Company registration number 01689259 (England and Wales)
DYNAMIC CONTROLS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
DYNAMIC CONTROLS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
DYNAMIC CONTROLS LIMITED
COMPANY INFORMATION
Directors
Mr M T Fitzgerald
(Appointed 17 November 2025)
Mr L Hudson
(Appointed 23 April 2026)
Mr T W Smith
(Appointed 28 April 2026)
Secretary
Mr A Cobey
(Appointed 06 July 2026)
Company number
01689259
Registered office
Dynamic Works
Union Street
Royton
Oldham
United Kingdom
OL2 5JD
Auditor
Fairhurst Audit Services Ltd
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB
DYNAMIC CONTROLS LIMITED
STRATEGIC REPORT
For The Year Ended 31 December 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Review of Business and Future Developments

Dynamic Controls Limited designs and manufactures specialist cartridge valves, manifolds, reducing stations and associated fluid and gas control systems for demanding applications across the defence, nuclear, marine and industrial sectors. The Company also manufactures bellows sealed globe valves for nuclear and diesel-electric submarine programmes, aircraft carriers and other critical applications where safety, reliability and performance are paramount.

The year ended 31 December 2025, represented a significant recovery for the business following the operational and financial challenges experienced during 2024. Revenue was largely on par with last year, however, profitability improved substantially, with operating profit increasing to £1.8 million compared to an operating loss of £2.4 million in the prior year. Gross profit improved to £5.1 million, representing a gross margin of 37.6%, compared to £0.5 million and 3.4% respectively in 2024.

The improvement in performance was driven by a combination of factors, including the improved production efficiency, enhanced operational controls, a more favourable sales mix and improved management of inventory and working capital. Throughout the year the Company remained focused on quality, delivery performance and operational discipline whilst continuing to support key customer programmes within the defence and energy sectors.

Cash generation also improved significantly during the year, Cash balances increased to £1.3 million by year end, strengthening the Company's liquidity position and supporting future investment requirements.

During the year the Company continued to invest in its facilities, equipment and operational capabilities, with capital expenditure of £0.3 million. These investments support ongoing improvements in productivity, quality and capacity whilst positioning the business to meet future customer demand.

The Board remains committed to maintaining the highest standards of quality, safety and regulatory compliance. Significant emphasis continues to be placed on operational excellence, employee development and customer satisfaction to ensure the long-term success and sustainability of the business.

Looking forward, the Company enters 2026 with a strong order book and positive market outlook across its core defence, nuclear and commercial sectors. The Board believes the business is well positioned to capitalise on future opportunities through continued operational improvement, strategic investment and the strengthening of customer relationships.

Principal risks and uncertainties

Credit risk is mitigated by a credit limit being set for all customers and monitoring the amount of credit offered on a regular basis. This is further managed and overseen by the corporate Treasury department for Dynamic Controls' ultimate parent company, BWX Technologies, Inc. Liquidity risk is monitored locally by the on-site Management Accountant and Managing Director, but managed by the corporate Treasury department for BWX Technologies, who will ensure the C ompany has sufficient current and future cash reserves and facilities available to meet its liabilities and financial obligations for at least twelve months from the signing of the financial statements.

DYNAMIC CONTROLS LIMITED
STRATEGIC REPORT (CONTINUED)
For The Year Ended 31 December 2025
- 2 -
Key Performance Indicators

The main financial key performance indicators used to monitor business performance are sales, gross profit, operating profit and operating cash flows. In addition, there is a management team in place to monitor health and safety, regulatory compliance, and customer satisfaction.

| 2025 |  | 2024
Turnover |  | 13,475,326 |  | 13,370,318
Gross Profit |  | 5,069,221 |  | 454,379
Gross Profit % |  | 37.6% |  | 3.4%
Operating Profit/(Loss) Net assets |  | 1,776,883 4,257,658 |  | (2,421,163) 2,540,159
Operating Cash Flows |  | 1,479,411 |  | (1,285,116)

It is important to note that Dynamic Controls operates a milestone-based payment structure with its primary customer. Approximately 30% of the contract value is paid upon award to enable the C ompany to secure long-lead material procurements to support production.

