The directors present the strategic report for the year ended 31 December 2025.
Principal activities of the company continue to be the design, development, manufacture and after-market support of mission-critical complex power and control sub-assemblies for blue chip customers in high-reliability and high-performance end markets, primarily aerospace and defence.
Key to the on-going success of the company is its ability to deliver innovative and bespoke products and services to help provide solutions to our key customers’ needs for use in extreme environments and safety critical applications common in the aerospace and defence industries. This is delivered through TT Electronics Power Solutions’ own turnkey design, engineering and manufacturing capabilities as well as leveraging the links that exist through the wider TT Group.
Some of the key financial and other performance indicators are shown below:
| 2025 | 2024 |
£000's | £000's | |
Turnover | 14,654 | 16,734 |
Operating profit | 2,351 | 1,362 |
Profit after tax | 2,003 | 1,264 |
Order book | 52,984 | 38,388 |
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The directors report turnover of £14,654,000 (2024: £16,734,000) and an operating profit of £2,351,000 (2024: £1,362,000) for the year to 31 December 2025.
The operating profit is reported after suffering intangible asset amortisation. The adjusted operating profit is £2,580,000 (2024: £1,595,000).
The closing order book stands at £52,984,000 (2024: £38,388,000) a 38% increase on 2024. The order book includes contract wins in 2025 with Honeywell, Rolls Royce, MBDA and BAE. The new business orders won in 2025 were £29,249,000 (2024: £26,240,000)
The results for 2025 show a restated operating profit of 18% (2024: 10%). The key enablers to this success were completion of problematic low margin contracts, improved business efficiency and the continued investment in the engineering capability which has been instrumental in the successful execution of current contracts and securing new business opportunities. There is a very accessible large market with considerable opportunities for the company’s products and services which the company is well placed to secure.
There is always the threat of Government budgetary cutbacks in defence programmes, although there are signs that some defence programmes may still be subject to cutback or delay, the overall UK market is robust with recent global events influencing Government spending resulting in a strengthening of available funding for defence contracts.
Supply chain cost increases are always a threat throughout the industry and to company profitability, recent global events could create future pressures although the company is not aware of any potential issues.
The company has considerable financial resources together with a number of long-term contracts with various customers. Consequently, the directors believe that the company is well placed to manage its business risks successfully.
The directors know of no reason to believe that any uncertainty exists that would cast any doubt over the ability of the company to continue as a going concern and therefore the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Under Section 172 of the Companies Act 2006, directors are required to promote the success of the Company for the benefit of its shareholders and, in doing so, to have regard to the interest of all of our stakeholders.
The board of directors of TT Electronics Power Solutions (UK) Limited considers, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1) (a-f) of the Companies Act 2006).
The board of directors have identified the key stakeholders that are impacted by the company’s activities and have identified the activities through which the board can either directly or indirectly (through senior management or the wider group’s engagement) engage with these stakeholders. The key stakeholders identified are customers, suppliers, employees, local community and the TT Electronics Group during 2025.
Examples of direct and indirect engagement activities with the stakeholders are:
The directors and senior leadership team held monthly “All Hand Briefs” covering all aspects of business which included New Orders, Revenue, Profit, Operations, Supply Chain, Product Focus, Health and Safety, Quality, Staff Welfare, and HR. The briefs were interactive with the opportunity for Q&A throughout the brief.
The directors and senior leadership team led the annual Employee engagement survey which recorded employees’ views on key issues. The senior team reviewed the survey results and provided feedback with action plans for improvement.
The directors and senior leaders have continued to facilitate employee engagement and wellbeing opportunities.
This included:
Publication of the “Monthly Employee Bulletin”
Specific training in the TT ways of working, TT systems and processes.
Employee forum
Skip sessions
Hybrid working
Free fruit
Company team building events which incorporated fund raising for local charities.
Directors worked closely with the business development team enabling the company to continue to win new orders.
The directors and senior leaders have worked closely with the Divisional team and in particular the Marketing team to understand and listen to the Voice of the Customer (VOC) through VOC surveys.
The board confirms that decisions affecting the company made by the board of directors have been made in consideration of the company’s’ stakeholders and the information they have provided to the wider group of companies facilitates in decision-making at a divisional or group level with regard to the group’s stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The company continues to commit a significant amount of resource to further develop new and enhance existing products to reinforce the competitive edge of the company's product range. Research and development expenditure will remain at similar levels to 2025. In addition, the company holds certain patents over its products to protect its future business worldwide.
In accordance with the company's articles, a resolution proposing that Edwards be reappointed as auditor of the company will be put at a General Meeting.
Whilst the company has consumed more than 40,000 kWh of energy in this reporting period, no report has been documented in these financial statements. Instead a group reporting statement has been completed as part of the consolidated financial statements of the ultimate parent company.
No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.
Notwithstanding net current liabilities of £7,966,000 as at 31 December 2025, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate based on the company’s forecast performance and cash generation.
In addition, the directors have received written confirmation from the company’s immediate parent undertaking, TT Electronics Group Holdings Limited, stating that they do not intend to request repayment of their loan, currently included amounts owed to group undertakings, within the next 12 months.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on the going concern basis.
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
United Kingdom 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 TT Electronics Power Solutions (UK) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and health & safety regulations compliance.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: recognition of income, the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically relating to the revenue and profit recognition in respect of long term contracts, stock and contract provisions and the useful economic lives and carrying values of intangible fixed assets. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.
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.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of comprehensive income 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.
The notes on pages 12 to 26 form part of these financial statements.
TT Electronics Power Solutions (UK) Limited is a private company limited by shares incorporated and domiciled in England and Wales. The registered office is Eagle House, Eagle Technology Park, Eagle Way, Rochdale, Manchester, OL11 1TQ. The company's principal activities and nature of its operations are disclosed in the directors' report.
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 £000's.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
comparative narrative information;
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of TT Electronics Plc. The group accounts of TT Electronics Plc are available to the public and can be obtained from Companies House.
Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.
The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Customer Relationships Over the remaining useful life of the asset
Order Backlog Over the remaining useful life of the asset
Software 33.33% straight line
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 recognised in the profit and loss account.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The tax expense represents the sum of the tax currently payable and deferred tax.
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 profit and loss account, 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.
Long term contracts
The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.
Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.
Amounts recoverable on contracts are included in debtors and represents turnover recognised in excess of payments on account.
Payments on account in excess of amounts matched with turnover and offset against long-term contract balances are separately disclosed within creditors.
Research and development expenditure
Research costs are written off against profits in the year in which they are incurred. Identifiable development costs are capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated and are amortised over their useful economic life. For the year ended 31 December 2025, the directors are of the opinion that no amortisation should be provided in the financial statements on the basis that development costs are not yet in the location or condition necessary for them to be available and capable of operating in their intended manner.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.
The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is subsequently reversed if, and only if, the reasons for the impairment loss have ceased to apply.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives as described in more detail in the accounting policy.
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Turnover is attributable to the company’s principal activity and is analysed by geographical market below:
These exceptional items in the prior reporting period relate to the integration and relocation of the business following the purchase of trade and assets.
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 1 (2024 - 1).
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
The directors consider that the carrying amount of debtors approximates their fair value.
Included within accruals and deferred income at 31 December 2025 is deferred income of £362,000 (2024 - £Nil) relating to government grants received.
The movements in deferred tax liabilities and assets during the current and prior reporting period are noted below:
At 31 December 2025 the company had capital commitments as follows:
The company has taken advantage of the exemption available under FRS101 and has not disclosed transactions with TT Electronics PLC or its wholly owned subsidiaries.