REGISTERED NUMBER: 08448192 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

HAWKE OPTICS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

P H Walker

Mrs S R Walker

S A Walker

A P Walker

REGISTERED OFFICE:

Avocet House

Wilford Bridge Road

Melton

Woodbridge

Suffolk

IP12 1RB

REGISTERED NUMBER:

08448192 (England and Wales)

AUDITORS:

Walter Wright

Chartered Accountants

Statutory Auditor

89 High Street

Hadleigh

Ipswich

Suffolk

IP7 5EA

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

The company operates in the manufacture and distribution of sporting goods in the UK and throughout the world.

REVIEW OF BUSINESS

The two main key performance indicators for the business are turnover and operating profit as these are the key drivers of profitability. Turnover for the period was £17,295,531 (year ended 31 December 2024 - £14,864,268) and operating profit was £4,918,520 (year ended 31 December 2024 - £4,750,361).

The company enjoyed a strong position at the period end with net assets of £30,813,348 (31 December 2024 - £27,820,626) including cash balances of £10,640,462 (31 December 2024 - £8,777,085).

PRINCIPAL RISKS AND UNCERTAINTIES

The markets in which Hawke Optics Limited operates remain competitive. Whilst the Company retains a strong market position, inflationary pressures have led to rising costs coupled with reduced disposable income among customers. There is therefore a potential for reduced demand. Exporting to the EU remains challenging although the Company has successfully mitigated the extra regulation requirements via the implementation of automated systems. The company seeks to retain market share by continually developing and improving products and providing excellent customer service for both the distribution network and end user.

The market sector that the company operates in is subject to a number of risks involving legislation on firearms and associated accessories. The company's product range includes riflescopes which are on the military list in some countries and require an export licence. The company has been compliant with all regulations governing the licences. The overall risks of tighter gun control or further export regulation are lessened by operating in several countries.

FINANCIAL RISK MANAGEMENT

The activities of the business expose it to several financial risks. Management of these risks is outlined below:

Credit risk

The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers and by monitoring accounts receivable against agreed parameters.

Price risk

The company is exposed to movement in foreign exchange, specifically USD to GBP and EUR to GBP. The company carefully monitors foreign exchange movements in order to achieve competitive pricing on the goods that it purchases. The company manages this risk by diversification of foreign currencies with transactions across a number of countries.

Liquidity risk

The company monitors cash flow as part of its day to day control procedures. The board considers cash flow projection on a monthly basis and ensures that appropriate facilities are available to be drawn upon as necessary.

FUTURE DEVELOPMENTS

The company seeks to retain market share by continually developing and improving products and providing excellent customer service for both the distribution network and end user. The company continues to build a real estate investment portfolio.

ON BEHALF OF THE BOARD:

A P Walker - Director

7 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture and distribution of sporting goods in the UK and throughout the world.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £ 1,472,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

P H Walker

Mrs S R Walker

S A Walker

A P Walker

FINANCIAL INSTRUMENTS

The company's financial risk management objective is broadly to seek to make neither a profit nor loss from exposure to currency or interest rate risks. Its policy is to finance working capital through retained earnings and where necessary borrowings at prevailing market interest rates.

A natural foreign currency hedge exists in respect of income generated in Euros and US Dollars, and costs denominated in US Dollars.

The company does not use hedging instruments and does not use hedge accounting.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

During the year the company had in force a qualifying third party indemnity insurance policy in favour of one or more directors.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Walter Wright, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A P Walker - Director

7 July 2026

Opinion

We have audited the financial statements of Hawke Optics Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 procedures in relation to fraud included but were not limited to:

- obtained an understanding of the nature of the sector, including the legal and regulatory framework that the company operates in.

- enquiries of management whether they have knowledge of any actual, suspected or alleged fraud;

- gaining an understanding of the internal controls established to mitigate risk related to fraud and management override.

- discussion amongst the engagement team regarding risk of fraud such as opportunities for fraudulent manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates; and

- addressing the risk of fraud through management override of controls by performing journal entry testing.

