REGISTERED NUMBER: 11867400 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

Advanced Alloys Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Statement of Financial Position

13

Company Statement of Financial Position

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Notes to the Consolidated Statement of Cash Flows

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

S Hall

Mrs X Wei

REGISTERED OFFICE:

65 Market Place

Market Weighton

Yorkshire

YO43 3AN

REGISTERED NUMBER:

11867400 (England and Wales)

SENIOR STATUTORY AUDITOR:

Daniel Wood

AUDITORS:

Hawsons Chartered Accountants

5 Sidings Court

White Rose Way

Doncaster

South Yorkshire

DN4 5NU

SOLICITORS:

Freeths LLP

Fifth Floor

St Paul's Place

129 Norfolk Street

Sheffield

S1 2JE

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The groups principal activity is that of buying, selling and the processing of metals and alloys along with ancillary services.

Results and performance

The results for the year, as set out in pages 11 and 13, show a profit before tax of £643,805 (2024: Loss £110,063), with reported shareholders' funds of £9,580,014 (2024: £9,219,028).

The Groups main activities involve providing toll-process services, pure metals and processed revert used in the manufacture of Nickel and Cobalt based superalloys to global customers. The Group seeks to minimise exposure to metal price fluctuations through back-to-back trading arrangements, inventory management and active monitoring of market conditions.

Although Group revenue dropped during the year this was closely associated low Nickel and other metal prices. Physical volumes reached record levels despite uncertain global geopolitics, demonstrating continued market share gains and strong customer demand.

.

Business Environment

The Group has seen an increase in geopolitical uncertainty and variable import and export duties and restrictions which has created price volatility and uncertainty of supply across the Group companies. Additionally, conflict in the Middle East has also impacted oil and energy prices.

Although duties and export restrictions impacted the superalloy industry during 2025, the fundamental future demand for metals is expected to grow significantly.

Strategy

Advanced Alloys Group strategy is focussed on growth via developing operational excellence and pioneering innovation across a widespread global footprint. During 2025 significant investment has been made to develop the US Advanced Revert LLC joint venture operational capabilities, expand the workforce and improve North American sourcing and customer support. Additionally, the business has commenced implementation of a joint venture operation in Thailand, including investment in equipment and local supply chain development in Asia.

The Group also continues to invest in Research and Development pioneering innovation for critical metal recycling and recovery via Advanced Metal Recovery and plans for further international collaborations and partnerships. To facilitate future growth the business has focussed on building a key leadership team through internal promotions and recruiting.

Demand is expected to return strongly during 2026 and continue in future years. There are plans to continue investment within the Group to increase capacity, efficiency and widespread global presence over coming years and position the Group ready for further market share growth.

Key performance indicators ('KPIs')

We set out below the KPIs which are key to the group.

2025

2024

2023

as restated

Reported Group Turnover

41,955,920

52,635,866

56,716,373

Processing (as contribution to turnover)

4.58%

5.22%

3.87%

Group Capital expenditure (plant only)

424,668

359,869

448,631

Group total capital expenditure

496,736

464,814

560,037

PRINCIPAL RISKS AND UNCERTAINTIES

Governments continue to develop critical mineral policies and customers seek supply chain resilience through diversification of supply. This is both a risk and opportunity for the Group. The business is poised to react to any changes and has options for material flows through different international routes and has proven a reliable supplier even when supply chains have been disrupted and priority has been given to meeting customer requirements even if this has meant sourcing higher cost material.

Whilst geopolitical instability remains, including conflict in the Middle East, the Group is positioned to continue expansion and investment across its global footprint to meet future demand. Customers continue to place increasing emphasis on secure, traceable and geographically diversified supply chains for critical metals.

SECTION 172(1) STATEMENT

In accordance with the UK Companies Act 2006, 'A director of a group must act in the way they consider, in good faith, would be most likely promote the success of the group for the benefit of its members as a whole, 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 maintaining a reputation for high standards and business conduct, and

- the need to act fairly between all members of the group.'

In regard to the above requirements, the directors:

- holds regular management meetings to discuss and confirm decisions. The needs of a wide range of stakeholders are considered during the decision-making process.

