ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 01477486

PEKTRON PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

PEKTRON PLC

COMPANY INFORMATION

Directors	N J Morgan
	P D Morgan
	R F Morgan
	J Morgan
	S E Morgan
	A J Morgan


Company secretary	N J Morgan


Registered number	01477486


Registered office	Alfreton Road
	Derby
	Derbyshire
	DE21 4AP


Independent auditors	PKF Smith Cooper Audit Limited
	Prospect House
	1 Prospect Place
	Derby
	DE24 8HG

PEKTRON PLC

CONTENTS

	Page
Group Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 7
Consolidated Statement of Comprehensive Income	8
Consolidated Balance Sheet	9
Company Balance Sheet	10
Consolidated Statement of Changes in Equity	11
Company Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Notes to the Financial Statements	14 - 23

PEKTRON PLC

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Business review

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Pektron PLC is a supplier of electronic parts for rugged environments, with particular expertise in vehicle electronics. We also supply various consultancy and other services in engineering, aviation and other industries.

Turnover has decreased in line with expectations, as an overall decrease was anticipated following the economic pressures within the economy. Administrative expenses have fell by a higher rate which has led to a higher profit being made in the year.

The business continues to search out and win new business in all areas, and growth in all key performance indicators, including turnover and net profits, is targeted for the coming years.

Principal risks and uncertainties

As for many businesses our size, the business environment in which we operate continues to be challenging. With these risks and uncertainties in mind though, we are aware that any plans for the future development of the business may be subject to unforeseen events outside our control.

The directors have not considered it necessary to prepare formal forecasts for the Group given the overall strength of the cash position of the wider related connected companies, which retain considerable levels of cash and have no external debt.

The Group does not follow a specific code on corporate governance. This is due to the fact that the Company is not defined as a large private company under the regulations and is a PLC, on a historic basis. Therefore, the Wates principles are not seen as an appropriate code to follow, due to the following.

• The directors are the shareholders of the Group.
• The Group has a limited number of staff and suppliers.
• The directors seek to identify and mitigate the risks facing the Group, whilst promoting the success of the
Group by identifying appropriate opportunities.

Financial key performance indicators

We consider the key performance indicators of the business that communicate the financial performance and strength of the Group are turnover and profit on ordinary activities before taxation. Turnover has decreased by 11.65% falling from £40.8 million in 2024 to £36 million in 2025. Profit before tax has increased by 48.1% from £188k in 2024 to £279k in 2025. Overall, the directors are satisfied with the performance of the Group in a challenging operating environment.

This report was approved by the board on 1 June 2026 and signed on its behalf.

N J Morgan

Director

Page 1

PEKTRON PLC

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £208,983 (2024 - £141,419).

A dividend of £450,000 was paid during the year (2024: £Nil). No further dividends are recommended.

Directors

The directors who served during the year were:

N J Morgan

P D Morgan

R F Morgan

J Morgan

S E Morgan

A J Morgan

Matters covered in the Group Strategic Report

The Group have included in the Strategic Report, details of key risks and uncertainties and disclosures in respect of corporate governance, using the provisions of section 414(c) of the Companies Act 2006.

Page 2

PEKTRON PLC

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006, PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 1 June 2026 and signed on its behalf.

N J Morgan

Director

Page 3

PEKTRON PLC

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON PLC

Opinion

We have audited the financial statements of Pektron plc (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's 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 United Kingdom, including the Financial Reporting Council'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 or 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.

Page 4

PEKTRON PLC

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON PLC (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' Report 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 2, 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 is 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.

Page 5

PEKTRON PLC

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON PLC (CONTINUED)

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 an Auditors' Report 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

• management bias in respect of accounting estimates and judgements made;
• management override of control;
• posting of unusual journals or transactions.

We focused on those area that could give rise to a material misstatement in the Group's financial statements. Our procedures included, but were not limited to:

• Enquiry of management and those charged with governance around actual and potential litigation and
   claims, including instances of non-compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with governance where available;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations
   and fraud;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
   with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries
   and other adjustments for appropriateness, evaluating the business rationale of significant transactions
   outside the normal course of business and reviewing accounting estimates for bias. In particular,
   performing analytical procedures to identify any unexpected or unusual relationships that might indicate
   material misstatement due to fraud.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

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

Page 6

PEKTRON PLC

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEKTRON PLC (CONTINUED)

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 an Auditors' Report 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.

