Company registration number 08659748 (England and Wales)
PARADIGM BURNLEY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
PARADIGM BURNLEY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J Roy
D Folsom
R Grochowski
(Appointed 20 January 2025)
Secretary
S Whiteley
Company number
08659748
Registered office
1 Bentley Wood Way
Network 65 Business Park
Hapton
Burnley
BB11 5TG
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
1 Bentley Wood Way
Network 65 Business Park
Hapton
Burnley
BB11 5TG
PARADIGM BURNLEY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
PARADIGM BURNLEY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

The principal activity of the group is the manufacture of parts for aerospace, industrial gas turbine and defence markets.

On 23rd July 2025, the group acquired Aeromet Holdings Limited and its subsidiaries. The results of Aeromet Holdings were consolidated from the acquisition date.

Business Review & Performance

The year to 31st December 2025, has seen an increase in revenue to £57.2m (2024: £35.3m). This was driven by sales growth from existing operations of 20% plus the acquisition of Aeromet Holdings Limited and its subsidiaries by Paradigm Burnley Limited on the 23rd July 2025.

The company has focused on careful cost management and efficiencies alongside growing revenue. This resulted in an increase in gross margins to 38.6% (2024: 31.9%) and an operating profit of £6.8m (2024: £1m).

The business operates a ‘kaizen’ continuous improvement philosophy to drive operational excellence. Paradigm continues to invest in its people and the latest equipment to remain competitive.

Paradigm Burnley Holdings Limited is a wholly owned subsidiary of its parent company PPW Aero Topco Inc trading as Pursuit Aerospace and retains its full support.

Future Developments

The group is well positioned to capitalise on future growth opportunities within the aerospace market. The group continues to make significant investments in both its people and manufacturing capabilities.

The outlook for 2026 anticipates a further substantial increase in revenue, supported by a full year contribution from Aeromet Holdings Limited and a strong order pipeline across the group. In addition, the group has recently secured several significant new contracts, with programme activity expected to commence during 2027.

Principal risks and uncertainties

The directors have identified several key risks and uncertainties that could impact the company’s performance and strategic objectives. These risks are reviewed regularly and managed through a combination of internal controls, operational planning, and group-wide support functions.

A key risk identified by management continues to be business cash flow. This risk is mitigated through the use of a 52-week rolling cash flow forecast, updated weekly and monitored against key financial metrics. The company continues to have access to group funds where required but is cash generative.

Credit risk remains a consideration due to the potential for non-payment by customers. This is managed through a robust credit control process, including customer credit checks, regular account reviews, and escalation procedures for overdue balances. Systems are in place to ensure appropriate alerts for changes in customer status.

Foreign exchange risk is present due to trading in USD with both customers and intercompany loans. These loans, denominated in USD, are subject to revaluation, and losses on translation were recognised in the period. The group does not currently hedge its foreign exchange exposure, but risk is partially mitigated through sourcing materials and agreeing contracts in USD where possible to match exposure.

A key risk is the availability and retention of skilled labour, particularly given the competitive local market. Several large aerospace employers in the region have increased recruitment activity, leading to staff attrition during the year. To address this, the company continues to invest in its apprenticeship programme and ongoing staff development.

Cost inflation has had a significant impact on the business. The business is actively pursuing long-term supply agreements and energy efficiency initiatives, including investment in renewable sources, to mitigate ongoing exposure. Material cost inflation is being addressed through contract negotiation and price escalation clauses in new customer agreements, where possible.

PARADIGM BURNLEY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Key performance indicators

The directors believe identifying key performance indicators is important and use several indicators to monitor and improve the development, performance and position of the business.

The directors have identified the following metrics as being key financial indicators of performance:

Turnover - £57.2m (2024 - £35.3m)

Gross profit margin – 38.6% (2024 – 31.9%)

Operating profit £6.8m (2024: £1m)

Directors' statement of compliance with duty to promote the success of the Group

The Directors are fully aware of their responsibilities to promote the success of the Group in accordance with section 172 of the Companies Act 2006 and have acted in accordance with these responsibilities during the year.

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Directors continue to have regard to the interests of the Group’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Group’s reputation, when making decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the Group for its members in the long term.

Our core values are:

S – Service – We are dedicated to serving one another, our customers, our shareholders and our communities

C – Curiosity – We are life-long learners with “soft minds” always asking questions,

O – Openness – We are committed to keeping an open mind as we pursue a better way.

