH and SC Eco PTY Limited. Whilst these subsidiaries are not wholly owned, they are near dormant and considered immaterial to the group.

All financial statements are made up to 31 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed under the acquisition method. Where the acquisition constitutes a group reconstruction the financial statements have been prepared using merger accounting principles as if the group had always been in existence.

At the time of approving these financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

As part of making the above assessment, the directors continue to review the business in the current trading environment and in particular the adequacy of its current banking facilities and its access to additional facilities should these be required. The Group has an on-demand revolving credit facility that is renewable on a triannual basis and believe that this will continue to be renewed at the current levels. The directors continue to test their assumptions with forecasts being reviewed regularly and ongoing discussions with lenders and banks to explore opportunities to increase facilities if appropriate.

The majority of the business of the Group and the Company is in the defence sector. The latest budget has been reviewed, sensitised and a number of differing scenarios produced under different planning assumptions. The Group and Company are reliant on cashflows from a number of UK projects which are under contract and have positively contributed to the underpinning of the revenues for the business for the forthcoming year regardless of which scenario is considered. Although these scenarios, show a reduction of revenues and margins over the period, the plans that remain in place to conserve cash and mitigate the effect drops of this magnitude in the forecast, the scenarios continue to indicate that the business will be able to operate positively and effectively.

Following these reviews, the directors have a reasonable expectation that the business has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors consider it to be appropriate to prepare the accounts on a going concern basis.

Turnover comprises revenue receivable by the company in respect of goods and services supplied during the year, exclusive of value added tax and trade discounts and is recognised on the following basis:

Goods

Turnover from the sale of goods is recognised when the goods are physically delivered to the customer or when substantially all the risks and rewards are transferred, whichever is earlier.

Services

Turnover from the supply of services represents the value of services provided during the year to the extent that there is a right to consideration and is recorded at the fair value of the consideration due. Turnover is recognised when the service is provided.

Long term contract revenue

Where a contract is only partly complete at the balance sheet date, turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. Turnover which has not been invoiced is included within amounts recoverable under contracts. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.

Funded development expenditure incurred on specific contracts is treated as a contract cost in accordance with the general accounting policy for contract work in progress. Unfunded development costs incurred on certain projects are capitalised and carried forward as intangible assets when their recoverability can be foreseen with reasonable certainty, there is an ability to sell the product being developed, there is a firm commitment to complete the project and there are sufficient resources to do so. These deferred costs, which include labour costs and an element of directly attributable overheads, are amortised on a straight line basis over the anticipated life of the benefits arising from the completed products or projects. The Directors consider that this treatment results in a more appropriate matching of costs and revenue. All other development expenditure is written off in the year of expenditure.

Goodwill is amortised over its useful life, which has been deemed as five years.

Separately acquired trademarks and licences are shown at historic cost. Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets less any estimated residual value, other than land and properties under construction over their estimated useful lives, as follows:

Investment property is carried at fair value, derived from the current market prices for comparable properties determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments held as fixed assets are shown at cost less provision for impairment.

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable production overheads.

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 net assets of the company.

Financial instruments are recognised when the group becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the group's obligations are discharged, expire or are cancelled.

The group holds the following basic financial instruments:

• Short term trade and other debtors and creditors;

• Short term bank overdrafts and long term bank loans;

• Long term bank borrowings.

The group also holds certain listed investments, which are held at fair value. Fair value is determined by the share price in the market. Such assets are included within debtors due within one year.

The company holds the following basic financial instruments:

• Short term bank overdrafts and long term bank loans;

• Long term intercompany debtors and creditors.

Basic instruments are initially measured at transaction price, including transaction costs. Those instruments considered current are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are subsequently measured at amortised cost using the effective interest rate method.

Tax expense for the period represents the sum of the current tax currently payable and deferred tax.

Tax is recognised in the profit or loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax assets and liabilities are not offset.

