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REGISTERED NUMBER: 01352967 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

FOR

SMC CORPORATION (U.K.) LIMITED

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Page |

Company Information | 1 |

Group Strategic Report | 2 |

Report of the Directors | 7 |

Report of the Independent Auditors | 9 |

Consolidated Statement of Profit or Loss | 13 |

Consolidated Statement of Profit or Loss and Other Comprehensive Income | 14 |

Consolidated Statement of Financial Position | 15 |

Company Statement of Financial Position | 16 |

Consolidated Statement of Changes in Equity | 17 |

Company Statement of Changes in Equity | 18 |

Consolidated Statement of Cash Flows | 19 |

Company Statement of Cash Flows | 20 |

Notes to the Statements of Cash Flows | 21 |

Notes to the Consolidated Financial Statements | 22 |

SMC CORPORATION (U.K.) LIMITED

COMPANY INFORMATION

FOR THE YEAR ENDED 31 MARCH 2026

| DIRECTORS: | Yoshiki Takada

| Nicholas Pittwood

| David Westbury

| SECRETARY: | Lewis Williams

| REGISTERED OFFICE: | Vincent Avenue

| Crownhill

| Milton Keynes

| Buckinghamshire

| MK8 0AN

| REGISTERED NUMBER: | 01352967 (England and Wales)

| AUDITORS: | Ad Valorem Audit Services Limited

| Chartered Certified Accountants

| & Statutory Auditors

| 2 Manor Farm Court

| Old Wolverton Road

| Old Wolverton

| Milton Keynes

| Buckinghamshire

| MK12 5NN

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

The directors present their strategic report of the company and the group for the year ended 31 March 2026.

Review of Business

The UK Company is a wholly owned subsidiary of SMC Corporation of Japan, which is listed on the Tokyo Stock Exchange (TSE) Prime Market. The Corporation is a global concern with over 20,000 employees and approximately 500 sales offices in 80 countries.

The KPIs for the business and FY2025 performance include the following:

Financial:

Sales revenue - Increased by 5.6% to £86,267,512

Gross margin - decreased by 1.2% to £33,485,057

Operating expense ratios decreased by 1.9% to 20.9% of sales

Operating profit increased by 1.1% to £17,012,597

Against most KPIs the Group performed well and, while recognising that further improvements can be made, the directors of the Company are satisfied that 2025/26 has been a good performance.

During 2025 the Group introduced a composite metric for customer satisfaction. Insufficient data has been collected to enable meaningful interpretation or trend to be determined.

Business model

SMC's targets automation applications in life science, semiconductor electronic, automotive, and food & packaging sectors. Such businesses value smaller, cleaner, high reliability solutions that are energy efficient and deliver high productivity.

The Group's market values short lead-times and reliable deliveries, which are met with local inventory and specials manufacturing capability.

The Group invests in a large customer-facing team to enable out-perform competitors in giving prompt, high quality responses to its distribution network and direct customer base.

Community and environment

The directors are mindful of the Group's responsibility to operate in a manner that takes account of its impact on the community and the environment. During the year, the Group continued to promote efficient use of resources, responsible waste management and energy-conscious operations. Through its products and technical expertise, the Group also supports customers in improving productivity and efficiency within their own operations. The Board considers environmental and community impacts as part of its broader assessment of sustainable business performance.

The Group also continued engagement within the wider community through its schools programme.

High standards of business conduct

The directors place high importance on maintaining high standards of business conduct, compliance and ethical behaviour. The Group's culture is based on quality, customer focus and long-term business development. The directors seek to ensure that decisions are made with appropriate consideration of legal, regulatory, financial and reputational matters, and that the Group continues to operate with integrity in its dealings with employees, customers, suppliers and other stakeholders.

Long-term decision-making and principal decisions

In making principal decisions during FY2025, the directors considered the long-term consequences for the Group, its stakeholders and its strategic position in the UK market. Key areas of focus included maintaining service resilience, supporting customer demand, managing cost pressures, investing in people and capability, and ensuring that the Group remained well positioned to respond to future opportunities. The directors balanced short-term trading conditions with the need to protect the Group's long-term strength, reputation and ability to deliver value to its members.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

Shareholders

The Group has a single shareholder, the Japanese parent Corporation, which sets global policy.

Overall, the directors consider that they have fulfilled their duties under section 172 of the Companies Act 2006 by considering the interests of relevant stakeholders and the long-term success of the Group when making decisions during FY2025.

Principal risks and uncertainties

Liquidity risk:

The Group has a high inventory value necessary to provide customers with the required service levels, but sufficient provision has been made for slow and obsolete inventory. The continues to implement strategies to reduce dead and slow-moving inventory.

Currency risk:

The Group is exposed to variation in exchange rate for its purchases in Euro for most products. This affects purchase cost and stock valuation. At present, the situation is relatively stable and the outlook appears favourable.

Ageing workforce and skills shortage risk:

The UK operation has an average age of 47.2 years and has seen a high number of retirements with more expected, particularly in the sales team. Loss of experience and replacing skills are the two key risks.

Cybersecurity risk:

The Corporation has invested strongly in improving global data security but also recognises that people remain the weakest link. Globally, every employee receives training to improve cybersecurity.

Legislation risk:

Although SMC has compliant product, continued uncertainty with F-GAS legislation affects customer cut-over and inventory decisions.

CSR

Interest in environmental issues has been increasing worldwide.

Within the Group, SMC has converted its car fleet to plug-in hybrid electric vehicles even as it weighs the next step to full EV, and it has successfully reduced its electricity demand through installation of solar panels.

The Group has also been able to help our customers to reduce their CO2 emissions, energy and resource saving through the application of the Corporation's energy saving equipment and its "4-bar factory" programme.

Production machinery in the Group's own factory has been converted to energy saving and 4-bar factory capable product.

Outlook

With no immediate prospect of energy price reduction, the Group's energy saving products continue to offer industry a sensible and cost-effective solution to rising production costs.

Closer work with SMC's European subsidiaries to target productivity increase and eliminate waste will help reduce Operating Expense ratios, keeping the Group competitive in the UK marketplace.

A significant sales recruitment programme during 2025 and planned to continue through 2026 and into 2027 will enable deeper market penetration and a high degree of customer support.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

SECTION 172(1) STATEMENT

The directors of the Group recognise their duty under section 172 of the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole. In doing so, the directors have regard to the likely consequences of decisions in the long term, the interests of employees, the need to foster business relationships with customers, suppliers and other stakeholders, the impact of the Group's operations on the community and the environment, the desirability of maintaining a reputation for high standards of business conduct, and the need to act fairly between members.

ENGAGEMENT WITH EMPLOYEES

The directors recognise that the commitment, capability and wellbeing of employees are central to the Group's long-term success. During the year, management continued to communicate regularly with employees on business performance, priorities and operational matters. The Group invested in training, leadership capability, health and safety, and employee engagement to support an inclusive, safe and productive working environment. The directors considered the impact of key decisions on employees, including resourcing, organizational development and the need to maintain effective support for customers across the account base.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Customers, suppliers and business partners

The Group's success depends on strong relationships with customers, suppliers, distributors and its wider group network. In FY2025, the directors and management team continued to focus on service quality, product availability, technical support and responsiveness to customer expectations. The directors considered market conditions, supply chain pressures and customer requirements when reviewing operational priorities and investment decisions.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

STREAMLINED ENERGY AND CARBON REPORT

There has been a review of FY24 data to improve accuracy. Adjustments include the addition of F-gas estimations (30.4 tCO2e) and EV electricity emissions (1.3 tCO2e) to align with our carbon neutral certification report. In addition, business petrol and diesel data has been updated to include previously unavailable information obtained from our external fleet management provider (4.2 tCO2e).