P – Process – Process drives everything we do, with intention

E- Excellence – The practice of setting ambitious goals, maintaining focus and holding ourselves accountable

These ensure that we act consistently in the interests of our stakeholders.

Throughout the year the Board considered the wider impact of strategic and operational decisions on the Group’s stakeholders.

Employee Engagement

The group is committed to maintaining open and effective engagement with employees across all areas of the business, guided by our SCOPE values of Service, Curiosity, Openness, Process and Excellence. During the year, employees were regularly informed of matters affecting the business through company briefings, departmental meetings and ongoing communication with management teams. These communications included updates on operational performance, strategic developments, health and safety, investment activity and market conditions.

The directors recognise the importance of employee involvement in the continued success of the business and encourage regular consultation and feedback at all levels of the organisation. Employees are encouraged to contribute ideas for operational improvements and efficiency initiatives, supporting a culture of continuous improvement and shared accountability. The group also seeks to promote awareness amongst employees of the financial and economic factors affecting business performance and the wider aerospace market.

The group continues to invest in employee training and development to support career progression, skills enhancement and long-term retention across the organisation.

PARADIGM BURNLEY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

Disabled Employees

The group is committed to providing equal opportunities to all employees and applicants, including disabled persons. Applications for employment from disabled persons are fully and fairly considered, having regard to the aptitudes and abilities of the individual concerned.

Where an existing employee becomes disabled, the group seeks to continue their employment wherever practicable and appropriate support is provided, including adjustments to working arrangements where possible. The group is committed to ensuring that disabled employees have access to training, career development and promotion opportunities on an equal basis with other employees.

Engagement with Suppliers, Customers and Other Stakeholders

The directors recognise the importance of fostering strong and collaborative relationships with suppliers, customers and other key stakeholders in support of the group’s long-term success. Consistent with Pursuit’s SCOPE values, the group seeks to operate with openness, integrity and a focus on service across all business relationships.

During the year, the directors continued to engage regularly with customers and suppliers through ongoing operational dialogue, performance reviews and collaborative planning activities. Maintaining strong supplier relationships remains important in supporting operational performance, supply chain resilience and quality standards, while close engagement with customers supports long-term partnerships and future growth opportunities.

In considering principal decisions taken during the year, the directors had regard to the likely long-term consequences of those decisions on employees, customers, suppliers and the wider stakeholder group, together with the importance of maintaining the group’s reputation for high standards of business conduct and operational excellence.

On behalf of the board

J Roy
Director
11 June 2026
PARADIGM BURNLEY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

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

Principal activities

The principal activity of the group continued to be that of a manufacturer of components for the aerospace industry.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Roy
D Folsom
R Grochowski
(Appointed 20 January 2025)
Research and development

The group continues to invest in research and development.

Auditor

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

 

The only subsidiary company that is within the scope of the requirements is Aeromet International Limited and the information below relates only to Aeromet International Limited.

 

On 23rd July 2025, Paradigm Burnley Ltd acquired Aeromet International Limited. The energy information disclosed below represents the consumption and emissions of Aeromet International Limited for the full financial year ended 31 December 2025, including the period prior to acquisition.

2025
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
7,922,652
- Electricity purchased
8,603,806
16,526,458
PARADIGM BURNLEY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -
2025
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,449.53
- Fuel consumed for owned transport
-
1,449.53
Scope 2 - indirect emissions
- Electricity purchased
1,522.89
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
Total gross emissions
2,972.42
Intensity ratio
Tonnes CO2e per employee
81.64
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m of turnover, a widely used ratio for the sector.

Measures taken to improve energy efficiency

Aeromet International Limited continues to monitor its energy usage and emissions profile and seeks to identify opportunities to improve energy efficiency across its operations. This includes ongoing review of operational processes, equipment utilisation and energy consumption patterns.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
J Roy
Director
11 June 2026
PARADIGM BURNLEY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PARADIGM BURNLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARADIGM BURNLEY HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Paradigm Burnley Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PARADIGM BURNLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARADIGM BURNLEY HOLDINGS LIMITED
- 8 -
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 their 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 financial statements.

