The director presents the strategic report for the year ended 31 December 2025.

Buse Gases Limited has undergone another year of significant strategic development in 2025, marked by the commissioning of key projects, continued growth in core markets, and substantial capital investment. This report outlines the company’s performance during the fiscal year 2025, highlighting financial results, operational progress, risk profile, and future growth prospects.

Business Performance:

Revenue and Profitability

Total sales in 2025 are forecast at £13,477,999 an increase from £11,991,812 in 2024, reflecting continued top-line growth despite notable operational challenges.

Strategic Capital Investment – Liquid Helium Facility

In 2025, Buse Gases Limited completed a major strategic investment in a state-of-the-art liquid helium bulk break and cylinder filling facility. This plant is designed to:

Receive bulk liquid helium, perform bulk break operations, and fill cylinders and dewars for end customers.

Serve high-value sectors, including semiconductor manufacturing, MRI and other medical imaging applications, and advanced research institutions.

Supply gaseous helium for balloon inflation and high-purity grades for universities and research centres.

The facility positions Buse Gases as a regional helium hub, diversifying our portfolio beyond CO₂ and traditional industrial gases. While this investment increases depreciation and financing costs in the short term, it is expected to generate attractive returns over the medium term and strengthen our strategic positioning in specialty gases.

Overhead and Operating Expenses

Total overhead expenses for 2025 exceeded plan. Key drivers included:

Higher staff costs tied to increased headcount (particularly drivers, planners, and schedulers) to manage the additional complexity and frequency of CO₂ import deliveries from Europe.

Strategic hires linked to the Air Separation Unit (ASU) project, including:

Additional engineering resources to support design, permitting, and future implementation.

Market Development Specialists focused on securing long-term gas offtake agreements in advance of ASU commissioning, in a market where many potential customers remain bound by long-term evergreen contracts with competitors.

Consulting and auditing fees above plan, reflecting elevated legal, technical, and advisory costs associated with the ASU, Rhodesia, and helium investments.

Buse Gases Limited continues to operate in a dynamic environment. The principal risks and uncertainties identified in 2024 remain relevant in 2025, with some evolving in nature:

Market Volatility: Demand fluctuations in key sectors such as manufacturing, food gases, fire suppression, and hospitality continue to pose revenue risk. Our diversified customer and product portfolio, including growth in specialty gases (e.g., helium), mitigates this exposure.

Regulatory Changes: Environmental, customs, and industrial safety regulations remain critical. Further tightening of carbon and emission-related regulations could influence both operational practices and the economics of carbon capture projects.

Supply Chain Disruptions: Although the commissioning of Rhodesia has reduced reliance on imported CO₂, global logistics challenges, geopolitical tensions, and potential disruptions in helium and industrial gas supply chains remain key risks. Our strategy of investing in local production capacity (Rhodesia, ASU) and additional storage aims to build resilience.

Environmental and Sustainability Pressures: Growing stakeholder focus on carbon emissions and sustainability continues to shape our investment strategy. Our ongoing focus on hydrogen technology, carbon capture, and the use of recycled CO₂ helps manage both regulatory and reputational risk.

Financial Performance:

Operating Profit: While pressures from CO₂ imports, higher overheads, and increased interest costs constrained profitability versus plan, the business remains profitable at operating level, supported by disciplined cost management and improved pricing where possible.

Operational Developments:

CO₂ Project: After delays, the project commenced operations in 2025, capturing, cleaning, and liquefying CO₂ from power generation to produce food and beverage grade CO₂. This is now providing a structurally lower-cost local CO₂ supply and will be central to our growth and margin recovery from 2026 onward.

Liquid Helium Facility: The state-of-the-art liquid helium bulk break and cylinder filling facility was completed and is ramping up production. The plant positions Buse Gases to supply liquid and gaseous helium to semiconductor, healthcare (MRI), balloon, and research segments.

Air Separation Plant (ASU): Work continued on the ASU project, which remains on schedule for completion end of 2027.

Employee Development

Buse Gases continued to invest in people and organisational capability throughout 2025:

The employee retention programme launched in 2024 continued to deliver positive results, sustaining improved retention levels.

Technical training and development initiatives were expanded to support new technologies, including carbon capture, helium operations, and future ASU commissioning.

Specialty Gases and Helium

The new helium facility enables Buse Gases to target high-value helium segments, including semiconductors, MRI and other medical imaging, research, and balloons.

Over time, we expect helium and other specialty gases to represent an increasingly important, higher-margin part of the portfolio, complementing our industrial and food gases business.

The company continues to monitor performance against the KPIs established in 2024, with the following 2025 position (qualitative assessment where final audited figures are not yet available):

Revenue Growth Rate

Target: 10% annual growth

2025 Performance: Revenue increased versus 2024, but growth remained below the 10% target due to delayed Rhodesia ramp-up and resultant CO₂ and nitrogen shortfalls.

Customer Satisfaction Score

Target: 85%

2025 Performance: Customer satisfaction remained strong and is expected to remain around or above 90%, supported by our commitment to secure supply even during the import period.

Gross Profit Margin

Target: 54%

2025 Performance: Gross margin was temporarily compressed, particularly in the CO₂ business, due to elevated import and logistics costs versus pre-agreed sales prices. Margin recovery is expected as local CO₂ and ASU-derived products scale.

Safety Incident Rate

Target: Fewer than 2 incidents per 100 employees

2025 Performance: Safety performance remained strong, with a low incident rate consistent with our 2024 achievements, reflecting our ongoing emphasis on health and safety culture and training.

Growth Plans

The company’s growth strategy remains anchored in three core pillars:

Air Separation Plant (ASU)

The ASU project, initiated in 2024, is progressing according to plan and is expected to be completed and producing by end of 2027.