Total emissions for FY25 reporting period were 841 tCO2e, comprising Scope 1 and Scope 2 emissions, including natural gas, grid electricity, EV electricity, company vehicle fuel use (petrol and diesel) and F-gases. This represents a reduction of 3.7% compared to the previous year.

Electricity consumption increased slightly during the year, largely attributable to increased testing activity within ETC. However, overall emissions decreased, primarily due to lower electricity emission conversion factors published by the UK government. Gas-related emissions remained broadly stable.

In line with prior reporting periods, emissions intensity continues to be assessed using two complementary metrics: kilograms of CO2e per product ordered and kilograms of CO2e per employee. This dual-metric approach remains appropriate given the organisation's continued growth.

There was a reduction in emissions per product, with 1.1 kg CO2e per product ordered in FY25, compared to 1.4 kg in the prior year. Emissions per employee were 2,240 kg CO?e, compared to 2,275 kg CO2e in the previous year. Both metrics showed seasonal peaks during winter months, indicating opportunities for targeted energy reduction.

The company will continue to offset all Scope 1 and Scope 2 emissions for this financial year through 'Carbon Saver' verified reports, maintaining carbon neutral status for the sixth consecutive year.

SMC Corporation (U.K.) Ltd is progressing towards ISO 14068 and plans to transition from PAS 2060 accreditation. This includes the incorporation of mandatory Scope 3 emissions reporting. For FY25, Scope 3 emissions totalled 688.9 tCO2e, covering employee commuting, business travel, well-to-tank fuel and electricity emissions (including both private and business mileage), transmission and distribution (T&D) electricity losses, as well as waste and water emissions.

Emissions for F-gases, natural gas, electricity, diesel, and petrol were calculated using consumption or asset data combined with DESNZ 2025 carbon factors. Standard leakage assumptions were applied for F-gases, alongside verified meter readings and fuel records for energy and vehicle use.

SMC Corporation (U.K.) Ltd is dedicated to reducing its emissions through monitoring, data insights and improvement actions and would like to share the following improvements:

- Monitoring equipment has been installed across three substations. This will enable consolidated, real-time tracking of power usage and associated costs, supporting improved energy management.

- Analysis of solar generation shows 304 zero-import hours, during which on-site demand was fully met by solar energy, confirming full reconciliation with generation data.

- Forklift truck usage has been decreased through lowering the racking height within the production warehouse, reducing the need for high-level handling.

- Energy efficiency improvements in production include the installation of a more efficient 55 kW variable speed compressor.

- As part of the showroom and reception refurbishment, upgrades included the installation of LED lighting and PIR sensors, alongside the replacement of inefficient double glazing in ETC.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

- Additionally, the company's plug-in hybrid electric vehicle (PHEV) fleet has grown by 22% compared to the previous year, and the final diesel vehicle was removed from the fleet during FY25.

SMC continues to identify further opportunities to reduce environmental impact, improve energy monitoring, and enhance carbon reporting, supporting the planned transition towards alignment with ISO 14068.

ON BEHALF OF THE BOARD:

Nicholas Pittwood - Director

10 July 2026

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 MARCH 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the Group is the manufacture and distribution of fluid control and industrial automation equipment.

DIVIDENDS

An interim dividend of £1.1127 per share was paid on 30 June 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2026 will be £ 16,134,000 .

DIRECTORS

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

Yoshiki Takada

Nicholas Pittwood

David Westbury

Other changes in directors holding office are as follows:

Kevin O'Carroll - resigned 31 December 2025

Toshio Isoe - resigned 31 December 2025

Qualifying third party indemnity insurance is in place for the benefit of all directors of the group.

POLITICAL DONATIONS AND EXPENDITURE

During the year, the Group made charitable donations of £21,685. No political donations were made during the year.

EMPLOYEE CONSULTATION

The Group relies on the skills, knowledge and views of its staff. Employees are informed of matter affecting them through team meetings, monthly performance updates, quarterly newsletters, and the Intranet.

Regular team meetings are also a safe space forum to feedback employee's views on the Group.

DISABLED EMPLOYEES

Our policy ensures full and fair consideration is given to all employment applications from disabled persons, assessing candidates strictly on their aptitudes, skills, and abilities. We provide reasonable adjustments to remove any barriers in the workplace, both during the recruitment process and throughout employment.

Furthermore, should an existing employee become disabled during their tenure, we are committed to making appropriate adjustments to their work environment and arranging the necessary training to support their continued employment and career development.

GOING CONCERN

In accordance with their responsibilities, the directors have reviewed the Group's budget, cash flow forecasts, and operational projections for the foreseeable future. The Group has a strong balance sheet position, no external debt, an appropriate order book, and good future sales prospects. Based on this review, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual financial statements

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 MARCH 2026

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 UK-adopted international accounting standards. 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 the group and of the profit or loss of the group 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;

- | state that the financial statements comply with IFRS;

- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Nicholas Pittwood - Director

10 July 2026

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SMC CORPORATION (U.K.) LIMITED

Opinion

We have audited the financial statements of SMC Corporation (U.K.) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Company Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion:

- | the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2026 and of the group's profit for the year then ended;

- | the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK;

- | the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and

- | the financial statements 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 group 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 group's and the parent 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 Group 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SMC CORPORATION (U.K.) LIMITED

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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- | the parent company 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 eight, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SMC CORPORATION (U.K.) LIMITED

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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Company's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud.

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

- Employment legislation, reflecting the Company's workforce

- Health and safety regulation, reflecting the Company's production, distribution and operating processes

- Data privacy, reflecting the Company's management of personal and corporate data

- Environmental regulation, reflecting environmental impact restrictions, waste and contamination related to the Company's distribution and operating processes.

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SMC CORPORATION (U.K.) LIMITED

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

10 July 2026

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 MARCH 2026

2026 | 2025 |

| Notes | £ | £

CONTINUING OPERATIONS

Revenue | 86,267,512 |  | 81,729,595 |  |

Cost of sales | (52,782,455 | ) | (49,056,294 | ) |

GROSS PROFIT | 33,485,057 |  | 32,673,301 |  |

Other operating income | 3 | 1,548,969 |  | 1,096,945 |  |

Administrative expenses | (18,021,429 | ) | (18,605,562 | ) |

OPERATING PROFIT | 17,012,597 |  | 15,164,684 |  |

Finance costs | 5 | (75,755 | ) | (1,475 | ) |

Finance income | 5 | 943,233 |  | 1,115,176 |  |

PROFIT BEFORE INCOME TAX | 6 | 17,880,075 |  | 16,278,385 |  |

Income tax | 7 | (3,737,616 | ) | (3,384,343 | ) |

PROFIT FOR THE YEAR | 14,142,459 |  | 12,894,042 |  |

Profit attributable to:

Owners of the parent | 14,142,459 |  | 12,894,042 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2026

2026 | 2025 |

| £ | £

PROFIT FOR THE YEAR | 14,142,459 |  | 12,894,042 |  |

OTHER COMPREHENSIVE INCOME |

Item that may be reclassified subsequently to profit or loss:

Gain on revaluation of investment property | - |  | 325,000 |  |

Income tax relating to item that may be reclassified subsequently to profit or loss | - |  | (81,250 | ) |