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

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

PARADIGM BURNLEY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARADIGM BURNLEY HOLDINGS LIMITED
- 9 -

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Cole (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited, Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
12 June 2026
PARADIGM BURNLEY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
57,202,583
35,293,262
Cost of sales
(35,146,011)
(24,041,728)
Gross profit
22,056,572
11,251,534
Administrative expenses
(13,658,699)
(10,237,382)
Other operating income
1,120,797
10,052
Exceptional item
4
(2,710,347)
-
0
Operating profit
5
6,808,323
1,024,204
Interest receivable and similar income
123,896
93,439
Interest payable and similar expenses
9
(3,157,005)
(2,009,249)
Profit/(loss) before taxation
3,775,214
(891,606)
Tax on profit/(loss)
10
194,479
1,312,437
Profit for the financial year
3,969,693
420,831
Profit for the financial year is all attributable to the owners of the parent company.
PARADIGM BURNLEY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
11
40,568,081
650,464
Other intangible assets
11
858,104
-
0
Total intangible assets
41,426,185
650,464
Tangible assets
12
15,174,126
5,455,804
56,600,311
6,106,268
Current assets
Stocks
15
16,422,919
9,831,779
Debtors
16
17,079,305
7,365,341
Cash at bank and in hand
6,418,880
1,401,233
39,921,104
18,598,353
Creditors: amounts falling due within one year
17
(29,752,457)
(21,779,193)
Net current assets/(liabilities)
10,168,647
(3,180,840)
Total assets less current liabilities
66,768,958
2,925,428
Creditors: amounts falling due after more than one year
18
(78,493,001)
(36,293,095)
Provisions for liabilities
Provisions
19
677,893
677,893
(677,893)
(677,893)
Net liabilities
(12,401,936)
(34,045,560)
Capital and reserves
Called up share capital
21
100
100
Share premium account
17,484,000
17,484,000
Other reserves
22
17,673,931
-
0
Profit and loss reserves
(47,559,967)
(51,529,660)
Total equity
(12,401,936)
(34,045,560)
The financial statements were approved by the board of directors and authorised for issue on 11 June 2026 and are signed on its behalf by:
11 June 2026
J Roy
Director
Company registration number 08659748 (England and Wales)
PARADIGM BURNLEY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
13
100
100
Total assets less current liabilities
100
100
Creditors: amounts falling due after more than one year
18
(38,870,161)
(38,358,976)
Net liabilities
(38,870,061)
(38,358,876)
Capital and reserves
Called up share capital
21
100
100
Share premium account
8,816,000
8,816,000
Own shares
833,000
833,000
Profit and loss reserves
(48,519,161)
(48,007,976)
Total equity
(38,870,061)
(38,358,876)

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £511,185 (2024 - £652,976 loss).

The financial statements were approved by the board of directors and authorised for issue on 11 June 2026 and are signed on its behalf by:
11 June 2026
J Roy
Director
Company registration number 08659748 (England and Wales)
PARADIGM BURNLEY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
Share capital
Share premium account
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2024
100
17,484,000
-
(51,950,491)
(34,466,391)
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
420,831
420,831
Balance at 31 December 2024
100
17,484,000
-
(51,529,660)
(34,045,560)
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
-
3,969,693
3,969,693
Capital contribution
-
-
17,673,931
-
17,673,931
Balance at 31 December 2025
100
17,484,000
17,673,931
(47,559,967)
(12,401,936)
PARADIGM BURNLEY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
Share capital
Share premium account
Own shares
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2024
100
8,816,000
833,000
(47,355,000)
(37,705,900)
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
-
(652,976)
(652,976)
Balance at 31 December 2024
100
8,816,000
833,000
(48,007,976)
(38,358,876)
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
-
(511,185)
(511,185)
Balance at 31 December 2025
100
8,816,000
833,000
(48,519,161)
(38,870,061)
PARADIGM BURNLEY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,154,891
4,592,590
Interest paid
(43,282)
(1,915,810)
Income taxes refunded
691,711
232,162
Net cash inflow from operating activities
3,803,320
2,908,942
Investing activities
Purchase of business
(54,548,745)
(3,216,751)
Purchase of intangible assets
(185,717)
-
Purchase of tangible fixed assets
(2,953,140)
(3,371,657)
Proceeds from disposal of tangible fixed assets
255,442
-
Net cash used in investing activities
(57,432,160)
(6,588,408)
Financing activities
Proceeds from borrowings
41,207,789
3,216,751
Proceeds from capital contribution
17,673,931
-
Proceeds from hire purchase
165,400
76,725
Repayment of hire purchase
(400,633)
-
Net cash generated from financing activities
58,646,487
3,293,476
Net increase/(decrease) in cash and cash equivalents
5,017,647
(385,990)
Cash and cash equivalents at beginning of year
1,401,233
1,787,223
Cash and cash equivalents at end of year
6,418,880
1,401,233
PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
1
Accounting policies
Company information

Paradigm Burnley Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Bentley Wood Way, Network 65 Business Park, Hapton, Burnley, Lancashire, BB11 5TG.

