The directors present the strategic report for the year ended 30 September 2025.

The principal activity of Pacson Limited continues to be that of design, manufacture and testing of high specification isolation valves and associated pressure containing equipment.

FY25 was positive year for the company with revenue growth and newly designed products being sold to the market. Pacson also faced a number of challenges with pricing pressure and increasing costs, which in turn lead to a degree of margin and profit erosion.

However, world events through FY25 and into FY26 have negatively impacted our outlook for FY26.

Turnover in FY25 was over £14m, which reflected strong order intake throughout FY24, however during FY25 President Trump was elected. The oil sector was destabilized with a change in policy affecting oil price and the introduction of punitive tariffs, which caused many planned capital projects to delay investment decisions until the changing costs were understood. In addition, the UK government continued with its anti-domestic oil sector policy, preferring to import oil and gas rather than support UK industry, which also negatively impacted our sector and demand from the North Sea basin.

The overall impact of the above is that we expect a lower level of turnover and thus profit in FY26 than was achieved in FY25.

This uncertainty continued into FY26, with the US / Iran war in early 2026, which has added to the unpredictable nature of our sector, and has caused a continuation of the lower market activity seen during FY25. The company has reacted to the current demand by reducing costs to align the business with current demand.

Looking forward from the point of signing the accounts, and this will mainly impact FY27, it would appear that, should a US / Iran peace deal last, then some normality is expected to return to the oil sector. Energy prices should stabilize, which in turn will promote more investment activity plus additional opportunities through repair of oil and gas infrastructure damaged by the war. This will allow Pacson to return to our growth plan, in line with our expectations at the start of FY25. Our continued R&D program has increased the product range to reflect the future needs of our ever-increasing customer base. Our product development is aligned to provide the products required to support the oil sector towards the end of this decade and into the following decade.

LIQUIDITY RISK

Cash resources are formally monitored weekly to ensure funds are always available to meet the company's requirements.

CREDIT RISK

The company undertakes periodic assessments of its external debtors in order to ensure that credit is not extended if there is any likelihood of default. The amount of exposure to individual customers is subject to a limit, and this is reassessed regularly by the accounts team reporting to the directors, and is supported by an external credit insurance facility.

INTEREST RATE RISK

The company does make use of bank borrowings to finance its operations during peak trading periods. Due to current cash resources, the directors do not deem it necessary at this time to hedge against interest rate fluctuations.

The company measures its ongoing performance at every activity level against annual budgets and certain key performance indicators, including working capital controls.

RESULTS FOR THE PERIOD

The company's profit for the period, after taxation, amounted to £804,084 (2024- £863,543).

DEVELOPMENT AND PERFORMANCE OF THE COMPANY'S BUSINESS OVER THE PERIOD

The company continued with its principal activities based around the oil services industry.

POSITION AT THE PERIOD END

The market conditions and order book at the year-end provide a degree of confidence for the future.

FUTURE DEVELOPMENTS

The company intends to continue to focus on its activities in the oil services industry and does not envisage any significant changes to the operations of the company over the next 12 months.

This report was approved by the board of directors and signed on behalf of the board by:

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

The principal activity of Pacson Limited continues to be that of design, manufacture and testing of high specification isolation valves and associated pressure containing equipment.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £40,000. The directors do not recommend payment of a further dividend.

No preference dividends were paid.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors recommend the payment of a dividend.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Each of the persons who is a director at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and

• they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors and signed :

The directors are responsible for preparing the annual 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 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; and

• 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.

We have audited the financial statements of Pacson Limited (the 'company') for the year ended 30 September 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the 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.

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.

As explained more fully in the directors' responsibilities statement, 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.

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.

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we

have carried out the following:

• Ensured that the engagement team have the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;

• Identified the specific laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector;

• Focused on the laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006 and tax compliance legislation;

• Reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations;

• Made enquiries of management; and

• Ensured the engagement team remained alert to instances of non-compliance throughout the audit.