On behalf of the board

Mr L Hudson
Director
20 July 2026
DYNAMIC CONTROLS LIMITED
DIRECTORS' REPORT
For The Year Ended 31 December 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Principal activities

Dynamic Controls continues to design and manufacture cartridge valves, for the nuclear and diesel electric submarine market, aircraft carriers, and the nuclear market. Additionally, we design and manufacture engine and high pressure gas supply control systems for cargo ships and LNG carriers.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

B J Ruscillo
(Resigned 24 September 2025)
Mr J Miller
(Resigned 24 September 2025)
Mr M T Fitzgerald
(Appointed 17 November 2025)
Mr L Hudson
(Appointed 23 April 2026)
Mr T W Smith
(Appointed 28 April 2026)
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

DYNAMIC CONTROLS LIMITED
DIRECTORS' REPORT (CONTINUED)
For The Year Ended 31 December 2025
- 4 -
On behalf of the board
Mr L Hudson
Director
20 July 2026
DYNAMIC CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DYNAMIC CONTROLS LIMITED
- 5 -
Opinion

We have audited the financial statements of Dynamic Controls Ltd (the 'company') for the year ended 31 December 202 5 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

DYNAMIC CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DYNAMIC CONTROLS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

T he extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to 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. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

DYNAMIC CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DYNAMIC CONTROLS LIMITED (CONTINUED)
- 7 -

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.

John B S Fairhurst BA (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Fairhurst Audit Services Ltd, Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB
20 July 2026
DYNAMIC CONTROLS LIMITED
PROFIT AND LOSS ACCOUNT
For The Year Ended 31 December 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
13,475,326
13,370,318
Cost of sales
(8,406,105)
(12,915,939)
Gross profit
5,069,221
454,379
Administrative expenses
(3,292,338)
(2,875,542)
Operating profit/(loss)
4
1,776,883
(2,421,163)
Interest receivable and similar income
7
31,976
33,714
Interest payable and similar expenses
8
(47,944)
(15,797)
Profit/(loss) before taxation
1,760,915
(2,403,246)
Tax on profit/(loss)
9
(43,416)
178,373
Profit/(loss) for the financial year
1,717,499
(2,224,873)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DYNAMIC CONTROLS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 31 December 2025
- 9 -
2025
2024
£
£
Profit/(loss) for the year
1,717,499
(2,224,873)
Other comprehensive income
-
-
Total comprehensive income for the year
1,717,499
(2,224,873)
DYNAMIC CONTROLS LIMITED
BALANCE SHEET
As At 31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,801,699
1,727,334
Current assets
Stocks
11
7,101,419
7,725,274
Debtors
12
2,694,755
4,781,874
Cash at bank and in hand
1,304,865
184,462
11,101,039
12,691,610
Creditors: amounts falling due within one year
13
(8,328,597)
(11,571,284)
Net current assets
2,772,442
1,120,326
Total assets less current liabilities
4,574,141
2,847,660
Provisions for liabilities
Deferred tax liability
14
316,483
307,501
(316,483)
(307,501)
Net assets
4,257,658
2,540,159
Capital and reserves
Called up share capital
16
6,000
6,000
Profit and loss reserves
4,251,658
2,534,159
Total equity
4,257,658
2,540,159

