REGISTERED NUMBER: NI042535 (Northern Ireland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Capital Reinforcing (Ireland) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

P Cardwell

D Owens

C G McAleer

S G Boyle

REGISTERED OFFICE:

8-10 Church Street

Omagh

Co. Tyrone

BT78 1DG

REGISTERED NUMBER:

NI042535 (Northern Ireland)

AUDITORS:

Dundas Gallagher

Chartered Accountants and Statutory Auditors

Thistlebank House

2 Old Henry Street

Enniskillen

Co. Fermanagh

BT74 7JX

BANKERS:

Barclays Bank PLC

48B & 50 Lord Street

Liverpool

Merseyside

L2 1TD

SOLICITORS:

Bennett Williams Solicitors

Egerton House

2 Tower Road

Birkenhead

CH41 1FN

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

REVIEW OF BUSINESS

Turnover has decreased by 29% to £31.94m (2024: £45.11m). Overall, a net profit before tax of £0.56m was achieved for the year ended 31 December 2025 compared to a profit of £2.83m for the year ended 31 December 2024. The company's asset base remains strong with net assets of £14.59m at 31 December 2025 (2024: £14.19m). The directors are satisfied with the company's performance in the year and the emphasis going forward continues to be securing turnover that will result in sustainable growth and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed what they consider to be the major risks and are satisfied that adequate systems are in place to mitigate these risks. The assessment covered the normal risk areas expected for a company of this size and nature, including the Ukrainian conflict, market competition and staffing. The directors consider the company is well placed to meet the challenges ahead and continue to trade profitably.

STRATEGY AND FUTURE DEVELOPMENTS

The company is committed to maintaining the long term shareholder value. In the coming years the company aims to increase revenue and profitability. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining competitive. The company is also considering its carbon output from its overall operations and has put a strategy in place to become net carbon zero in the next few years.

ON BEHALF OF THE BOARD:

D Owens - Director

13 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of retail of steel rebar and steel reinforcing products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025. (2024: £1million).

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

P Cardwell

D Owens

C G McAleer

Other changes in directors holding office are as follows:

S G Boyle - appointed 31 December 2025

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company is exposed to a variety of financial risks including price, foreign currency and liquidity risk. The company has in place a risk management programme that seeks to limit any adverse effect on the financial performance of the company. The company manages the price and foreign currency risk by entering into bulk stock purchase transactions. The company manages its liquidity risk through bank credit facilities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Dundas Gallagher, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Owens - Director

13 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation.

We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

Ruairi Dundas (Senior Statutory Auditor)

for and on behalf of Dundas Gallagher

Chartered Accountants and Statutory Auditors

Thistlebank House

2 Old Henry Street

Enniskillen

Co. Fermanagh

BT74 7JX

13 May 2026

TURNOVER

4

31,943,197

45,114,527

Cost of sales

28,896,081

39,330,082

GROSS PROFIT

3,047,116

5,784,445

Administrative expenses

2,510,591

2,811,664

536,525

2,972,781

Other operating income

255,627

32,525

OPERATING PROFIT

7

792,152

3,005,306

Interest receivable and similar income

5,471

12,680

797,623

3,017,986

Interest payable and similar expenses

9

241,365

188,080

PROFIT BEFORE TAXATION

556,258

2,829,906

Tax on profit

10

158,346

725,741

PROFIT FOR THE FINANCIAL YEAR

397,912

2,104,165

PROFIT FOR THE YEAR

397,912

2,104,165

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

397,912

2,104,165

FIXED ASSETS

Tangible assets

12

5,279,685

5,731,584

Investment property

13

192,788

192,788

5,472,473

5,924,372

CURRENT ASSETS

Stocks

14

13,463,351

9,392,908

Debtors

15

4,523,444

6,297,784

Cash at bank

184,262

219,715

18,171,057

15,910,407

CREDITORS

Amounts falling due within one year

16

8,269,737

6,605,159

NET CURRENT ASSETS

9,901,320

9,305,248

TOTAL ASSETS LESS CURRENT LIABILITIES

15,373,793

15,229,620

CREDITORS

Amounts falling due after more than one year

17

(539,257

)

(698,972

)

PROVISIONS FOR LIABILITIES

20

(245,378

)

(339,402

)

NET ASSETS

14,589,158

14,191,246

CAPITAL AND RESERVES

Called up share capital

21

300,000

300,000

Revaluation reserve

22

1,812,363

1,812,363

Retained earnings

22

12,476,795

12,078,883

SHAREHOLDERS' FUNDS

14,589,158

14,191,246

The financial statements were approved by the Board of Directors and authorised for issue on 13 May 2026 and were signed on its behalf by:

D Owens - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

300,000

10,974,718

1,812,363

13,087,081

Changes in equity

Dividends

-

(1,000,000

)

-

(1,000,000

)

Total comprehensive income

-

2,104,165

-

2,104,165

Balance at 31 December 2024

300,000

12,078,883

1,812,363

14,191,246

Changes in equity

Total comprehensive income

-

397,912

-

397,912

Balance at 31 December 2025

300,000

12,476,795

1,812,363

14,589,158

Cash flows from operating activities

Cash generated from operations

1

(3,625,954

)

(2,376,872

)

Interest paid

(241,365

)

(188,080

)

Tax paid

(495,000

)

(1,392,261

)

