REGISTERED NUMBER: 03512877 (England and Wales)

Hi-Wire Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr D A Goldthorpe

Mr D B Lee

SECRETARY:

Mr C North

REGISTERED OFFICE:

Unit E4

Willowbridge Way

Castleford

West Yorkshire

WF10 5NP

REGISTERED NUMBER:

03512877 (England and Wales)

AUDITORS:

SMH Jolliffe Cork Audit Ltd

Accountants & Statutory Auditors

33 George Street

Wakefield

West Yorkshire

WF1 1LX

BANKERS:

Barclays Bank PLC

1 Churchill Place

Leicester

LE87 2BB

PRINCIPAL ACTIVITY

The principal activities of the company in the year were the manufacture of covered copper strips, and the distribution of the wider Essex group copper products, and other associated non group ancillary items.

BUSINESS MODEL

The business seeks to provide a complete manufacturing and distribution solution to the electro mechanical industry. By holding the largest stock in the industry we can offer next day delivery on a wide range of products and our manufacturing unit allows us to produce bespoke jobs at short notice.

BUSINESS REVIEW

A solid customer base and a strong market share means we are well positioned to continue our strategy of maintaining margins and controlling operational costs of the business. The continuing investments in plant and machinery have improved the efficiency of the company's manufacturing facilities

The business turnover (which includes the price of metal) increased to £14,910K (2024: £13,710K).

KEY PERFORMANCE INDICATORS

Being fully vertically integrated in the Essex group relieves certain pressures on local KPI's, and stability of sales margin % to Sales (excluding metal), stock levels and debtor days are the main overall financial indicators.

2025

2024

2023

Measure

Margin %

39.9

40.6

43.9

Gross margin% against sales value (excluding metal)

Stock (months)

3.38

5.22

4.96

Copper Inventory turns (months)

Debtor days

86.0

74.0

64.0

Average debtor payment days

Cost increases were incremental, with no significant supply constraints. Any increases that did occur were largely passed through. Overall sales margin remained stable, even as we made selective pricing decisions to retain certain markets and projects for the longer term.

Focus was placed on improving inventory turnover, resulting in an overall reduction of 30%. This was driven mainly by increased supplier flexibility, a reduction in certain product lines, and a rebalancing of stock levels in new lines. After the initial introduction of these lines caused a temporary spike in inventory, sales later stabilised at predictable levels, allowing replenishment volumes to decrease accordingly.

Debtor days increased but remained within an acceptable range. Changes in customer mix contributed to this, as larger OEMs increased their demand and typically operate on more favourable payment terms. Additionally, some customers exceeded agreed terms due to project?related issues, most of which have now been resolved or are being actively managed.

FUTURE PROSPECTS

The cost of living, employer cost increases, and geopolitical headwinds showing no signs of changing means that we continue to monitor every aspect of the business. We cannot fully predict the effect of all these variables and the impact they will have on our customers or the demand for our products. We continue to focus on our broad customer base and product portfolio and remain fluid in the face of any challenges. It is our belief that our strategy for success is continued price versus cost management, focus on our higher value streams, and increasing resource where most can be gained. Be this from an inventory standpoint, changes to our manufacturing capabilities, or growth through acquisition, which has been a key move early in 2026, with the asset purchase of E.C.Wire Limited (primary competitor), including absorbing its operational director and staff to bring further strength and depth to our existing platform. All of which combined allowed us to yield operational profits in 2025 and put us in a strong position for 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The underlying principal risks to the business remain, with the development of new emerging markets and competitors in relation to our customer base, new technologies, and fluctuations in commodity prices. The price of copper has seen volatility, rising to new records in reaction to various global events and the pressures that apply to demand. But we are in a position within the group to manage those fluctuations and additional cash flow pressures in the supply chain.

The situation in Ukraine rumbles on with no clear outcomes, and the events in the Middle East could impact availability or pricing stability in commodities and energy if things escalated more globally. This, alongside the impact of cost of living increases added to rising employment costs more locally, should be entirely manageable and equally felt across the industry.

The continued instability in global trading arrangements or tariffs is something to monitor, with negligible direct impact. But indirectly they are an unknown quantity, and whilst inconvenient, are again equally felt across the industry.

We continue to mitigate these risks as they arise by addressing our pricing and supply chain issues directly, continuing to seek out new customers, offering a wider range of products, and maintaining salary levels in line with the market.