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may

occur, the potential for management bias and the override of controls we have:

• Obtained an understanding of the entity's operations, including the nature of its sources of revenue and of to understand the types of transactions, account balances, financial disclosures and business risks that may result in risk of material misstatement;

• Vouched balances and reconciling items in key control account reconciliations to supporting documentation;

• Carried out detailed testing, on a sample basis, to verify the completeness, existence and accuracy of transactions and balances;

• Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;

• Performed analytical procedures to identify any significant or unusual transactions; and

• Investigated the business rationale behind any significant or unusual transactions

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities,

including those leading to a material misstatement in the financial statements or non-compliance with regulation.

The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that

result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In

addition, the further removed any non-compliance with laws and regulations is from the events and transactions

reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 26 form part of these financial statements.

The notes on pages 12 to 26 form part of these financial statements.

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

The notes on pages 12 to 26 form part of these financial statements.

The notes on pages 12 to 26 form part of these financial statements.

Pacson Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit F, Claverhouse Industrial Park, Dundee, DD4 9UA.

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost basis.

The directors’ comments on the trading conditions that contributed to these results, together with their assessment of the company’s trading position since the year end, are set out in the Review of the Business in the Strategic Report on page 1. Sales orders after the year end have been more consistent with a typical financial year, which is positive given the current difficult trading environment in the oil and gas sectors globally.true

After making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future. The company’s forecasts and financial projections reflect anticipated tougher trading conditions and include management’s actions to address these through cost-cutting measures and improved materials management, together with the continuation of existing external funding and ongoing support from the company’s owner. These projections indicate that the company expects to operate within the cash it generates. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

The turnover shown in the profit and loss account represents sales value amounts recognised on the despatch of high specification isolation valves and associated pressure containment equipment, stated net of Value Added Tax.

Intangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Research and development

The company requires to undertake product improvement and new product development in order to meet the evolving standards required by the industry and customers, and, thereby, stay competitive.

The company’s policy is to defer expenditure on product improvement and development and then start to amortise deferred expenditure from the point at which the improved or developed products do not require further significant development and sales of the improved or developed products commence.

The improvement or development expenditure is the actual direct costs incurred in making prototypes of enhanced existing products or new products. The costs are transferred to deferred development expenditure from stock and work in progress on completion of the prototypes. Additionally, where the company uses a customer sales order to develop a variant or enhanced version of an existing product, then the company’s policy is to defer the value of costs incurred on those sales orders in excess of the normal costs for the product in its existing version, and then amortise the deferred expenditure from the point when the sales of the variant product commence.

The amortisation period is estimated to be 10 years, which is the directors' view of the minimum period the company will be able to benefit from sales of new specification products at higher gross profit margins. Where the directors become aware that the new specification products will have a shorter sales period than 10 years, then the deferred development expenditure will be either amortised over the new shorter life or written off where no further sales are expected.

The company does not undertake pure research work.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stock, which represents raw materials as well as manufactured components for use in the company’s sale products, is valued at cost. Cost includes all costs of purchase as well costs of conversion and other costs incurred in bringing the stock to its present location and condition, including materials purchased, labour and attributable overheads.

Work in progress

Work in progress, which includes production for unfulfilled sales orders and production for development of prototypes of improved existing products and new products, is valued on the basis of direct costs plus attributable overheads based on normal activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

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

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of comprehensive income.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Pacson Holdings Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) Disclosures in respect of financial instruments have not been presented.

(b) No disclosure has been given for the aggregate remuneration of key management personnel.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements.

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

In arriving at the valuation of stock it may be necessary for management to make an assessment over the carrying value of stock items and, where applicable, apply a provision to amend this carrying value to an approximation to net realisable value. These provisions are arrived at using management's knowledge and understanding of the business and the industry in which it operates and focuses on potentially obsolete or old items for which the full value may no longer be recoverable.