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | - |  | 243,750 |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 14,142,459 |  | 13,137,792 |  |

Total comprehensive income attributable to:

Owners of the parent | 14,142,459 |  | 13,137,792 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 MARCH 2026

2026 | 2025 |

| Notes | £ | £

ASSETS

NON-CURRENT ASSETS

Intangible assets | 10 | 2,242,113 |  | 2,456,184 |  |

Property, plant and equipment | 11 | 14,406,400 |  | 15,453,045 |  |

Investment property | 12 | 6,175,000 |  | 6,175,000 |  |

Investments | 13 | - |  | - |  |

22,823,513 |  | 24,084,229 |  |

CURRENT ASSETS

Inventories | 14 | 21,798,821 |  | 21,761,789 |  |

Trade and other receivables | 15 | 22,650,773 |  | 21,574,222 |  |

Investments | 16 | 28,141,624 |  | 18,125,701 |  |

Cash and cash equivalents | 17 | 15,785,153 |  | 25,660,849 |  |

88,376,371 |  | 87,122,561 |  |

TOTAL ASSETS | 111,199,884 |  | 111,206,790 |  |

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital | 18 | 14,500,000 |  | 14,500,000 |  |

Retained earnings | 19 | 79,643,803 |  | 81,635,344 |  |

TOTAL EQUITY | 94,143,803 |  | 96,135,344 |  |

LIABILITIES

NON-CURRENT LIABILITIES

Deferred tax | 22 | 1,054,406 |  | 1,705,444 |  |

CURRENT LIABILITIES

Trade and other payables | 20 | 14,059,520 |  | 11,427,531 |  |

Tax payable | 1,942,155 |  | 1,938,471 |  |

16,001,675 |  | 13,366,002 |  |

TOTAL LIABILITIES | 17,056,081 |  | 15,071,446 |  |

TOTAL EQUITY AND LIABILITIES | 111,199,884 |  | 111,206,790 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 10 July 2026 and were signed on its behalf by:

Nicholas Pittwood - Director

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

COMPANY STATEMENT OF FINANCIAL POSITION

31 MARCH 2026

2026 | 2025 |

| Notes | £ | £

ASSETS

NON-CURRENT ASSETS

Intangible assets | 10 | 2,242,113 |  | 2,456,184 |  |

Property, plant and equipment | 11 | 13,827,864 |  | 14,844,038 |  |

Investment property | 12 | 6,175,000 |  | 6,175,000 |  |

Investments | 13 | 8,000,000 |  | 7,000,000 |  |

30,244,977 |  | 30,475,222 |  |

CURRENT ASSETS

Inventories | 14 | 19,407,984 |  | 19,482,146 |  |

Trade and other receivables | 15 | 21,774,288 |  | 20,613,552 |  |

Investments | 16 | 28,000,000 |  | 18,000,000 |  |

Cash and cash equivalents | 17 | 10,948,215 |  | 22,653,736 |  |

80,130,487 |  | 80,749,434 |  |

TOTAL ASSETS | 110,375,464 |  | 111,224,656 |  |

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital | 18 | 14,500,000 |  | 14,500,000 |  |

Retained earnings | 19 | 78,976,181 |  | 81,567,989 |  |

TOTAL EQUITY | 93,476,181 |  | 96,067,989 |  |

LIABILITIES

NON-CURRENT LIABILITIES

Deferred tax | 22 | 2,330,284 |  | 2,639,737 |  |

CURRENT LIABILITIES

Trade and other payables | 20 | 12,673,490 |  | 10,605,671 |  |

Tax payable | 1,895,509 |  | 1,911,259 |  |

14,568,999 |  | 12,516,930 |  |

TOTAL LIABILITIES | 16,899,283 |  | 15,156,667 |  |

TOTAL EQUITY AND LIABILITIES | 110,375,464 |  | 111,224,656 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 10 July 2026 and were signed on its behalf by:

Nicholas Pittwood - Director

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

Called up |  |

share | Retained | Total |

capital | earnings | equity |

| £ | £ | £

Balance at 1 April 2024 | 14,500,000 |  | 68,497,552 |  | 82,997,552 |  |

Changes in equity

Total comprehensive income | - |  | 13,137,792 |  | 13,137,792 |  |

Balance at 31 March 2025 | 14,500,000 |  | 81,635,344 |  | 96,135,344 |  |

Changes in equity

Dividends | - |  | (16,134,000 | ) | (16,134,000 | ) |

Total comprehensive income | - |  | 14,142,459 |  | 14,142,459 |  |

Balance at 31 March 2026 | 14,500,000 |  | 79,643,803 |  | 94,143,803 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

Called up |  |

share | Retained | Total |

capital | earnings | equity |

| £ | £ | £

Balance at 1 April 2024 | 14,500,000 |  | 68,040,764 |  | 82,540,764 |  |

Changes in equity

Total comprehensive income | - |  | 13,527,225 |  | 13,527,225 |  |

Balance at 31 March 2025 | 14,500,000 |  | 81,567,989 |  | 96,067,989 |  |

Changes in equity

Dividends | - |  | (16,134,000 | ) | (16,134,000 | ) |

Total comprehensive income | - |  | 13,542,192 |  | 13,542,192 |  |

Balance at 31 March 2026 | 14,500,000 |  | 78,976,181 |  | 93,476,181 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

2026 | 2025 |

| £ | £

Cash flows from operating activities

Cash generated from operations | 1 | 20,678,137 |  | 22,066,550 |  |

Interest paid | (75,755 | ) | (1,475 | ) |

Tax paid | (4,384,970 | ) | (2,367,227 | ) |

Net cash from operating activities | 16,217,412 |  | 19,697,848 |  |

Cash flows from investing activities

Purchase of intangible fixed assets | (158,219 | ) | (7,545 | ) |

Purchase of tangible fixed assets | (728,199 | ) | (916,188 | ) |

Sale of tangible fixed assets | - |  | 1,957 |  |

Amounts placed on deposit | (10,015,923 | ) | (7,177,716 | ) |

Interest received | 943,233 |  | 1,115,176 |  |

Net cash from investing activities | (9,959,108 | ) | (6,984,316 | ) |

Cash flows from financing activities

Equity dividends paid | (16,134,000 | ) | - |  |

Net cash from financing activities | (16,134,000 | ) | - |  |

(Decrease)/increase in cash and cash equivalents | (9,875,696 | ) | 12,713,532 |  |

Cash and cash equivalents at beginning of year | 2 | 25,660,849 |  | 12,947,317 |  |

Cash and cash equivalents at end of year | 2 | 15,785,153 |  | 25,660,849 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

2026 | 2025 |

| £ | £

Cash flows from operating activities

Cash generated from operations | 1 | 18,798,482 |  | 21,218,163 |  |

Interest paid | (73,102 | ) | - |  |

Tax paid | (4,272,296 | ) | (2,284,944 | ) |

Net cash from operating activities | 14,453,084 |  | 18,933,219 |  |

Cash flows from investing activities

Purchase of intangible fixed assets | (158,219 | ) | (7,545 | ) |

Purchase of tangible fixed assets | (674,037 | ) | (876,197 | ) |

Amounts placed on deposit | (10,000,000 | ) | (8,000,000 | ) |

Interest received | 807,651 |  | 1,012,547 |  |

Net cash from investing activities | (10,024,605 | ) | (7,871,195 | ) |

Cash flows from financing activities

Equity dividends paid | (16,134,000 | ) | - |  |

Net cash from financing activities | (16,134,000 | ) | - |  |

(Decrease)/increase in cash and cash equivalents | (11,705,521 | ) | 11,062,024 |  |

