REGISTERED NUMBER: 15266835 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 April 2025

for

The Wilmott Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

L M Bradshaw

L Andrieux

REGISTERED OFFICE:

Heanor Gate Industrial Estate

Heanor Gate Road

Heanor

Derbyshire

DE75 7RJ

REGISTERED NUMBER:

15266835 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

The directors present their strategic report of the company and the group for the year ended 30 April 2025.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of the group during the past financial year and its position at the year-end. Our review is consistent with the size, nature and complexity of the group.

This report reflects the progress made by the group in the 12 months of trading to 30 April 2025. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the business as a whole, those being turnover and profit margins.

Turnover decreased by 13.0% (2024 - 35.3% increase) to £128.5m. The prior year reflected exceptionally strong growth driven by large project awards. As a project-based business, revenue is influenced by project lifecycle, timing and stage of completion, which can result in variability between reporting periods. The Group continued to perform well, securing major contracts and expanding the hire fleet during the year.

The group's gross profit margin has increased by 11.7% to 38.3% due to improved margins from projects.

The group saw growth across all areas of the business and invested further to support the growth of the hire business. The group has continued to utilise its leased borrowing facilities to fund this capital expenditure.

The group has continued to invest in the development of new products and the continued production and sale of renewable products. This will be a significant source of growth for the business moving forward with additional new products planned and production scheduled across the next financial year and into the future.

In addition, the group has continued to invest further overhead and operational costs in sales and delivery capabilities to drive future growth and improve control in the business. The benefits of these investments will be seen in the continued growth of the business in future periods.

The directors are satisfied with the results and year-end financial position, and the directors hope to achieve growth by additional contracts won, improved efficiencies and a continuous monitoring of overheads.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Group's strategy are subject to a number of risks. The directors continually monitor performance, profitability and infrastructure in the context of a competitive and evolving market, implementing changes where appropriate.

The Group's principal risks include reliance on key product platforms and supply arrangements, requiring effective coordination across operations to ensure continuity of supply and delivery. In addition, the Group operates in a highly competitive market, with ongoing pricing pressure from lower-cost international competitors. The Group also faces risks associated with the delivery of large, complex projects, where performance is influenced by project lifecycle, timing and cost control.

SECTION 172(1) STATEMENT

The directors consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 30 April 2025.

ENGAGEMENT WITH EMPLOYEES

Within the bounds of confidentiality, staff at all levels are kept fully informed of matters that affect the progress of the company and group and are of interest to them as employees.

Disabled persons are given full and fair consideration for all types of vacancy. If an existing employee becomes disabled, such steps as are practical and reasonable are taken to retain him/her in employment. Where appropriate, assistance with rehabilitation and suitable training are given. Disabled persons have equal opportunities for training, career development and promotion, except insofar as such opportunities are constrained by the practical limitations of their disability.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors have had regard to the need to foster the company's business relationships with suppliers, customers and others.

FINANCIAL INSTRUMENTS

The company uses basic financial instruments such as hire purchase, finance leases and banking facilities to finance capital expenditure and growth.

Cash flow risk

Cash flow is carefully managed and the directors consider that the controls and facilities in place are adequate to meet the needs of the business.

Financial risk

The directors manage the group's exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the group's providers of finance and its other external financial advisers.

Interest rate risk

The group finances its operations through a mixture of retained profits, bank borrowing and hire purchase leases.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Primarily this is achieved through bank borrowings and retained profits. The group policy throughout the period has been to ensure continuity of funding and short term flexibility was achieved by overdraft facilities.

Currency risk

Currency risk is restricted to the short term settlement of trading balances with customers and suppliers.

ORGANISATION

The directors continue to monitor the group's organisation and profitability in light of changes within a highly competitive industry. Changes are implemented where deemed appropriate in order to minimise the effects of the risks and uncertainties the company faces in retaining market share and maintaining margins.

RESEARCH AND DEVELOPMENT

The group continues to invest in the quality and design of its products believing that continued investment in research and development is fundamental to the growth of the business.