With expected annual capacity of approximately 60,000 tonnes of liquid nitrogen, 20,000 tonnes of liquid oxygen, and 1,200 tonnes of liquid argon, this plant is projected to support Buse Gases’ growth for at least the next decade and reduce dependence on third-party supply.

CO₂ Capture and Utilisation

Rhodesia is operational and supplying up to 32,000 tonnes of recycled food and beverage grade CO₂ to the local market, helping replace imported volumes and significantly improving supply security.

The company has already signed an agreement for the larger Mill Hill project, which will further expand CO₂ capture capacity and strengthen Buse Gases’ position as a leading provider of sustainable CO₂ solutions in the UK.

BUSE has partnered with Acorn Bioenergy to source food and beverage grade CO2 from the Three Maids Facility in Winchester, producing 12,000 tons annually beginning January 2026, and the Horse Close Facility in Northampton, also producing 12,000 tons annually starting Q1 2027.

Conclusion

Buse Gases Limited has demonstrated resilience, adaptability, and a clear long-term vision throughout 2025. While financial performance fell short of internal plans due to delays and transitional costs associated with major projects, the company has:

Delivered continued revenue growth versus 2024.

Successful CO₂ project and the new helium facility.

Continued to advance the ASU project, which, alongside further CO₂ capture projects, will underpin the company’s growth for many years.

Our strong safety performance, ongoing commitment to sustainability, and disciplined approach to risk management place Buse Gases Limited in a solid position to capitalise on the significant investments made in 2024 and 2025. We enter 2026 with a more robust asset base, a broader and higher-value product portfolio, and a strengthened platform for sustainable, profitable growth.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of the supply of specialist gases.

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

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

The auditor, Kendall Wadley LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company’s auditor is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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. He is 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.

We have audited the financial statements of Buse Gases Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, the balance sheet, the 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:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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 Auditor's 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 director's 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 director 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 director is 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:

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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.

- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained

- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made

- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the company

- processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.

- an understanding of the legal and regulatory framework as applicable to the company is obtained together with knowledge of the procedures put in place by the company in order to comply with the same

- it is established if there have been any instances of non-compliance with applicable laws and regulations, where there are such breaches, a full understanding, including gathering of relevant documentation appertaining to the event is obtained and assessed

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Buse Gases Limited is a private company limited by shares incorporated in England and Wales. The registered office is Johnsons Bridge Road, West Bromwich, West Midlands, B71 1DG.

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

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Buse Gases Limited is a wholly owned subsidiary of Dr. BUSE Holding GmbH & Co. KG and the results of Buse Gases Limited are included in the consolidated financial statements of BUSE KSW GmbH & Co. KG which are available from BUSE KSW GmbH & Co. KG, Sprudelstrasse 3, D-53557 Bad Honningen, Germany.

These financial statements have been prepared on a going concern basis, the validity of the assumption depends on the continued support from the company's parent, Buse KSW GMBH & Co KG. In addition the director has assessed the likely performance of the company for the twelve months following the date of approval to these accounts and is of the opinion that the gong concern basis is the appropriate basis of preparation.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 years.

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:

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:

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 credited or charged to profit or loss.

The company has applied IFRS 16 Leases to the sale and leaseback of cylinders.

• A right of use asset and lease liability is recognised on the balance sheet, initially measured at the present value of future lease payments;

• Depreciation of right-of-use assets and interest on lease liabilities are recognised in the statement of comprehensive income;

• The total amount of cash paid is recognised in the statement of cash flows, split between payments of principal (within financing activities) and interest (also within financing activities).

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

At each reporting period end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

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

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. Financial assets classified as receivable within one year are not amortised.

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.

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.

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

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

Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, 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.

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.

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

The tax expense represents the sum of the tax currently payable and deferred 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating 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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is 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.

During the year loans and interest in the sum of £130,132 were eliminated in connection with one of the subsidiaries Buse Hydrogen Technologies Limited following the merger of the company into Buse Gases Limited.

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

Their aggregate remuneration comprised:

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

The parties, Buse Gases Ltd, lessee, and Buse KSW GmbH & Co. KG., lessor, have transferred steel cylinders by way of purchase and transfer agreement, these assets are now made available to Buse Gases Limited for use under a lease contract.

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

The bank loan is underwritten by the parent group.

Borrowings with HSBC Bank plc are covered by a standard debenture over the assets of the company. At the balance sheet date the indebtedness to HSBC Bank plc was £nil (2024 - £nil).

Finance lease payments represent rentals payable by the company for certain items of plant and machinery - cylinders. The average lease term is 10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

A provision of £150,000 has been recognised for legal fees in the event of which a formal case is brought against the entity. The timing and final amount of the settlement are dependent on the outcome of the legal proceedings. The provision represents management's best estimate of the anticipated legal costs.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Given the programme of capital investment the deferred tax asset liability set out above is expected to increase and will gradually unwind after 5 years.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

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

The ultimate parent company is Dr.Buse.Holding GmbH & co. KG, a company registered in Germany.

Dr.Buse.Holding GmbH & co. KG holds 52.93% of the share capital of Buse KSW GMBH & Co KG. Buse KSW GMBH & Co KG holds 100% of the share capital of Buse Gases Limited. Dr.Buse.Holding GmbH & co. KG is the parent undertaking of both the smallest and largest group of undertakings.

The results of the group have been consolidated and are publicly available at the address stated. Consequently, no disclosure has been made of transactions with other group entities, as all are wholly owned subsidiary undertakings. Group accounts can be obtained from:

Buse KSW GMBH & Co. KG, Sprudelstrasse 3, D-53557 Bad Honningen, Germany.