Cash and cash equivalents at beginning of year | 2 | 22,653,736 |  | 11,591,712 |  |

Cash and cash equivalents at end of year | 2 | 10,948,215 |  | 22,653,736 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

1. | RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

| Group

2026 | 2025 |

| £ | £

| Profit before income tax | 17,880,075 |  | 16,278,385 |  |

| Depreciation charges | 2,144,404 |  | 1,874,974 |  |

| Loss on disposal of fixed assets | 2,730 |  | 63 |  |

| Finance costs | 75,755 |  | 1,475 |  |

| Finance income | (943,233 | ) | (1,115,176 | ) |

19,159,731 |  | 17,039,721 |  |

| (Increase)/decrease in inventories | (37,032 | ) | 4,441,237 |  |

| Increase in trade and other receivables | (1,076,551 | ) | (371,137 | ) |

| Increase in trade and other payables | 2,631,989 |  | 956,729 |  |

| Cash generated from operations | 20,678,137 |  | 22,066,550 |  |

| Company

2026 | 2025 |

| £ | £

| Profit before income tax | 17,489,285 |  | 16,934,818 |  |

| Depreciation charges | 2,062,501 |  | 1,797,884 |  |

| Provision reversal against investment | (1,000,000 | ) | (2,200,000 | ) |

| Finance costs | 73,102 |  | - |  |

| Finance income | (807,651 | ) | (1,012,547 | ) |

17,817,237 |  | 15,520,155 |  |

| Decrease in inventories | 74,162 |  | 4,329,339 |  |

| (Increase)/decrease in trade and other receivables | (1,160,736 | ) | 81,425 |  |

| Increase in trade and other payables | 2,067,819 |  | 1,287,244 |  |

| Cash generated from operations | 18,798,482 |  | 21,218,163 |  |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

| Group |  | Company |

| Year ended 31 March 2026

| 31/3/26 |  | 1/4/25 |  | 31/3/26 |  | 1/4/25

| £ | £ | £ | £

| Cash and cash equivalents | 15,785,153 |  | 25,660,849 |  | 10,948,215 |  | 22,653,736 |  |

| Year ended 31 March 2025

| 31/3/25 |  | 1/4/24 |  | 31/3/25 |  | 1/4/24

| £ | £ | £ | £

| Cash and cash equivalents | 25,660,849 |  | 12,947,317 |  | 22,653,736 |  | 11,591,712 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

1. | STATUTORY INFORMATION

| SMC Corporation (U.K.) 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 General Information page.

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

2. | ACCOUNTING POLICIES

| BASIS OF PREPARATION

| These accounts have been prepared in accordance with International Financial Reporting Standards as endorsed by the EU("IFRS") and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

| BASIS OF CONSOLIDATION

| The group accounts consolidate those of the company and of its subsidiary. The accounts of each company in the group have been prepared to 31 March 2026. All inter-group profits and transactions are eliminated on consolidation.

| FUNCTIONAL AND PRESENTATION CURRENCIES

| The accounts are presented in Sterling which is also the functional currency of the company.

| REVENUE RECOGNITION

| Revenue is recognised when income and associated costs can be measured reliably and future economic benefits are probable. Revenue is measured at the fair value of the consideration received or receivable for goods provided in the normal course of business, net of discounts, VAT and other sales related taxes.

| Sales of goods are recognised when goods are delivered and title has passed. Delivery occurs when the products have arrived at the specific location, and the risks and rewards of ownership have been transferred to the customer.

| CASH AND CASH EQUIVALENTS

| Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

| In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

2. | ACCOUNTING POLICIES - continued

| PROPERTY, PLANT AND EQUIPMENT

| Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is charged when construction of an asset is completed and it is available for use.

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, using the following bases:

| Freehold land |  | - not provided |  |

| Buildings |  | - 2% to 5% on cost |  |

| Short leasehold |  | - 11.11% on cost |  |

| Leased buildings |  | - 20% on cost |  |

| Leased motor vehicles |  | - 25% on cost |  |

| Equipment |  | - 6.67% to 20% on cost |  |

| Fixtures and fittings |  | - 10% on cost |  |

| Computers |  | - 16.7% to 33.3% on cost |  |

| Assets in the course of construction |  | - not provided |  |

| INVESTMENT PROPERTY

| The group uses the fair value model to measure the value of investment properties, with any loss or gain arising from a change in the fair value of investment property being recognised in the income statement in the period in which it arises.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

2. | ACCOUNTING POLICIES - continued

| FINANCIAL INSTRUMENTS

| Financial assets and financial liabilities are recognised when the group has become a party to the contractual provisions of the instrument.

| Trade receivables

| Trade receivables are classified as loans and receivables and are initially recognised at fair value. They are subsequently measured at their amortised cost using the effective interest method less any provision for impairment. A provision for impairment is made where there is objective evidence, (including customers with financial difficulties or in default of payments), that amounts will not be recovered in accordance with original terms of the agreement. A provision for impairment is established when the carrying value of the receivable exceeds the present value of the future cash flows discounted using the original effective interest rate. The carrying value of the receivable is reduced through the use of an allowance account and any impairment loss is recognised in profit or loss.

| Cash and cash equivalents

| Cash and cash equivalents comprise cash at bank.

| Financial asset investments

| Current financial asset investments comprise cash held in short term fixed deposits with recognised financial institutions, maturing in more than 3 months but less than one year.

| Financial liabilities and equity

| 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 group after deducting all of its liabilities.

| Trade payables

| Trade payables are initially recognised at fair value and subsequently at amortised cost using the effective interest method.

| Equity instruments

| Equity instruments issued by the group are recorded at fair value on initial recognition net of transaction costs.

| INVENTORIES

| Inventory is stated at the lower of cost and net realisable value. Costs comprise direct material cost and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the average cost method. Net realisable value represents the estimated selling price less all estimated costs to completion and selling costs to be incurred.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

2. | ACCOUNTING POLICIES - continued

| TAXATION

| The tax expense represents the sum of the current tax expense and deferred tax expense.

| The tax currently payable is based on taxable profit for the year. Taxable profit differs from accounting profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is measured using tax rates that have been enacted or substantively enacted by the reporting date.

| Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of assets and other liabilities in a transaction which affects neither the taxable profit nor the accounting profit.

| Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based upon tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited to the income statement, except when it relates to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity, or items charged or credited directly to other comprehensive income, in which case the deferred tax is also recognised in other comprehensive income.

| FOREIGN CURRENCIES

| Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

| Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of financial position date.

| All differences are taken to the income statement.

| EMPLOYEE BENEFIT COSTS

| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

| GOVERNMENT GRANTS

| Government grants are recognised in the Statement of Profit or Loss and Other Comprehensive Income so as to match them with the expenditure towards which they are intended to contribute.

| CHANGES IN ACCOUNTING STANDARDS AND DISCLOSURES

| There have been no new or amended standards adopted in the year that have a material impact on the financial statements.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

2. | ACCOUNTING POLICIES - continued

| CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

| 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 group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

| Inventory provision

| Useful lives of fixed assets

| Carrying value of investment in subsidiary

| Inventory provision

| The group's statement of financial position includes inventories totalling £21,798,821 (2025 - £21,761,789) stated after impairment provisions of £5,235.730 (2025 - £5,680,470). The calculation of impairment provisions requires estimates in respect of the net realisable value of inventories. The company estimates net realisable value by categorising the inventory into slow moving, excess inventory or dead inventory and applies a percentage devaluation from reference to historic recovery in sales of these items.

