ACCOUNTS - Final Accounts preparation

Operating profit/(loss)

The operating profit/(loss) is stated after charging:

Registered number: 03880838

EDC AUTOMOTIVE LIMITED
PREVIOUSLY
EDWARD DAVIES COMMERCIALS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

EDC AUTOMOTIVE LIMITED

COMPANY INFORMATION

Directors	E T Davies
	J L Davies
	J B Pace
	R H T Davies


Company secretary	R H T Davies


Registered number	03880838


Registered office	Wentwood House
	Langstone Business Park
	Langstone
	Newport
	NP18 2JD


Independent auditor	MHA
	Swansea
	United Kingdom

EDC AUTOMOTIVE LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 8
Statement of comprehensive income	9
Balance sheet	10
Statement of changes in equity	11
Notes to the financial statements	12 - 32

EDC AUTOMOTIVE LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

The directors present their strategic report for the year ended 31 December 2025.

Principal Activity

The principal activity of the company in the year was that of bespoke vehicle design and conversions.

Business review

The Income Statement and Balance Sheet for the year, which includes all relevant key performance indicators, are set out the annexed financial statements.

2025 saw the first full year of production at the Ford Dagenham site for the business, whilst the Pontypool site continued to expand its product range of vehicles built outside of the MS-RT brand.

The company enjoys a number of competitive advantages including strong brand recognition, where it consistently achieves a strong market share; a well-established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and a strong customer focus throughout the business.

Key performance indicators

The company's key performance indicators (KPI's) are summarised below:

KPI's - Year ended	31 December 2025	31 December 2024
Turnover	38,782k	22,852k
Cash at bank	2,350k	1,623k
Net current assets	2,633k	2,170k
Net assets	7,666k	5,953k

Future Developments

The strategy of the business remains to increase its market share by focusing on new product offerings for both existing and new partners in 2026. Continuing to invest in our Design and Engineering services and production process automation.

Page 1

EDC AUTOMOTIVE LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks.
The key business risks affecting the company are considered to relate to competitor activity and employee retention and are summarised as follows :

Risk	Potential Impact	Mitigation
Competition	The market in which the company operates is subject to intense competition. The impact of such competition could impact on margins.	The company continues to invest heavily in new product design, providing customers with a choice of options. This coupled with a strong focus on customer service, results in a high level of repeat business.
People	The business could be impacted by the loss of key individuals.	The business looks to increase staff engagement through (1) opportunities to give feedback and influence future business developments and (2) training and progression opportunities.

Price risk
The company is not exposed to significant commodity price risk as a result of its operations.

Credit risk
The company's financial assets are cash and trade debtors. The company's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The company has implemented policies that require appropriate credit checks on potential customers before sales are made.

Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the company has sufficient funds for operations and planned expansions.

Interest rate cash flow risk
The company has both interest-bearing assets and interest-bearing liabilities. Interest bearing assets comprise only cash balances, which earn interest at floating rates. The company has a policy of maintaining debt at floating rates. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

This report was approved by the board and signed on its behalf.

J B Pace

Director

Date: 25 June 2026

Page 2

EDC AUTOMOTIVE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Change of company name

On 2 June 2026, the company changed it's name by special resolution from Edward Davies Commercials Limited to EDC Automotive Limited.

Dividends

Dividends of 1,000,000 was distributed for the year ended 31 December 2025 (31 December 2024 - 100,000).

Directors

The directors who served during the year were:

E T Davies

J L Davies

J B Pace

R H T Davies

Page 3

EDC AUTOMOTIVE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The company meets its day to day working capital requirements from its cash reserves. At the date of signing the report, sales to all key markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the company's forecast and projections show that the company will be able to operate sufficiently.

At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Disclosure in the strategic report

Included in the company's strategic report is a review of the business and description of the principal risks and uncertainties facing the company.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

J B Pace

Director

Date: 25 June 2026

Page 4

EDC AUTOMOTIVE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDC AUTOMOTIVE LIMITED

Opinion

We have audited the financial statements of EDC Automotive Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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 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 United Kingdom, including the Financial Reporting Council'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.

Page 5

EDC AUTOMOTIVE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDC AUTOMOTIVE LIMITED (CONTINUED)

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 directors are 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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 Directors' 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 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 Directors' responsibilities statement set out on page 3, 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 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 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.

Page 6

EDC AUTOMOTIVE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDC AUTOMOTIVE LIMITED (CONTINUED)

Auditor's 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 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:

- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness.
- Evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
- Discussions with management over any potential or suspected fraud.
- Performing audit work over the recognition of revenue on deliveries of services occurring at the year end to provide assurance over cut-off.
- Performing substantive tests of detail over the existence of income within the financial system.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditor's report.