With our distribution business having operated for over four decades and our manufacturing business for many more, we know we have the experience to manage changes in commodity prices. The directors do not believe credit risk to be included in the principal risks to the business, given that any funding requirements are primarily provided by Group undertakings and trade debtors are insured to acceptable levels.

The short term geopolitical and economic effects cannot be forecast at this time. Our performance will ultimately depend on these economic impacts on our customer base. The directors continue to monitor the situation closely and review potential risks to the company.

ON BEHALF OF THE BOARD:

Mr D A Goldthorpe - Director

2 July 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

Mr D A Goldthorpe has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

Mr Y K Kang - resigned 14 August 2025

Mr D B Lee - appointed 14 August 2025

DIRECTORS INDEMNITIES

The Company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.

GOING CONCERN

The Company had net assets at the end of 2025; however, it has an intercompany cash funding arrangement in place with Superior Essex Inc., which has been used for additional working capital requirements as needed. Superior Essex Inc. indirectly holds 100% of the equity in Hi Wire Ltd.

When making their assessment of the Company's ability to continue as a going concern, the directors acknowledge that specific uncertainties exist over profitability and the availability of funds. However, after considering the intercompany funding arrangement with Superior Essex Inc., the directors of Hi Wire Limited have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company 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 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. They are 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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, SMH Jolliffe Cork Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D A Goldthorpe - Director

2 July 2026

Opinion

We have audited the financial statements of Hi-Wire Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 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 Auditors' 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 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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 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:

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

- the engagement principal 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 the Directors and other informed management which we considered may have a direct material effect on the financial statements or the operations of the company and thereafter, the audit 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;

- tested journal entries to identify unusual transactions;

- 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;

- enquiring of management as to actual and potential litigation and claims and reviewing correspondence with HMRC and the company's legal and professional advisors.

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 the 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 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.

Claire Lawton FCA DChA (Senior Statutory Auditor)

for and on behalf of SMH Jolliffe Cork Audit Ltd

Accountants & Statutory Auditors

33 George Street

Wakefield

West Yorkshire

WF1 1LX

2 July 2026

TURNOVER

4

14,902,110

13,710,190

Cost of sales

12,010,508

10,852,885

GROSS PROFIT

2,891,602

2,857,305

Distribution costs

481,975

505,431

Administrative expenses

2,038,901

1,966,669

2,520,876

2,472,100

370,726

385,205

Other operating income

32,820

32,745

OPERATING PROFIT

6

403,546

417,950

Interest receivable and similar income

14,522

8,426

Other finance income

18

142,000

113,000

156,522

121,426

560,068

539,376

Interest payable and similar expenses

8

110,614

39,776

PROFIT BEFORE TAXATION

449,454

499,600

Tax on profit

9

(16,750

)

14,000

PROFIT FOR THE FINANCIAL YEAR

466,204

485,600

PROFIT FOR THE YEAR

466,204

485,600

OTHER COMPREHENSIVE INCOME

Actuarial (loss)/ gain recognised

67,000

(56,000

)

Income tax relating to other comprehensive income

(16,750

)

14,000

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

50,250

(42,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

516,454

443,600

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

615,584

635,885

615,584

635,885

CURRENT ASSETS

Stocks

12

3,973,971

5,074,767

Debtors

13

4,669,467

3,337,244

Cash at bank

2,303,818

1,879,972

10,947,256

10,291,983

CREDITORS

Amounts falling due within one year

14

3,588,665

3,285,147

NET CURRENT ASSETS

7,358,591

7,006,836

TOTAL ASSETS LESS CURRENT LIABILITIES

7,974,175

7,642,721

PENSION ASSET

18

2,718,000

2,533,000

NET ASSETS

10,692,175

10,175,721

CAPITAL AND RESERVES

Called up share capital

16

6,089,400

6,089,400

Share premium

17

14,342,852

14,342,852

Capital contribution reserve

17

7,187,287

7,187,287

Retained earnings

17

(16,927,364

)

(17,443,818

)

SHAREHOLDERS' FUNDS

10,692,175

10,175,721

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2026 and were signed on its behalf by:

Mr D A Goldthorpe - Director

Called up

Capital

share

Retained

Share

contribution

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

6,089,400

(17,887,418

)

14,342,852

7,187,287

9,732,121

Changes in equity

Total comprehensive income

-

443,600

-

-

443,600

Balance at 31 December 2024

6,089,400

(17,443,818

)

14,342,852

7,187,287

10,175,721

Changes in equity

Total comprehensive income

-

516,454

-

-

516,454

Balance at 31 December 2025

6,089,400

(16,927,364

)

14,342,852

7,187,287

10,692,175

1.	STATUTORY INFORMATION

Hi-Wire 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 Company Information page.