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefit is probable and a reliable estimate of this amount can be made. Warranty provisions are based on the best estimate of future costs to be incurred in relations to claims by customers formed from historical data. Provisions for warranties are recognised once the product has been delivered to the customer.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

Leases, in which substantially all the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases and hire purchase agreements are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

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

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

In the application of the group’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.

Provisions are held against slow moving stock and work in progress. This inherently requires a degree of estimation. The directors have estimated the stock provision based on age, on a line by line basis. Provision against work in progress is made where total costs on projects are expected to exceed total revenues.

The company makes significant investments on an annual basis in research and development, which is a key element to enable it to compete in its marketplace. The business continues to adopt a policy of capitalising these costs as part of its Intangible fixed assets, where it believes that the development costs incurred will lead to future economic benefit. The amount capitalised in the year is disclosed in note 14.

The directors have considered the judgements and estimation uncertainties included in these financial statements and the accounting policies applied. 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, and in future periods to the extent that these apply. The following is considered to be the key area of estimation be the directors.

Profit on long term contracts is taken as work is carried out, if the final outcome can be assessed with reasonably certainty. This requires an accurate assessment of the stage of completion of each contract, as well as the estimated costs to complete each contract. Judgement, influenced by historical performance, is required when estimating the expected costs to complete the project. The amount recognised in the year is disclosed in note 3.

In 2024, flooding of a storage facility caused damage to items of plant and machinery and stock held by Proteum Limited. An amount was deferred to 2025 due to final rectification works occurring in 2025. In 2025 impairment costs of the damaged assets were £113,362 (£486,637 in 2024) and insurance income for the damage was £242,740 (£522,540 in 2024). This has resulted in a reduction to the loss incurred by £129,378 (£35,903 in 2024).

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The directors are considered to be the key management personnel of the group.

In accordance with the Companies Act 2006 (Section 412), the directors' remuneration disclosed in this note relates solely to the remuneration of the directors of the Company and excludes remuneration of the wider Group.

Following changes to the UK research and development tax credit regimes, the Company recognises R&D tax credits above profit before tax within “Other gains and losses”.

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

Individually material intangible assets

High Mobility Transporters (HMT)

The carrying amount of this asset is £5,648,493 (2024: £4,251,849). There were additions in the year of £2,133,784(2024: £1,800,000).

The amortisation of the original HMT 400 project commenced in the year ended 31 August 2003, upon commencement of commercial production of the HMT 400 vehicle. Similarly, the amortisation of the original HMT 600 vehicle development costs commenced in the year ended 31 August 2007 upon its successful commencement of commercial production. Subsequent product enhancement expenditure is written off over ten years from the date of capitalisation.

Additional development costs have been capitalised in relation to HMT projects in Australia which are expected to generate future economic benefit. The carrying amount of these development costs is £1,896,257 (2024: £2,138,561).

Light Reconnaissance Vehicle

The carrying amount of this asset is £1,644,454 (2024: £1,504,679). Development of the assets commenced in the year ended 31 August 2015 and 31 August 2014 respectively. Whilst not yet in commercial production, the directors consider the project to be substantially complete and amortisation began in the prior period, writing off the development costs over a 10 year period. A total amortisation charge of £291,377 (2024: £285,603) has been recognised.

Lightweight Recovery Vehicle

The carrying amount of this asset is £1,583,882 (2024: £1,837,163). Development of these assets commenced in the year ended 31 August 2017. Amortisation commenced in the year when the asset was brought into use. A total amortisation charge of £253,282 (2024: £232,849) has been recognised.

RHM external rack redevelopment

The carrying amount of this asset is £627,359 (2024: £968,254). This is being amortised over a period of 7 years All remaining intangible assets are written off over the period that they are expected to produce commercial benefit.

Other intangible assets development cost assets have a combined carrying value of £872,285 (2024: £203,455). These are individually immaterial and as such no further disclosure is made in respect of these.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Investment property comprises of one property. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 5 May 2022 by JLL Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The director's have assessed this 2022 valuation to be an accurate representation of the fair value at the 2025 year end.