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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 7

EDC AUTOMOTIVE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDC AUTOMOTIVE LIMITED (CONTINUED)

James Dobson BSc(Hons) FCA (Senior Statutory Auditor)

for and on behalf of

MHA

Swansea

United Kingdom

25 June 2026

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

Page 8

EDC AUTOMOTIVE LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	38,781,829	22,851,989
Cost of sales		(23,226,594)	(14,627,390)
Gross profit		15,555,235	8,224,599
Administrative expenses		(11,995,254)	(9,906,728)
Other operating income	5	270,426	-
Operating profit/(loss)	6	3,830,407	(1,682,129)
Interest receivable and similar income		27,340	-
Interest payable and similar expenses	10	(176,059)	(314,152)
Profit/(loss) before tax		3,681,688	(1,996,281)
Tax on profit/(loss)	11	(968,826)	423,668
Profit/(loss) for the financial year		2,712,862	(1,572,613)

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 32 form part of these financial statements.

Page 9

EDC AUTOMOTIVE LIMITED

REGISTERED NUMBER: 03880838

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	13		1,322,084		1,537,586
Tangible assets	14		4,906,697		6,002,386
			6,228,781		7,539,972
Current assets
Stocks	15	4,021,005		4,435,537
Debtors: amounts falling due within one year	16	4,226,402		2,388,150
Cash at bank and in hand		2,349,505		1,622,682
		10,596,912		8,446,369
Creditors: amounts falling due within one year	17	(7,963,525)		(6,276,575)
Net current assets			2,633,387		2,169,794
Total assets less current liabilities			8,862,168		9,709,766
Creditors: amounts falling due after more than one year	18		(328,734)		(2,768,011)
Provisions for liabilities
Deferred tax	21	(867,522)		(988,705)
			(867,522)		(988,705)
Net assets			7,665,912		5,953,050

Capital and reserves
Called up share capital	22	20,000	20,000
Share premium account		1,317,040	1,317,040
Profit and loss account		6,328,872	4,616,010
		7,665,912	5,953,050

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 June 2026.

J B Pace

Director

The notes on pages 12 to 32 form part of these financial statements.

Page 10

EDC AUTOMOTIVE LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	20,000	1,317,040	6,288,623	7,625,663

Loss for the year	-	-	(1,572,613)	(1,572,613)
Dividends paid	-	-	(100,000)	(100,000)

At 1 January 2025	20,000	1,317,040	4,616,010	5,953,050

Profit for the year	-	-	2,712,862	2,712,862
Dividends paid	-	-	(1,000,000)	(1,000,000)
At 31 December 2025	20,000	1,317,040	6,328,872	7,665,912

The notes on pages 12 to 32 form part of these financial statements.

Page 11

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

EDC Automotive Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 03880838 and registered office address is Wentwood House, Langstone Business Park, Langstone, Newport, NP18 2JD.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest £ .

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

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 the 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 Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of EDI Holdings as at 31 December 2025 and these financial statements may be obtained from companies house.

2.3

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

2.4

Significant judgements and estimates

Page 12

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

Page 13

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are amortised on a straight-line basis over their estimated useful economic life of four years.

Computer software is being amortised evenly over its estimated useful life of four years.

Amortisation is included in 'administrative expenses' in the profit and loss account.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 14

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Land and buildings	-	In accordance with the property
Plant and machinery	-	at varying rates on cost
Motor vehicles	-	25% on cost
Fixtures and fittings	-	25% on cost
Computer equipment	-	20% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 16

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 18

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.20

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

2.21

Foreign currencies

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions

At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.22

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.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the statement of financial position and are depreciated over the shorter of the lease term and the assets' useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.

2.23

Equity instruments

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.

Page 19

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.24

Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors are confident in the company's ability to continue to trade for the foreseeable future and are prepared to provide the necessary financial support to enable it to do so. The financial statements have been prepared on a going concern basis on the assumption that the directors, the parent company and associated parties will continue to support the company to meet its working capital requirements as necessary.

Page 20

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, 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 which 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 only effects that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements 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.

Depreciation and Impairment of tangible fixed assets
The company estimates the useful economic lives of its tangible fixed assets based on historical experience and expected usage. In certain cases, assets are depreciated over the life of the associated product where this period is shorter. Changes in these estimates could impact the amount of depreciation charged. Assets are assessed for indicators of impairment at each balance sheet date. If there is evidence of impairment, an impairment loss is recognised in the income statement.

Warranty provision
The warranty provision represents management’s estimate of the expected costs required to settle obligations for vehicles sold that remain under warranty at the reporting date. This estimate is based on using the historical warranty claims data to estimate any expected future liability.

