REGISTERED NUMBER: 14360682 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

NARROW AISLE GROUP TOPCO LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

16

DIRECTORS:

D J Houston

J B Maguire

J S Porter

P Wooldridge

C C Randle

SECRETARY:

Higgs Secretarial Limited

REGISTERED OFFICE:

3 Waterfront Business Park

Dudley Road

Brierley Hill

West Midlands

DY5 1LX

REGISTERED NUMBER:

14360682 (England and Wales)

AUDITORS:

Crombies Accountants Limited

Chartered Accountants and Statutory Auditor

34 Waterloo Road

Wolverhampton

West Midlands

WV1 4DG

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The principal activities of the group in the year under review were the design, development, manufacture, sale and service of forklift trucks. It also operates a hire fleet through the subsidiary company, Flexi Forklift Rental

Limited, which is maintained by group companies.

PRINCIPAL RISKS AND UNCERTAINTIES

The group continues to sell into some foreign markets priced in US dollars providing a partial natural hedge against purchases in US dollars. The group manages the financial risks by monitoring exchange rates, conducting transactions in the most appropriate currency, executing forward foreign exchange contracts and by maintaining close relationships with customers.

The group has some key suppliers which it uses regularly. Relationships with them have been built up over many years based on quality of product, technical back up competencies, service provision and pricing. In the event of failure of supply from any one component supplier, it would be disruptive but would not be a significant threat with other suppliers available to meet the group's needs.

Established supply chains have worked well through recent global difficulties, and we expect them to remain robust for the foreseeable future.

The group is exposed to significant levels of trade credit. It manages all trade debtors by imposing customer specific terms including secured payment, payment by direct debit and by monitoring independent credit scores of each customer. Maintaining close contact with customers ensures that contract payment terms are met.

The market-related and macro-economic risks continue to create uncertainty regarding the business performance of the group and its operating segments.

RESULTS AND PERFORMANCE

The results for the year are shown in the annexed financial statements.

The group turnover in the year has decreased slightly by 1.05% from the previous year. The directors will continue their close attention to enhancing margin improvement.

KEY PERFORMANCE INDICATORS

The key performance indicators used to assess the group's performance are the level of turnover being achieved in each business segment together with their associated gross profit percentages.

FUTURE DEVELOPMENTS

All Flexi trucks produced by group companies are reliable proven products and the group continues to ensure that reliability is maintained through all aspects of manufacture.

The group will continue to enhance its range of products by ensuring that it uses the highest quality components in expanding its product range to enable it to meet the ever-increasing requirements of the modern logistics environment.

In addition, the group continues to invest significantly in Research & Development with the current focus on full digital controls along with the use of cutting edge Lithion Ion battery technology, thus allowing customers greater and more efficient use of their Flexi trucks in order to increase their own productivity. The new developments are also aimed at reducing energy consumption and other improved environmental considerations.

Quality of staff is an important factor both in terms of manufacturing a reliable product and service provision to existing customers and to enable the company to grow. It is the group's policy to ensure that it employs sufficient staff, adequately trained and of the right calibre to meet these requirements.

The group therefore has a strong basis for believing it will at least retain its market position, both domestically and abroad, maintain profitability at satisfactory levels and continue to generate cash through the forthcoming year.

ON BEHALF OF THE BOARD:

D J Houston - Director

4 June 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

D J Houston

J B Maguire

J S Porter

P Wooldridge

C C Randle

DISCLOSURE IN THE STRATEGIC REPORT

Disclosures in respect of future developments, risks and uncertainties, key performance indicators and results and performance are shown in the Strategic Report.

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;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Crombies Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D J Houston - Director

4 June 2026

Opinion

We have audited the financial statements of Narrow Aisle Group Topco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 31 December 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 four, 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.

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

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK taxation legislation and other laws and regulations identified as risk areas from making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statement disclosures to underlying supporting documentation;

-enquiring of management as to actual and potential litigation and claims; and

-reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Ian Cattell FCA (Senior Statutory Auditor)

for and on behalf of Crombies Accountants Limited

Chartered Accountants and Statutory Auditor

34 Waterloo Road

Wolverhampton

West Midlands

WV1 4DG

4 June 2026

TURNOVER

3

28,320,785

28,704,631

Cost of sales

19,895,259

21,114,808

GROSS PROFIT

8,425,526

7,589,823

Distribution costs

612,002

665,601

Administrative expenses

6,425,123

5,388,707

7,037,125

6,054,308

OPERATING PROFIT

5

1,388,401

1,535,515

Interest receivable and similar income

958

45

1,389,359

1,535,560

Interest payable and similar expenses

6

565,539

692,928

PROFIT BEFORE TAXATION

823,820

842,632

Tax on profit

7

191,056

86,344

PROFIT FOR THE FINANCIAL YEAR

632,764

756,288

Retained earnings at beginning of year

5,686,268

4,929,980

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

6,319,032

5,686,268

Profit attributable to:

Owners of the parent

632,764

756,288

FIXED ASSETS

Intangible assets

9

4,434,023

4,742,240

Tangible assets

10

4,522,678

3,060,135

Investments

11

-

-

8,956,701

7,802,375

CURRENT ASSETS

Stocks

12

6,202,625

6,355,238

Debtors

13

4,005,558

3,689,058

Cash at bank

82,923

87,446

10,291,106

10,131,742

CREDITORS

Amounts falling due within one year

14

6,961,423

5,446,855

NET CURRENT ASSETS

3,329,683

4,684,887

TOTAL ASSETS LESS CURRENT LIABILITIES

12,286,384

12,487,262

CREDITORS

Amounts falling due after more than one year

15

(5,036,986

)

(6,061,684

)

PROVISIONS FOR LIABILITIES

19

(923,866

)

(732,810

)

NET ASSETS

6,325,532

5,692,768

CAPITAL AND RESERVES

Called up share capital

20

6,500

6,500

Retained earnings

21

6,319,032

5,686,268

6,325,532

5,692,768

The financial statements were approved by the Board of Directors and authorised for issue on 4 June 2026 and were signed on its behalf by:

D J Houston - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

6,325,507

6,325,507

6,325,507

6,325,507

CURRENT ASSETS

Debtors

13

16,986

-

Cash at bank

119

100

17,105

100

CREDITORS

Amounts falling due within one year

14

2,464,605

3,047,600

NET CURRENT LIABILITIES

(2,447,500

)

(3,047,500

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,878,007

3,278,007

CAPITAL AND RESERVES

Called up share capital

20

6,500

6,500

Merger relief reserve

3,271,507

3,271,507

Retained earnings

600,000

-

3,878,007

3,278,007

Company's profit for the financial year

600,000

-

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

The financial statements were approved by the Board of Directors and authorised for issue on 4 June 2026 and were signed on its behalf by:

D J Houston - Director

Cash flows from operating activities

Cash generated from operations

1

2,181,072

1,930,271

Interest paid

(565,539

)

(692,928

)

Tax paid

14,909

(179,120

)

Net cash from operating activities

1,630,442

1,058,223

Cash flows from investing activities

Purchase of tangible fixed assets

(1,703,781

)

(1,411,997

)

Sale of tangible fixed assets

835,775

889,783

Interest received

958

45

Net cash from investing activities

(867,048

)

(522,169

)

Cash flows from financing activities

New loans in year

-

110,000

Loan repayments in year

(1,024,698

)

(377,276

)

Net cash from financing activities

(1,024,698

)

(267,276

)

(Decrease)/increase in cash and cash equivalents

(261,304

)

268,778

Cash and cash equivalents at beginning of year

2

(1,829,891

)

(2,098,669

)

Cash and cash equivalents at end of year

2

(2,091,195

)

(1,829,891

)

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

2025

2024

£

£

Profit before taxation

823,820

842,632

Depreciation charges

(299,112

)

831,582

Loss/(profit) on disposal of fixed assets

12,792

(498,407

)

Finance costs

565,539

692,928

Finance income

(958

)

(45

)

1,102,081

1,868,690

Decrease in stocks

152,613

163,469

(Increase)/decrease in trade and other debtors

(316,500

)

1,310,461

Increase/(decrease) in trade and other creditors

1,242,878

(1,412,349

)

Cash generated from operations

2,181,072

1,930,271

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

82,923

87,446

Bank overdrafts

(2,174,118

)

(1,917,337

)

(2,091,195

)

(1,829,891

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

87,446

91,527

Bank overdrafts

(1,917,337

)

(2,190,196

)

(1,829,891

)

(2,098,669

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

87,446

(4,523

)

82,923

Bank overdrafts

(1,917,337

)

(256,781

)

(2,174,118

)

(1,829,891

)

(261,304

)

(2,091,195

)

Debt

Debts falling due after 1 year

(6,061,684

)

1,024,698

(5,036,986

)

(6,061,684

)

1,024,698

(5,036,986

)

Total

(7,891,575

)

763,394

(7,128,181

)

1.	STATUTORY INFORMATION

Narrow Aisle Group Topco 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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. (See later note)

Basis of consolidation

The consolidated financial statements present the results of the ultimate holding company and its subsidiaries;

Narrow Aisle Limited

Flexi Forklift Rental Limited

Narrow Aisle Holdings Limited

as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenditure.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have significant risk of material adjustments to carrying amount of assets and liabilities are:

-Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account 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 asset lives, factors such as technical innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

-Stock provisions

The company has recognised provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. In the case of the provisions for the impairment of stock, this covers obsolescence through technological or customer specific reasons. This provision is based on the assessment of stock value and ageing, quantities on hand, usage, changes in the market, technical developments and warranty periods. The value of stock included in the financial statements is net of the provision for the impairment of stock.