Details of the company's subsidiaries at 31 August 2025 are as follows:

The principal activities of the Group are that of the research and development, design, prototyping, manufacture and sale of high mobility vehicles, trailers and other systems. Supacat Limited and Supacat PTY Limited primarily operate in the military sector, Proteum Limited within the maritime sector and SC Innovation-Global Limited and Blackhill Engineering Services Limited provide engineering and training services to the non-defence sector and heavy machining and fabrication activities. Supacat GmbH and SC Eco PTY Limited are near dormant subsidiaries in Germany and Australia respectively.

As Supacat GmbH and SC Eco PTY Limited are near dormant subsidiaries, these subsidiaries have been excluded from the consolidation of the Group accounts, as deemed non-significant and immaterial to the Group.

The registered office of each subsidiary is the same as that of the company, with the exceptions of Supacat PTY Limited and SC Eco PTY Limited which is HWT Tower Level 19, 40 City Road, Southbank VIC3006, Australia and Supacat GMBH which is Schifferstrasse 210, D-47059 Duisburg, Germany.

Amounts owed by Group undertakings are due more than one year, the remaining balance on consolidation relates to amounts owed by unconsolidated Group undertakings of the Group as at the year end.

Group

Financial assets measured at fair value

Shares held in listed entities

The Group holds shares of a supplier who is listed on a stock exchange. The share price at the year end has been used to determine the fair value of the investment.

The fair value at the year end is £2,328 (2024: £1,746) and the change in value included in profit or loss is a gain of £582 (2024: loss of £2,052).

The bank loans are secured on all the assets of the Group by way of a cross guarantee.

The hire purchase agreements are secured on the assets to which they relate.

The Group has an on demand revolving credit facility of a maximum value at any time of £6.5m covering the UK group companies. This facility is for a period of three years, is repayable on demand and attracts interest at 3.95% above the bank's base rate.

The Group has one CBILS loan facility that is outstanding. This attracts an interest of 9.5%. The loan will be repaid over the next 18 months.

The Australian subsidiary undertaking has an overdraft of AUD$3.25m and trade funding facility of AUD$2m available.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

A subsidiary within the Group provides for warranty costs up to agreed contractual amounts. This warranty provision is then utilised and released to the profit and loss account over the warranty period.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The group operates a defined contribution pension scheme. Contributions totaling £62,849 (2024- £116,670) were payable to the scheme at the end of the year and are included in creditors.

The options outstanding at 31 August 2025 had an exercise price of £4,045 per share, are equity settled and have a remaining contractual life of 7 years 4 months.

All Ordinary shares have equal voting and participation rights in the company.

This represents the excess of the proceeds over the par value of shares includes less any directly attributable transaction costs.

This represents the accumulated profits of the group net of any distributions to shareholders.

This reserve reflects the nominal value of shares repurchased by the Group.

Amounts contracted for but not provided in the financial statements:

Group

Summary of transactions with all subsidiaries

One of the group entities is 90% owned by SC Group-Global Limited. During the year, sales were made to the entity by wholly owned members of the group totalling £2,732,415 (2024: £1,399,094) and the wholly owned members of the group purchased services from the entity totalling £288,874 (2024: £100,993). At the balance sheet date, the amount due from the entity that is not wholly owned was £4,333,559 (2024: £3,696,143) which is fully eliminated on consolidation.

Company

The company has taken advantage of the exemption in FRS 102 from disclosing transactions with wholly owned members of the group.

Summary of transactions with all subsidiaries

The company charged royalties, management fees and interest of £1,009,312 (2024: £1,176,017) to its non wholly owned subsidiary during the year. The balance due at the year end to the company totalled £3,745,339 (2024: £3,037,116).

The company is controlled by the directors who own 100% of the called up share capital. There is no single controlling party.