The director presents his annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of precision engineers to the aircraft industry.

2024 ended with the same flip/flopping Airbus A320 schedule this time Airbus announced they would not receive enough LEAP A engines from GE/Safran or Geared Turbo Fans (GTF) from Pratt & Whitney.

Airbus Chief Executive Guillaume Faury announced “A dip in single-aisle deliveries as a result of supply-chain issues with engines for the A320 family” which would obviously affect the build rate. We saw around £400K of arrears removed in the last couple of months of 2024 and a general decline in activity in our customer base, this continued into 2025.

The sales forecast for 2025 was circa £6.2 million, with a large first-quarter drop for DHAP of £300K, roughly £100K per month. We actually finished at £6.172 million, with the whole year flat in terms of activity.

As predicted in the 2024 Management Review, Airbus slowed the trajectory of its A320neo-family ramp-up by around a year in response to supply-chain concerns, pushing the 75-per-month production target back to 2027. As a point of interest, Airbus had asked GE/Safran whether they could increase deliveries of LEAP A engines in 2026 to cover the shortfall of GTF’s from Pratt & Whitney. They are unable to do so until 2027 as supplier issues constrain their ability to increase output in the short term.

The airframer had intended to take A320neo-family monthly output to 65 aircraft by early 2024, but this has been revised to the end of 2025, now 2026.

The average build rate in 2025 remained at around 55 aircraft per month, with Airbus still planning a 36% rate increase over the next 3 years. Whether the supply chain achieves this remains to be seen, lest we forget that the monthly build rate was 60+ at the end of 2019.

The significance of the Airbus A320neo build rates relates to the engine type fitted to the aircraft; the GE/Safran partnership supplies the LEAP A (Airbus) on this aircraft which accounts for a 55% market share; the other 45% is currently supplied by the Pratt & Whitney GTF (Geared Turbo Fan). Although with the GTF experiencing continuing reliability issues, LEAP A could move their market share of the engine of choice on the outstanding 8,200 narrowbodies currently on order.

This translates directly to our largest customer David Hart Aerospace Pipes (DHAP) now Airflow Technologies parent company Tinicum Incorporated; we supply various machined castings and Inconel components for their welded assemblies for the LEAP A engine.

DHAP’s 2025 sales were £3.6+ million, representing 58% of our total turnover. This was a slight decrease from their 2024 numbers: £3.9+ million.

Sales turnover decreased by 24% in 2025 from £8.2+ million in 2024 to £6.2+ million in 2025, with a forecast of £6.8+million in 2026.

This disastrous Government's lack of business understanding, fueled by Rachel Reeves' non-economic plan for growth, has led to a tax grab in the private sector in the form of a National Insurance increase, exacerbated by halving the allowance limit. All this has achieved is to stall private sector hiring of new staff; indeed, it has increased unemployment. Add to this the inflation-busting increases in the minimum wage and the constant drive to increase under-21s' pay rates, which has effectively stopped the hiring of young people into the workplace. Angela Rayner’s Employment Rights Act has only increased costs for companies, resulting in headcount losses and a freeze on recruitment.

With no coherent Energy policy companies are competing with cost 4 times that of their competitors and have no built in resilience to energy shocks in the market place, In a race to Net Zero the Government are squeezing yet again the private sector which could well result in our manufacturing base being decimated by a zealot in the form of the Secretary of State for Energy and Climate Change Ed Miliband.

Having already invested by increasing our capacity in 2024 to be rate ready, the company bore these additional cost (£20K/month) with a reduced turnover further impacting our operating profit.

2025 Capital investments in T&R’s machining capabilities saw the installation of a Mitutoyo Crysts Apex CMM this was required to assist in the inspection process for a new customer development (Preswick Aerosystems Ltd (Airbus) formerly Spirit Aerostructures) we had already added to our 5-axis capacity in 2024 in the form of a Mazak Variaxis i700 machining center (£415,000) with 18 pallet MPP (multi pallet pool) system (£212,750) fully automated machining cell this machine will cover the development and all future rate increases.

We also added a Roller Penetrant System with indexing and a large NDT drying oven £86K in anticipation of the forthcoming up lift on A320neo.

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

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

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

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

For the financial year ended 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

T & R Precision Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Peel Mill, Station Road, Foulridge, Colne, Lancashire, BB8 7LE.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

Turnover represents consideration receivable in respect of sales of goods, excluding value added tax. Where the outcome of a transaction can be estimated reliably for contract work in progress revenue associated with the transaction is recognised by reference to the stage of completion at the year end.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

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 leases 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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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

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

The company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The principal estimates and judgements that could have a significant effect upon the company's financial results relate to the stage of completion and valuation of amounts recoverable on contracts.

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

Land and buildings were revalued on the basis of market value at 31 December 2025 by the director.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

The following secured debts are included within creditors:

Bank loans £37,500 (2024 - £253,534)

Hire purchase contracts £1,921,206 (2024 - £1,902,832)

Other creditors £949,836 (2024- £1,365,198)

The bank loan is secured by fixed and floating charges over the assets of the company.

Hire purchase contracts and other creditors are secured by fixed and floating charges over the assets of the company.

At the year end the company had operating lease commitments of £151,841 (2024 - £50,309).