3. | OTHER OPERATING INCOME

2026 | 2025 |

| £ | £

| Rents receivable | 324,831 |  | 324,830 |  |

| Management fee receivable | 1,224,138 |  | 772,115 |  |

1,548,969 |  | 1,096,945 |  |

4. | EMPLOYEES AND DIRECTORS

2026 | 2025 |

| £ | £

| Wages and salaries | 13,341,020 |  | 14,310,540 |  |

| Social security costs | 1,921,878 |  | 1,824,523 |  |

| Other pension costs | 704,020 |  | 807,326 |  |

15,966,918 |  | 16,942,389 |  |

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

2026 | 2025 |

| Factory/production | 119 |  | 119 |  |

| Sales outside and inside | 126 |  | 136 |  |

| Headquarters | 65 |  | 61 |  |

310 |  | 316 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

4. | EMPLOYEES AND DIRECTORS - continued

2026 | 2025 |

| £ | £

| Directors' remuneration | 445,685 |  | 478,445 |  |

| Directors' pension contributions to money purchase schemes | 79,468 |  | 82,165 |  |

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

| Money purchase schemes | 3 |  | 3 |  |

| Information regarding the highest paid director is as follows:

2026 | 2025 |

| £ | £

| Emoluments etc | 168,137 |  | 192,028 |  |

| Pension contributions to money purchase schemes | 24,025 |  | 32,033 |  |

5. | NET FINANCE INCOME

2026 | 2025 |

| £ | £

| Finance income:

| Deposit account interest | 943,233 |  | 1,115,176 |  |

| Finance costs:

| Interest on overdue corporation tax | 75,755 |  | 1,475 |  |

| Net finance income | 867,478 |  | 1,113,701 |  |

6. | PROFIT BEFORE INCOME TAX

| The profit before income tax is stated after charging:

2026 | 2025 |

| £ | £

| Cost of inventories recognised as expense | 44,859,969 |  | 41,325,053 |  |

| Depreciation - owned assets | 1,772,114 |  | 1,784,081 |  |

| Loss on disposal of fixed assets | 2,730 |  | 63 |  |

| Computer software amortisation | 372,290 |  | 90,893 |  |

| Foreign exchange differences | 89,820 |  | 71,263 |  |

| Auditors remuneration - statutory audit | 38,500 |  | 34,000 |  |

| Auditors remuneration - taxation and other services | 8,500 |  | 7,900 |  |

| Operating lease rentals - vehicles | 786,374 |  | 754,132 |  |

| Operating lease rentals - property | 114,194 |  | 175,409 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

7. | INCOME TAX

| Analysis of tax expense

2026 | 2025 |

| £ | £

| Current tax:

| Tax | 4,507,708 |  | 3,961,515 |  |

| (Over)/under provision in

| previous years | (119,054 | ) | - |  |

| Total current tax | 4,388,654 |  | 3,961,515 |  |

| Deferred tax:

| Origination and reversal of temporary difference | (651,038 | ) | (577,172 | ) |

| Total tax expense in consolidated statement of profit or loss | 3,737,616 |  | 3,384,343 |  |

| FACTORS AFFECTING THE TAX EXPENSE

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

2026 | 2025 |

| £ | £

| Profit before income tax | 17,880,075 |  | 16,278,385 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2025 - 25 %) | 4,470,019 |  | 4,069,596 |  |

| Effects of:

| Fixed asset timing differences | 311,620 |  | 187,661 |  |

| Expenditure not allowable for tax purposes | 2,467 |  | 5,102 |  |

| Movement in deferred tax | (651,038 | ) | (577,172 | ) |

| Prior period adjustments | (119,054 | ) | - |  |

| Recognition of previously unrecognised computed loss | (276,398 | ) | (300,844 | ) |

| Tax expense | 3,737,616 |  | 3,384,343 |  |

| The subsidiary company has tax losses of approximately £4,000,000 (2025 - £4,700,000) being carried forward for set off against future trading profits.

8. | PROFIT OF PARENT COMPANY

| As permitted by Section 408 of the Companies Act 2006, the statement of comprehensive income of the parent company is not presented as part of these financial statements. The parent company made a trading net profit before tax for the year of £17,489,285 (2025 - £16,934,818). A reversal of the provision against the investment in its subsidiary company of £1,000,000 (2025 - £2,200,000) has been made during the year and is included within this figure. The resulting profit after tax of the parent company for the financial year is £13,542,192 (2025 - £13,283,475).

9. | DIVIDENDS

2026 | 2025 |

| £ | £

| Ordinary shares of £1 each

| Interim | 16,134,000 |  | - |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

10. | INTANGIBLE ASSETS

| Group

Computer |

software |

| £

| COST

| At 1 April 2025 | 2,547,077 |  |

| Additions | 158,219 |  |

| At 31 March 2026 | 2,705,296 |  |

| AMORTISATION

| At 1 April 2025 | 90,893 |  |

| Amortisation for year | 372,290 |  |

| At 31 March 2026 | 463,183 |  |

| NET BOOK VALUE

| At 31 March 2026 | 2,242,113 |  |

Computer |

software |

| £

| COST

| Additions | 7,545 |  |

| Reclassification/transfer | 2,539,532 |  |

| At 31 March 2025 | 2,547,077 |  |

| AMORTISATION

| Amortisation for year | 90,893 |  |

| At 31 March 2025 | 90,893 |  |

| NET BOOK VALUE

| At 31 March 2025 | 2,456,184 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

10. | INTANGIBLE ASSETS - continued

| Company

Computer |

software |

| £

| COST

| At 1 April 2025 | 2,547,077 |  |

| Additions | 158,219 |  |

| At 31 March 2026 | 2,705,296 |  |

| AMORTISATION

| At 1 April 2025 | 90,893 |  |

| Amortisation for year | 372,290 |  |

| At 31 March 2026 | 463,183 |  |

| NET BOOK VALUE

| At 31 March 2026 | 2,242,113 |  |

Computer |

software |

| £

| COST

| Additions | 7,545 |  |

| Reclassification/transfer | 2,539,532 |  |

| At 31 March 2025 | 2,547,077 |  |

| AMORTISATION

| Amortisation for year | 90,893 |  |

| At 31 March 2025 | 90,893 |  |

| NET BOOK VALUE

| At 31 March 2025 | 2,456,184 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

11. | PROPERTY, PLANT AND EQUIPMENT

| Group

Freehold |

land and | Short |

buildings | leasehold | Equipment |

| £ | £ | £

| COST

| At 1 April 2025 | 14,495,503 |  | 258,907 |  | 12,663,894 |  |

| Additions | - |  | - |  | 437,265 |  |

| Disposals | - |  | - |  | - |  |

| At 31 March 2026 | 14,495,503 |  | 258,907 |  | 13,101,159 |  |

| DEPRECIATION

| At 1 April 2025 | 6,621,339 |  | 252,334 |  | 8,699,191 |  |

| Charge for year | 221,334 |  | - |  | 878,923 |  |

| At 31 March 2026 | 6,842,673 |  | 252,334 |  | 9,578,114 |  |

| NET BOOK VALUE

| At 31 March 2026 | 7,652,830 |  | 6,573 |  | 3,523,045 |  |

Fixtures |

and |

fittings | Computers | Totals |

| £ | £ | £

| COST

| At 1 April 2025 | 6,877,840 |  | 4,679,786 |  | 38,975,930 |  |

| Additions | 145,276 |  | 145,658 |  | 728,199 |  |

| Disposals | - |  | (2,730 | ) | (2,730 | ) |

| At 31 March 2026 | 7,023,116 |  | 4,822,714 |  | 39,701,399 |  |

| DEPRECIATION

| At 1 April 2025 | 3,568,366 |  | 4,381,655 |  | 23,522,885 |  |

| Charge for year | 477,602 |  | 194,255 |  | 1,772,114 |  |

| At 31 March 2026 | 4,045,968 |  | 4,575,910 |  | 25,294,999 |  |

| NET BOOK VALUE

| At 31 March 2026 | 2,977,148 |  | 246,804 |  | 14,406,400 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