 

The group consists of Paradigm Burnley Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

 

The company has taken advantage of FRS 102 paragraph 33.1A, in respect of not disclosing related party transactions between wholly owned group companies.

 

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements within its own financial statements:

 

 

 

 

 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

The consolidated group financial stataments consist of the financial statements of the parent company Paradigm Burnley Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2025.

 

All intra-group transactions, balances and unreaslised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also estimated unless the transaction provides evidence of an impairment of the asset transferred.

 

Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have 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.

 

The group is able to manage its cash through working capital and its own cash reserves.

The directors are of the opinion that the group will be able to continue trading as a going concern, on the basis that the group is not required to repay the intercompany loan payable to fellow group company Turbocombustor Technology, Inc.

If Turbocombustor Technology, Inc demanded repayment of the loan, the group would not have sufficient funds to settle the liability. As a result of this, the directors have obtained a letter of support from Turbocombustor Technology, Inc, indicating the parent company’s intent to continue to support the group and not demand repayment of the loan for a period of at least 12 months from the date of the signed financial statements. The directors are satisfied that Turbocombustor Technology, Inc has the financial means not to demand repayment of this loan.

On this basis, the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover relates to the sale of goods and is stated net of VAT and trade discounts. Turnover is recognised when the significantly risks and rewards are considered to have been transferred to the buyer. Turnover is recognised at the point of despatch for the intercompany samples and at the point of delivery for third party sales.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20-33.33% straight line
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
2%-6.67% straight line
Plant and equipment
10-33.33% straight line
Computers
33% straight line
Motor vehicles
33.33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Fixed asset investments are stated at cost less any provision for diminution in value.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.10
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.

 

Cost is determined on the first-in, first-out (FIFO) method.

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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 realise 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 20 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 22 -
1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

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.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within "finance income or costs". All other foreign exchange gains and losses are presented in profit or loss.

 

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
Sales - UK
26,876,335
16,500,893
Sales - Rest of Europe
23,132,326
1,359,204
Sales - Rest of World
7,193,922
17,433,165
57,202,583
35,293,262
2025
2024
£
£
Other revenue
Interest income
123,896
93,439
Scrap proceeds, rental income and other
412,797
-
R&D tax credit
708,000
-
4
Exceptional item
2025
2024
£
£
Expenditure
Exceptional expenditure
2,710,347
-

On 23 July 2025, Paradigm Burnley Limited acquired Aeromet Holdings Limited. During the period post acquisition, Aeromet International Limited incurred a number of one-off non-recurring costs in connection with the acquisition.

 

These comprised of, long term incentive plan payments of £1,380,000, stock adjustments totalling £1,145,000 to align the company's stock valuation policy with that of the Group, and other ancillary acquisition costs amounting to £185,347.

5
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(1,277,494)
(343,151)
Research and development costs
2,630,185
3,298,856
Depreciation of tangible fixed assets
2,011,363
1,042,770
Profit on disposal of tangible fixed assets
(751,479)
-
Amortisation of intangible assets
1,806,374
29,281
Redundancy costs
220,353
225,472
Management fee
2,123,261
919,890
Inventory provision
3,217,689
(166,261)
Operating lease charges
1,070,784
489,005
PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
6
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,500
3,000
Audit of the financial statements of the company's subsidiaries
148,000
31,000
161,500
34,000
For other services
All other non-audit services
13,000
5,000
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Production staff
325
217
-
-
Distribution staff
10
14
-
-
Administrative staff
45
10
3
2
Total
380
241
3
2

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
14,027,857
10,002,092
-
0
-
0
Social security costs
1,752,022
970,788
-
-
Pension costs
1,023,571
717,900
-
0
-
0
16,803,450
11,690,780
-
0
-
0
8
Directors' remuneration

As total directors' remuneration for the years ended 31 December 2025 and 2024 respectively was £Nil, no disclosure is required.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
3,157,005
2,009,249
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
177,110
-
0
Adjustments in respect of prior periods
45,935
(1,007,396)
Total current tax
223,045
(1,007,396)
Deferred tax
Origination and reversal of timing differences
(417,524)
(305,041)
Total tax credit
(194,479)
(1,312,437)