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

The financial statements were approved by the board of directors and authorised for issue on 20 July 2026 and are signed on its behalf by:
Mr L Hudson
Director
Company registration number 01689259 (England and Wales)
DYNAMIC CONTROLS LIMITED
STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2025
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2024
6,000
4,759,032
4,765,032
Year ended 31 December 2024:
Loss and total comprehensive income
-
(2,224,873)
(2,224,873)
Balance at 31 December 2024
6,000
2,534,159
2,540,159
Year ended 31 December 2025:
Profit and total comprehensive income
-
1,717,499
1,717,499
Balance at 31 December 2025
6,000
4,251,658
4,257,658
DYNAMIC CONTROLS LIMITED
STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
1,479,411
(1,285,116)
Interest paid
(47,944)
(15,797)
Income taxes paid
-
0
(240,675)
Net cash inflow/(outflow) from operating activities
1,431,467
(1,541,588)
Investing activities
Purchase of tangible fixed assets
(343,040)
(569,023)
Interest received
31,976
33,714
Net cash used in investing activities
(311,064)
(535,309)
Net increase/(decrease) in cash and cash equivalents
1,120,403
(2,076,897)
Cash and cash equivalents at beginning of year
184,462
2,261,359
Cash and cash equivalents at end of year
1,304,865
184,462
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2025
- 13 -
1
Accounting policies
Company information

Dynamic Controls Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dynamic Works, Union Street, Royton, Oldham, United Kingdom, OL2 5JD.

1.1
Basis of preparation

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

1.2
Revenue

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for goods and services provided.

The company recognises revenue when the significant risks and rewards of ownership have transferred to the buyer. This is usually when the customer takes delivery of the goods.

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract at the reporting date. When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Amounts recoverable on contracts are stated at the net sales value of the work completed, taking into account any necessary provisions for anticipated future losses on contracts. Milestone payments on account received on contracts are included in creditors, having netted off any sales value of the work completed on the contracts.

1.3
Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation and impairment.

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

Freehold and leasehold land and buildings
5-10% on cost
Plant and equipment
10% - 33 1/3% on cost
1.4
Impairment of fixed assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for th e asset in prior years. A reversal of an impairment loss is recognised as income immediately.

1.5
Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct expenditure and an appropriate proportion of variable overheads.

DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
1
Accounting policies
(Continued)
- 14 -
1.6
Financial instruments

The company only holds basic financial instruments, as defined under Section 11 of FRS 102.

Short term financial assets, including trade and other debtors and cash and bank balances, are measured at the transaction price.

Short term financial liabilities, including trade and other creditors, are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due.

1.7
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.8
Employee benefits

Short term employee benefits are recognised as an expense in the period in which they are incurred.

The company operates a number of defined contribution pension schemes. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the company. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to the profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight-line basis.

1.10
Foreign exchange

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

1.11

Research and development

Research and development expenditure is written off in the profit and loss account in the period in which it is incurred.

DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 15 -
2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements require management to make significant judgements, estimates and assumptions. The items in the financial statements where these judgements and estimates have been made include:

Judgements

The useful economic lives of tangible fixed assets are assessed on an annual basis on the latest available information. Management believe that the useful economic lives being used currently are still appropriate.

Sources of estimation uncertainty

Stock provisions are assessed annually by experienced management, using their product knowledge and industry specific background.

3
Turnover and other revenue

The turnover and profit (202 4 - loss) before taxation are attributable to the one principal activity of the company.

2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
6,795,513
9,381,053
Europe
5,060,388
3,593,530
United States of America
1,367,784
286,272
Australia
-
96,369
Canada
251,641
13,094
13,475,326
13,370,318
2025
2024
£
£
Other revenue
Interest income
31,976
33,714
4
Operating profit/(loss)
2025
2024
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(90,228)
4,171
Fees payable to the company's auditor for the audit of the company's financial statements
18,500
17,500
Depreciation of tangible fixed assets
268,675
245,170
Operating lease charges
74,338
43,882
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 16 -
5
Employees

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

2025
2024
Number
Number
Administration
25
23
Manufacturing
46
36
Total
71
59

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,069,468
2,497,753
Social security costs
361,828
297,110
Pension costs
93,479
80,473
3,524,775
2,875,336
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
255,106
175,832
Compensation for loss of office
48,375
-
0
303,481
175,832
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
31,976
33,714
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost
Interest on bank overdrafts and loans
47,944
15,797
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 17 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
34,434
-
0
Adjustments in respect of prior periods
-
0
(240,675)
Total current tax
34,434
(240,675)
Deferred tax
Origination and reversal of timing differences
8,982
62,302
Total tax charge/(credit)
43,416
(178,373)

