REGISTERED NUMBER: 01256242 (England and Wales)

ENVICO ENGINEERING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 SEPTEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

M W Ingram-Jones

A Branch

REGISTERED OFFICE:

C/O Bevan Buckland Ltd

Ground Floor

Cardigan House

Swansea

SA7 9LA

REGISTERED NUMBER:

01256242 (England and Wales)

AUDITORS:

Bevan Buckland Audit Ltd (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

BANKERS:

Barclays Bank Plc

262 Oxford Street

Swansea

SA1 3BR

The directors present their strategic report for the year ended 30 September 2025.

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the annexed financial statements.

KEY PERFORMANCE INDICATORS

2023 is a 15 month period. 2025 and 2024 were 12 months.

2025

2024

2023

Revenue

17,420,754

15,629,655

18,707,114

profit

4,963,421

4,436,320

4,739,254

Gross Profit Margin

28.5%

28.4%

25%

Operating Profit (after exceptional items)

1,310,479

761,348

552,531

Operating Profit Margin

7.5%

4.9%

3%

FUTURE DEVELOPMENTS

The company always aims to improve year on year, to do this we need to maintain our high standards with our current customer base and grow these contracts further whilst also growing and retaining our new client portfolio.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk facing the Company is the effect of the ongoing cost of living crisis, exacerbated by the current global conflicts, and the impact of this on the volatility of prices for energy and raw materials. Coupled with increasing labour costs there is a real pressure on the Company to continually review processes, so we gain efficiencies where possible.

The effect of Brexit, although this will be industry wide it is still poses some uncertainty but the directors feel this has played out to a point. we are confident in the mitigating actions the board has taken to deal with these risks what effect they will have in the future Liquidity risk.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Credit risk

The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Interest rate risk

The company has limited its interest rate risk by continuing to hold sufficient cash balances to meet its needs without the need for further financing.

FINANCIAL INSTRUMENTS

The company's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk and interest rate risk. The group has in place a risk management program that seeks to limit adverse effects on the financial performance of the company. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. The company does not use derivative financial instruments for speculative purpose.

EMPLOYEES

The Company holds regular toolbox talks with all departments, has a notice board and the Company managers and directors regularly meet union representatives. These talks allow regular question and answer sessions and discussions with staff. The Company has regular bi-weekly remote management meetings and all relevant performance, quality or H+S are cascaded down via departmental and toolbox talks/meeting. Every employee has an opportunity to include an item on the agenda of these meetings or take part in discussion or pose a question. The Directors engage directly with employees at toolbox talks and daily walk arounds. Employees are encouraged to take part in charity work and nominate charities or individuals. Directors will attend or take part in these events, where possible, also every employee's birthday is noted and wished happy birthday. Staff who have reached milestones in their career i.e. Length of service are rewarded appropriately.

And this will be noted in communication personally and/or via letter from the directors. The company is aware of its impact on employees and the surrounding community, it highlights this in its "vision statement," and Business Plan. The Company communicates directly with employees or union representatives on a wide range of issues ranging from site improvements, long term investment and share ownership, which is also a component of the Company's business plan.

The company attach paramount importance to the wellbeing of its workforce and is committed to their support, development and motivation. We have taken the steps to provide and Employee Assistance Programme for our employees as we have a responsibility for their wellbeing. We appreciate that not all employees will want to talk to their manager or a director, so we have given them an option to speak to someone confidentially.

The directors endeavour to ensure that as far as possible, the training, carer development and promotion of disabled persons are the same as for other employees. Should employees become disabled every effort is made to ensure that their employment continues, and appropriate retraining is made available.

RESEARCH & DEVELOPMENT

During the accounting period the Company continued to invest heavily in R&D. The objective being to continue to develop its product range and remain a leading provider of advanced GRP solutions. The board are investigating further mechainisation of some of its processes.

HEALTH & SAFETY, QUALITY AND ENVIRONMENT

The company has in place a rigorous and far reaching health and safety policy and is committed to adhering to all legislation requirement imposed on it through various enforcing authorities.

