REGISTERED NUMBER: 00097913 (England and Wales)

Strategic Report, Directors' Report and

Audited Financial Statements for the Year Ended 31 December 2025

for

C W Fletcher & Sons Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Mrs Rebecca Willis

Mr David John Fletcher

Mr Stephen Kirk

SECRETARY:

Mrs Rebecca Willis

REGISTERED OFFICE:

Sterling Works

Mansfield Road

Wales Bar Kiveton Park

Sheffield

South Yorkshire

S26 5PQ

REGISTERED NUMBER:

00097913 (England and Wales)

INDEPENDENT AUDITORS:

Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

BANKERS:

Lloyds Bank plc

1 High Street

Sheffield

South Yorkshire

S1 2GA

SOLICITORS:

Knights PLC

St Paul's Place

121 Norfolk Row

Sheffield

S1 2JF

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

BUSINESS OVERVIEW

With over a century of experience in precision engineering we work principally in aerospace and nuclear manufacturing. As highly skilled manufacturers of precision engineered components we add value via our own supply chain management service.

Markets we currently operate in include: the UK, US and Japan. Our cost effectiveness and reliability as a supplier gives us a good competitive position in these markets.

OBJECTIVES AND STRATEGY

Our overall strategy is to improve our operating margins year on year until we hit out long term target of 10%.

There are a number of growth opportunities for us based on our price, service and delivery performance. Our long term strategic priority remains the diversification of the business into new markets beyond aerospace, while staying closely aligned to our established capabilities and technical expertise. In the near term, however, the need to meet rapidly increasing demand from our existing aerospace customers is requiring us to focus resources on current programmes, limiting the pace at which we can pursue new market opportunities.

We are very focused on our digital infrastructure and roadmap towards industry 4.0, with a view to achieving a competitive edge over other companies our size.

Cost reduction and effective planning continue to be a major focus going forward as we strive for improved competitive advantage.

We manage this strategy via Key Performance Indicators (KPI's) set at a board level, that are then cascaded through the business via relevant lower level KPI's.

PRINCIPLE RISKS AND UNCERTAINTIES

The continued expansion of the civil aerospace market is placing significant pressure on the global supply chain, particularly in areas where products and materials are highly specialised and availability is constrained. In response, where possible, we have proactively secured financing, both through our banking partners and directly from customers, to enable the advance reservation of critical materials and ensure continuity of supply.

The increasing demand for output in the civil aerospace sector continues to place pressure on internal resources and capacity, making it more challenging to progress our strategic objective of entering new markets. To help address these constraints, a new machine was commissioned and brought into operation in March 2026, providing additional capacity and supporting our ability to meet both current and future requirements.

The current conflict in the Middle East, presents a source of geopolitical uncertainty. Current assessments indicate that no sustained disruption to civil aviation is expected, and impact on demand is likely to be limited.

The primary area of exposure for the company relates to the heightened cyber security threat environment associated with regional instability. State aligned and opportunistic cyber actors often increase activity during periods of conflict, raising the likelihood of attempted intrusions, service disruption, or data security incidents.

We are actively managing this risk through strengthened monitoring, enhanced defensive controls, and ongoing resilience planning to ensure our systems and operations remain secure.

Due to the change in government and current UK budget strategy, the substantial nuclear project that we secured in 2024 is still on hold. For the reasons above, we are not concerned from a turnover growth view point, the main impact is on our diversification strategy.

DEVELOPMENT AND PERFORMANCE

We achieved a turnover of £26.7m.

This resulted in a pre-tax profit of £1.8m.

The cash position remains healthy, however as predicted last year, we have had to invest heavily in working capital by using a combination of bank and customer financing. For this reason our approach to cash will continue to be cautious.

ON BEHALF OF THE BOARD:

Mrs Rebecca Willis - Director

18 June 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 manufacture of precision components, predominantly for the aeronautical and nuclear industries.

DIVIDENDS

Total dividends distributed in the year were £41,660.

DIRECTORS

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

Mrs Rebecca Willis

Mr David John Fletcher

Mr Stephen Kirk

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Landin Wilcock & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs Rebecca Willis - Director

18 June 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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 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 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:

- minimal reliance was placed upon the operating effectiveness of internal controls in the design and

performance of our substantive procedures;

- discussions were held with management considering known or suspected non-compliance with laws, regulations

and fraud;

- evidence of up to date key compliance accreditations was sought;

- journal entries were reviewed for any entries made outside the ordinary reporting processes with particular

emphasis on those with unusual account combinations, entries crediting turnover and those without

specific descriptions;

- management assumptions in their significant accounting estimates were challenged and scrutinised, including establishing auditor's estimates.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Tom Henshaw (Senior Statutory Auditor)

for and on behalf of Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

22 June 2026

TURNOVER

4

26,675,882

21,394,953

Cost of sales

(22,301,757

)

(18,353,591

)

GROSS PROFIT

4,374,125

3,041,362

Distribution costs

(16,239

)

(24,849

)

Administrative expenses

(2,483,929

)

(1,980,534

)

OPERATING PROFIT

6

1,873,957

1,035,979

Fair value gain or loss on derivatives

47,243

(74,491

)

1,921,200

961,488

Interest payable and similar expenses

7

(156,929

)

(189,362

)

PROFIT BEFORE TAXATION

1,764,271

772,126

Tax on profit

8

(454,631

)

