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

The 2025 financial year was once again shaped by long-term geopolitical tensions, notably the ongoing conflict between Ukraine and Russia and its economic impact on the region, as well as increased volatility in various regions, including tensions in the Middle East that affected energy markets.

In this complex international environment, the UK economy has once again performed relatively well compared to other European economies. Following the 1.1% growth recorded in 2024, the most recent estimates project Gross Domestic Product (GDP) growth of around 1.4% in 2025.

Several factors fueled this recovery. The main drivers were business services, particularly in the information and communication technology (ICT) subsector, and business investment as gross fixed capital formation increased, supported by corporate spending on machinery, ICT equipment and intellectual property. Manufacturing and production were another driver of growth. After a sluggish previous year, manufacturing experienced a significant recovery, positively impacting production output. Household consumption also contributed to economic growth, as rising real wages and nominal earnings supported growth in consumer spending throughout the year, providing a significant boost to the retail and wholesale trade sectors. Additionally, government expenditure on public services, particularly education and social care, provided a consistent baseline of economic activity. Lastly, the Bank of England's monetary easing and specific tax reforms introduced in the Autumn Budget helped to maintain investment momentum despite ongoing headwinds in global trade.

In terms of the Company’s performance throughout 2025, market conditions improved compared with the previous year, with a noticeable increase in orders and general activity across most sectors. Although inflation and interest rates remained elevated for part of the year, the gradual easing of financial pressures supported a recovery in day-to-day demand. Decisions on larger capital projects continued to be postponed, but activity within the small and medium sized segments strengthened significantly, enabling us to consolidate our market presence and expand our customer base. This reinforces the importance of maintaining an adaptable commercial strategy in a market that continues to reshape itself. As a result of the increased activity, our turnover rose to £28.8m (2024: £21.3m). However, despite the higher revenue, profit before taxation decreased to £505k (2024: £675k), reflecting the impact of ongoing cost pressures and margin constraints during the year.

Focusing on the factors that directly affects the Company the most, during the last years some factors have been identified that will favorably influence company's evolution.

The logistics sector has continued to grow at a rapid pace in 2025, building on the growth trend seen in 2024 and 2023, with activity levels exceeding those reached prior to the pandemic. This performance is due mainly to two factors. Firstly, the consolidation of e-commerce, which, following the upsurge seen during the pandemic, continues to show sustained expansion. This trend is expected to continue in the coming years and drive demand for increasingly efficient logistics solutions.

Secondly, the sector has been influenced by a broad change in the approach to supply chains. The disruptions of recent years, such as the incidents affecting international shipping and the crisis in the Red Sea that began in 2023, have exposed the vulnerability of logistics models that are overly reliant on global supply chains. These situations have brought about significant delays in delivery times, supply shortages and the unavailability of certain products.

Accordingly, many companies are rethinking the structure of their supply chains, which could lead to a gradual relocation of certain production activities away from outsourcing models in other countries.

Furthermore, it has become paramount to have secure warehousing to ensure the supply of critical components and improve the resilience of operations.

The growth of e-commerce also entails an acceleration of logistics flows and requires adapting operations to new market demands in terms of speed, traceability and flexibility. As a result, the logistics sector is increasingly focusing its efforts on improving operational efficiency, which is driving up demand for warehousing solutions capable of optimizing resources and processes.

Similarly, there is a need for greater efficiency in order fulfilment, packaging, labelling, dispatch, delivery and collection. This is driving the development of highly efficient logistics platforms integrated with business intelligence tools that enable more effective management of information relating to demand and supply response capacity.

Another key factor in the sector’s development is the transformation of how logistics facilities operate. Traditionally, such facilities have relied on manual labor supported by mechanical lifting and transport equipment. However, over time, logistics operations are expected to increasingly rely on advanced warehouse management and control systems, robotic technologies and to rely less on manual labor.