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

2025
2024
£
£
Profit/(loss) before taxation
1,760,915
(2,403,246)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
440,229
(600,812)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
168
Tax effect of utilisation of tax losses not previously recognised
-
0
255,814
Adjustments in respect of prior years
-
0
(240,675)
Permanent capital allowances in excess of depreciation
6,719
3,600
Deferred tax adjustments in respect of prior years
(403,532)
403,532
Taxation charge/(credit) for the year
43,416
(178,373)
10
Tangible fixed assets
Freehold and leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost or valuation
At 1 January 2025
888,984
2,751,557
3,640,541
Additions
75,019
268,021
343,040
At 31 December 2025
964,003
3,019,578
3,983,581
Depreciation and impairment
At 1 January 2025
170,189
1,743,018
1,913,207
Depreciation charged in the year
49,221
219,454
268,675
At 31 December 2025
219,410
1,962,472
2,181,882
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
10
Tangible fixed assets
Freehold and leasehold land and buildings
Plant and equipment
Total
£
£
£
(Continued)
- 18 -
Carrying amount
At 31 December 2025
744,593
1,057,106
1,801,699
At 31 December 2024
718,795
1,008,539
1,727,334

Included in cost or valuation of land and buildings is freehold land of £15,500 (202 4 - £15,500) which is not depreciated. Long leasehold property was valued on an open market,existing use basis in June 2018 by Avison Young,Valuers. The directors have relied upon this valuation, taking into account the current property market conditions, in arriving at it's net book value at 31 December 202 5.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2025
2024
£
£
Cost
1,222,666
1,147,647
Accumulated depreciation
(518,188)
(457,569)
Carrying value
704,478
690,078
11
Stocks
2025
2024
£
£
Raw materials and consumables
7,101,419
7,725,274
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,317,079
919,588
Gross amounts owed by contract customers
-
0
3,308,582
Corporation tax recoverable
240,675
240,675
Other debtors
137,001
313,029
2,694,755
4,781,874
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 19 -
13
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
5,290,046
7,613,560
Amounts owed to group undertakings
317,336
1,488,232
Corporation tax
34,434
-
0
Other taxation and social security
180,412
66,345
Other creditors
2,506,369
2,403,147
8,328,597
11,571,284
14
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
316,483
307,501
2025
Movements in the year:
£
Liability at 1 January 2025
307,501
Charge to profit or loss
8,982
Liability at 31 December 2025
316,483

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,479
80,473

The company operates a defined contribution pension scheme. The pension cost for the period represents contributions payable by the company to the fund and amounted to £93,479 (202 4- £80,473). As at the year end there were £Nil (202 4 - £Nil) contributions outstanding.

16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
6,000
6,000
6,000
6,000
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 20 -
17
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
81,940
81,940
Years 2-5
212,004
212,004
After 5 years
2,558,943
2,781,823
2,852,887
3,075,767
18
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
-
62,160
19
RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

20
ULTIMATE PARENT COMPANY

The company's parent company is BWXT Government Group, Inc. and the company's ultimate parent company is BWX Technologies, Inc., both companies are incorporated in Delaware USA.

21
Cash generated from/(absorbed by) operations
2025
2024
£
£
Profit/(loss) after taxation
1,717,499
(2,224,873)
Adjustments for:
Taxation charged/(credited)
43,416
(178,373)
Finance costs
47,944
15,797
Investment income
(31,976)
(33,714)
Depreciation and impairment of tangible fixed assets
268,675
245,170
Movements in working capital:
Decrease/(increase) in stocks
623,855
(2,767,030)
Decrease/(increase) in debtors
2,087,119
(2,898,539)
(Decrease)/increase in creditors
(3,277,121)
6,556,446
Cash generated from/(absorbed by) operations
1,479,411
(1,285,116)
DYNAMIC CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For The Year Ended 31 December 2025
- 21 -
22
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
184,462
1,120,403
1,304,865
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