REGISTERED NUMBER: 05833617 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

BGG UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

C Archer

A Rossis

G Paris

REGISTERED OFFICE:

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

BUSINESS ADDRESS:

Delta House

Heath Road

Tendring

Clacton on Sea

Essex

CO16 0BU

REGISTERED NUMBER:

05833617 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

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

REVIEW OF BUSINESS

Principal Activity and Group Context

BGG UK Limited is the principal UK trading entity within the Bruno Group, an Italian-headquartered international generator manufacturer and distributor. The Company acts as the primary route to market for the Bruno Group's products across the United Kingdom, supplying Stage V emission-compliant electrical generating equipment to the UK hire and rental market.

In addition to equipment sales, the Company provides a comprehensive range of support services to its customer base, including installation, maintenance and repair services, the supply of spare parts and bespoke UK build projects. The Company carries out pre-delivery inspection and testing of all machines arriving from Bruno Group factories in Italy and also undertakes manufacturing activities for certain UK-specific build requirements.

The Company's business address is at Delta House, Heath Road, Tendring, Essex, CO16 0BU, and it operates within a UK group structure that also includes DDSL Limited, Bruno Power Limited, Westac Power Generation Limited and Bruno Generators UK Limited. Together these entities form the UK arm of the wider Bruno Group, whose parent company, BGG SPA, is headquartered in Tribiano, Milan, Italy.

In recent years, the Company has invested significantly in its facilities and workforce to support ongoing growth and to meet increasing customer demand across the UK power generation market.

Financial Performance

The year ended 31 December 2025 has again been a strong one for the Company. Revenue for the year was £24.15 million (2024: £24.39 million), representing a marginal decrease of 0.99%. This is only the second time in the Company's history that turnover has exceeded £24 million and the sustained level of trading reflects the resilience of both the underlying market and the Company's commercial relationships.

Gross profit improved to £3.76 million (2024: £3.49 million), with the gross profit margin rising to 15.6% (2024: 14.3%). This improvement reflects the benefit of the Company's continued focus on higher-margin service, installation and parts revenues alongside equipment sales, as well as ongoing efforts to manage the cost base effectively in a competitive pricing environment.

Profit before taxation increased to £2.00 million (2024: £1.94 million), demonstrating the Company's continued ability to convert revenue into profit despite the pressures of a competitive marketplace and the wider inflation in the UK economy. Administrative expenses increased to £1.76 million (2024: £1.55 million), reflecting investment in headcount and overhead to support the business' growth trajectory, including an increase in the average number of employees to 22 (2024: 20).

The Company's balance sheet remains in a healthy position. Net assets at 31 December 2025 stood at £5.14 million (2024: £6.25 million), with the reduction reflecting an interim dividend of £2.6 million distributed during the year (2024: £nil). The current ratio is maintained above 1, supporting the Company's ability to meet its short-term obligations.

Key Drivers of Performance

The Company operates across a diverse range of sectors within the UK power generation market. Key demand drivers during the year included:

o Sustained activity in construction and infrastructure development projects;

o Continued strong demand from the event hire sector;

o Increased requirement for standby and emergency power solutions, supported by adverse weather events;

o Growing demand associated with grid supply and distributed energy projects;

o The ongoing regulatory transition to Stage V emission-compliant equipment, which has driven fleet renewal activity across the hire and rental market.

The Company has benefited from its strategic decision to serve multiple end-use sectors simultaneously, which has enabled it to maintain a consistent volume of business even as activity levels have varied across individual markets. The Company undertakes regular strategic reviews of market conditions to ensure its commercial approach remains aligned with customer requirements and sector trends.