The functional and presentation currency of the financial statements is considered to be whole pounds sterling because that is the currency of the primary economic environment in which the Company operates.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements are prepared under the historical cost convention, as modified for the valuation of copper stock, and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.

Hi-Wire Limited meets the definition of a qualifying entity under FRS 102 paragraph 1.12 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Hi-Wire Limited is consolidated in the financial statements of its parent, LS Corp, which may be obtained as outlined in note 20. Exemptions have been taken in these separate Company financial statements in relation to presentation of a cash flow statement, related party transactions and remuneration of key management personnel.

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

-

the requirements of Section 7 Statement of Cash Flows;

-

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) relating to Financial Instruments;

-

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A relating to Hedge Accounting;

-

the requirements of Section 33 Related Party Disclosures paragraph 33.7.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the amounts receivable for goods provided in the normal course of business when the significant risks and benefits of ownership of the product have transferred to the buyer which is typically on despatch of goods.

Intangible assets

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

Intangible assets consist of a distribution agreement with AEV Limited that has now been disposed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold land & buildings

-

at varying rates on cost

Improvements to property

-

20% on cost

Plant and machinery

-

20% on cost and 10% on cost

Computer equipment

-

20% on cost

Land included within Freehold land & buildings is held at cost and is not depreciated. The value of land as at 31 December 2025 was £503,116 (2024: £503,116).

Residual value is calculated on prices prevailing at the date of acquisition.

Stocks

Stocks and work in progress are stated at the lower of cost and net realisable value. Cost incurred in bringing each product to its present location and condition are based on purchase cost including transport, plus a reasonable proportion of production overheads based on normal levels of activity. The majority of stock such as copper is valued at the lower of cost and the published London Metal Exchange (LME) rate. Net realisable value is based on estimated normal selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow- moving or defective items where appropriate.

Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when; a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or, c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange rate differences are taken into account in arriving at the operating result.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pensions

The company operates a defined benefit scheme. Further details are provided in Note 18 to the financial statements.

The amounts charged to operating profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the statement of comprehensive income.

Defined pension schemes are funded, with the assets of the scheme held separately from those of the company in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of related deferred tax, is presented separately after other net assets on the face of the balance sheet.

The company also operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Royalty charges

Royalties payable, being in connection with a group trademark license agreement, are recognised in the Income Statement based on a percentage of the 'SEM' (Sales Excluding Metal) of licensed products arising during each accounting period.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 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.

Critical judgements in applying the company's accounting policies

The following are the critical judgements and estimates that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

The accounting surplus on the defined benefit pension scheme is calculated based on a number of key assumptions. These assumptions form key judgements and estimates which impact the defined benefit disclosures and the level of surplus recognised. Details of the assumptions are shown in Note 18.

4.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

12,737,862

11,857,374

Overseas, principally Europe

2,164,248

1,852,816

14,902,110

13,710,190

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

937,891

937,448

Social security costs

110,919

97,818

Other pension costs

307,364

206,556

1,356,174

1,241,822

The average number of employees during the year was as follows:

2025

2024

Management and directors

3

3

Production

8

10

Administration

15

15

26

28

2025

2024

£

£

Directors' remuneration

95,343

93,649

Directors' pension contributions to money purchase schemes

7,912

7,713

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

28,798

28,283

Other operating leases

26,841

25,282

Depreciation - owned assets

31,420

37,301

Foreign exchange differences

13,951

32,192

7.	AUDITORS' REMUNERATION

Fees payable to SMH Jolliffe Cork Audit Ltd for the audit of the company's annual financial statements were £22,500 (2024: £21,000).

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

On intercompany balance

110,614

39,776

9.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

(16,750

)

14,000

Tax on profit

(16,750

)

14,000

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

449,454

499,600

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

112,364

124,900

Effects of:

Depreciation in excess of capital allowances

690

690

Movement in deferred tax not provided

(129,804

)

(111,590

)

deduction adjustment

Total tax (credit)/charge

(16,750

)

14,000

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Actuarial (loss)/ gain recognised

67,000

(16,750

)

50,250

2024

Gross

Tax

Net

£

£

£

Actuarial (loss)/ gain recognised

(56,000

)

14,000

(42,000

)

As at 31 December 2025 the company had tax losses available to carry forward of £19,393,056 (2024: £19,753,753). No deferred tax asset has been recognised in respect of the tax losses.