Registered number: 01008089
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
The year saw a 4% increase in turnover to £54,202,493 (2024: £52,108,999). The Group reported a profit before tax of £4,333,837 as against £1,951,256 in FY2024.
The position of the Group at year end
The total Group net assets stand at £25,984,641 in 2025 (2024: £21,800,673) and there is no bank debt. Cash at the bank at the year-end stood at £635,728. This enables the Group to maintain and fund its current operations without any dependencies.
The position of the Group at year end
The total Group net assets stand at £25,984,641 in 2025 (2024: £21,800,673) and there is no bank debt. Cash at the bank at the year-end stood at £635,728. This enables the Group to maintain and fund its current operations without any dependencies.
While the Group operates in a strong market with sustained growth outlook over the next decade, its performance relies on the ability to execute projects successfully and support its customers in the long term. The main risk faced by the Group is the ability to scale up rapidly to meet market demand in a sustainable way along with timely execution of the projects. Being now part of a World leading group in our market provides the Group additional scale and flexibility. Besides, a third of the Group revenue consists of recurring services based on long term support contracts that provide certainty year on year. This year, we saw marginal recoveries and were able to maintain our revenue level despite changes in overall market dynamics and longer execution period. The directors believed in maintaining the current cost base as it is a necessary part of the Group’s transformation and growth journey. As per our commitment, we continue to monitor performance closely and remain focused on delivering shareholder value over the medium to long term. The Group is exposed to general price risk in quoting fixed price contracts. However, with its experience of implementing such work and the significant cash reserves, this risk is seen as low.
Liquidity Risk
The Group has ample funds available in cash pooling accounts to mitigate any secondary risks mentioned in this report. The Group continuously monitors its funds maintained under cash pooling against possible risks.
Credit Risk
Customers repeatedly press for extension of payment terms and in an increasing number of cases, pay later than contracted.
The Group recognises credit risk as a core exposure arising from counterparties' potential inability to meet financial obligations. To mitigate this, we have adopted a structured framework that emphasises:
∙Rigorous Assessment: Continuous evaluation of counterparties' creditworthiness through financial analysis, stress testing, and monitoring of market indicators;
∙Controls and Governance: Strengthening approval processes, setting clear credit limits, and ensuring oversight through regular reporting to senior management; and
∙Monitoring and Early Warning: Implementing real-time tracking of outstanding exposures and establishing early warning triggers to identify deteriorating credit profiles.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Exchange Rate Risk
Whenever feasible, the work is quoted in £s sterling or in Swiss Francs in the Swiss operation. On the occasions when the work is invoiced in foreign currencies, this is carefully considered, and the effect is mitigated by the cash reserves. Further, the risk is managed by:
∙Operational Adjustments: Aligning procurement, pricing, and invoicing practices to minimise adverse currency impacts; and
∙Monitoring and Forecasting: Continuous tracking of currency movements and related macro indicators to anticipate volatility and adjust strategies accordingly.
This year, we saw challenges to maintain our revenue level due to changes in overall market dynamics and longer execution period. The Group primarily uses turnover and earnings before interest and taxes as key performance indicators.
The directors of Digital Applications International Limited ("DAI") are aware of 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 and in doing so have regard (amongst other matters) to:
∙the likely consequences of any decision in the long term;
∙the interests of the Group's employees;
∙the need to foster the Group's business relationships with suppliers, customers and others;
∙the impact of the Group's operations on the community and the environment;
∙the desirability of the Group to maintain a reputation for high standards of business conduct; and
∙the need to act fairly as between members of the Group.
The directors' approach
The board has a duty to promote the success of the Group for the benefit of its shareholders.
In doing so, the directors place great importance in the interest of the Group's employees, its business relationship with customers and suppliers and the impact of its operations on communities and the environment when making decisions. The Group has taken a stance and started preparations to support European Customers with achievement of their obligations under the recent EU NIS2 Directive setting out requirements pertaining to Cybersecurity.
Maintaining our license to operate
During the prior year the Group deployed an employee feedback initiative via an employee engagement survey. All employees are encouraged to provide their own feedback anonymously, on a range of topics including communication and collaboration, strategy and direction, leadership and recognition, and feedback. The results of the survey have been published and direct actions implemented with the intention to address topics where employees have highlighted potential for improvement.
An employee forum has been setup as a partnership between representatives of employees and the Leadership Team. On a monthly basis town halls are held to communicate business performance and strategic direction.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
In terms of the Group's involvement with the community, the directors are very proud of the Group's volunteering efforts. We have worked closely with a local charity specialising in helping children and young adults with complex learning difficulties in Aberdeen, and in the Northwest, we completed multiple fundraising events for Save the Children over the Christmas period as well as a collection for a local Foodbank. This year we have taken part in the coffee morning to raise money for MacMillan cancer support, and we are also volunteering with Children’s Adventure Farm Trust which specialises in helping children and families whose lives may be impacted by illness, complex medical needs, special educational needs, disability and social disadvantage. Alongside this, we will also be supporting a local Domestic Violence Charity by helping to provide the families with essential basics that they need at Christmas. Throughout the year we also continue to hold charity events, raising money and supplies to support worthwhile causes.
The Group takes very seriously its environmental, quality and health & safety commitments. The Group can operate safely, with increasing focus on environmental issues, thereby ensuring that working practices are kept up to date to ensure compliance with the H&S at work act and UK BS ISO 9001, 14001 and 45001, Occupational Health and Safety, Environmental and Quality standards as appropriate.
In terms of its environmental impact, the Group is part of a group-wide sustainability programme which is consistently being implemented and reviewed. The Group strongly believes that sustainability and our business success go hand in hand and aims to continuously improve its sustainability performance. Our mission is clear: to lead the way in sustainable development in the material handling industry, creating value for our customers, employees, investors, business partners and society as a whole. For the present and for future generations.
The Group upholds the Group values, which come under the four main headings of Integrity, Courage, Collaboration and Excellence. These shared values and leadership principles are designed to drive the individual actions of employees and their collaboration with colleagues, customers and suppliers.
The Group works very closely with its supply chain to ensure continuity of supply, with consideration of potential disruption due to post-Brexit legislative changes and other external and international factors. The Group engages with suppliers at all levels of the business to ensure conformance with the Group's compliance standards.
The directors have always, both collectively and individually, taken decisions for the long term and consistently aim to uphold the highest standards of business conduct. In this regard the UK Leadership team meet at least once a month to discuss and agree ways in which it can continue to uphold the highest values in its relationship with customers & suppliers, employees, the local community and the environment.
Future developments
Following a period of strong growth in order intake in 2024-2025, the Group is now closing most of the multi-year execution projects. As the market conditions have stabilised in the following year, the Group has focused preparing the business for expected future growth in a market predicted to grow steadily over the next 5 years.
Refocusing on our key software solutions and strengthening our execution capabilities have been a key strategic focus as well as growing our after market revenues from our strong existing customer base.
Refocusing on our key software solutions and strengthening our execution capabilities have been a key strategic focus as well as growing our after market revenues from our strong existing customer base.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.
The profit for the year, after taxation, amounted to £4,160,903 (2024: £1,800,542).
The directors who served during the year were:
The directors benefit from a qualifying third party indemnity provision in the form permitted by Section 234 of the Companies Act 2006 in respect of certain third party actions against directors.
No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Directors' report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
During the year, the Company continued to focus on research and development activities aimed at enhancing its products/services and improving operational efficiency. These activities focused on stability and performance of our core code and tooling. We progressed an initiative around security and credential management working to adopt the most stringent design practices applicable to our industry, so placing us well for upcoming legislative changes around cyber security. Tooling specific R&D progressed around our automated test facility (ATF) which enables projects to use regression testing as part of our CI/CD pipeline. Our in house MHE emulation tooling was reworked to follow a modern MVC design that facilitates scaling. The Directors believe that continued focus on R&D is essential to maintain the Company’s competitive position and support long-term growth.
The Group continues to place a high emphasis on attracting, retaining and developing employees to achieve the Group's business plan objectives. The Group pursues an active policy of employee involvement and development, through a variety of channels including “town hall” meetings, e-mail communications to all staff, and use of the Group's intranet. These updates are provided not only at the Company level but since the acquisition by Dematic in March 2020 also include information on the larger Dematic group of companies. Employees are provided with information on matters affecting them as employees, on developments within the business and on the various factors affecting the Group's performance. Group policies and practices are continually reviewed and improved as required to meet the needs of the employees and the business. The Group is committed to providing equality of opportunity for all employees and in particular ensures that fair selection and development procedures apply. The aim of the Group's policy is to ensure that no job applicant or employee receives less favourable treatment than any other on the grounds of age, sex, sexual orientation, disability, marital status, colour, religion, race or ethnic origin.
Engagement with key stakeholders is discussed in the Strategic Report on page 2.
Under the requirements of UK Companies Act 2006, DAI is required to report on energy use and carbon emissions relating to our operations in the UK. As DAI is in the software and consultancy business, the energy consumption is limited to office buildings in which we lease to operate our business. Activities such as combustion of gas or using fuel for transportation is not applicable. Consumption of fuel in employee-owned vehicles used for business purposes is outside the scope of this report. During the current financial year, DAI continued to operate three offices. Electricity data below is taken from monthly invoices as received from Utility providers.
We have reported on all sources of carbon emissions and energy usage required under the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008 as amended in the table below.
The conversion factors have been taken from the government website "Calculate your organisation’s carbon footprint" South Cambs District Council (scambs.gov.uk). Please note that the electricity generation factors do not include transmission and distribution factors associated with the energy loss that occurs in getting electricity from the power plant to the DAI offices.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Group's Strategic Report information required by Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review, future developments and details of the principal risks and uncertainties.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL APPLICATIONS INTERNATIONAL LIMITED
We have audited the financial statements of Digital Applications International Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of 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 and the related notes, 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 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 or 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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL APPLICATIONS INTERNATIONAL LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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 Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL APPLICATIONS INTERNATIONAL LIMITED (CONTINUED)
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 Group financial statements.
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:
∙The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the laws and regulations which were most significant including the standard laws applicable:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK employment legislation;
−UK tax legislation;
−UK health and safety legislation; and
−General Data Protection Regulations.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues with this area.
∙We assessed the susceptibility of the Group and Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgements made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DIGITAL APPLICATIONS INTERNATIONAL LIMITED (CONTINUED)
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgement or estimation to manipulate the Company's financial position particularly with regard to potential management bias in accounting for long term contracts;
−Posting of unusual journals and complex transactions;
−The use of management override of controls to manipulate the results, or to cause the Group and Company to enter into transactions not in its best interests; and
−The payroll function, specifically the risk of fictitious employees being added to or retained on the payroll through weaknesses payroll controls, resulting in unauthorised salary payments.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor, Origin One
108 High Street
RH10 1BD
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 37 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Digital Applications International Limited (“the Company”) is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Milan Court, Bird Hall Lane, Stockport, SK3 0WZ.
The principal activity of the Group and Company during the year was delivery, integration, and support services for software systems in industrial and supply chain applications.
The principal activity of the Group and Company during the year was delivery, integration, and support services for software systems in industrial and supply chain applications.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Turnover is recognised in line with the satisfaction of performance obligations under customer contracts, as follows:
Service Level agreements – performance obligations are considered to be satisfied over time as the entity provides continuous maintenance services over the duration of the contract. Revenue is recognised on a straight line basis over the contract term accordingly.
Long-term contracts – revenue is recognised on a Percentage of Completion basis in accordance with work undertaken to date.
Time and materials – revenue is recognised based on the expected recoverable amount to be billed against services performed in accordance with contractual terms.
Standard payment terms are 30 days, with no external financing arrangements or early payment discounts in place.
Software performance is subject to customer acceptance, after which ongoing maintenance is governed by separate service agreements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Turnover recognised during FY25 includes amounts previously recorded as contract liabilities (deferred income) at the beginning of the period. These balances are reassessed monthly through the Billing in Excess (BIE) / Cost in Excess (CIE) process and recognised in accordance with contract progress.
The asset is subsequently measured at cost less accumulated depreciation and impairment, depreciated on a straight-line basis over the lease term. Impairment is assessed in accordance with Section 28, and any lease modifications or reassessments are reflected in the carrying amount of the asset.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the bases disclosed below.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
In the separate accounts of the Company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the Group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of financial position when the Group 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Classification of financial liabilities
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.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Classification of financial liabilities
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.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Group 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 Group.
Equity instruments
Equity instruments issued by the Group 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 Group.
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
13.Tangible fixed assets (continued)
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Page 32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Page 33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Page 35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Share premium account
Profit and loss account
Page 36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £365,026 (2024: £329,824) were payable to the fund at the reporting date and are included in creditors.
The immediate parent undertaking is Dematic Holdings UK Limited.
The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is KION Group AG. Copies of the KION Group AG consolidated financial statements can be obtained from Thea-Rasche-Strasse 8, 60549 Frankfurt am Main, Germany.
The ultimate controlling party is Dr. Nicholas Peter by virtue of his controlling shareholding in KION Group AG.
The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is KION Group AG. Copies of the KION Group AG consolidated financial statements can be obtained from Thea-Rasche-Strasse 8, 60549 Frankfurt am Main, Germany.
The ultimate controlling party is Dr. Nicholas Peter by virtue of his controlling shareholding in KION Group AG.
Page 37