Key Performance Indicators

The directors monitor the following key performance indicators in assessing the performance and health of the business:

o Revenue: The directors monitor revenue performance against the prior year and against assessed market conditions, rather than against a fixed annual growth target. The year-on-year revenue performance is evaluated in the context of overall market activity and the position of key customers. Revenue of £24.15 million (2024: £24.39 million) is considered satisfactory given prevailing market conditions.

o Gross Profit Margin: The Company maintains a focus on protecting and improving gross margins whilst remaining competitive. The gross profit margin of 15.6% (2024: 14.3%) represents a positive development, and the directors have identified a target of improving the net profit margin by approximately 2% during the year ending 31 December 2026.

o Employee Retention: Given the specialist nature of the power generation sector, the ability to attract and retain experienced technical staff is considered a critical success factor. The Company currently operates with minimal staff turnover, having maintained a stable and skilled workforce throughout the year. No employees whose departure would have had a detrimental effect on the business were lost during the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the following as the principal risks and uncertainties facing the Company:

Market and Economic Risk

Demand for capital equipment such as generators is sensitive to overall levels of economic activity. During periods of economic downturn, capital expenditure across the Company's customer sectors may slow, reducing equipment purchase volumes. The directors mitigate this risk through the diversity of the Company's customer base, which spans multiple end-use sectors including construction, infrastructure, events, emergency response and grid support. This breadth of exposure reduces the Company's dependence on any single sector and provides a degree of natural resilience.

Supply Chain Risk

The Company sources the majority of its generator products and components from Bruno Group entities in Italy, in particular Bruno SRL and Tecnogen SpA. Total purchases from these entities during the year amounted to £18.04 million (2024: £20.30 million). Whilst the integrated nature of the supply chain provides commercial advantages, it also creates a concentration risk in respect of product availability and delivery lead times. The directors consider this risk to be manageable given the strength of the existing group relationships and the Company's ability to draw on other group members for support where required.

Foreign Exchange Risk

The Company sources the majority of its products from Bruno Group entities in Italy, with invoices from Bruno SRL and Tecnogen SpA predominantly denominated in GBP. As a result, the Company's direct exposure to Sterling/Euro exchange rate movements is minimal. A small number of purchases from other suppliers are denominated in foreign currency, giving rise to modest exchange differences in the year. The directors do not consider foreign exchange to represent a material risk to the Company and continue to monitor the position as part of their routine oversight of the business.

Cashflow and Debtor Recovery Risk

Slow debtor recovery is an inherent feature of the power generation hire market. Trade debtors at 31 December 2025 stood at £6.28 million (2024: £4.48 million), reflecting increased activity late in the financial year. The directors actively manage debtor balances and the Company is able to draw on the financial support of other Bruno Group members where short-term cashflow assistance is required. This group support is considered adequate to address any material cashflow risk.

Warranty and After-Sales Risk

As a supplier and servicer of specialist generating equipment, the Company carries an inherent exposure to warranty and after-sales claims. The directors mitigate this risk through the Company's established relationships with UK service centres operated by major engine manufacturers, enabling it to respond promptly and effectively to customer support requirements.

People Risk

The specialist nature of the power generation sector means that experienced and knowledgeable staff are difficult to recruit. The Company currently benefits from a stable and skilled workforce, with minimal involuntary turnover. The directors consider the retention of key technical staff to be an ongoing priority and continue to invest in staff welfare and development to maintain the Company's position as an employer of choice within its sector.

OUTLOOK

The directors expect trading conditions during the year ending 31 December 2026 to remain broadly positive, albeit with a degree of variability across individual market sectors. The underlying demand for reliable power generation in the UK continues to be supported by activity in construction and infrastructure, the events market, and the growing requirement for distributed energy and grid support solutions.

The Company's diversified customer base and sector coverage is expected to continue to provide resilience in the face of mixed market conditions. The directors will continue to undertake regular strategic reviews of market developments and will adjust the Company's commercial focus accordingly.

In addition to its core Stage V generator product range, the Company is actively investing in next-generation power solutions, including hybrid generator systems, battery energy storage systems (BESS) and hydrogen-fuelled generation options. These investments are intended to ensure that the Company is well positioned to meet evolving customer requirements and changing regulatory and environmental expectations within the UK market.