We have a dedicated resource to manage this vitally important aspect of the company and we have amalgamated the health and safety team with our compliance and training function to make sure we identify and reduce risk thereby ensuring we comply with all legal, company and customer requirements.

The company holds quality management and environmental accreditations e.g. ISO9001 which ensure customers can have confidence in our supply chain management and our commitment to seek ways to reduce our carbon footprint.

ON BEHALF OF THE BOARD:

M W Ingram-Jones - Director

13 March 2026

The directors present their report with the financial statements of the company for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the design and manufacture of glass-reinforced polymer mouldings.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of 52,727 per share.

The total distribution of dividends for the year ended 30 September 2025 will be £ 2,636,366 .

DIRECTORS

M W Ingram-Jones has held office during the whole of the period from 1 October 2024 to the date of this report.

Other changes in directors holding office are as follows:

A Branch was appointed as a director after 30 September 2025 but prior to the date of this report.

J H Russell ceased to be a director after 30 September 2025 but prior to the date of this report.

DONATIONS

The Company made no political donations during the year.

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). 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.

ON BEHALF OF THE BOARD:

M W Ingram-Jones - Director

13 March 2026

Opinion

We have audited the financial statements of Envico Engineering Limited (the 'company') for the year ended 30 September 2025 which comprise the Income Statement, Other 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 30 September 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 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2024 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected or alleged fraud;

-

the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas;

-

Assumptions used when valuing amounts recoverable on contract

-

obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Henry Lloyd-Davies (Senior Statutory Auditor)

for and on behalf of Bevan Buckland Audit Ltd (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

14 March 2026

TURNOVER

17,420,754

15,629,655

Cost of sales

12,457,333

11,193,335

GROSS PROFIT

4,963,421

4,436,320

Administrative expenses

3,661,210

3,674,972

1,302,211

761,348

Other operating income

8,268

-

OPERATING PROFIT

4

1,310,479

761,348

Interest receivable and similar income

37,850

79,742

PROFIT BEFORE TAXATION

1,348,329

841,090

Tax on profit

5

337,174

210,263

PROFIT FOR THE FINANCIAL YEAR

1,011,155

630,827

PROFIT FOR THE YEAR

1,011,155

630,827

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,011,155

630,827

FIXED ASSETS

Intangible assets

7

8,308

11,736

Tangible assets

8

615,460

735,620

623,768

747,356

CURRENT ASSETS

Stocks

9

934,030

919,278

Debtors

10

1,848,031

2,645,693

Cash at bank and in hand

825,389

2,996,704

3,607,450

6,561,675

CREDITORS

Amounts falling due within one year

11

3,274,272

4,694,445

NET CURRENT ASSETS

333,178

1,867,230

TOTAL ASSETS LESS CURRENT LIABILITIES

956,946

2,614,586

PROVISIONS FOR LIABILITIES

13

135,614

168,043

NET ASSETS

821,332

2,446,543

CAPITAL AND RESERVES

Called up share capital

14

50

50

Capital redemption reserve

15

50

50

Retained earnings

15

821,232

2,446,443

SHAREHOLDERS' FUNDS

821,332

2,446,543

The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2026 and were signed on its behalf by:

M W Ingram-Jones - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

50

1,815,616

50

1,815,716

Changes in equity

Total comprehensive income

-

630,827

-

630,827

Balance at 30 September 2024

50

2,446,443

50

2,446,543

Changes in equity

Dividends

-

(2,636,366

)

-

(2,636,366

)

Total comprehensive income

-

1,011,155

-

1,011,155

Balance at 30 September 2025

50

821,232

50

821,332

1.	STATUTORY INFORMATION

Envico Engineering 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.

The financial statements are prepared in sterling, which is the functional currency of the company. All monetary amounts in these financial statements are rounded to the nearest £.

Going Concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company, being a wholly owned subsidiary of Morgan GRP Limited whose consolidated financial statements are publically available, has taken advantage of the exemption from the requirement to draw up a cash flow statement in accordance with Section 7 of FRS 102.

Related party exemption

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

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

Work in Progress / Finished Goods Stock

WIP and Finished Goods is measured on the percentage of completion basis. This results in the value of WIP and Finished Goods being estimated based on the proportion of the expected costs for each item of stock.

Stock Provision

Obsolete and damaged stock is reviewed on a monthly basis during stocktakes and is adjusted accordingly at that time. Any provision required for slow moving stock is assessed at year end and a specific provision is raised on any goods with no movement in the last 12 months for which they have no specific use identified in the foreseeable future.

Bad Debt Provision

Old or debtors in dispute are reviewed at year end and a specific provision is made against items identified as unlikely to be received.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the period for manufacturing GRP structures, exclusive of Value Added Tax.

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 each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and Machinery

-

25% straight line and 10% on cost

Motor vehicles

-

20% & 33% on cost

Computer equipment

-

33% on cost

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks and work in progress

Stock and Work in Progress is valued at the lower of cost and net realisable value. Cost is that expenditure which has been incurred in the normal course of business in bringing each project to its present location and condition. This includes finance costs where specific project funding is in place. Net realisable value is based on estimated selling, price less future costs to completion and selling costs. Cost is determined on a first in first out basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Taxation

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.

Deferred government grants

Deferred government grants in respect of capital expenditure are treated as deferred income and are credited to the profit and loss account over the estimated useful life of the assets to which they relate.

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

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

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

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.

If there is 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,177,806

2,839,301

Social security costs

337,458

260,437

Other pension costs

79,742

23,454

3,595,006

3,123,192

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

2025

2024

Production Staff

73

80

Admin Staff

11

12

Management Staff

9

8

93

100

2025

2024

£

£

Directors' remuneration

119,570

183,087

Directors' pension contributions to money purchase schemes

1,871

2,313

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

326,263

209,974

Other operating leases

252,013

331,749

Depreciation - owned assets

130,009

134,335

Computer software amortisation

3,428

389

Auditors' remuneration

-

24,000

No description

26,220

-

5.

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

369,603

196,693

Deferred tax

(32,429

)

13,570

Tax on profit

337,174

210,263

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

1,348,329

841,090

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

337,082

210,273

Effects of:

Expenses not deductible for tax purposes

92

(10

)

Total tax charge

337,174

210,263

6.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

2,636,366

-

7.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 October 2024

and 30 September 2025

12,125

AMORTISATION

At 1 October 2024

389

Amortisation for year

3,428

At 30 September 2025

3,817

NET BOOK VALUE

At 30 September 2025

8,308

At 30 September 2024

11,736

8.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

Machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 October 2024

106,255

1,478,487

47,500

138,138

1,770,380

Additions

-

9,849

-

-

9,849

At 30 September 2025

106,255

1,488,336

47,500

138,138

1,780,229

DEPRECIATION

At 1 October 2024

1,666

909,767

15,042

108,285

1,034,760

Charge for year

2,125

102,438

9,500

15,946

130,009

At 30 September 2025

3,791

1,012,205

24,542

124,231

1,164,769

NET BOOK VALUE

At 30 September 2025

102,464

476,131

22,958

13,907

615,460

At 30 September 2024

104,589

568,720

32,458

29,853

735,620

9.

STOCKS

2025

2024

£

£

Raw materials

227,458

221,990

Work-in-progress

706,572

697,288

934,030

919,278

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,325,770

1,549,073

Amounts owed by group undertakings

395,769

892,566

Other debtors

44,924

-

Directors' loan accounts

-

50,000

Tax

-

54,451

Prepayments and accrued income

81,568

99,603

1,848,031

2,645,693

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

1,488,669

1,404,411

Amounts owed to group undertakings

-

1,278,034

Tax

269,336

-

Social security and other taxes

73,456

59,739

VAT

354,531

390,266

Other creditors

16,009

14,268

Accruals and deferred income

136,177

248,385

Payments in advance

936,094

1,299,342

3,274,272

4,694,445