James Delve (Senior Statutory Auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

Prospect House

1 Prospect Place

Derby

DE24 8HG

2 June 2026

Page 7

PEKTRON PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	36,029,439	40,780,842
Cost of sales		(34,780,752)	(39,397,992)
Gross profit		1,248,687	1,382,850
Administrative expenses		(901,204)	(1,087,901)
Operating profit	5	347,483	294,949
Interest receivable and similar income	8	498	214
Interest payable and similar expenses	9	(69,204)	(106,876)
Profit before taxation		278,777	188,287
Tax on profit	10	(69,794)	(46,868)
Profit for the financial year		208,983	141,419

Profit for the year attributable to:
Owners of the parent Company		208,983	141,419

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 14 to 23 form part of these financial statements.

Page 8

PEKTRON PLC

REGISTERED NUMBER: 01477486

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£


Current assets
Debtors: amounts falling due within one year	13	6,731,985		8,479,624
Cash at bank and in hand	14	10,000		11,894
		6,741,985		8,491,518
Creditors: amounts falling due within one year	15	(6,476,144)		(7,984,660)
Net current assets			265,841		506,858
Net assets			265,841		506,858

Capital and reserves
Called up share capital	17	50,000	50,000
Profit and loss account	18	215,841	456,858
Equity attributable to owners of the parent Company		265,841	506,858

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 June 2026.

N J Morgan

Director

The notes on pages 14 to 23 form part of these financial statements.

Page 9

PEKTRON PLC

REGISTERED NUMBER: 01477486

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Investments	12		100		100
			100		100
Current assets
Debtors: amounts falling due within one year	13	6,718,720		8,452,873
Cash at bank and in hand	14	5,000		6,894
		6,723,720		8,459,767
Creditors: amounts falling due within one year	15	(6,457,919)		(7,953,053)
Net current assets			265,801		506,714
Net assets			265,901		506,814

Capital and reserves
Called up share capital	17	50,000	50,000
Profit and loss account	18	215,901	456,814
		265,901	506,814

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 June 2026.

N J Morgan

Director

The notes on pages 14 to 23 form part of these financial statements.

Page 10

PEKTRON PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	50,000	315,439	365,439
Comprehensive income for the year
Profit for the year	-	141,419	141,419
Total comprehensive income for the year	-	141,419	141,419
Total transactions with owners	-	-	-

At 1 January 2025	50,000	456,858	506,858
Comprehensive income for the year
Profit for the year	-	208,983	208,983
Total comprehensive income for the year	-	208,983	208,983
Contributions by and distributions to owners
Dividends: Equity capital	-	(450,000)	(450,000)
Total transactions with owners	-	(450,000)	(450,000)
At 31 December 2025	50,000	215,841	265,841

The notes on pages 14 to 23 form part of these financial statements.

Page 11

PEKTRON PLC

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	50,000	316,078	366,078
Comprehensive income for the year
Profit for the year	-	140,736	140,736
Total comprehensive income for the year	-	140,736	140,736
Total transactions with owners	-	-	-

At 1 January 2025	50,000	456,814	506,814
Comprehensive income for the year
Profit for the year	-	209,087	209,087
Total comprehensive income for the year	-	209,087	209,087
Contributions by and distributions to owners
Dividends: Equity capital	-	(450,000)	(450,000)
Total transactions with owners	-	(450,000)	(450,000)
At 31 December 2025	50,000	215,901	265,901

The notes on pages 14 to 23 form part of these financial statements.

Page 12

PEKTRON PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	208,983	141,419
Adjustments for:
Interest paid	69,204	106,876
Interest received	(498)	(214)
Taxation charge	69,794	46,868
Decrease in debtors	1,747,640	932,742
(Decrease) in creditors	(1,506,529)	(1,049,066)
Corporation tax (paid)	(71,782)	(70,069)
Net cash generated from operating activities	516,812	108,556

Cash flows from investing activities
Interest received	498	214
Net cash from investing activities	498	214
Cash flows from financing activities
Dividends paid	(450,000)	-
Interest paid	(69,204)	(106,876)
Net cash used in financing activities	(519,204)	(106,876)
Net (decrease)/increase in cash and cash equivalents	(1,894)	1,894
Cash and cash equivalents at beginning of year	11,894	10,000
Cash and cash equivalents at the end of year	10,000	11,894

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	10,000	11,894

The notes on pages 14 to 23 form part of these financial statements.

Page 13

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Pektron Plc is a public company limited by shares incorporated and domiciled in the England & Wales, United Kingdom. The address of the registered office is given on the company information page of the financial statements. Pektron Plc's principal activity is a supplier of electronic parts for rugged environments, with particular expertise in vehicle electronics.

