The directors present the strategic report for the year ended 30 September 2025.
During the accounting period, the directors have continued to closely monitor the business's activities, recognising the ongoing challenges presented by global economic conditions. These challenges have sustained significant pressure across the industry, particularly in the form of declining steel prices and rising costs.
The Group's turnover for the accounting period was £44.3m, compared to £42.3m in September 2024.
Throughout the year, the Group launched new products further strengthening its market position. The Group also maintained a strong presence at all major industry exhibitions, showcasing its market-leading products to customers and stakeholders.
In response to market volatility, the directors have continued to strategically reduce stock holdings from £10.8 to £9.4m, mitigating exposure to steel price fluctuations and enhancing stock turnover efficiency. Stock turnover increased from 2.36 from 2.97.
The Group has also made significant investments in an ERP system designed to enhance procurement, stock management, and manufacturing processes, while providing superior reporting capabilities to support informed decision-making. The system is scheduled to go live in early FY27.
Looking ahead, the directors anticipate modest growth in FY26. The Group continues to cultivate strong customer relationships, and as customers return to previous spending levels, it remains well-positioned to meet their needs with its market-leading product range.
The Group faces several principal risks, including rising energy costs, wage inflation, exchange rate volatility, and the ongoing impact of Brexit. Additionally, the war in Eastern Europe remains a significant concern. These factors continue to exert pressure on raw material and labour costs.
To mitigate these challenges, the Group remains committed to ensuring continuity of supply. Strong relationships with suppliers have been maintained, and the Group’s diversified market presence supports the resilience of its procurement processes.
Throughout the accounting period, cash management has remained a priority, with rigorous forecasting and close monitoring in place to ensure financial stability.
Given the Group’s overseas sales and purchases, exchange rate fluctuations present an ongoing risk. To address this, the supply chain is subject to rigorous financial strength assessments, ensuring the presence of multiple sourcing options to safeguard operations against potential disruptions.
The Group remains committed to ongoing research and development (R&D) as a cornerstone of its strategic growth. Continuous investment in R&D drives product innovation, delivering enhanced capabilities to customers while strengthening the Group’s competitive position in the marketplace.
Looking ahead, R&D will remain a key focus area, supporting both current operations and future strategic initiatives.
The directors and management team are dedicated to a clear strategy of continuous improvement, ensuring operational excellence across all aspects of the Group’s business.
Financial Risk Management
The Group employs rigorous credit control management techniques to ensure thorough credit assessments and maintain a customer base with strong creditworthiness. Additionally, all trade accounts are insured through a credit insurer, providing further financial security.
The directors are confident that the Group has adequate funds to support future operations and strategic initiatives. The business is expected to continue trading profitably in the coming year.
Financial Instruments
The Group maintains a standard level of exposure to price, credit, liquidity, and cash flow risks associated with its trading activities, which are primarily conducted in sterling and euros.
To mitigate these risks, the Group utilises forward contracts for the procurement of specific energy and raw materials. These transactions are predominantly safeguarded through appropriate hedging contracts, ensuring stability and financial resilience.
The directors utilise key performance indicators to monitor the Group’s financial performance and overall strength.
A range of specific KPIs are in place to serve as early warning indicators, enabling timely management intervention where necessary. To drive operational efficiencies, the directors will continue to enhance monitoring across individual departments, ensuring sustained performance improvements.
The following are examples of KPIs used by the directors in assessing business performance:
| Y/E 30 September |
| Y/E 30 September |
| 2025 |
| 2024 |
|
|
|
|
Turnover | £44,325,912 |
| £42,367,350 |
Gross margin % | 33% |
| 30% |
Loss before tax | (£2,672,564) |
| (£2,998,319) |
Employee productivity | £116,340 |
| £93,115 |
Stock turnover | 2.97 |
| 2.36 |
Shareholder funds | £34,190,651 |
| £36,828,554 |
|
Data is taken from the audited consolidated financial statements. |
The board directors of the company consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and have had regard for the matters set out in section 172 (a-f) of the Companies Act 2006.
The board engages with the company's key stakeholders (who are considered to be its customers, employees, suppliers and the local community) and their views and interests are taken into consideration in board decisions.
Customers
Our loyal customers value our products, which are produced to the highest quality and are made to last to provide great value. The company engages with customers for their invaluable feedback which has helped us continually improve our service and products which are at the forefront of our industry.
The group would be nowhere without its employees. They are fundamental to the success of the business. Wage increases have been committed to throughout the year to combat the increases in cost of living. The health, safety and well-being of our employees is one of our primary considerations in the way we do business. Ongoing communication with all employees is carried out, in order to continually improve the working environment, health, safety and wellbeing.
Suppliers are seen as essential stakeholders and are treated with respect by the Directors of the company. Continuity of supply is paramount, and in return payment terms are adhered to without fail.
Our neighbours and the local community are very important, consideration is taken by the Directors when making decisions in regard to the local environment. Health and Safety is also committed to with the highest importance and priority by the Board. The company also actively focus on supporting local causes and other charities via sponsorship and donations.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 September 2025.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Regular meetings are held between senior management and employee representatives to discuss matters of concern. Employees are kept well informed about the progress and position of the company by means of regular departmental meetings, newsletters and journals.
The details of the company's future developments are included in the strategic report.