11. | PROPERTY, PLANT AND EQUIPMENT - continued

| Group

Freehold |

land and | Short |

buildings | leasehold | Equipment |

| £ | £ | £

| COST

| At 1 April 2024 | 14,495,503 |  | 258,907 |  | 11,948,707 |  |

| Additions | - |  | - |  | 717,366 |  |

| Disposals | - |  | - |  | (2,179 | ) |

| At 31 March 2025 | 14,495,503 |  | 258,907 |  | 12,663,894 |  |

| DEPRECIATION

| At 1 April 2024 | 6,400,001 |  | 251,481 |  | 7,775,723 |  |

| Charge for year | 221,338 |  | 853 |  | 924,747 |  |

| Eliminated on disposal | - |  | - |  | (1,279 | ) |

| At 31 March 2025 | 6,621,339 |  | 252,334 |  | 8,699,191 |  |

| NET BOOK VALUE

| At 31 March 2025 | 7,874,164 |  | 6,573 |  | 3,964,703 |  |

Fixtures | Assets |

and | under |

fittings | Computers | construction | Totals |

| £ | £ | £ | £

| COST

| At 1 April 2024 | 6,739,840 |  | 4,625,450 |  | 2,539,532 |  | 40,607,939 |  |

| Additions | 140,561 |  | 58,261 |  | - |  | 916,188 |  |

| Disposals | (2,561 | ) | (3,925 | ) | - |  | (8,665 | ) |

| Reclassification/transfer | - |  | - |  | (2,539,532 | ) | (2,539,532 | ) |

| At 31 March 2025 | 6,877,840 |  | 4,679,786 |  | - |  | 38,975,930 |  |

| DEPRECIATION

| At 1 April 2024 | 3,111,396 |  | 4,206,848 |  | - |  | 21,745,449 |  |

| Charge for year | 458,904 |  | 178,239 |  | - |  | 1,784,081 |  |

| Eliminated on disposal | (1,934 | ) | (3,432 | ) | - |  | (6,645 | ) |

| At 31 March 2025 | 3,568,366 |  | 4,381,655 |  | - |  | 23,522,885 |  |

| NET BOOK VALUE

| At 31 March 2025 | 3,309,474 |  | 298,131 |  | - |  | 15,453,045 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

11. | PROPERTY, PLANT AND EQUIPMENT - continued

| Company

Freehold | Fixtures |  |

land and | and |  |

buildings | Equipment | fittings | Computers | Totals |

| £ | £ | £ | £ | £

| COST

| At 1 April 2025 | 14,495,503 |  | 11,385,911 |  | 6,207,679 |  | 4,454,429 |  | 36,543,522 |  |

| Additions | - |  | 436,607 |  | 138,436 |  | 98,994 |  | 674,037 |  |

| At 31 March 2026 | 14,495,503 |  | 11,822,518 |  | 6,346,115 |  | 4,553,423 |  | 37,217,559 |  |

| DEPRECIATION

| At 1 April 2025 | 6,621,339 |  | 7,844,810 |  | 3,056,701 |  | 4,176,634 |  | 21,699,484 |  |

| Charge for year | 221,334 |  | 827,125 |  | 459,658 |  | 182,094 |  | 1,690,211 |  |

| At 31 March 2026 | 6,842,673 |  | 8,671,935 |  | 3,516,359 |  | 4,358,728 |  | 23,389,695 |  |

| NET BOOK VALUE

| At 31 March 2026 | 7,652,830 |  | 3,150,583 |  | 2,829,756 |  | 194,695 |  | 13,827,864 |  |

Freehold | Fixtures |

land and | and |

buildings | Equipment | fittings |

| £ | £ | £

| COST

| At 1 April 2024 | 14,495,503 |  | 10,702,162 |  | 6,068,497 |  |

| Additions | - |  | 683,749 |  | 139,182 |  |

| At 31 March 2025 | 14,495,503 |  | 11,385,911 |  | 6,207,679 |  |

| DEPRECIATION

| At 1 April 2024 | 6,400,001 |  | 6,971,571 |  | 2,615,482 |  |

| Charge for year | 221,338 |  | 873,239 |  | 441,219 |  |

| At 31 March 2025 | 6,621,339 |  | 7,844,810 |  | 3,056,701 |  |

| NET BOOK VALUE

| At 31 March 2025 | 7,874,164 |  | 3,541,101 |  | 3,150,978 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

11. | PROPERTY, PLANT AND EQUIPMENT - continued

| Company

Assets |

under |

Computers | construction | Totals |

| £ | £ | £

| COST

| At 1 April 2024 | 4,401,163 |  | 2,539,532 |  | 38,206,857 |  |

| Additions | 53,266 |  | - |  | 876,197 |  |

| Reclassification/transfer | - |  | (2,539,532 | ) | (2,539,532 | ) |

| At 31 March 2025 | 4,454,429 |  | - |  | 36,543,522 |  |

| DEPRECIATION

| At 1 April 2024 | 4,005,439 |  | - |  | 19,992,493 |  |

| Charge for year | 171,195 |  | - |  | 1,706,991 |  |

| At 31 March 2025 | 4,176,634 |  | - |  | 21,699,484 |  |

| NET BOOK VALUE

| At 31 March 2025 | 277,795 |  | - |  | 14,844,038 |  |

| Within freehold land and buildings is land of £3,298,480 (2025: £3,298,480) which is not depreciated.

12. | INVESTMENT PROPERTY

| Group

Total |

| £

| FAIR VALUE

| At 1 April 2025

| and 31 March 2026 | 6,175,000 |  |

| NET BOOK VALUE

| At 31 March 2026 | 6,175,000 |  |

Total |

| £

| FAIR VALUE

| At 1 April 2024 | 5,850,000 |  |

| Revaluations | 325,000 |  |

| At 31 March 2025 | 6,175,000 |  |

| NET BOOK VALUE

| At 31 March 2025 | 6,175,000 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

12. | INVESTMENT PROPERTY - continued

| Group

| Rental income from the investment property of £324,831 (2025 - £324,830) was received by the parent company during the year.

| The group's investment property was revalued on 30 June 2024 by independent valuers. The directors are of the opinion that the value of the investment property is not dissimilar at 31 March 2026. Fair values of retail units have been derived using the sales comparison approach. Sales prices of comparable land and buildings in close proximity have been adjusted for differences in property size. The most significant input into this valuation is price per square foot. A price of £6.20 has been used.

