Contents of the Financial Statements

for the Period Ended 31 December 2025

Directors' report period ended 31 December 2025

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

Directors

The directors shown below have held office during the whole of the period from
1 January 2025 to 31 December 2025

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
30 June 2026

And signed on behalf of the board by:
Name: Mr Joseph P Nestegard
Status: Director

Profit And Loss Account

for the Period Ended 31 December 2025

Balance sheet

As at 31 December 2025

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2025 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Turnover policy

  Turnover Turnover is recognised when (or as) the company satisfies a performance obligation by transferring control of goods or services to a customer. Turnover is measured at the transaction price, being the amount of consideration to which the company expects to be entitled in exchange for transferring promised goods or services, excluding collected on behalf of third parties. The company applies the following five-step model: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognise revenue when (or as) the entity satisfies a performance obligation Turnover from the sale of goods is recognised at the point in time when control of goods passes to the buyer (usually on delivery of the goods). Turnover from contracts for the provision of engineering services is recognised over time, by reference to the stage of completion. The stage of completion is calculated by comparing costs incurred, mainly in relation to the cost of goods for materials as a proportion of total costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that it is probably will be recovered. Other Operating Income Schweitzer Engineering Laboratories Inc. and Schweitzer Engineering Laboratories UK, Ltd agree to payment of any service fee by a party to the other party; and is intended to result in an arm's-length return to each party for risks assumed, services performed and activities undertaken in the Period. Such fees shall be calculated to achieve the arm's-length return in accordance with internationally accepted transfer pricing methods, as elaborated in the OECD Transfer Pricing Guidelines and the Section 482 Regulations. The service fees will be calculated quarterly to bring Schweitzer Engineering Laboratories UK, Ltd to an agreed level of profit. This is agreed on a global scale by Schweitzer Engineering Laboratories Inc.

  Tangible fixed assets depreciation policy

  Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of the assets less their residual values over their useful lives on the following bases: Office Equipment 3 years straight-line Leasehold improvements 5 years straight-line Right-of-use assets Lease term Demo items are held for one year or less. The useful life of these items are one year and are therefore expensed in profit and loss. 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 and loss.

  Other accounting policies

  Impairment of fixed assets At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Stocks Stocks are stated at the lower cost and estimated selling price less costs to complete and sell. Cash and cash equivalents Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts would be shown within borrowings in current liabilities. Financial instruments The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Equity instruments Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. Taxation The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Employee Benefits The costs of short-term employee benefits are recognised as a liability and an expense. Retirement benefits For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Leases At the commencement date of the lease, the company recognises a right-of-use asset and a corresponding lease liability for leases with a term of more than 12 months, unless the underlying asset is of low value. The lease liability is initially measured at the present value of the lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or, whether this cannot be readily determined, the Company's incremental borrowing rate. The right-of-use asset is initially measured at cost, compromising the amount of the initial lease liability adjusted for any lease payments made on commencement of the lease), and subsequently depreciated over the shorter of the lease term and the useful life of the underlying asset. Rentals payable under leases with a term of less than 12 months or with underlaying asset of low value, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. Foreign exchange Transactions in currencies other than pounds sterling are initially recorded at the exchange rate prevailing on the date of the transaction. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on the translation in the period are included in profit or loss.

Notes to the Financial Statements

for the Period Ended 31 December 2025

• 2. Employees

  	2025	2024
  Average number of employees during the period	11	9