This trend is being reinforced by a number of structural factors, notably the ageing population in many advanced economies, rising labor costs and stricter health and safety regulations. Consequently, rising labor costs and, in some cases, a shortage of available workers is driving the adoption of automation solutions and the integration of new technologies into logistics operations.

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a number of business risks:

Essential raw materials costs volatility risk and availability risk

The commercial activity of the Company supplies certain materials and components together with the factories of the Group, being Mecalux, S.A. its main supplier, and the prices of these materials and components are subject to market fluctuations based on multiple factors exogenous to the actions of the Company or its Group. These price fluctuations can be sudden and significant. In response to this business circumstance, the Company and the rest of the subsidiaries of the Mecalux group have a team of professionals with extensive management experience of its supplies and constantly monitors the prices of its factors of production in order to provide itself with relevant information for decision-making sufficiently in advance with a view to defending its margins and profitability.

The Company and the Group to which it belongs are also exposed, like the generality of economic actors, to the availability and/or scarcity of certain goods and services necessary for their commercialization activity, which are conditioned by the supply capacity and also the logistics capacity for transport and delivery, as these are, in some cases, products subject to a logistics process from the manufacturer's location. Also in this aspect, the Company and the Group take the defensive measures deemed appropriate at all times with the aim of maintaining certain volumes of inventories and supply orders that allow it to efficiently comply with the commitments agreed with its customers.

In general, the Company, for certain contracts whose lead time at the beginning of the same may be delayed in time and therefore may be subject to possible scenarios of volatility in the price of steel, has the capability to introduce clauses in the contracts with their clients that protect them in the event that an increase in the cost of steel exceeds a certain threshold, and these clauses are valid until the beginning of the execution of the contract.

Competition

Mecalux UK continues to operate in a highly competitive market. The competition is vast with many companies competing on lead times, price and services. Mecalux UK continues to offer competitive solutions, with the most consistent lead times taking advantage of our Group various factories to guarantee product availability, an experienced sales team capable of designing the most cost effective solutions and relying on our Group’s manufacturing capabilities and adaptability to steel price fluctuations thus achieving well controlled short term aggressive prices, increasing their presence in the dealer and distributor channel, by offering the service level that other suppliers are not being able to provide, gaining constantly new accounts that generate repeated business. In terms of competition, although there are quite a few local and European manufacturers well established in the UK, with our successful business model they are not considered to be a competition risk to a large and diversified market, however there has been attention in keeping an aggressive price strategy which can have an effect in profit margins but secures our position in our market expansion quest. Mecalux UK believes that the sector continues to grow, mainly the automation sector, allowing greater opportunities for increased turnover in the future.

Foreign exchange

Mecalux UK buys all stock from the Group in Spain. The purchases are in Euros but the Company operates and sells in GBP. This exposes the Company to accepting losses due to the movement in exchange rates; however, it is worth noting the commercial exchange rate is fixed at the mid-term and adjusted as required to prevent losses at the long run. Mecalux UK does not use hedging to predict the Euro costs to the Company.

Key performance indicators

The directors are satisfied with the position of Mecalux UK at the year end. The board of directors monitor the Company's progress by reference to two indicators:

Growth in Turnover

Mecalux UK has been focusing in creating brand awareness and expanding their presence in the market, mainly by understanding the market needs and trends through the dealer and distributor channels, at the same time proving their expertise on larger projects where narrow profit margins are required to win them. Nevertheless, results capitalized in 2025 resulting an increase in turnover from £21.3m in 2024 up to £28.8m in 2025. Mecalux UK will continue increasing their turnover in future.

Profitability

Mecalux UK has done big efforts to increase turnover and profit to reduce the loss made during previous years, part of a learning curve and investment in new resources, which has been achieved in the past three years, maintaining profitability above £500,000 in 2023, 2024 and 2025. The company aims to continue being profit making in the future, keeping in consideration the risk factors of steel volatility and competition.

The director considers that the Company’s key financial performance indicators are those that communicate its financial performance and strength as a whole and these are:

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 and installation of industrial racking and ancillary products.

The results for the year are set out on page 9.