The directors remain confident in the Company's ability to maintain its market position and to deliver sustainable long-term value for its shareholders.

ON BEHALF OF THE BOARD:

G Paris - Director

14 April 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 the supply and maintenance of electrical generating equipment.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 was £2.6m (2024: £Nil).

DIRECTORS

C Archer has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

H Wagner - resigned 1 July 2025

A Rossis - appointed 6 April 2025

G Paris - appointed 1 July 2025

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G Paris - Director

14 April 2026

Opinion

We have audited the financial statements of BGG UK Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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 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 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:

The company is subject to several laws and regulations where the consequence of non-compliance could have a direct material effect on the financial statements. The laws and regulations that we considered most likely to have such an effect include:

- FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland

- The Companies Act 2006

- UK tax legislation, including corporation tax and VAT

As a UK subsidiary of an Italian-headquartered group, the Group is also subject to cross-border compliance risks, including those arising from intercompany transactions, transfer pricing rules, and the timely settlement and disclosure of intra-group balances. Given the integrated nature of operations between the UK and the wider EU group, there is also an elevated risk around cross-jurisdictional VAT treatment and reporting obligations, particularly with post-Brexit rules still evolving.

The Group is also subject to other laws and regulations that do not have a direct impact on the financial statements but are fundamental to its ability to operate and avoid significant penalties. These include health and safety regulations, environmental laws, and data protection regulations (UK GDPR).

We assessed the susceptibility of the Group's financial statements to material misstatement, including how

fraud might occur, by making enquiries of management and those charged with governance. We used

internal and external information to corroborate these enquiries and to perform a fraud risk assessment for

the group as a whole. We considered the risk of fraud to be higher through the potential for management

override of controls and manipulation of accounting estimates.

Audit procedures performed by the engagement team to detect irregularities, including fraud from instances

of non-compliance with laws and regulations included:

- Discussions with management regarding their knowledge of actual or suspected instances of fraud or non-compliance with laws and regulations;

- Review of the Group's compliance with local tax and financial reporting obligations, particularly in relation to intra-group transactions

- Challenging assumptions and judgements made by management in it's significant accounting estimates, in

particular in relation to the valuation of investments and provisions;

- Identifying and testing journal entries, focusing on those with unusual characteristics or posted by unexpected users;

- Testing material transactions outside the normal course of business or with connected parties, especially those involving overseas group entities.

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.

Geoffrey David Slater (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

23 April 2026

TURNOVER

24,152,528

24,393,170

Cost of sales

(20,395,155

)

(20,907,912

)

GROSS PROFIT

3,757,373

3,485,258

Administrative expenses

(1,758,572

)

(1,546,810

)

1,998,801

1,938,448

Other operating income

52

-

OPERATING PROFIT

4

1,998,853

1,938,448

Interest payable and similar expenses

5

1,984

(1,940

)

PROFIT BEFORE TAXATION

2,000,837

1,936,508

Tax on profit

6

(504,833

)

(459,770

)

PROFIT FOR THE FINANCIAL YEAR

1,496,004

1,476,738

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,496,004

1,476,738

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

181,914

228,725

181,914

228,725

CURRENT ASSETS

Stocks

10

6,868,201

6,264,479

Debtors

11

6,345,167

4,574,677

Cash at bank and in hand

1,189,061

582,256

14,402,429

11,421,412

CREDITORS

Amounts falling due within one year

12

(9,426,598

)

(5,388,396

)

NET CURRENT ASSETS

4,975,831

6,033,016

TOTAL ASSETS LESS CURRENT LIABILITIES

5,157,745

6,261,741

PROVISIONS FOR LIABILITIES

14

(16,171

)

(16,171

)