During the course of the year and during the year end process, management are required to determine whether any debts should be regarded as bad debts. This process is based on their knowledge of the business coupled with post year end information identifying debts not recovered relating to the previous financial period.

Management uses post year end information and correspondence with customers to estimate provisions for liquidated damages. These are costs that are expected to be incurred in relation to goods and services provided late to other parties. Liquidated damages provisions are only released when there is a reasonable expectation that these costs will not be payable in the future.

The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. Useful lives and residual values are reassessed annually. They are assessed where necessary to reflect current estimates based on economic utilisation and physical condition.

The annual amortisation charge for intangible assets is sensitive to changes in the useful economic lives of the assets. Useful lives and residual values are reassessed annually. They are assessed where necessary to reflect current estimates based on economic utilisation.

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

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

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

The company's main bank borrowings are secured by means of a bond and floating charge over the assets of the company.

Included within Other creditors is a loan from Scottish Enterprise. A total amount of £Nil (2024 - £62,916) is outstanding at the year-end as the balance has now been paid in full.

Also included within Other creditors is a loan from Close Brothers. A total amount of £656,169 (2024 - £933,754) is outstanding at the year-end and this is split between Creditors: amounts falling due within one year and Creditors: amounts falling due after more than one year, on the basis of agreed instalment payments over 5 years. This loan has an effective interest rate charge of 5.99% over the Bank of England's base rate.

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss account - This reserve records retained earnings and accumulated losses.

The following are the major deferred tax liabilities and assets recognised by the company:

Evotek Limited is an associated company by virtue of common ownership and control. During the year, the company repaid net funds amounting to £64,637 (2024 – received funds £16,000) to Evotek Limited. At the year-end, the amount due by Pacson Limited to Evotek Limited was £129,893 (2024 - £194,500). This balance is disclosed in Creditors: amounts falling due within one year as Amounts owed to group and other related undertakings.

B&A Hydraulics Limited is an associated company by virtue of common ownership and control. During the year, the company charged B&A Hydraulics Limited £100,000 (2024 - £100,000) for the management services of a common director and for a share of other overheads paid by the company. In addition, during the year, the company received funds amounting to £70,000 (2024 - £80,000) from B&A Hydraulics Limited. At the year-end, the amount due by the company to B&A Hydraulics Limited was £457,619 (2024 - £487,619). This balance is disclosed in Creditors: amounts falling due within one year as Amounts owed to group and other related undertakings.

.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The main rights attaching to each class of share are as follows:

Dividends

The holders of the 'A' preference shares shall be entitled to a cumulative preferential dividend of 10% per

annum, in priority to any payment of dividend on any other class of share

Ordinary shareholders are entitled to dividends, subject to the above, as directors may determine.

Dividends do not accrue on Ordinary shares.

Pacson Holdings Limited, the sole owner of all of the issued share capital of Pacson Limited, has again

waived its rights to dividends on the 'A' preference shares in issue for the year to 30 September 2025.

Voting

Ordinary shares rank pari passu for voting purposes and carry one vote per share.

The holders of the 'A' preference shall not be entitled to receive notice of or attend or vote at, any general

meeting of the company unless at the date of the notice convening the meeting the dividend on such shares

is 12 months in arrears.

Return of Capital

The 'A' preference shares shall entitle the shareholders thereof on a winding-up or on the reduction of

capital involving a return of capital in priority to any return of capital on the Ordinary shares or on any

other class of shares, to repayment of the capital paid up thereon along with any arrears of dividend. The

balance of the assets of the company, subject to any special rights which may be attached to any class of

shares, shall be applied to repaying the holders of the Ordinary shares the amounts paid upon such shares,

and subject thereto shall belong to and be distributed among such holders rateably according to the amount

paid upon such shares.

The company was under the control of K.D. Crawford, the managing director, during the current and previous year by virtue of his 100% controlling interest in the parent company, Pacson Holdings Limited. The group accounts of Pacson Holdings Limited are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

The total future minimum lease payments under non-cancellable operating leases are as follows: