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Registered number: 10076698 HIRTENBERGER DEFENCE HOLDING LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
HIRTENBERGER DEFENCE HOLDING LIMITED COMPANY INFORMATION
Director | S A Hodi
Registered number | 10076698
Registered office | St Mary's House
| Netherhampton
| Salisbury
| Wiltshire
| SP2 8PU
Independent auditors | Clifford Fry & Co (Statutory auditors)
| St Mary's House
| Netherhampton
| Salisbury
| Wiltshire
| SP2 8PU
HIRTENBERGER DEFENCE HOLDING LIMITED CONTENTS
| Page
Strategic report | 1
Director's report | 2 - 3
Independent auditors' report | 4 - 7
Statement of income and retained earnings | 8
Balance sheet | 9 - 10
Notes to the financial statements | 11 - 22
HIRTENBERGER DEFENCE HOLDING LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
Introduction
The Director presents his Strategic report on Hirtenberger Defence Holdings Limited for the year ended 31 December 2025. The principal activity of the Company during the year was that of a holding company. The Company is the parent undertaking of the Hirtenberger Defence Group. The Company also owns a property which is let to its subsidiary Hirtenberger Defence International Ltd. The Company is owned by Hirtenberger Defence Systems Védelmi Ipari Korlátolt Felelosségu Társaság, which is registered in Hungary (registered office: HU-8100 Várpalota, Szent István út 16).
Business review
The Company continues to hold investments in two subsidiary undertakings, Hirtenberger Defence International Limited and Hirtenberger Defence Europe GmbH, as well as an associate undertaking, HDT (NZ) Limited. The company's turnover represents rental income from Hirtenberger Defence International Ltd and amounted to €55,097 (2024: €214,285). The Company made a profit of €379,272 in the year ended 31 December 2025, compared to a profit of €658,330 in the prior year. The decrese in the profit for the year is due to turnover reducing as rental income ceased in March 2025 from Hirtenberger Defence International Ltd. The carrying value of the investments in subsidiary undertakings is reviewed on an annual basis and no further impairment write down was considered to be required in the current year. The director remains confident in the long term success of the Hirtenberger Defence group. Net assets increased from €30,116,748 to €30,496,020. The increase being due to the interest due in the year.
Principal risks and uncertainties
The Director considers that the principal risks relate to the market value of the Company’s freehold property, intercompany loans and the performance of its investee companies.
Financial key performance indicators
Return on assets: 1.24% (2024 - 2.18%) Earnings per share: €3.29 (2024 - €5.71) Net assets: €30,496,020 (2024 - €30,116,748) This report was approved by the board on 1 July 2026 and signed on its behalf.
................................................ S A Hodi Director
Page 1
HIRTENBERGER DEFENCE HOLDING LIMITED DIRECTOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Director presents his report and the financial statements for the year ended 31 December 2025.
Director's responsibilities statement
The Director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations. Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is 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 Director is required to: ∙select suitable accounting policies for the Company'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 Company will continue in business. The Director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Results and dividends
The profit for the year, after taxation, amounted to €379,272 (2024 - €658,330). The Director does not recommend a dividend.
Director
The Director who served during the year was:
S A Hodi
Disclosure of information to auditors
The Director at the time when this Director's report is approved has confirmed that: ∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information. Page 2
HIRTENBERGER DEFENCE HOLDING LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Post balance sheet events
On the 27th February 2026 the entire issued share capital of the Company was acquired by 4iG Space and Defence Technologies Private Limited Company, a Company incorporated and registered in Hungary. 4iG Space and Defence Technologies Private Limited Company is now the company's ultimate parent undertaking. This represents a non-adjusting event after the reporting period.
Auditors
The auditors, Clifford Fry & Co (Statutory auditors), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 1 July 2026 and signed on its behalf.