NET ASSETS

5,141,574

6,245,570

CAPITAL AND RESERVES

Called up share capital

15

1,000

1,000

Retained earnings

16

5,140,574

6,244,570

SHAREHOLDERS' FUNDS

5,141,574

6,245,570

The financial statements were approved by the Board of Directors and authorised for issue on 14 April 2026 and were signed on its behalf by:

G Paris - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

4,767,832

4,768,832

Changes in equity

Total comprehensive income

-

1,476,738

1,476,738

Balance at 31 December 2024

1,000

6,244,570

6,245,570

Changes in equity

Dividends

-

(2,600,000

)

(2,600,000

)

Total comprehensive income

-

1,496,004

1,496,004

Balance at 31 December 2025

1,000

5,140,574

5,141,574

1.	STATUTORY INFORMATION

BGG UK 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 Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

Critical accounting judgements and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, has been amortised evenly over its estimated useful life of five 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.

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

-

20% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on cost

Computer equipment

-

25% on cost

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.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

909,873

778,355

Social security costs

102,203

77,621

Other pension costs

46,531

34,024

1,058,607

890,000

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

2025

2024

Admin and warehouse

22

20

2025

2024

£

£

Directors' remuneration

130,260

65,402

Directors' pension contributions to money purchase schemes

2,309

1,321

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

7,115

16,718

Depreciation - owned assets

70,543

83,599

Loss on disposal of fixed assets

-

720

Auditors' remuneration

32,318

37,715

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Exchange differences

(3,292

)

1,940

Interest on overdue tax

1,308

-

(1,984

)

1,940

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

504,865

473,891

Tax prior year adjustment

(32

)

(14,121

)

Tax on profit

504,833

459,770

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

2,000,837

1,936,508

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

500,209

484,127

Effects of:

Expenses not deductible for tax purposes

1,378

1,810

Capital allowances in excess of depreciation

-

(4,908

)

Depreciation in excess of capital allowances

8,534

-

Adjustments to tax charge in respect of previous periods

(32

)

(14,121

)

Group relief

(5,256

)

(7,138

)

the year

Total tax charge

504,833

459,770

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1.00 each

Interim

2,600,000

-

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2025

and 31 December 2025

3,450

AMORTISATION

At 1 January 2025

and 31 December 2025

3,450

NET BOOK VALUE

At 31 December 2025

-

At 31 December 2024

-

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

218,887

105,951

303,881

18,428

647,147

Additions

23,732

-

-

-

23,732

At 31 December 2025

242,619

105,951

303,881

18,428

670,879

DEPRECIATION

At 1 January 2025

185,860

39,607

178,519

14,436

418,422

Charge for year

14,222

9,952

44,722

1,647

70,543

At 31 December 2025

200,082

49,559

223,241

16,083

488,965

NET BOOK VALUE

At 31 December 2025

42,537

56,392

80,640

2,345

181,914

At 31 December 2024

33,027

66,344

125,362

3,992

228,725

10.

STOCKS

2025

2024

£

£

Stocks

6,498,601

6,264,479

Work-in-progress

369,600

-

6,868,201

6,264,479

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

6,277,958

4,476,244

Amounts owed by group undertakings

37,770

60,644

Other debtors

20,808

22,740

Prepayments

8,631

15,049

6,345,167

4,574,677

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

8,804,880

4,009,587

Tax

293,651

260,010

Social security and other taxes

5,712

800

VAT

268,285

517,115

Other creditors

9,720

560,816

Accrued expenses

44,350

40,068

9,426,598

5,388,396

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

312,000

312,000

Between one and five years

1,144,000

1,248,000

In more than five years

-

208,000

1,456,000

1,768,000

14.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

16,171

16,171

Deferred

tax

£

Balance at 1 January 2025

16,171

Balance at 31 December 2025

16,171

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

1,000

Ordinary

£1.00

1,000

1,000

16.

RESERVES

Retained

earnings

£

At 1 January 2025

6,244,570

Profit for the year

1,496,004

Dividends

(2,600,000

)

At 31 December 2025

5,140,574