(319,538

)

PROFIT FOR THE FINANCIAL YEAR

1,309,640

452,588

OTHER COMPREHENSIVE INCOME

Revaluation of tangible fixed assets

-

396,188

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

396,188

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,309,640

848,776

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

7,223,345

7,441,911

Investment property

12

590,625

590,625

7,813,970

8,032,536

CURRENT ASSETS

Stocks

13

7,314,818

6,874,584

Debtors

14

2,475,315

3,416,774

Cash at bank and in hand

3,817,358

2,493,963

13,607,491

12,785,321

CREDITORS

Amounts falling due within one year

15

(4,596,934

)

(4,696,934

)

NET CURRENT ASSETS

9,010,557

8,088,387

TOTAL ASSETS LESS CURRENT LIABILITIES

16,824,527

16,120,923

CREDITORS

Amounts falling due after more than one year

16

(1,521,445

)

(2,041,453

)

PROVISIONS FOR LIABILITIES

21

(706,029

)

(780,944

)

NET ASSETS

14,597,053

13,298,526

CAPITAL AND RESERVES

Called up share capital

22

24,506

23,406

Share premium

23

89,693

60,246

Revaluation reserve

23

1,214,303

1,214,303

Capital redemption reserve

23

9,644

9,644

Retained earnings

23

13,258,907

11,990,927

SHAREHOLDERS' FUNDS

14,597,053

13,298,526

The financial statements were approved by the Board of Directors and authorised for issue on 18 June 2026 and were signed on its behalf by:

Mr David John Fletcher - Director

Mr Stephen Kirk - Director

Mrs Rebecca Willis - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2024

22,806

11,578,129

44,184

Changes in equity

Share issue

600

-

16,062

Dividends

-

(39,790

)

-

Total comprehensive income

-

452,588

-

Balance at 31 December 2024

23,406

11,990,927

60,246

Changes in equity

Share issue

1,100

-

29,447

Dividends

-

(41,660

)

-

Total comprehensive income

-

1,309,640

-

Balance at 31 December 2025

24,506

13,258,907

89,693

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2024

818,115

9,644

12,472,878

Changes in equity

Share issue

-

-

16,662

Dividends

-

-

(39,790

)

Total comprehensive income

396,188

-

848,776

Balance at 31 December 2024

1,214,303

9,644

13,298,526

Changes in equity

Share issue

-

-

30,547

Dividends

-

-

(41,660

)

Total comprehensive income

-

-

1,309,640

Balance at 31 December 2025

1,214,303

9,644

14,597,053

Cash flows from operating activities

Cash generated from operations

1

3,184,711

138,488

Interest paid

(83,462

)

(104,095

)

Interest element of hire purchase payments paid

(73,467

)

(85,267

)

Tax paid

(267,695

)

-

Net cash from operating activities

2,760,087

(50,874

)

Cash flows from investing activities

Purchase of tangible fixed assets

(266,760

)

(121,104

)

Sale of tangible fixed assets

-

5,749

Net cash from investing activities

(266,760

)

(115,355

)

Cash flows from financing activities

New loans in year

977,304

784,959

Loan repayments in year

(1,774,310

)

(749,659

)

Asset refinancing proceeds

73,466

688,995

Capital repayments in year

(404,732

)

(435,993

)

Equity dividends paid

(41,660

)

(39,790

)

Net cash from financing activities

(1,169,932

)

248,512

Increase in cash and cash equivalents

1,323,395

82,283

Cash and cash equivalents at beginning of year

2

2,493,963

2,411,680

Cash and cash equivalents at end of year

2

3,817,358

2,493,963

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

1,309,640

452,588

Depreciation charges

451,035

510,928

Loss/(profit) on disposal of fixed assets

34,291

(2,433

)

Non-cash share issue

30,547

16,662

Fair value (gain)/loss on derivatives

(47,243

)

74,491

Finance costs

156,929

189,362

Taxation

454,631

319,538

2,389,830

1,561,136

(Increase)/decrease in stocks

(440,234

)

7,220

Decrease/(increase) in trade and other debtors

953,823

(1,836,004

)

Increase in trade and other creditors

281,292

406,136

Cash generated from operations

3,184,711

138,488

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

3,817,358

2,493,963

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,493,963

2,411,680

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

2,493,963

1,323,395

3,817,358

2,493,963

1,323,395

3,817,358

Debt

Finance leases

(1,314,757

)

331,267

(983,490

)

Debts falling due within 1 year

(1,037,257

)

601,914

(435,343

)

Debts falling due after 1 year

(942,351

)

195,091

(747,260

)

(3,294,365

)

1,128,272

(2,166,093

)

Total

(800,402

)

2,451,667

1,651,265

1.	STATUTORY INFORMATION

C W Fletcher & Sons 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.

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

2.	ACCOUNTING POLICIES

Accounting convention

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The director's have reviewed forecasts and the order book which cover a period of at least twelve months from the date of signing the financial statements. The forecasts show that the company can meet its obligations as they fall due.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on cost and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are initially measured at cost. Subsequently, they are measured at cost less accumulated depreciation and impairment losses.

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

Properties whose fair values can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extend that a revaluation gain reverses an impairment loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

Investment property

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of

impairment at each reporting end date.

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

If there is a decrease in the impairment loss arising from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal is such that the current carrying amount does not

exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

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

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

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