POST BALANCE SHEET EVENTS

After the year end, the Group was acquired by Rehlko, a global power solutions business, with ownership held via PE Discovery Energy Holdings L.P. This marks a significant step forward, strengthening the Group's platform for growth through increased scale, capability and access to capital.

ON BEHALF OF THE BOARD:

L M Bradshaw - Director

22 May 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2025.

DIVIDENDS

The total distribution of dividends for the year ended 30 April 2025 will be £175,000.

DIRECTORS

Changes in directors holding office from 1 May 2024 to the date of this report are as follows:

L Andrieux, N J Matson and L M Bradshaw were appointed as directors after 30 April 2025 but prior to the date of this report.

V A Wilmott, C M Wilmott, N J Matson and A K Wilmott ceased to be directors after 30 April 2025 but prior to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2024 to 31 December 2024, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'UK Government GHG Conversion Factors for Company Reporting' Standard Set 2022 Version 2.0.

During the reporting period, the main efficiency measures implemented include introducing fully electric vehicles and petrol hybrid cars, which reduced fuel use and exhaust emissions. Additional actions to lower emissions included improved route planning, increased use of remote meetings to reduce travel, and upgrades to energy efficient lighting and heating controls across sites. Together, these measures have contributed to a reduction in the organisation's overall emissions.

The table below includes total energy consumption (reported as kgCO2e) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Total Energy Consumption (kWh)

10,359,322

8,867,741

UK emissions only (kgCO2e)

2,551,557

2,182,770

Gas and fuel emissions (kgCO2e)

2,139,365

2,112,325

Electricity emissions (kgCO2e)

153,894

71,444

Intensity Ratio: Relative emissions per employee (kgCO2e)

8,104.6

7,156

DISCLOSURE IN THE STRATEGIC REPORT

The matters required to be disclosed under SI (2008) 410 Sch 7 relating to financial instruments and research and development are contained within the Strategic Report as applicable in accordance with s414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

L M Bradshaw - Director

22 May 2026

Opinion

We have audited the financial statements of The Wilmott Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2025 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept 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.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the group's and the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the power services industry and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

- Enquiry of management around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess

compliance with applicable laws and regulations;

- Performing audit work over the risk of management override of controls, including testing of journal

entries and other adjustments for appropriateness, evaluating the business rationale of significant

transactions outside the normal course of business and reviewing accounting estimates for bias;

- Reviewing minutes of meetings of those charged with governance.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Wayne Thomas FCA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

26 May 2026

TURNOVER

128,521,976

147,671,400

Cost of sales

79,271,129

108,402,993

GROSS PROFIT

49,250,847

39,268,407

Administrative expenses

35,028,458

19,884,534

OPERATING PROFIT

4

14,222,389

19,383,873

Interest receivable and similar income

87,497

221,074

14,309,886

19,604,947

Interest payable and similar expenses

5

3,238,551

1,213,377

PROFIT BEFORE TAXATION

11,071,335

18,391,570

Tax on profit

6

2,735,629

4,874,170

PROFIT FOR THE FINANCIAL YEAR

8,335,706

13,517,400

OTHER COMPREHENSIVE INCOME

-

4,950

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

4,950

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

8,335,706

13,522,350

Profit attributable to:

Owners of the parent

8,335,706

13,517,400

Total comprehensive income attributable to:

Owners of the parent

8,335,706

13,522,350

FIXED ASSETS

Intangible assets

9

463,053

387,709

Tangible assets

10

65,524,547

52,758,054

Investments

11

Interest in joint venture

Share of gross assets

1

1

65,987,601

53,145,764

CURRENT ASSETS

Stocks

12

13,176,941

13,333,867

Debtors

13

59,356,407

60,506,435

Cash at bank

2,013,356

7,004,990

74,546,704

80,845,292

CREDITORS

Amounts falling due within one year

14

70,269,649

86,793,969

NET CURRENT ASSETS/(LIABILITIES)