The auditor, DJH Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
During the reporting period we took the following energy efficiency actions:
Previous Reporting Emission Comparison
Overall energy consumption from the previous reporting period increased by approximately 3.6%.
Organisational Boundary
The boundary for SECR reporting is all energy and carbon emissions attributed to the IAE Mossfield.
Operational Scopes
We have measured our scope 1 and 2 emissions. The reporting of scope 3 emissions is voluntary for the organisation and scope 3 emissions are currently not reported. Our energy consumption and emissions for the reporting period are shown in the table below:
We have followed the HM Government Environmental Reporting Guidelines, Including Streamlined Energy and Carbon Reporting Guidance, November 2021. We have used the 2024 UK Government Conversion Factors for Company Reporting and applied these factors to the measured quantities of energy.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonne of product, the recommended ratio for the sector.
As part of our ongoing efforts to reduce CO₂ emissions and lower our overall carbon footprint, we are implementing a range of sustainability initiatives across our operations. This includes enhancing energy efficiency through the installation of LED lighting in our offices and the use of smart sensors and building management systems to minimise unnecessary energy consumption. Within transportation and logistics, we are transitioning our fleet to electric and hybrid vehicles, while optimising supply chain routes to reduce travel distances and idle times. We are also actively engaging employees by subsidising bike-to-work schemes and promoting eco-conscious workplace practices, such as recycling and waste reduction.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
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.
We have audited the financial statements of F. Klucznik & Son Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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).
Basis for 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
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In preparation for our audit we identified areas of laws and regulations which we considered could have a material effect on the financial statements. This information was obtained via discussions with management and from our general commercial and sector experience. The directors also provide us with written representation of all the key and fundamental industry specific laws and regulations with they are required to adhere to. These were then communicated to the whole of the audit team at our audit planning meeting.
For a manufacturing group of company, non-compliance with health & safety and employment law, tax and other financial regulations were assessed to be most relevant. Our audit procedures to identify non-compliance with laws and regulations in these areas consisted of:
- Enquiries with management;
- Inspection of regulatory records, inspection reports, submissions, and other correspondence;
- Challenges to management assumptions and judgements in relation to accounting estimates.
- Review of journals entered throughout the year.
Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion.
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 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.
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 £2,553,380 (2024 - £2,327,229 loss).
F.Klucznik And Son Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.
The presentation currency of the financial statements is the Pound Sterling (£).
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 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 for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company F. Klucznik & Son Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated 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.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. In making this assessment they have considered a period of time of a minimum of 12 months from the date of signing. Further details on performance are presented in the strategic report. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
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.
Intangible fixed assets include £2,136,443 of software currently under development which has not been amortised.
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 income statement.
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.
Fixed asset investments are stated at historical cost less provision for any diminution in value.
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
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 statement of financial position 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, 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, 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 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.
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, 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.
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 group's contractual obligations expire or are discharged or cancelled.
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.
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 income statement 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 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.
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.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
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.
The following judgements have had the most significant effect on amounts recognised in the financial statements.
At the reporting date, a deferred tax asset of £952,326 (2024: £952,326) has been recognised based on management’s expectation that sufficient taxable profits and taxable temporary differences will arise in future periods against which the deductible temporary differences can be utilised. The recognition of the deferred tax asset therefore requires judgement regarding the timing and level of future taxable profits. Management has reviewed the latest forecasts and considers the recognised deferred tax asset to be recoverable. Further information can be found in Note 22.
The Directors have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual values and has concluded that asset lives and residual values are appropriate.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2024 - 7).
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.
More information on impairment movements in the year is given in note 11.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
On 31 December 2024 the subsidiary company, Centrewire Limited, was hived up and became a trading division of F. Klucznik & Son Limited resulting in a full impairment of the investment.
Details of the company's subsidiaries at 30 September 2025 are as follows:
Centrewire Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of Section 479A.
The bank loan is secured by way of a mortgage debenture including a fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future dated 28 February 2012.
Overdraft and loan facilities are also secured by an intercompany cross guarantee from Centrewire
Limited, supported by a charge over assets owned by Centrewire Limited.
Two bank loans was taken out during the period ended 31 January 2020 and year ended September 2021 with interest being charged at 2.16% and 2.25% per annum above the Bank of England Base Rate respectively.
After the reporting period the above loans were settled and re-financed.
The hire purchase creditors are secured directly over the assets financed. There is also a guarantee to the bank dated 21st March 2012 in favour of HM Revenue & Customs for £100,000.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
As at 30 September 2025, there were deductible temporary differences and tax losses available which gave rise to a potential deferred tax asset of £1,481,488. Of this amount, £952,326 (2024: £952,326) has been recognised in the financial statements.
The recognised deferred tax asset reflects the portion for which recovery is considered probable, based on the reasonable expectation of the availability of future taxable profits and the reversal of taxable temporary differences against which the asset can be utilised. The remaining unrecognised balance of £529,162 has not been recognised due to uncertainty regarding the timing and sufficiency of future taxable profits.
Deferred tax has been calculated at 25%, being the rate of corporation tax substantively enacted at the balance sheet date.
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.
Contributions totalling £49,455 (2024: £105,000) were payable to the scheme at the end of the period and are included in creditors.
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:
Amounts contracted for but not provided in the financial statements:
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
During the year, the company incurred rental costs totalling £137,000 to the Klucznik Family SSAS pension scheme (2024: £120,397).