-Bad debt provision

The company has recognised provisions against specific trade debtor balances. The judgements and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of debt balances and the assessed recoverability. The value of trade debtors in note 11 is stated net of the provision of bad debts.

Changes in accounting policies-revaluation of plant and machinery

During the year the group changed its accounting policy with relation to the hire fleet held within plant and machinery, from the cost model to the revaluation model.

Previously the hire fleet was carried at historical cost less accumulated depreciation, under the new policy these assets are carried at their fair value at the date of revaluation, less subsequent depreciation.

The change has been made to provide more relevant information to users of the financial statements, as it reflects the fair value of the group's assets.

The revaluation was performed as at 31 December 2025 by an independent qualified valuer, Andrew Bibby of Hilco Valuation Services using a market value basis. As a result of the revaluation the carrying amount of the hire fleet increased by £689,516 which has been recognised in the Profit and Loss Account as a write back of depreciation previously charged. No prior period figures have been restated as the charge has been applied prospectively.

The group's policy is to carry out revaluations with sufficient regularity to ensure that the carrying amount of the hire fleet does not differ materially from fair value.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised from the sale of goods when the entity has transferred to the buyer the significant risks and rewards of ownership of the goods. This usually occurs when the buyer takes possession of the goods.

Income from operating leases and contract rental

Assets held for short term operating leases are included in current assets at net realisable value. Assets held for long term operating leases are included in fixed assets

Income from operating leases and and contract rentals is included in turnover and is recognised in the Profit and Loss account on a straight line basis over the period of the agreement.

Goodwill on consolidation

On 16 September 2022 the company acquired the whole of the share capital of Narrow Aisle Holdings Limited and its subsidiaries. Goodwill arising on consolidation of the accounts of Narrow Aisle Holdings Limited and its subsidiaries is being written off over its useful life of 20 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.

Patents and licences are being amortised evenly over their estimated useful life of twenty years.

Intangible assets

The group has acquired a license to distribute its products throughout the USA. This is being amortised over its expected useful life of 20 years.

Tangible fixed assets

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

Plant and machinery

-

33.3% on cost, 11.1% on cost and 15% - 20% on cost

Fixtures and fittings

-

15% - 20% on cost

Motor vehicles

-

25% on cost

Improvements to property are depreciated at 20% on cost or over the remaining period of the lease, whichever is the lower.

Tangible assets other than the hire fleet are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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.

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of income and retained earnings during the period in which they are incurred.

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in the financial statements.

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 items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development

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

Foreign currencies

Foreign currency transactions are translated into sterling using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the retranslation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

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. The assets of the scheme are held separately from those of the company in an independently administered fund.

Financial instruments

Financial assets

Financial assets comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors. These are initially recorded at cost on the date they originate and are subsequently recorded at cost less provisions for impairment. The company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the statement of income and retained earnings.

Impairment of financial assets

Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment.

Impairment provisions represent the difference between the net carrying amount of a financial asset and the value of the expected future cash receipts from that asset.

Financial liabilities

Financial liabilities comprise trade creditors, other creditors and accruals; these are initially recorded, and subsequently carried, at cost on the date they originate.

Financial liabilities also comprise obligations under finance lease and hire purchase contracts; these are initially recorded at cost on the date they originate and are subsequently carried at amortised cost under the effective interest method.

Provisions

Provisions are made where an event has taken place that gives rise to a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of obligation.

Provisions are charged as an expense to the statement of income and retained earnings in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle obligation, taking into account relevant risks and uncertainties.

Going concern

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

The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of Equipment

23,318,804

23,991,044

Maintenance and Service Income

1,367,632

1,056,369

Sales of Parts

1,563,797

1,550,341

Hire Income

2,070,552

2,106,877

28,320,785

28,704,631

No analysis of turnover by geographical market is disclosed as the directors believe such disclosure would be prejudicial to the interests of the group.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,398,358

4,389,008

Social security costs

599,499

511,988

Other pension costs

76,924

72,934

5,074,781

4,973,930

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

2025

2024

Office and management

28

23

Production and sales

57

60

85

83

2025

2024

£

£

Directors' remuneration

538,610

688,238

Directors' pension contributions to money purchase schemes

2,972

4,505

Compensation to director for loss of office

-

79,830

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

312,478

292,569

Pension contributions to money purchase schemes

1,321

1,321