- challenging accounting estimates to ensure no indication of management bias.

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Kevin Brown ACA MAAT (Senior Statutory Auditor)

for and on behalf of Walter Wright

Chartered Accountants

Statutory Auditor

89 High Street

Hadleigh

Ipswich

Suffolk

IP7 5EA

7 July 2026

TURNOVER

3

17,295,531

14,864,268

Cost of sales

9,354,007

7,795,762

GROSS PROFIT

7,941,524

7,068,506

Administrative expenses

4,510,855

3,675,766

3,430,669

3,392,740

Other operating income

4

1,336,506

1,357,621

Gain/loss on revaluation of investment property

151,345

-

OPERATING PROFIT

6

4,918,520

4,750,361

Interest receivable and similar income

7

435,733

411,884

5,354,253

5,162,245

Gain/loss on revaluation of investments

269,620

-

5,623,873

5,162,245

Interest payable and similar expenses

8

130,573

381

PROFIT BEFORE TAXATION

5,493,300

5,161,864

Tax on profit

9

1,028,578

1,137,478

PROFIT FOR THE FINANCIAL YEAR

4,464,722

4,024,386

FIXED ASSETS

Tangible assets

11

1,867,366

1,824,723

Investments

12

3,269,620

-

Investment property

13

6,633,505

6,051,505

11,770,491

7,876,228

CURRENT ASSETS

Stocks

14

6,623,464

9,457,024

Debtors

15

4,601,506

4,730,470

Cash at bank

10,640,462

8,777,085

21,865,432

22,964,579

CREDITORS

Amounts falling due within one year

16

2,811,905

2,907,857

NET CURRENT ASSETS

19,053,527

20,056,722

TOTAL ASSETS LESS CURRENT LIABILITIES

30,824,018

27,932,950

PROVISIONS FOR LIABILITIES

18

10,670

112,324

NET ASSETS

30,813,348

27,820,626

CAPITAL AND RESERVES

Called up share capital

19

400

400

Capital redemption reserve

20

8,100,000

8,100,000

Retained earnings

20

22,712,948

19,720,226

SHAREHOLDERS' FUNDS

30,813,348

27,820,626

The financial statements were approved by the Board of Directors and authorised for issue on 7 July 2026 and were signed on its behalf by:

A P Walker - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

400

17,824,840

8,100,000

25,925,240

Changes in equity

Dividends

-

(2,129,000

)

-

(2,129,000

)

Total comprehensive income

-

4,024,386

-

4,024,386

Balance at 31 December 2024

400

19,720,226

8,100,000

27,820,626

Changes in equity

Dividends

-

(1,472,000

)

-

(1,472,000

)

Total comprehensive income

-

4,464,722

-

4,464,722

Balance at 31 December 2025

400

22,712,948

8,100,000

30,813,348

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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 requirement of paragraph 3.17(d);

•

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);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements. the directors have made the following judgements:

- Determine where there are indicators of impairment of the company's tangible assets and investments. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

- Investment properties are revalued to fair value annually. The company recognises the property at fair value, defined as the estimated amount for which a property should exchange on the date of the valuation between a willing buyer and seller in an arm's length transaction, through the use of comparable values of similar properties observable in the market. The directors of the company access the carrying value at each reporting date to ensure that the carrying value is adjusted to fair value.

There are no other key sources of estimation uncertainty.

Turnover

Turnover represents the sales of goods, retail and trade, is recognised on dispatch of the goods and excludes value added tax.

Tangible fixed assets

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

Freehold property

-

2% on cost

Office equipment

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Investment property

Investment properties are included in the statement of financial position at their open market value and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the directors, necessary to give a true and fair view.

The investment properties held by the company are periodically valued by the directors on an open market existing use basis. The directors then access whether the valuation is reasonable or requires amending at each year end.

Any gain or loss on the revaluation of investment properties is recognised in the statement of comprehensive income.