| Fair value at 31 March 2026 is represented by:

| £

| Valuation in 2014 | 378,290 |  |

| Valuation in 2015 | 420,000 |  |

| Valuation in 2017 | 825,000 |  |

| Valuation in 2019 | 1,340,000 |  |

| Valuation in 2022 | 685,000 |  |

| Valuation in 2025 | 325,000 |  |

| Cost | 2,201,710 |  |

6,175,000 |  |

| If the investment property had not been revalued it would have been included at the following historical cost:

2026 | 2025 |

| £ | £

| Cost | 2,201,710 |  | 2,201,710 |  |

13. | INVESTMENTS

| Company

Shares in |

group |

undertakings |

| £

| COST

| At 1 April 2025

| and 31 March 2026 | 16,000,000 |  |

| PROVISIONS

| At 1 April 2025 | 9,000,000 |  |

| Provision written back | (1,000,000 | ) |

| At 31 March 2026 | 8,000,000 |  |

| NET BOOK VALUE

| At 31 March 2026 | 8,000,000 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

13. | INVESTMENTS - continued

| Company

Shares in |

group |

undertakings |

| £

| COST

| At 1 April 2024

| and 31 March 2025 | 16,000,000 |  |

| PROVISIONS

| At 1 April 2024 | 11,200,000 |  |

| Provision written back | (2,200,000 | ) |

| At 31 March 2025 | 9,000,000 |  |

| NET BOOK VALUE

| At 31 March 2025 | 7,000,000 |  |

| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

| SUBSIDIARY

| SMC Corporation (ZA) Proprietary Limited

| Registered office: Unit 4 Midrand Central Business Park, 1019 Morkels Close, Midrand, 1682, South Africa

| Nature of business: Distribution of pneumatic components

% |

| Class of shares: | holding |

| Ordinary | 100.00 |

2026 | 2025 |

| £ | £

| Aggregate capital and reserves | 8,667,622 |  | 7,067,354 |  |

| Profit for the year | 1,600,268 |  | 1,810,567 |  |

14. | INVENTORIES

| Group |  | Company |

2026 | 2025 | 2026 | 2025 |

| £ | £ | £ | £

| Raw materials | 4,201,402 |  | 4,225,036 |  | 4,201,402 |  | 4,225,036 |  |

| Work-in-progress | 492,228 |  | 629,063 |  | 489,098 |  | 623,214 |  |

| Finished goods | 17,105,191 |  | 16,907,690 |  | 14,717,484 |  | 14,633,896 |  |

21,798,821 |  | 21,761,789 |  | 19,407,984 |  | 19,482,146 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

15. | TRADE AND OTHER RECEIVABLES

| Group |  | Company |

2026 | 2025 | 2026 | 2025 |

| £ | £ | £ | £

| Current: |

| Trade receivables | 15,948,766 |  | 15,451,254 |  | 14,916,410 |  | 14,326,739 |  |

| Amounts owed by group undertakings | 3,943,340 |  | 3,325,601 |  | 4,101,557 |  | 3,493,662 |  |

| Prepayments | 2,758,667 |  | 2,797,367 |  | 2,756,321 |  | 2,793,151 |  |

22,650,773 |  | 21,574,222 |  | 21,774,288 |  | 20,613,552 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

15. | TRADE AND OTHER RECEIVABLES - continued

| Credit risk

| The group's principal financial assets are bank balances and trade receivables. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the statement of financial position are net of allowances for doubtful receivables.

| Other than financial asset investments, the group has no significant concentration of credit risk, with exposure spread over many distributors and customers with wide ranging turnover profiles. The term deposit accounts represent cash placed on deposit with recognised financial institutions, as such the risk of default is considered low.

| Exchange rate risk

| The directors do not consider the group's exposure to interest rate risk to be significant.

| Trade and other receivables

| The average credit period taken on goods is 55 days (2025 - 57 days). An allowance has been made covering all debts overdue by 180 days, with this being supplemented by a specific allowance for doubtful debts based on the knowledge of the financial circumstances of individual customers at the year end.

| An impairment review has been undertaken at the year end to assess whether the carrying amount of financial assets is deemed recoverable.

| The primary credit risk relates to customers which have amounts due outside of their credit period. A provision for impairment is made when there is objective evidence of impairment which is usually indicated by a delay in the expected cash flows or non-payment from customers.

| As at 31 March 2026, £52,734 (2025 - £11,354) of trade receivables were impaired in relation to customers who are known to be in financial difficulty and from whom payment was overdue by more than three months in the subsidiary company and six months in the parent company.

| The group holds no collateral against these receivables at the year end.

| The following table provides analysis of trade receivables that were past due at 31 March 2026 and 2025, but not impaired. The group believes that the balances are ultimately recoverable based on a review of past payment history and the current financial status of the customers.

|  | 31.3.26 |  | 31.3.25 |  |

|  | £ |  | £ |  |

| Not due |  | 15,583,266 |  | 15,079,499 |  |

| Between 1 and 3 months |  | 190,579 |  | 129,789 |  |

| More than 3 months |  | 174,921 |  | 241,966 |  |

| Trade receivables |  | 15,948,766 |  | 15,451,254 |  |

| As at 31 March 2026, £14,586,705 (2025 - £13,823,124) of trade receivables were denominated in Sterling, £296,392 (2025 - £162,281) in US Dollars, £33,312 (2025 - £341,335) in Euros and £1,032,357 (2025 - £1,124,514) in South African Rand.

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

16. | INVESTMENTS

| Group |  | Company |

2026 | 2025 | 2026 | 2025 |

| £ | £ | £ | £

| Term deposit accounts | 28,141,624 |  | 18,125,701 |  | 28,000,000 |  | 18,000,000 |  |

| The group has £28,141,624 (2025 - £18,125,701) in term deposit accounts. The term deposit accounts represent cash placed on deposit with recognised financial institutions maturing in more than 3 months but less than one year.

| As at 31 March 2026 £28,000,000 (2025 - £18,000,000) of financial asset investments were denominated in Sterling and £141,624 (2025 - £125,701) were denominated in South African Rand.

17. | CASH AND CASH EQUIVALENTS

| Group |  | Company |

2026 | 2025 | 2026 | 2025 |

| £ | £ | £ | £

| Bank accounts | 15,785,153 |  | 25,660,849 |  | 10,948,215 |  | 22,653,736 |  |

| Cash and cash equivalents of £43,926,777 (2025 - £43,786,552) comprise cash and short term deposits held by the group. Cash and cash equivalents and derivative financial instruments are held with AAA or AA rated banks.

| As at 31 March 2026 £37,279,221 (2025 - £40,089,247) of cash and cash equivalents were denominated in Sterling, £1,668,994 (2025 - £564,491) in Euros and £4,978,562 (2025 - £3,132,814) in South African Rand.

18. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2026 | 2025 |

value: |  | £ | £

| 14,500,000 | Ordinary | £1 | 14,500,000 |  | 14,500,000 |  |

| The authorised share capital of the company is 20,000,000 Ordinary shares of £1 each.