4,277,055

(5,948,677

)

TOTAL ASSETS LESS CURRENT LIABILITIES

70,264,656

47,197,087

CREDITORS

Amounts falling due after more than one year

15

(29,139,538

)

(16,968,304

)

PROVISIONS FOR LIABILITIES

19

(12,253,374

)

(9,517,745

)

NET ASSETS

28,871,744

20,711,038

CAPITAL AND RESERVES

Called up share capital

20

5,050

5,050

Revaluation reserve

21

361,300

361,300

Capital redemption reserve

21

5,000

5,000

Merger reserve

21

4,950

4,950

Other reserves

21

135,701

135,701

Retained earnings

21

28,359,743

20,199,037

SHAREHOLDERS' FUNDS

28,871,744

20,711,038

The financial statements were approved by the Board of Directors and authorised for issue on 22 May 2026 and were signed on its behalf by:

L M Bradshaw - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

5,050

5,050

5,050

5,050

CREDITORS

Amounts falling due within one year

14

13,038

-

NET CURRENT LIABILITIES

(13,038

)

-

TOTAL ASSETS LESS CURRENT LIABILITIES

(7,988

)

5,050

CAPITAL AND RESERVES

Called up share capital

20

5,050

5,050

Other reserves

21

135,701

135,701

Retained earnings

21

(148,739

)

(135,701

)

SHAREHOLDERS' FUNDS

(7,988

)

5,050

Company's profit for the financial year

161,962

-

The financial statements were approved by the Board of Directors and authorised for issue on 22 May 2026 and were signed on its behalf by:

L M Bradshaw - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 May 2023

5,000

13,272,816

361,300

Changes in equity

Issue of share capital

50

-

-

Dividends

-

(6,591,179

)

-

Total comprehensive income

-

13,517,400

-

Balance at 30 April 2024

5,050

20,199,037

361,300

Changes in equity

Dividends

-

(175,000

)

-

Total comprehensive income

-

8,335,706

-

Balance at 30 April 2025

5,050

28,359,743

361,300

Capital

redemption

Merger

Other

Total

reserve

reserve

reserves

equity

£

£

£

£

Balance at 1 May 2023

5,000

-

135,701

13,779,817

Changes in equity

Issue of share capital

-

-

-

50

Dividends

-

-

-

(6,591,179

)

Total comprehensive income

-

4,950

-

13,522,350

Balance at 30 April 2024

5,000

4,950

135,701

20,711,038

Changes in equity

Dividends

-

-

-

(175,000

)

Total comprehensive income

-

-

-

8,335,706

Balance at 30 April 2025

5,000

4,950

135,701

28,871,744

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Changes in equity

Issue of share capital

5,050

-

-

5,050

Total comprehensive income

-

(135,701

)

135,701

-

Balance at 30 April 2024

5,050

(135,701

)

135,701

5,050

Changes in equity

Dividends

-

(175,000

)

-

(175,000

)

Total comprehensive income

-

161,962

-

161,962

Balance at 30 April 2025

5,050

(148,739

)

135,701

(7,988

)

Cash flows from operating activities

Cash generated from operations

26

4,144,135

12,424,125

Interest paid

(401,426

)

(179,378

)

Interest element of hire purchase payments paid

(2,837,125

)

(1,033,999

)

Net cash from operating activities

905,584

11,210,748

Cash flows from investing activities

Purchase of intangible fixed assets

(126,525

)

(272,974

)

Purchase of tangible fixed assets

(238,847

)

(12,006,611

)

Purchase of fixed asset investments

-

(1

)

Sale of tangible fixed assets

351,493

122,528

Interest received

87,497

221,074

Net cash from investing activities

73,618

(11,935,984

)

Cash flows from financing activities

Loan repayments in year

(295,296

)

(750,962

)

Invoice discounting movement

3,666,301

-

Capital repayments in year

(3,293,243

)

(5,099,501

)

Amount withdrawn by directors

(5,873,598

)

(175,000

)

Share issue

-

5,000

Equity dividends paid

(175,000

)

(6,591,179

)

Net cash from financing activities

(5,970,836

)

(12,611,642

)

Decrease in cash and cash equivalents

(4,991,634

)

(13,336,878

)

Cash and cash equivalents at beginning of year

27

7,004,990

20,341,868

Cash and cash equivalents at end of year

27

2,013,356

7,004,990

1.	STATUTORY INFORMATION

The Wilmott Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Consolidation

The consolidated accounts incorporate the accounts of The Wilmott Group Limited and all of its subsidiary undertakings. Merger accounting has been adopted to include the results of the subsidiaries as if they had always formed part of the group and the comparatives reflect this, including adjustments to affect the accounting period.

Turnover

Other than on certain long term contracts, turnover represents the amounts (excluding value added tax) derived from the provision of goods, services and rentals charged under operating leases. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the agreed upon payment. On certain long term contracts, turnover represents the estimated sales value of the work performed in the year.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2023, is being

amortised evenly over its estimated useful life of ten years.

Intangible assets

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

Development costs are not being amortised as the asset is not yet available for use.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter:

Land and buildings

- 2% on revaluation and 2% on cost

Hire generators

- 10% on revaluation and 10% on cost

Plant and equipment

- 15% on reducing balance

Fixtures and fittings

- 20% to 33% on cost

Motor vehicles

- 25% on reducing balance and 10% on cost

Locomotives

- 2.5% on cost

Software

- 20% on cost

Freehold land is not depreciated.

The assets' residual values, useful lives and the depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account.

Stocks and work in progress

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

Work in progress cost includes direct labour. Cost represents the invoiced cost of materials and parts on an average cost basis and an appropriate amount of fixed and variable overheads.

Net realisable value is based on the estimated selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss account.

Long term contract balances are stated at total costs incurred, net of amounts transferred to the profit and loss account in respect of work carried out to date, less foreseeable losses and applicable payments on accounts.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted.

Provision is made at current rates for taxation deferred in respect of all material timing differences.

Research and development

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

Foreign currencies

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates defined contribution plans for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Invoice discounting

The debts discounted are included within trade debtors with a financing limit relating to proceeds received from the invoice discounter included within creditors.

The interest element and other discount charges are recognised within the profit and loss account as they accrue.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investment with original maturities of three months or less.

Share based payments

The company issues equity-settled, share based options to certain directors which are measured at fair value and recognised as an expense in the profit and loss account with a corresponding increase in the profit and loss reserve. The costs of associated national insurance contributions are borne by the director.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. The fair values of these payments are measured at the dates of the grant and are recognised over the period during which the directors become unconditionally entitled to the award. At the balance sheet date, the company revises its estimates of the number of options that are expected to vest and recognises the impact of the revision to original estimates, if any, in the profit and loss account, with a corresponding adjustment to the profit and loss reserve.

Judgements in applying accounting policies and key sources of estimation

In the application of the company's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical judgements and where relevant the key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken in to account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken in to account.

Land and buildings are held at fair value based on an expert's valuation taking into account local conditions and market values for similar properties. The assumptions are reviewed at least annually and revisions recognised in the current or previous period as is applicable.

Long term contracts are those extending in excess of 12 months and any of a shorter duration which are material to the activity of the period. Attributable profit is recognised once the outcome of a long term contract can be assessed with reasonable certainty. Attributable profit is recognised on the cost percentage completion method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable.

The value of the equity-settled, share based options and the number of options that are expected to vest are assessed annually as noted in the specific accounting policy.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

22,273,578

13,878,900

Social security costs

2,352,850

1,486,634

Other pension costs

1,460,091

1,052,402

26,086,519

16,417,936

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

2025

2024

Directors

3

3

Management and administration

297

165

Engineers and drivers

235

224

535

392

2025

2024

£

£

Directors' remuneration

115,954

89,013