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:

In accordance with the company's articles, a resolution proposing that Alliotts LLP be reappointed as auditor of the company will be put at a General Meeting.

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.

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 directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The accounts have been prepared on the going concern basis, as the ultimate parent company has confirmed they will provide continued financial support for at least 12 months from the date of signing the financial statements. The Company meets its day-to-day working capital requirements through trading facilities provided by its ultimate parent company. Further details regarding the adoption of the going concern basis can be found in note 1.2 of the financial statements.

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

We have audited the financial statements of Mecalux (U.K.) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the warehouse racking sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• reviewed all transactions listed;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation; and

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment 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 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 statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 27 form part of these financial statements.

The notes on pages 13 to 27 form part of these financial statements.

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

The notes on pages 13 to 27 form part of these financial statements.

The notes on pages 13 to 27 form part of these financial statements.

Mecalux (U.K.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 8, Junction 6 Industrial Park, Electric Avenue, Witton, Birmingham, West Midlands, B6 7JJ.

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 accounts have been prepared on the going concern basis, as the ultimate parent company has confirmed they will provide continued financial support for at least 12 months from the date of signing the financial statements. The Company meets its day-to-day working capital requirements through trading facilities provided by its ultimate parent company.true

The director believes that the company can successfully manage its business risks and, after making relevant enquiries, the director has a reasonable expectation that the company will have access to adequate resources to continue to trade for the foreseeable future and he believes it is appropriate to continue to adopt the going concern basis in preparing the annual report and accounts. No adjustments have been made should the parent company withdraw its support to the company.

Revenue 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.

Revenue from contracts for the provision of installation services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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

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:

Property, plant and equipment are initially measured at cost and subsequently measured at cost, 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.

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

Inventories 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 inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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 statement of financial position 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 trade and other receivables 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.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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 trade and other payables 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

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 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 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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 non-current 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.

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.

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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The director determines whether leases entered into by the company as a lessee constitute operating leases or finance leases. These decisions depend on an assessment, on a lease by lease basis, of whether the lease transfers substantially all the risks and rewards incidental to ownership.

The director determines whether there are any indicators of impairment of the company’s tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

The company has a deferred tax asset on tax losses which has not been recognised in the accounts as the director has considered that for the foreseeable future, taxable trading profits are not likely to be realised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values

The value of the long term contracts are estimated by the stage of completion of each individual contract. This is based on projections of the time and resources required to complete the projects which are prepared by Mecalux (UK) Limited for every contract.

The company makes an estimate of the recoverable amount of trade and other receivables. When assessing impairment of trade and other receivables, management considers factors including the current credit rating of the receivable, the ageing of the profile of receivables and historical experience.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the 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 1 (2024 - 1).

There are no key management personnel other than the director.

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

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The net deferred tax asset set out above is expected to reverse within 3 years and relates to accelerated capital allowances and unused trading losses that are expected to mature within the same period.

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.

The company has one class of ordinary shares which carry full and equal rights to participate in voting in all circumstances and in dividends and capital distribution.

During a prior period, the Health and Safety Executive commenced an investigation after an accident involving a sub-contractor. At the reporting date, an outflow of economic benefits is not considered probable, and any potential obligation cannot be estimated reliably. Therefore, no provision has been recognised in respect of this matter.

Operating lease payments represent rentals payable by the company in respect of premises and motor vehicles.

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 following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Included within amounts due from related parties is a loan receivable of £nil (2024: EUR 1,055,562 or £875,712). The loan is unsecured, repayable on demand, and bears interest at a rate of 4% per annum.

The company has taken advantage of the exemption available in paragraph 33.1A of FRS102 whereby it has not disclosed transactions with other companies that are wholly owned within the group.

The ultimate parent company is Mecalux S.A., a company registered in Spain. No one person has overall control.

The parent company Mecalux S.A. with registered office of Silici 1, 08940 Cornellá, Barcelona, Spain draws up consolidated financial statements which include Mecalux (UK) Limited.