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit/(loss) before taxation
3,775,214
(891,606)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
943,804
(222,902)
Tax effect of expenses that are not deductible in determining taxable profit
419,528
5,470
Tax effect of income not taxable in determining taxable profit
-
0
(59,975)
Permanent capital allowances in excess of depreciation
(445,604)
(471,430)
Under/(over) provided in prior years
45,464
(1,007,396)
Unrecognised deferred tax
(1,207,737)
-
0
Other timing differences
14,656
90,086
Losses carried forward
241,479
507,920
Losses utilised
(503,061)
(154,210)
Impact of pre acquisition trade
296,992
-
Taxation credit
(194,479)
(1,312,437)
PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 26 -
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2025
678,745
239,000
917,745
Additions
41,723,991
185,717
41,909,708
Disposals
(15,000)
-
0
(15,000)
Transfers
-
0
672,387
672,387
At 31 December 2025
42,387,736
1,097,104
43,484,840
Amortisation and impairment
At 1 January 2025
28,281
239,000
267,281
Amortisation charged for the year
1,806,374
-
0
1,806,374
Impairment losses
(15,000)
-
0
(15,000)
At 31 December 2025
1,819,655
239,000
2,058,655
Carrying amount
At 31 December 2025
40,568,081
858,104
41,426,185
At 31 December 2024
650,464
-
0
650,464
The company had no intangible fixed assets at 31 December 2025 or 31 December 2024.

 

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Assets under construction
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2025
1,659,000
687,153
22,733,732
189,419
81,000
25,350,304
Additions
17,222
1,325,763
1,559,246
50,909
-
0
2,953,140
Business combinations
250,000
599,308
8,373,999
248,000
-
0
9,471,307
Disposals
-
0
-
0
(239,193)
-
0
-
0
(239,193)
Transfers
166,357
(2,109,231)
1,270,487
-
0
-
0
(672,387)
At 31 December 2025
2,092,579
502,993
33,698,271
488,328
81,000
36,863,171
Depreciation and impairment
At 1 January 2025
1,659,000
-
0
18,146,232
24,739
64,529
19,894,500
Depreciation charged in the year
48,770
-
0
1,850,476
103,939
8,178
2,011,363
Eliminated in respect of disposals
-
0
-
0
(216,818)
-
0
-
0
(216,818)
At 31 December 2025
1,707,770
-
0
19,779,890
128,678
72,707
21,689,045
Carrying amount
At 31 December 2025
384,809
502,993
13,918,381
359,650
8,293
15,174,126
At 31 December 2024
-
0
687,153
4,587,500
164,680
16,471
5,455,804
The company had no tangible fixed assets at 31 December 2025 or 31 December 2024.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Plant and equipment
1,329,111
1,494,306
-
0
-
0
PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 28 -
13
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2025 and 31 December 2025
100
Carrying amount
At 31 December 2025
100
At 31 December 2024
100
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Paradigm Burnley Limited
1 - Below
Ordinary
100.00
-
Paradigm Precision Burnley Limited
1 - Below
Ordinary
0
100.00
Merc Aerospace Holdings Limited
1 - Below
Ordinary
0
100.00
Merc Group Limited
1 - Below
Ordinary
0
100.00
Merc Aerospace Limited
1 - Below
Ordinary
0
100.00
Aeromet Holdings Limited
2 - Below
Ordinary
0
100.00
Pacific A&E Limited
2 - Below
Ordinary
0
100.00
Pacific Aerospace & Electronics (UK) Limited
2 - Below
Ordinary
0
100.00
Aeromet International Limited
2 - Below
Ordinary
0
100.00

Registered office addresses (all UK unless otherwise indicated):

1
1 Bentley Wood Way, Network 65 Business Park, Hapton, Burnley, Lancashire, BB11 5TG
2
Aeromet Building, Cosgrove Close, Worcester, WR3 8UA

The following companies are exempt from the requirements of the Companies Act 2006 relating to the audit of their individual accounts as Paradigm Burnley Holdings Limited has provided a guarantee under Section 479A.

 

Paradigm Burnley Limited                08661320

Merc Aerospace Holdings Limited                14052579

Merc Group Limited                     06734014

 

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
15
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
6,179,820
5,736,289
-
-
Work in progress
8,362,901
4,095,490
-
-
Finished goods and goods for resale
1,880,198
-
0
-
0
-
0
16,422,919
9,831,779
-
-

Stocks are stated after provisions for impairment of £4,719,848 (2024: £1,502,159).

16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
13,641,222
5,552,292
-
0
-
0
Other debtors
2,895,749
1,244,398
-
0
-
0
Prepayments and accrued income
542,334
568,651
-
0
-
0
17,079,305
7,365,341
-
-

Trade debtors are stated after provisions of £96,203 (2024: £106,689).