Provisions for stock
Provisions for inventory are made in respect of slow-moving, excess, or obsolete stock. These provisions are based on management’s assessment of the recoverable value of inventory, taking into account historical usage and likely future demand.

Recoverability of trade receivables
The recoverability of trade receivables is assessed on an ongoing basis. The company makes provisions for expected credit losses based on specific customer circumstances, past experience, and current economic conditions.

Dilapidations provision
The company assesses whether a provision is required for dilapidation costs at the end of lease terms. Based on the nature and extent of leasehold improvements made to date, management currently believes that any such liability is unlikely to arise. This judgement is reviewed periodically.

Page 21

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Turnover

An analysis of turnover by class of business is as follows:
	2025	2024
	£	£

Vehicle design and modification	38,781,829	22,851,988
	38,781,829	22,851,988

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	38,445,152	22,493,722
Rest of Europe	291,339	217,030
Rest of the world	45,338	141,236
	38,781,829	22,851,988

5.	Other operating income
		2025	2024
		£	£

Government grants receivable	270,426	-
	270,426	-

Page 22

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Research & development charged as an expense	88,652	55,776
Stock write-off	303,383	-
Exchange differences	88,019	47,475
Other operating lease rentals	1,089,763	952,667
Profit on disposal of fixed assets	(13,197)	100,922
Depreciation of owned tangible fixed assets	1,568,932	1,323,516
Depreciation of tangible fixed assets held under finance leases	249,822	188,379
Development costs amortisation	405,854	228,683
Development costs impairment	196,200	-
Computer software amortisation	21,017	22,392
Auditors' remuneration	22,500	19,500
Auditors' remuneration - Non audit services	4,500	3,900
Hire of plant and machinery	66,355	58,296

Wages and salaries	8,995,089	6,092,664
	8,995,089	6,092,664

Included in the total above is employers national insurance of £719,482 (2024: £482,805) and employers pension contribution expense of £350,331 (2024: £536,520).

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Production, sales and operations	158	113
Administration	16	16
Directors	4	4

	178	133

Page 23

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	806,708	568,209
	806,708	568,209

	The highest paid director received remuneration of £329,385 (2024 - £236,023).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £25,000 (2024 - £NIL).

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	27,340	-
		27,340	-

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	133,574	239,057
Finance leases and hire purchase contracts	42,485	75,095
	176,059	314,152

Page 24

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	1,092,098	(402,721)
Adjustments in respect of previous periods	(2,089)	-
Total current tax	1,090,009	(402,721)

Deferred tax
Origination and reversal of timing differences	(121,183)	(20,947)
Total deferred tax	(121,183)	(20,947)


	Tax on profit/(loss)	968,826	(423,668)

Profit/(loss) on ordinary activities before tax

3,681,688

(1,996,281)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	920,422	(499,070)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	5,761	17,210
Difference in tax rates for loss carry back	-	25,332
Fixed asset differences	44,731	29,536
Adjustments to tax charge in respect of prior periods	(2,088)	-
Other differences leading to an increase (decrease) in the tax charge	-	3,324
Total tax charge for the year	968,826	(423,668)

Factors that may affect future tax charges

There are no factors that affect future tax charges

Page 25

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Dividends
		2025	2024
		£	£

	Dividends analysis	1,000,000	100,000
		1,000,000	100,000

The dividend amount of £Nil (2024: £100,000) is included within 'Amounts owed to group undertakings' per note 15 at the balance sheet date.

13.	Intangible assets

	Develop-ment expenditure	Computer software	Total
	£	£	£
Cost
At 1 January 2025	1,895,169	117,070	2,012,239
Additions	407,569	-	407,569
Disposals	(196,200)	-	(196,200)
At 31 December 2025	2,106,538	117,070	2,223,608
Amortisation
At 1 January 2025	390,862	83,791	474,653
Charge for the year	405,854	21,017	426,871
At 31 December 2025	796,716	104,808	901,524
Net book value
At 31 December 2025	1,309,822	12,262	1,322,084
At 31 December 2024	1,504,307	33,279	1,537,586

The individual intangible assets which are material to the financial statements are development expenditure. This expenditure relates to costs incurred over a period of time in developing the new models to ensure the business fulfils its strategy of bespoke design and modification of vehicles.

The estimated life of these intangible assets is 4 years, this reflects the typical period before product facelifts are introduced, after which additional tooling costs are expected to be incurred.