- aim to create value for the company's shareholders by generating strong and sustainable results which can translate into dividends. All decisions are taken with full consideration made of the long-term consequences as the shareholders are interested in the long-term success of the group.

- acknowledge the contributions made by the employees to the success of the group, and to engage with the workforce to ensure an environment that they are happy to work in and one that supports their well-being. Further information regarding the company's employment policy and engagement can be found within the Report of the Directors on page 6.

- has established, and maintained, good working relationships with a number of key group suppliers. This ensures that the products and services delivered remain at the high-quality for which the group is known for.

- has established and maintained, good working relationships with a large number of well-established group customers, as well as new and prospective customers, whilst providing the products required and efficient services to all.

- views the group as part of the community in which it operates. The group provides many jobs directly to the local area as well as supporting local companies through its supply chain. The director also considers the environmental impact of the group, further information can be found in the Streamlined Energy and Carbon Reporting section, within the Report of the Directors on page 6.

- is conscious of the fact that the group of companies has built a good reputation over the past 30 years plus that it has been trading, and that it is in the interest of all stakeholders that this reputation is maintained.

- act fairly between all companies within the group.

FUTURE DEVELOPMENTS

The demand for superalloys across different markets is expected to remain strong and the group will continue to invest in additional equipment to increase capacity creating new jobs in the local area.

The group will continue to develop strong partnerships with companies within the industry to facilitate further group growth.

Additional Information

The group will continue to support local charities and schools.

ON BEHALF OF THE BOARD:

S Hall - Director

22 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of buying, selling and processing of metals and alloys.

DIVIDENDS

Interim dividends per share were paid as follows:

0.034480

- 3 January 2025

0.014991

- 7 February 2025

0.037478

- 7 April 2025

0.037478

- 3 July 2025

0.014991

- 8 August 2025

0.014991

- 29 September 2025

0.029982

- 7 November 2025

0.184391

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £ 123,000 .

FUTURE DEVELOPMENTS

Likely future developments within the Group are discussed in the strategic report.

DIRECTORS

S Hall has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

Mrs X Wei - appointed 30 May 2025

FINANCIAL INSTRUMENTS

The groups principal financial instruments comprise bank balances, other bank facilities, invoice discounting, inventory financing, trade creditor finance loans, trade creditors, trade debtors and loans to the group.

The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations.

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of invoice discounting and trade creditor finance loans, the group manages the liquidity risk by maintaining a balance between the available funding and the funding withdrawals whilst maintaining tight control on the trade debtors to ensure that money is received before the agreed advancement terms of each are reached.

Trade debtors are managed in respect of credit and cash flow risk through initial periods of pro-forma payments with new customers and through reviewing the credit forwarded to customers and by monitoring their payment history on a periodic basis.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

EMPLOYEES

The group's employment policy provides equal opportunity, irrespective of sex, religion, race or marital status. Applications by persons with disabilities are given full and fair consideration and, wherever practicable, provision is made for their specific requirements. The same criteria for training and promotion apply to persons with disabilities as to any other employee. If employees become disabled, every effort is afforded to ensure their continued employment.

The group places considerable value on the involvement of its employees and has continued its practice of widespread employment engagement through a variety of meetings and project work. In addition, the company supports and promotes employee professional development and training through external and internal training courses.

STREAMLINED ENERGY AND CARBON REPORTING

The group's operations consume electricity for powering plant and equipment and lighting. The group has an extensive array of solar panels fitted to facilitate further carbon reduction and reduce power supplied from the grid. The chosen energy supplier sources electricity only from renewable sources.

The group has implemented an entirely new fleet of the latest generation of electric fork-lift trucks, and all company cars are also electric with onsite charge points in place.

Gas is used for central heating some offices but due to the high level of thermal insulation heating requirements and gas usage is minimal.

Various other waste reduction and recycling initiatives have been implemented, and energy monitoring equipment has been installed across the site to manage energy reduction projects.