 

Other debtors includes amounts due in respect of corporation tax refunds of £943,745 (2024: £976,332).

17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Obligations under finance leases
237,715
356,749
-
0
-
0
Trade creditors
5,651,523
4,977,699
-
0
-
0
Amounts owed to group undertakings
17,089,861
14,678,814
-
0
-
0
Other taxation and social security
1,012,077
147,972
-
0
-
0
Other creditors
1,436,726
37,838
-
0
-
0
Accruals and deferred income
4,324,555
1,580,121
-
0
-
0
29,752,457
21,779,193
-
0
-
0

Obligations under finance lease agreements are secured against the assets to which they relate.

 

Amounts owed to group undertakings represents amounts owed to fellow subsidiaries Turbine Engine Components Technologies Corporation and Turbocombustor Technology, Inc. Both companies are registered in the United States of America.

 

The amounts are unsecured and include an element which bears interest at 6% per annum.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 30 -
18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Obligations under finance leases
394,905
489,157
-
0
-
0
Amounts owed to group undertakings
78,098,096
35,803,938
38,870,161
38,358,976
78,493,001
36,293,095
38,870,161
38,358,976

Obligations under finance lease agreements are secured against the assets to which they relate.

 

The amount owed to group undertakings is unsecured and carries interest of 6% per annum.

19
Provisions for liabilities
Group
Company
2025
2024
2025
2024
£
£
£
£
Dilapidations
677,893
677,893
-
-
Movements on provisions:
Dilapidations
Group
£
At 1 January 2025 and 31 December 2025
677,893

The dilapidations provision relates to the property which the group occupies. It is expected that the amount will become payable in February 2028

20
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,023,571
717,900

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 31 -
21
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
22
Other reserves

The group's other reserves represent a capital contribution reserve which arose as a result of a loan from the group's ultimate parent company being converted to equity. The reserve represents an irrevocable gift granted to the group from its ultimate parent company.

23
Acquisition of a business

On 23 July 2025 the group acquired 100% of the issued capital of Aeromet Holdings Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
4,868,652
4,566,000
9,434,652
Inventories
6,964,289
-
6,964,289
Trade and other receivables
7,107,192
-
7,107,192
Cash and cash equivalents
3,527,476
-
3,527,476
Trade and other payables
(24,719,550)
-
(24,719,550)
Total identifiable net assets
(2,251,941)
4,566,000
2,314,059
Goodwill
41,723,991
Total consideration
44,038,050
The consideration was satisfied by:
£
Cash
44,038,050

In addition to the £44,038,050 of consideration, Paradigm Burnley Limited made a capital contribution of £14,038,171 to Aeromet Holdings Limited.

Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
15,318,710
Profit after tax
1,065,545
PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
24
Operating lease commitments
As lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
1,777,768
622,205
-
-
Years 2-5
5,590,912
1,545,842
-
-
After 5 years
949,000
-
-
-
8,317,680
2,168,047
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2025
2024
2025
2024
£
£
£
£
Acquisition of tangible fixed assets
-
162,013
-
-
26
Related party transactions

The group discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

27
Controlling party

The largest group in which the results of the company are consolidated is PPW Aero Buyer, Inc. Financial statements for this entity can be obtained from 200 Adams Street, Manchester, CT06042, United States. PPW Aero Buyer, Inc also represents the smallest group in which the results of the company are consolidated.

The ultimate parent company and controlling party is PPW Aero Topco L.P, a company incorporated in the United States of America and owned by a consortium, comprising of controlled affiliates of, or funds managed by Clayton, Dubilier & Rice and Greenbriar Equity Group.

PARADIGM BURNLEY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 33 -
28
Cash generated from group operations
2025
2024
£
£
Profit after taxation
3,969,693
420,831
Adjustments for:
Taxation credited
(194,479)
(1,312,437)
Finance costs
3,033,109
1,915,810
Exchange rate gains
(1,360,987)
(343,151)
Gain on disposal of tangible fixed assets
(751,479)
-
Amortisation and impairment of intangible assets
1,806,374
29,281
Depreciation and impairment of tangible fixed assets
2,011,363
1,042,770
Other loan write off
-
(240,000)
Decrease in provisions
-
(116,000)
Movements in working capital:
Decrease/(increase) in stocks
373,149
(2,758,334)
Increase in debtors
(2,639,359)
(2,045,341)
(Decrease)/increase in creditors
(3,092,493)
7,999,161
Cash generated from operations
3,154,891
4,592,590
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