................................................ S A Hodi Director
Page 3
HIRTENBERGER DEFENCE HOLDING LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIRTENBERGER DEFENCE HOLDING LIMITED
Opinion
We have audited the financial statements of Hirtenberger Defence Holding Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of income and retained earnings, the Balance sheet 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 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Director's 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 Director with respect to going concern are described in the relevant sections of this report. Page 4
HIRTENBERGER DEFENCE HOLDING LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIRTENBERGER DEFENCE HOLDING LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Director is 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report. 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 Director's 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 Director's responsibilities statement set out on page 2, the Director is 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 Director determines is 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 Director is 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 Director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Page 5
HIRTENBERGER DEFENCE HOLDING LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIRTENBERGER DEFENCE HOLDING LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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. 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 gained an understanding of the legal and regulatory framework applicable to the Company, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations. As a result of these 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: revenue and profit recognition. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and enquiries with management. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. 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 Auditors' report. Page 6
HIRTENBERGER DEFENCE HOLDING LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIRTENBERGER DEFENCE HOLDING LIMITED (CONTINUED)
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 Auditors' 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. Simon Allenby (Senior statutory auditor) for and on behalf of Clifford Fry & Co (Statutory auditors) St Mary's House Netherhampton Salisbury Wiltshire SP2 8PU 1 July 2026 Page 7
HIRTENBERGER DEFENCE HOLDING LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024
Note | € | €
Turnover | 3 | 55,097 | 214,285
Gross profit |  | 55,097 | 214,285
Administrative expenses |  | (180,708) | (193,521)
Operating (loss)/profit |  | (125,611) | 20,764
Interest receivable and similar income | 7 | 512,115 | 646,521
Interest payable and similar expenses | 8 | (7,232) | (8,870)
Profit before tax |  | 379,272 | 658,415
Tax on profit | 9 | - | (85)
Profit after tax |  | 379,272 | 658,330
Retained earnings at the beginning of the year |  | (10,468,003) | (11,126,333)
Profit for the year |  | 379,272 | 658,330
Retained earnings at the end of the year |  | (10,088,731) | (10,468,003)
There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of income and retained earnings.
The notes on pages 11 to 22 form part of these financial statements.
Page 8
HIRTENBERGER DEFENCE HOLDING LIMITED REGISTERED NUMBER: 10076698 BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | € |  | €
Fixed assets |  |  |  |  |
Tangible assets | 10 |  | 1,919,811 |  | 1,950,408
Investments | 11 |  | 14,471,379 |  | 14,471,379
|  |  | 16,391,190 |  | 16,421,787
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 12 | 13,882,017 |  | 13,502,121 |
Cash at bank and in hand | 13 | 260,526 |  | 274,790 |
|  | 14,142,543 |  | 13,776,911 |
Creditors: amounts falling due within one year | 14 | (37,713) |  | (81,950) |
Net current assets |  |  | 14,104,830 |  | 13,694,961
Total assets less current liabilities |  |  | 30,496,020 |  | 30,116,748
Net assets |  |  | 30,496,020 |  | 30,116,748
Capital and reserves |  |  |  |  |
Called up share capital |  |  | 115,348 |  | 115,348
Share premium account | 16 |  | 36,630,545 |  | 36,630,545
Capital contribution reserve | 16 |  | 3,838,858 |  | 3,838,858
Profit and loss account | 16 |  | (10,088,731) |  | (10,468,003)
|  |  | 30,496,020 |  | 30,116,748
Page 9
HIRTENBERGER DEFENCE HOLDING LIMITED REGISTERED NUMBER: 10076698 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 July 2026.
................................................ S A Hodi
Director
The notes on pages 11 to 22 form part of these financial statements. Page 10
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
Hirtenberger Defence Holding Limited is a private company limited by shares incorporated and registered in England and Wales. The address of the Company's principal place of business is Building 106, South Site, Craydown Lane, Stockbridge, SO20 8DX. The principal activity of the Company continued to be that of a holding company. The financial statements are presented in Euros (€), which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest €. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
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 disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The Company was, at the end of the year, a wholly-owned subsidiary of HDS Védelmi Ipari Korlátolt Felelosségu Társaság, a company incorporated in Hungary, whose registered address is Szent Istvan ut 16. H-8100, Varpalota, Hungary. In accordance with the exemption given in Section 401 of the Companies Act 2006, the Company is not required to produce, and has not published, consolidated accounts. The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of HDS Védelmi Ipari Korlátolt Felelosségu Társaság as at 31 December 2025 and these financial statements may be obtained from Szent Istvan ut 16. H-8100, Varpalota, Hungary.
| 2.3 | Exemption from preparing consolidated financial statements
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006. Page 11
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is Euros. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Revenue represents rent receivable in the year, net of value added tax. Revenue is recognised on a straight line basis over the lease term.
| 2.6 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 12
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.9 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
| 2.10 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | over 30 years
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.
| 2.11 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.12 | Associates and joint ventures
Associates and Joint Ventures are held at cost less impairment.
| 2.13 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.14 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Page 13
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.15 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.16 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Basic 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 Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Page 14
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Rent receivable | 55,097 | 214,285
|  | 55,097 | 214,285
| All turnover arose within the United Kingdom.
4. | Auditors' remuneration
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
5. | Employees
| Staff costs, including Director's remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Wages and salaries | 96,130 | 17,733
| Social security costs | 11,072 | -
| Cost of defined contribution scheme | 3,257 | -
|  | 110,459 | 17,733
| The average monthly number of employees, including directors, during the year was 3 (2024 - 1).
6. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Directors' emoluments | 6,581 | 17,733
|  | 6,581 | 17,733
Page 15
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
7. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Interest receivable from group companies | 512,115 | 646,521
|  | 512,115 | 646,521
8. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Other interest payable | 7,232 | 8,870
|  | 7,232 | 8,870
Page 16
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
9. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Corporation tax |  |
| Current tax on profits for the year | - | 85
| Total current tax | - | 85
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on profit | - | 85
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Profit on ordinary activities before tax | 379,272 | 658,415
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 104,067 | 164,604
| Effects of: |  |
| Expenses not deductible for tax purposes | 12,770 | 9,867
| Other differences leading to an increase (decrease) in the tax charge | - | 85
| Group relief | (116,837) | (174,471)
| Total tax charge for the year | - | 85
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 17
HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
10. | Tangible fixed assets
|  | Freehold property
|  | €
| Cost or valuation |
| At 1 January 2025 | 2,156,534
| At 31 December 2025 | 2,156,534
| Depreciation |
| At 1 January 2025 | 206,126
| Charge for the year on owned assets | 30,597
| At 31 December 2025 | 236,723
| Net book value |
| At 31 December 2025 | 1,919,811
| At 31 December 2024 | 1,950,408
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HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
11. | Fixed asset investments
|  | Investments in subsidiary companies | Investments in associates | Total
|  | € | € | €
| Cost or valuation |  |  |
| At 1 January 2025 | 24,873,658 | 336,379 | 25,210,037
| At 31 December 2025 | 24,873,658 | 336,379 | 25,210,037
| Impairment |  |  |
| At 1 January 2025 | 10,738,658 | - | 10,738,658
| At 31 December 2025 | 10,738,658 | - | 10,738,658
| Net book value |  |  |
| At 31 December 2025 | 14,135,000 | 336,379 | 14,471,379
| At 31 December 2024 | 14,135,000 | 336,379 | 14,471,379
| At 31 December 2025, the Director performed an impairment review of the Company's investments. The Director has reviewed trading performance and expected future cash flows and concluded the recoverable amount is greater than carrying value.
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Hirtenberger Defence International Ltd | St Mary's House, Netherhampton, Salisbury, SP2 8PU United Kingdom | Sale of mortars | Ordinary shares | 100%
| Hirtenberger Defence Europe GmbH | Leobersdorfer Straße 31-33 Hirtenberg, 2552, Austria | Sale of mortars | Ordinary shares | 100%
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HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
| Associate
| The following was an associate of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Hirtenberger Defence Technology Ltd. | 12 Plantaganet Grove, Kingsley Heights, Upper Hutt, 5018, New Zealand | Sale of mortars | Ordinary | 49%
12. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Amounts owed by group undertakings | 13,869,530 | 13,378,922
| Other debtors | 11,593 | 14,308
| Prepayments and accrued income | 894 | 108,891
|  | 13,882,017 | 13,502,121
| The amounts included within Amounts owed by group undertakings attract an internal interest rate at €urozone LIBOR + 2.5% calculated on a rolling basis.
13. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Cash at bank and in hand | 260,526 | 274,790
|  | 260,526 | 274,790
14. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Trade creditors | 18,246 | 29,032
| Other taxation and social security | - | 1,164
| Other creditors | - | 4,300
| Accruals and deferred income | 19,467 | 47,454
|  | 37,713 | 81,950
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HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
15. | Financial instruments
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Financial assets |  |
| Financial assets measured at fair value through profit or loss | 260,526 | 274,790
| Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
16. | Reserves
Share premium account The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. Capital contribution reserve The capital contribution reserve represents non-repayable funding provided by the parent company. Profit and loss account The profit and loss account includes all current and prior period retained profits and losses.
17. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to €3,275 (2024 - €Nil). Contributions totaling €Nil (2024 - €Nil) were payable to the fund at the balance sheet date.
18. | Commitments under operating leases
| Lessor At 31 December 2025 the Company had contracted with tenants for the following minimum lease receipts:
|  |  |  |  | 2025 | 2024
|  |  |  |  | € | €
| Not later than 1 year | - | 54,445
|  | - | 54,445
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HIRTENBERGER DEFENCE HOLDING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
19. | Controlling party
The parent undertaking of the smallest and largest group of undertakings for which group financial statements are drawn up and of which the Company is a member is HDS Védelmi Ipari Korlátolt Felelosségu Társaság ('HDS') whose registered office is Szent István út 16. H-8100, Várpalota, Hungary. Copies of these group financial statements are available to the public from its registered office. HDS is ultimately owned by Hungarian State through N7 Holding Nemzeti Védelmi Ipari Innovációs Zrt. The ultimate controlling party is the Hungarian Government of the Ministry of National Economy.
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