REGISTERED NUMBER: 00344017 (England and Wales)

KEMET INTERNATIONAL LIMITED

& ITS SUBSIDIARY COMPANIES

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J. E. Park , FCMA

M. J. Riedl , Ph.D., B.Sc.

A. G. Riedl

N. P. Swan

M. J. Farrington

L. Gellett

SECRETARY:

J. E. Park , FCMA

REGISTERED OFFICE:

Parkwood Trading Estate

MAIDSTONE

Kent

ME15 9NJ

REGISTERED NUMBER:

00344017 (England and Wales)

AUDITORS:

McCabe Ford Williams

Statutory Auditors and Chartered Accountants

89 King Street

Maidstone

Kent

ME14 1BG

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

REVIEW OF BUSINESS

The Group's key performance indicators include revenue, gross profit and net profit.

The Group's Revenue has increased to £22.70m (2024: £20.03m). The gross profit has also increased from £10.64m (53.12%) to £11.21m (49.38%).

Operating profit for the year has increased, very slightly, from £1.69m in 2024 to £1.77m this year.

Profit before tax has increased by 4.9%.

The increase in sales in the year is attributed to large one-off sales of cleaning machines acquired from IFP and through the Group's agency with Finnsonic.Typically the margin on the sale of machines is lower than on the standard ranges of manufactured products and factored goods so the increase in sales of machines has resulted in a drop in the gross profit margin but an increase in the absolute gross profit itself. Excluding machine sales, sales have remained broadly consistent across all markets on a geographical basis but demand from specific customers can result in fluctuations.

Cash inflows from operating activities have increased to £1.97m (2024: £1.55m) as a result of the increase in operating profit offset by increases in stock and debtors.

The Group has a strong cash position at the year end. Net funds held in cash and cash equivalents have increased to £7.61m (2024: £7.33m). This is despite paying a dividend of £610,000 in the year (2024: £1.29m, which was partially funded by the profit on the disposal of the Japanese associate).

PRINCIPAL RISKS AND UNCERTAINTIES

Similar to many other companies of our size, both in this and many other industries, trading in foreign markets continues to be very competitive, with ongoing cost and pricing challenges from all directions. The group are actively driving a number of strategic options to address those longer term challenges.

OPERATIONAL RISK

This is the risk of a direct or indirect loss resulting from inadequacies or failures in projects, processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which are designed to provide a sound and well-controlled operational environment. Key information regarding governance and the management of risk is reported to the Board. This enables management to monitor operational risk at appropriate levels.

FOREIGN CURRENCY RISK

The group operates internationally giving rise to exposure from changes in foreign exchange rates, particularly the US dollar and Euro. The group does not hedge translation exposure and earnings because any benefit obtained from such hedging can only be temporary.

The group also has transactional currency exposures arising from its international trade.

RESEARCH AND DEVELOPMENT

Cost of sales included significant new and existing product developments; these developments will continue to reflect changes in market requirements, standards and certification.

The group continued to market its products and services on a worldwide basis through its network of overseas group companies and associates.

ON BEHALF OF THE BOARD:

J. E. Park , FCMA - Director

22 June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture and marketing of industrial abrasives, lapping equipment and materials.

DIVIDENDS

During the year under review the company paid interim dividends of £1.22 per share in respect of the year ended 30 September 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2024 to the date of this report.

J. E. Park , FCMA

M. J. Riedl , Ph.D., B.Sc.

A. G. Riedl

N. P. Swan

M. J. Farrington

L. Gellett

RISK MANAGEMENT

The risk management programmes of the company and of its subsidiaries seek to assess, manage and control risk. A broad spectrum of risks are considered including those relating to strategy, operational performance, financial (including fraud) and health and safety. The principal operational risks are the maintenance of high quality product and service levels and the financial risks are those related to foreign currencies and market forces.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, McCabe Ford Williams, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J. E. Park , FCMA - Director