Net cash from operating activities

(4,362,319

)

(3,957,213

)

Cash flows from investing activities

Purchase of tangible fixed assets

(78,432

)

(547,407

)

Sale of tangible fixed assets

71,500

106,467

Interest received

5,471

12,680

Net cash from investing activities

(1,461

)

(428,260

)

Cash flows from financing activities

New loans in year

5,140,599

-

Loan repayments in year

(174,606

)

(1,302,291

)

Amount introduced by directors

(643,666

)

-

Amount withdrawn by directors

6,000

(428,660

)

Equity dividends paid

-

(1,000,000

)

Net cash from financing activities

4,328,327

(2,730,951

)

Decrease in cash and cash equivalents

(35,453

)

(7,116,424

)

Cash and cash equivalents at beginning of year

2

219,715

7,336,139

Cash and cash equivalents at end of year

2

184,262

219,715

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

31.12.25

31.12.24

£

£

Profit before taxation

556,258

2,829,906

Depreciation charges

441,291

531,184

Loss/(profit) on disposal of fixed assets

17,540

(2,013

)

Government grants

(9,970

)

(15,679

)

Finance costs

241,365

188,080

Finance income

(5,471

)

(12,680

)

1,241,013

3,518,798

Increase in stocks

(4,070,443

)

(2,993,216

)

Decrease in trade and other debtors

1,784,310

636,887

Decrease in trade and other creditors

(2,580,834

)

(3,539,341

)

Cash generated from operations

(3,625,954

)

(2,376,872

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

184,262

219,715

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

219,715

7,336,139

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

219,715

(35,453

)

184,262

219,715

(35,453

)

184,262

Debt

Debts falling due within 1 year

(160,159

)

(5,125,708

)

(5,285,867

)

Debts falling due after 1 year

(698,972

)

159,715

(539,257

)

(859,131

)

(4,965,993

)

(5,825,124

)

Total

(639,416

)

(5,001,446

)

(5,640,862

)

1.	STATUTORY INFORMATION

Capital Reinforcing (Ireland) Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets

Tangible fixed assets are originally stated at cost and are subsequently carried at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes any costs directly attributable to making the asset capable of operating as intended.

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

Freehold property

- 2% on cost

Leasehold land and buildings

- over the term of the lease

Plant and machinery

- 25% on reducing balance

Fixtures and fittings

- 25% on reducing balance

Government grants

Government grants are recognised when the performance conditions attached to the grants are met. Grants are measured at the fair value of the asset received or receivable.

Grants relating to assets are presented as deferred income and released to profit or loss over the useful life of the relevant asset.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

Financial instruments

The company has applied the provisions of section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Financial assets including trade debtors arising from goods sold to customers on short-term credit are initially measured at the undiscounted amount of cash receivable from that debtor, which is normally the transaction price, and subsequently carried at amortised cost using the effective interest rate method unless the arrangement constitutes a financing transaction. If payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate, this constitutes a financing transaction and is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, held the impairment not previously been recognised.

The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirely to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in the finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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

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

Going concern

The financial statements indicate profit of £0.6m for the year to 31 December 2025. The business continues to demonstrate continuing profitability and increased net asset position.

Business projections indicate increasing levels of turnover and profitability for the foreseeable future.

The owners have expressed their satisfaction with the performance of the business and confirmed their support for the company going forward.

Based on the above, it is deemed appropriate for the company to be regarded as a going concern.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets, liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore management believe the critical accounting policies, where estimates, judgements and assumptions are necessarily applied, are summarised below:

Impairment of fixed assets:

The company's property, plant and equipment are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful economic lives. The carrying values of such assets are reviewed annually for any indication of impairment. The carrying value of such assets is tested for impairment where events or changes in circumstances indicate the carrying value is incorrectly stated. If such a review indicated that the carrying value is overstated, the value of the asset is restated to its deemed recoverable amount. Recoverable amount is deemed to be the higher of the assets fair value less costs of sale or its value in use. Value in use is calculated based on the discounted future cash flow of the asset or of the cash generating unit which the asset belongs.

Provision for obsolete inventory:

Management review the inventory held by the company on a regular basis to identify any inventory which is slow moving or obsolete. Inventory is stated at the lower of cost and net realisable value. Where management identifies any items, or lines, of inventory which they deem to have a net realisable value less than cost, then provision is made for such items.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.25

31.12.24

£

£

United Kingdom

31,943,197

45,114,527

31,943,197

45,114,527

5.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

2,944,033

3,408,366

Other pension costs

81,527

124,517

3,025,560

3,532,883

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

31.12.25

31.12.24

Administration

18

15

Production

56

60

74

75

6.	DIRECTORS' EMOLUMENTS

31.12.25

31.12.24

£

£

Directors' remuneration

486,644

389,569

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes

4

3

Information regarding the highest paid director is as follows:

31.12.25

31.12.24

£

£

Emoluments etc

219,272

165,217

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.25

31.12.24

£

£

Hire of plant and machinery

13,123

13,346

Depreciation - owned assets

441,291

531,184

Loss/(profit) on disposal of fixed assets

17,540

(2,013

)

Foreign exchange differences

1,150

21,763

8.	AUDITORS' REMUNERATION

31.12.25

31.12.24

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

9,000

9,000

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Bank interest

241,365

188,080