Stocks

Stocks are valued using the first in first out basis at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs including import duties and shipping costs.

At the reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less selling costs. The impairment loss is recognised immediately in the statement of comprehensive income.

Investments

The listed investments comprise investments in unit trusts. These are recognised at fair value with the gain or loss on revaluation being recognised in the income statement

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

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

Pension costs and other post-retirement benefits

The company 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.

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.

Hire purchase and leasing

Where assets are financed by leasing arrangements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant asset is charged to the statement of comprehensive income over the shorter of estimated useful economic life and the term of the lease.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the statement of comprehensive income over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital payments outstanding. The capital part reduces the amount payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are charged to the statement of comprehensive income on a straight-line basis over the term of the lease.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

9,034,953

7,681,068

Europe

6,275,972

5,810,278

Rest of world

1,984,606

1,372,922

17,295,531

14,864,268

4.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

274,323

260,630

Management charges

1,062,183

1,096,991

1,336,506

1,357,621

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,707,977

1,485,823

Social security costs

226,255

169,550

Other pension costs

203,435

85,117

2,137,667

1,740,490

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

2025

2024

Directors

4

4

Sales and administration

27

25

Production, warehouse and distribution

4

4

35

33

2025

2024

£

£

Directors' remuneration

26,824

17,568

Directors' pension contributions to money purchase schemes

120,000

60,000

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

Money purchase schemes

2

2

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

97,422

85,495

Auditors' remuneration

14,100

12,750

Foreign exchange differences

96,304

636

Lease payments recognised as an expense

114,926

99,993

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

331,241

272,788

Other interest received

104,492

107,916

Net foreign exchange gains on loans

-

31,180

435,733

411,884

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest paid

40

381

Net foreign exchange losses on loans

130,533

-

130,573

381

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

1,130,232

1,145,317

Deferred tax

(101,654

)

(7,839

)

Tax on profit

1,028,578

1,137,478

Reconciliation of total tax 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

5,493,300

5,161,864

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

1,373,325

1,290,466

Effects of:

Expenses not deductible for tax purposes

11,610

4,489

Adjustments to tax charge in respect of previous periods

6,273

4,088

Other tax adjustments, reliefs and transfers

(166,750

)

(168,750

)

Permanent fixed asset timing differences

7,185

7,185

Recognise capital loss

(203,065

)

-

Total tax charge

1,028,578

1,137,478

10.

DIVIDENDS

2025

2024

£

£

Interim

1,472,000

2,129,000

11.	TANGIBLE FIXED ASSETS

Freehold

Office

Motor

Computer

property

equipment

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

1,801,000

19,336

242,300

60,516

2,123,152

Additions

-

10,000

130,065

-

140,065

At 31 December 2025

1,801,000

29,336

372,365

60,516

2,263,217

DEPRECIATION

At 1 January 2025

125,727

9,266

120,012

43,424

298,429

Charge for year

30,591

2,386

55,350

9,095

97,422

At 31 December 2025

156,318

11,652

175,362

52,519

395,851

NET BOOK VALUE

At 31 December 2025

1,644,682

17,684

197,003

7,997

1,867,366

At 31 December 2024

1,675,273

10,070

122,288

17,092

1,824,723

Included in Freehold property above is freehold land at cost of £271,463 which is not depreciated.

12.	FIXED ASSET INVESTMENTS

Listed

investments

£

COST OR VALUATION

Additions

3,000,000

Revaluations

269,620

At 31 December 2025

3,269,620

NET BOOK VALUE

At 31 December 2025

3,269,620

The listed investments comprise investments in unit trusts. These are recognised at fair value.

Market value of listed investments at 31 December 2025 - £ 3,269,620 .

13.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2025

6,051,505

Additions

430,655

Revaluations

151,345

At 31 December 2025

6,633,505

NET BOOK VALUE

At 31 December 2025

6,633,505

At 31 December 2024

6,051,505