Page 26

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Tangible fixed assets

	Short-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Computer equipment
	£	£	£	£	£
Cost or valuation
At 1 January 2025	3,297,874	7,628,333	515,115	164,555	594,718
Additions	40,170	399,973	301,383	3,569	46,110
Disposals	(9,332)	(133,816)	(315,460)	(13,311)	(55,405)
At 31 December 2025	3,328,712	7,894,490	501,038	154,813	585,423
Depreciation
At 1 January 2025	909,677	4,504,350	264,327	122,790	433,196
Charge for the year	601,894	995,215	126,448	12,817	82,380
Disposals	(8,387)	(168,014)	(202,200)	(10,837)	(55,405)
At 31 December 2025	1,503,184	5,331,551	188,575	124,770	460,171
Net book value
At 31 December 2025	1,825,528	2,562,939	312,463	30,043	125,252
At 31 December 2024	2,388,197	3,123,984	250,788	41,765	161,522

Page 27

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.Tangible fixed assets (continued)

	Assets under construction	Total
	£	£
Cost or valuation
At 1 January 2025	36,130	12,236,725
Additions	14,342	805,547
Disposals	-	(527,324)
At 31 December 2025	50,472	12,514,948
Depreciation
At 1 January 2025	-	6,234,340
Charge for the year	-	1,818,754
Disposals	-	(444,843)
At 31 December 2025	-	7,608,251
Net book value
At 31 December 2025	50,472	4,906,697
At 31 December 2024	36,130	6,002,386

The net book value of assets held under finance leases or hire purchase contracts included above is £756,274 (2024: £843,272).

Page 28

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.	Stocks
		2025	2024
		£	£

Raw materials and consumables	3,927,908	4,296,890
Work in progress	93,097	138,647
	4,021,005	4,435,537

During the year the company recognised a specific inventory write-down of £303,383 (2024: £nil), this has been included within cost of sales.

16.

Debtors

					2025	2024
					£	£


Trade debtors	3,548,170	1,331,178
Other debtors	137,509	3,086
Prepayments and accrued income	540,723	651,165
Tax recoverable	-	402,721
	4,226,402	2,388,150

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	2,000,000	-
Trade creditors	2,573,965	3,441,403
Amounts owed to group undertakings	-	100,000
Corporation tax	1,071,448	-
Other taxation and social security	454,580	355,769
Obligations under finance lease and hire purchase contracts	212,273	297,970
Other creditors	102,175	57,290
Accruals and deferred income	1,549,084	2,024,143
	7,963,525	6,276,575

Included within accruals and deferred income is £307,422 (2024: £nil) in relation to a warranty provision, this has been included within cost of sales.

Page 29

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	-	2,500,000
Net obligations under finance leases and hire purchase contracts	328,734	268,011
	328,734	2,768,011

Amounts falling due within one year
Bank loans	2,000,000	-
Amounts falling due 2-5 years
Bank loans	-	2,500,000

Bank loans and overdrafts are secured by the way of a fixed and floating charge over the assets of the company.

Within one year	212,273	297,970
Between 1-5 years	328,734	268,011
	541,007	565,981

Obligations under hire purchase contracts are secured on the assets to which they relate.

Page 30

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Deferred taxation

		2025
		£

	At beginning of year	988,705
	Charged to profit or loss	(121,183)
	At end of year	867,522

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	867,522	988,705
		867,522	988,705

Deferred tax primarily relates to the reversal of timing differences on acquired tangible assets and capital
allowances through depreciation.

It is not possible to accurately determine the net reversal of deferred tax assets and liabilities in the
forthcoming financial period in relation to accelerated capital allowances and other timing differences.

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

50 (2024 - 50) Ordinary A shares of £1.00 each	50	50
50 (2024 - 50) Ordinary B shares of £1.00 each	50	50
14,900 (2024 - 14,900) Ordinary C shares of £1.00 each	14,900	14,900
5,000 (2024 - 5,000) Ordinary D shares of £1.00 each	5,000	5,000

	20,000	20,000

There are four classes of ordinary shares. All classes have the right to attend and vote at members meetings, have the right to a dividend and all classes rank pari passu for repayment and distribution including on winding up.

Page 31

EDC AUTOMOTIVE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

23.	Pension commitments

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. £97,732 (2024: £56,316) contributions were outstanding at the balance sheet date.

Not later than 1 year	1,091,012	946,087
Later than 1 year and not later than 5 years	3,828,975	3,931,151
Later than 5 years	712,500	267,684
	5,632,487	5,144,922

25.	Related party transactions
	The only related party transaction during the reporting period was remuneration paid to Key Management Personnel, which amounted to £1,776,451 (2024: £950,824). No other related party transactions were entered into by the Company.

26.	Controlling party

The parent company is EDI Holdings Limited, a company registered in England and Wales. The registered office is Wentwood House, Langstone Business Park, Newport, NP18 2HJ.

The ultimate controlling party is the director, Mr E Davies.

Page 32