22 June 2026

Opinion

We have audited the financial statements of Kemet International Limited & its Subsidiary Companies (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Boobbyer FCA (Senior Statutory Auditor)

for and on behalf of McCabe Ford Williams

Statutory Auditors and Chartered Accountants

89 King Street

Maidstone

Kent

ME14 1BG

22 June 2026

TURNOVER

4

22,703,723

20,026,773

Cost of sales

11,492,635

9,387,685

GROSS PROFIT

11,211,088

10,639,088

Distribution costs

202,713

215,741

Administrative expenses

9,408,492

8,856,163

9,611,205

9,071,904

1,599,883

1,567,184

Other operating income

165,524

120,442

OPERATING PROFIT

6

1,765,407

1,687,626

Income from interest in associated undertakings

7

8,078

31,878

Interest receivable and similar income

73,812

39,873

81,890

71,751

PROFIT BEFORE TAXATION

1,847,297

1,759,377

Tax on profit

8

388,657

265,590

PROFIT FOR THE FINANCIAL YEAR

1,458,640

1,493,787

Profit attributable to:

Owners of the parent

1,458,640

1,493,787

PROFIT FOR THE YEAR

1,458,640

1,493,787

OTHER COMPREHENSIVE INCOME

Exchange rate movement

7,536

(227,330

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

7,536

(227,330

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,466,176

1,266,457

Total comprehensive income attributable to:

Owners of the parent

1,466,176

1,266,457

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

5,214,128

5,050,446

Investments

13

Interest in associate undertaking

171,101

175,621

5,385,229

5,226,067

CURRENT ASSETS

Stocks

14

4,401,066

4,224,223

Debtors

15

4,019,263

3,907,939

Cash at bank and in hand

7,605,916

7,330,185

16,026,245

15,462,347

CREDITORS

Amounts falling due within one year

16

4,357,111

4,499,883

NET CURRENT ASSETS

11,669,134

10,962,464

TOTAL ASSETS LESS CURRENT LIABILITIES

17,054,363

16,188,531

PROVISIONS FOR LIABILITIES

17

111,594

101,938

NET ASSETS

16,942,769

16,086,593

CAPITAL AND RESERVES

Called up share capital

18

500,000

500,000

Retained earnings

19

16,442,769

15,586,593

SHAREHOLDERS' FUNDS

16,942,769

16,086,593

The financial statements were approved by the Board of Directors and authorised for issue on 22 June 2026 and were signed on its behalf by:

J. E. Park , FCMA - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,414,753

2,452,715

Investments

13

238,270

238,270

2,653,023

2,690,985

CURRENT ASSETS

Stocks

14

2,718,818

2,479,935

Debtors

15

2,334,391

2,616,890

Cash at bank

1,943,007

1,412,795

6,996,216

6,509,620

CREDITORS

Amounts falling due within one year

16

2,537,852

2,145,389

NET CURRENT ASSETS

4,458,364

4,364,231

TOTAL ASSETS LESS CURRENT LIABILITIES

7,111,387

7,055,216

PROVISIONS FOR LIABILITIES

17

148,339

145,486

NET ASSETS

6,963,048

6,909,730

CAPITAL AND RESERVES

Called up share capital

18

500,000

500,000

Retained earnings

19

6,463,048

6,409,730

SHAREHOLDERS' FUNDS

6,963,048

6,909,730

Company's profit for the financial year

663,318

948,388

The financial statements were approved by the Board of Directors and authorised for issue on 22 June 2026 and were signed on its behalf by:

J. E. Park , FCMA - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

500,000

15,610,136

16,110,136

Changes in equity

Dividends

-

(1,290,000

)

(1,290,000

)

Total comprehensive income

-

1,266,457

1,266,457

Balance at 30 September 2024

500,000

15,586,593

16,086,593

Changes in equity

Dividends

-

(610,000

)

(610,000

)

Total comprehensive income

-

1,466,176

1,466,176

Balance at 30 September 2025

500,000

16,442,769

16,942,769

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

500,000

6,751,342

7,251,342

Changes in equity

Dividends

-

(1,290,000

)

(1,290,000

)

Total comprehensive income

-

948,388

948,388

Balance at 30 September 2024

500,000

6,409,730

6,909,730

Changes in equity

Dividends

-

(610,000

)

(610,000

)