The Group's financial statements are rounded to the nearest £.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Going concern

The directors have not considered necessary to prepare formal forecasts for the Group given the overall strength of the cash generation of the wider related connected companies and the parent that heads the connected group retains considerable levels of cash, has no external debt and is the main supplier to the Group.

The directors, therefore, consider that they have a reasonable expectation that the Group and company have adequate resources to continue in operational existence for the foreseeable future,for a variety of potential scenarios. The Group and Company therefore, continues to adopt the going concern basis in preparing its financial statements.

Page 14

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Revenue is recognised on the dispatch of goods and once the service is provided.

Page 15

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment.

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

2.13

Creditors

Short-term creditors are measured at the transaction price.

Page 16

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.14

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Page 17

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

No instances of estimation uncertainty or significant judgments arise in the preparation of the financial statements.

	Sale of electrical components	36,029,439	40,780,842

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	17,761,813	19,635,122
Rest of Europe	6,751,171	6,691,927
Rest of the world	11,516,455	14,453,793
	36,029,439	40,780,842

Exchange differences

129,586

267,187

Fees payable to the Company's auditors for the audit of the consolidated and Parent Company's financial statements

9,800

Page 18

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

7.	Employees
	Staff costs were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	130,648	125,331
Social security costs	19,008	16,497
Cost of defined contribution scheme	3,278	2,937
	152,934	144,765

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Directors and Subsidiary Staff	8	8

The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)

8.	Interest receivable
		2025	2024
		£	£

Other interest receivable

498

214

9.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable

69,204

106,876

Corporation tax
Current tax on profits for the year	69,701	47,012
Adjustments in respect of previous periods	93	(144)
Total current tax	69,794	46,868

Page 19

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.Taxation (continued)

Profit on ordinary activities before tax

278,777

188,206

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	69,694	47,012
Effects of:
Adjustments to tax charge in respect of prior periods	93	(144)
Marginal relief	7	-
Total tax charge for the year	69,794	46,868

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Dividends
		2025	2024
		£	£

Final Dividend Paid - ordinary shares

450,000

12.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost
	At 1 January 2025	100
	At 31 December 2025	100

Page 20

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Contrail Flight Service Limited

Prospect House, 1 Prospect Place, Derby, DE24 8HG

Ordinary

100%

13.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	5,501,845	5,725,051	5,501,845	5,699,178
Other debtors (see note 20)	1,230,140	2,753,695	1,216,875	2,753,695
Prepayments and accrued income	-	878	-	-
	6,731,985	8,479,624	6,718,720	8,452,873

14.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

	Cash at bank and in hand	10,000	11,894	5,000	6,894

15.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Trade creditors	1,230	518	847	488
Corporation tax	44,951	46,939	44,951	46,814
Other taxation and social security	14,057	5,539	-	-
Other creditors (see note 20)	1,329,230	1,723,583	1,329,230	1,703,966
Accruals and deferred income	5,086,676	6,208,081	5,082,891	6,201,785
	6,476,144	7,984,660	6,457,919	7,953,053

Page 21

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	10,000	11,894	5,000	6,894

Financial assets measured at fair value through profit or loss comprise cash at bank.

17.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

50,000 (2024 - 50,000) Ordinary shares of £1.00 each	50,000	50,000

18.

Reserves

Profit and loss account

Includes all current and prior period retained profits and losses. There are no restrictions on distributable reserves.

19.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £3,278 (2024: £2,937). Contributions totalling £Nil (2024: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

20.

Related party transactions

At 31 December 2025, there were amounts of £1,329,230 due to the directors, included in other creditors (2024: £1,703,966). These amounts are unsecured and have no fixed date for repayment. Interest is charged at 3% on all amounts outstanding.

During the year the Group purchased goods to a value of £34,748,748 (2024: £39,341,423) and incurred management charges of £537,352 (2024: £608,373) from a company under common control. At 31 December 2025 there was an amount due from this company of £361,316 included in other debtors (2024: £1,700,754).

During the year the Group received commissions and recharges of £96,131 (2024: £69,365) and purchases of £1,155 (2024: £1,108) from a company under common control. At 31 December 2025, there was an amount due to this company from the Group of £Nil (2024: £19,617). At 31 December, there was an amount due to the Group from this company of £13,264 (2024: £Nil).

Page 22

PEKTRON PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Controlling party

The Company is controlled by N J Morgan, P D Morgan and R F Morgan.

Page 23