19. | RESERVES

| Group

Retained |

earnings |

| £

| At 1 April 2025 | 81,635,344 |  |

| Profit for the year | 14,142,459 |  |

| Dividends | (16,134,000 | ) |

| At 31 March 2026 | 79,643,803 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

19. | RESERVES - continued

Retained |

earnings |

| £

| At 1 April 2024 | 68,497,552 |  |

| Profit for the year | 12,894,042 |  |

| Gain on revaluation of

| investment property | 243,750 |  |

| At 31 March 2025 | 81,635,344 |  |

| Company

Retained |

earnings |

| £

| At 1 April 2025 | 81,567,989 |  |

| Profit for the year | 13,542,192 |  |

| Dividends | (16,134,000 | ) |

| At 31 March 2026 | 78,976,181 |  |

Retained |

earnings |

| £

| At 1 April 2024 | 68,040,764 |  |

| Profit for the year | 13,283,475 |  |

| Gain on revaluation of

| investment property | 243,750 |  |

| At 31 March 2025 | 81,567,989 |  |

20. | TRADE AND OTHER PAYABLES

| Group |  | Company |

2026 | 2025 | 2026 | 2025 |

| £ | £ | £ | £

| Current: |

| Accounts payable - trade | 2,125,041 |  | 1,469,101 |  | 1,899,779 |  | 1,223,376 |  |

| Social security and other taxes | 2,229,513 |  | 1,251,565 |  | 2,076,012 |  | 1,164,527 |  |

| Amounts owed to group undertakings | 9,179,526 |  | 8,011,704 |  | 8,285,329 |  | 7,589,306 |  |

| Accruals | 525,440 |  | 695,161 |  | 412,370 |  | 628,462 |  |

14,059,520 |  | 11,427,531 |  | 12,673,490 |  | 10,605,671 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

20. | TRADE AND OTHER PAYABLES - continued

| The average credit period in respect of purchases from group undertakings is 86 days (2025 - 90 days) and for other trade payables is 37 days (2025 - 43 days).

| As at 31 March 2026, £1,813,845 (2025 - £861,411) of trade payables were denominated in Sterling, £20,647 (2025 - £261,429) in US Dollars, £65,287 (2025 - £100,536) in Euros and £225,262 (2025 - £245,725) in South African Rand.

| Exchange rate risk

| The directors do not consider the group's exposure to interest rate risk to be significant.

21. | LEASING

| Group and Company

| Minimum lease payments under non-cancellable operating leases fall due as follows:

|  | 31.3.26 |  | 31.3.25 |  |

| £ |  | £ |  |

| Within one year |  |  | 403,212 |  | 352,740 |  |

| Between one and five years |  |  | 1,122,280 |  | 988,870 |  |

| After more than five years |  |  | 444,221 |  | 657,031 |  |

|  | 1,969,713 |  | 1,998,640 |  |

| Minimum lease receipts under non-cancellable operating leases fall due as follows:

|  | 31.3.26 |  | 31.3.25 |  |

| £ |  | £ |  |

|  | Property |  | Property |  |

| Within one year |  | 312,513 |  | 312,513 |  |

| Between one and five years |  | 498,812 |  | 811,325 |  |

|  | 811,325 |  | 1,123,838 |  |

22. | DEFERRED TAX

| Group

2026 | 2025 |

| £ | £

| Balance at 1 April | 1,705,444 |  | 2,200,830 |  |

| (Decrease)/increase during the year | (651,038 | ) | (495,386 | ) |

| Balance at 31 March | 1,054,406 |  | 1,705,444 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

22. | DEFERRED TAX - continued

| Company

2026 | 2025 |

| £ | £

| Balance at 1 April | 2,639,737 |  | 2,783,612 |  |

| Movement in year | (309,453 | ) | (143,875 | ) |

| Balance at 31 March | 2,330,284 |  | 2,639,737 |  |

| Deferred tax is provided in the financial statements as follows:

|  | 31.3.26 |  | 31.3.25 |  |

| £ |  | £ |  |

| Property, plant and equipment - accelerated capital allowances |  | 1,398,608 |  | 1,708,062 |  |

| Investment property - increase in valuation |  | 931,675 |  | 931,675 |  |

| Deferred tax asset on subsidiary losses |  | (1,275,877 | ) | (934,293 | ) |

|  | 1,054,406 |  | 1,705,444 |  |

23. | PENSION COMMITMENTS

| Pension contributions during the year amounted to £704,020 (2025: £807,326).

24. | ULTIMATE PARENT COMPANY

| The group's immediate and ultimate parent undertaking and controlling party is SMC Corporation, a company registered in Japan.

| Group financial statements are drawn up by SMC Corporation and copies are available from 1-5-5 Kyobashi, Chuo-Ku, Tokyo, 104-0031, Japan.

25. | CONTINGENT LIABILITIES

| Bank guarantees of up to £2,100,000 (2025 - £2,100,000). have been given in respect of VAT liabilities on goods imported. The directors are of the opinion that the likelihood of any material loss being made against these guarantees is remote, and therefore no provision has been made in the financial statements.

26. | CAPITAL COMMITMENTS

2026 | 2025 |

| £ | £

| Contracted but not provided for in the

| financial statements | 24,995 |  | - |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

27. | RELATED PARTY DISCLOSURES

| The following transactions for the Group took place with related parties:

| Year ended 31 March 2026 |  | Income for year |  | Expenditure for year |  | Receivable at 31.03.26 |  | Payable at 31.03.26 |  |

|  | £ |  | £ |  | £ |  | £ |  |

| Holding Company: SMC Corporation, Japan |  | 373,283 |  | 25,935,245 |  | 1,729,504 |  | 7,618,634 |  |

| Fellow associated companies: |  | 884,996 |  | 5,697,682 |  | 2,213,836 |  | 1,560,892 |  |

| Year ended 31 March 2025 |  | Income for year |  | Expenditure for year |  | Receivable at 31.03.25 |  | Payable at 31.03.25 |  |

|  | £ |  | £ |  | £ |  | £ |  |

| Holding Company: SMC Corporation, Japan |  | 368,963 |  | 23,034,805 |  | 1,619,114 |  | 6,522,402 |  |

| Fellow associated companies: |  | 843,035 |  | 5,271,046 |  | 1,706,487 |  | 1,489,302 |  |

| Key management:

| The key members of management are the directors K P O'Carroll, N Pittwood and D Westwood together with executive management team member L J Williams. The total emoluments for the year to 31 March 2026 of these individuals was £682,004 (2025 - £709,600). Directors' emoluments are disclosed within the employees and directors note (note 4).

| The following transactions took place for the Company with related parties:

| Year ended 31 March 2026 |  | Income for year |  | Expenditure for year |  | Receivable at 31.03.26 |  | Payable at 31.03.26 |  |

|  | £ |  | £ |  | £ |  | £ |  |

| Holding Company: |  |

| SMC Corporation, Japan |  | 373,283 |  | 23,632,219 |  | 1,729,504 |  | 6,761,523 |  |

| Subsidiary Company: |  |

| SMC South Africa |  | 36,398 |  | 14,675 |  | 171,573 |  | 3,191 |  |

| Fellow associated companies: |  | 876,208 |  | 5,398,236 |  | 2,200,480 |  | 1,520,615 |  |

| Year ended 31 March 2025 |  | Income for year |  | Expenditure for year |  | Receivable at 31.03.25 |  | Payable at 31.03.25 |  |

|  | £ |  | £ |  | £ |  | £ |  |

| Holding Company: |  |

| SMC Corporation, Japan |  | 368,963 |  | 21,015,048 |  | 1,619,114 |  | 6,071,616 |  |

| Subsidiary Company: |  |

| SMC South Africa |  | 24,826 |  | 6,655 |  | 163,609 |  | 15,701 |  |

| Fellow associated companies: |  | 819,242 |  | 4,993,149 |  | 1,710,939 |  | 1,501,989 |  |

SMC CORPORATION (U.K.) LIMITED (REGISTERED NUMBER: 01352967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2026

| Management fees of £1,224,138 (2025 - £772,115) were recharged to Group companies during the year.