Total comprehensive income

-

663,318

663,318

Balance at 30 September 2025

500,000

6,463,048

6,963,048

Cash flows from operating activities

Cash generated from operations

1

1,970,493

1,548,936

Tax paid

(543,955

)

(196,352

)

Net cash from operating activities

1,426,538

1,352,584

Cash flows from investing activities

Purchase of intangible fixed assets

-

(19,999

)

Purchase of tangible fixed assets

(731,216

)

(804,587

)

Sale of tangible fixed assets

116,597

59,104

Sale of fixed asset investments

-

814,755

Interest received

73,812

39,873

Net cash from investing activities

(540,807

)

89,146

Cash flows from financing activities

Equity dividends paid

(610,000

)

(1,290,000

)

Net cash from financing activities

(610,000

)

(1,290,000

)

Increase in cash and cash equivalents

275,731

151,730

Cash and cash equivalents at beginning of year

2

7,330,185

7,178,455

Cash and cash equivalents at end of year

2

7,605,916

7,330,185

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.9.25

30.9.24

£

£

Profit before taxation

1,847,297

1,759,377

Depreciation charges

529,769

472,757

Profit on disposal of fixed assets

(59,244

)

(561,473

)

Exchange movement

(47

)

(123,208

)

Finance income

(81,890

)

(71,751

)

2,235,885

1,475,702

Increase in stocks

(176,843

)

(116,861

)

Increase in trade and other debtors

(111,324

)

(197,137

)

Increase in trade and other creditors

22,775

387,232

Cash generated from operations

1,970,493

1,548,936

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

7,605,916

7,330,185

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

7,330,185

7,178,455

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

7,330,185

275,731

7,605,916

7,330,185

275,731

7,605,916

Total

7,330,185

275,731

7,605,916

1.	STATUTORY INFORMATION

Kemet International Limited & its Subsidiary Companies 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 (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 30 September 2025, together with the group share of the results of associates up to their most recent year end or 30 September 2025 as set out in Note 13.

A subsidiary is an entity controlled by the company. Control exists when the company has the power, directly or indirectly, to govern the financial and operating policies of the entity so as to derive benefits from its activities.

An associate is an entity in which the group holds a long-term interest and where the group has a significant influence. The results of associates are accounted for using the equity method of accounting.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered 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 to which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are-

a) Useful lives of property, plant and equipment

The useful life of an item of property, plant and equipment is estimated at the time the asset is acquired and is based on historical experience with similar assets and takes into account anticipated technological or other changes. If changes occur more rapidly than anticipated or the asset experiences unexpected levels of wear and tear, the useful life will be adjusted accordingly.

b) Stock valuation method

Stock write-down is made based on the current market conditions, historical experience and selling

goods of a similar nature. It could change significantly as a result of changes in market conditions. A review is made periodically on stock for excess stock, obsolescence and declines in net realisable value and an allowance is recorded against the stock balances for any such declines. The realisable value represents the best estimate of the recoverable amount and is based on the most reliable evidence available and inherently involves estimates regarding future expected realisable value.

Turnover

Revenue comprises the consideration received for the sale of goods and services in the ordinary course of the Group's activities. Revenue is shown net of value-added tax and other sales related taxes, returns and discounts and after eliminating sales within the group.

The group is to act as retailers of polishing products for industrial use. Revenue is recognised when goods are delivered to the customers and all criteria for acceptance have been satisfied. Revenue is recognised at the point in time when such risks are transferred and customers obtain control over the goods they have purchased.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised

evenly over its estimated useful life of ten years.

During 2024, the Group acquired an additional share in its Dutch subsidiary for £19,999. The goodwill acquired was amortised in full in the year of purchase.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset class on a straight line basis over its expected useful life, as follows:

Freehold buildings

33 years

Leasehold buildings

Over the lease term

Plant and machinery

Between 3 and 15 years

Fixtures and fittings

Between 3 and 15 years

Motor vehicles

Between 2 and 4 years

No depreciation is charged on freehold land.

Investments in associates

Investments in associate undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, labour, transport, and handling costs in bringing stocks to their present location and condition.