The carbon dioxide emissions are summarised below:

2025

2025

2024

2024

kWh

KgCO2e

kWh

KgCo2e

Electricity consumption

673,552

119,219

649,118

134,400

Gas consumption

1,514

277

13,448

2,460

Transport (Diesel / Petrol) consumption

.-

-

70

5

Total Carbon Dioxide Emissions

119,496

136,885

Total Tonnes CO2e

119.5

136.9

Intensity ratio KgCO2e per £1 turnover

0.00285

0.00260

The carbon dioxide emissions have been calculated from records for electricity, gas and petrol consumed and appropriate conversion factors as published by HM Government Environmental Reporting Guidelines. The recycling activities of the group to recycle and recover critical metals provides a significant environmental benefit and the group plans to develop further processes to improve recovery rates and effectively reducing the level of carbon emissions from primary mining and refining operations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Hawsons Chartered Accountants, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:

S Hall - Director

22 July 2026

Opinion

We have audited the financial statements of Advanced Alloys Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group 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 group's and 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 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 Report of the Directors.

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

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

-	the parent company 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 seven, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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 a Report of the Auditors 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.

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

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 company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company's result for the period, and management bias in key accounting estimates.

Audit procedures performed by the engagement team included:

- Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

- Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations.

- Challenging assumptions and judgements made by management in their significant accounting estimates.

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, 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, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Daniel Wood (Senior Statutory Auditor)

for and on behalf of Hawsons Chartered Accountants

5 Sidings Court

White Rose Way

Doncaster

South Yorkshire

DN4 5NU

22 July 2026

REVENUE

4

41,955,920

52,635,866

Cost of sales

37,903,903

49,291,652

GROSS PROFIT

4,052,017

3,344,214

Administrative expenses

2,862,512

2,608,663

1,189,505

735,551

Other operating income

81,278

54,107

GROUP OPERATING PROFIT

6

1,270,783

789,658

Share of operating profit/(loss) in

Joint ventures

19,691

(3,432

)

Interest receivable and similar income

5,621

20,966

1,296,095

807,192

Interest payable and similar expenses

7

652,290

917,255

PROFIT/(LOSS) BEFORE TAXATION

643,805

(110,063

)

Tax on profit/(loss)

8

153,109

(14,401

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

490,696

(95,662

)

Profit/(loss) attributable to:

Owners of the parent

483,941

(95,662

)

Non-controlling interests

6,755

-

490,696

(95,662

)

PROFIT/(LOSS) FOR THE YEAR

490,696

(95,662

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

490,696

Prior year adjustment

(511,372

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

(607,034

)

Total comprehensive income attributable to:

Owners of the parent

483,941

(607,034

)

Non-controlling interests

6,755

-

490,696

(607,034

)

FIXED ASSETS

Property, plant and equipment

11

1,765,342

1,576,294

Investments

12

Interest in joint venture

Share of gross assets

2,508,147

1,359,697

Share of gross liabilities

(2,491,895

)

(1,363,136

)

1,781,594

1,572,855

CURRENT ASSETS

Inventories

13

23,205,954

20,224,593

Debtors

14

6,553,146

8,758,799

Cash at bank and in hand

270,120

1,062,913

30,029,220

30,046,305

CREDITORS

Amounts falling due within one year

15

21,902,714

22,211,142

NET CURRENT ASSETS

8,126,506

7,835,163

TOTAL ASSETS LESS CURRENT LIABILITIES

9,908,100

9,408,018

PROVISIONS FOR LIABILITIES

18

321,331

188,990

NET ASSETS

9,586,769

9,219,028

CAPITAL AND RESERVES

Called up share capital

19

667,060

667,060

Retained earnings

20

8,912,909

8,551,968

SHAREHOLDERS' FUNDS

9,579,969

9,219,028

NON-CONTROLLING INTERESTS

21

6,800

-

TOTAL EQUITY

9,586,769

9,219,028

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

S Hall - Director

FIXED ASSETS

Property, plant and equipment

11

-

-

Investments

12

13,380,995

13,380,940

13,380,995

13,380,940

CURRENT ASSETS

Debtors

14

3,375

21,257

Cash at bank and in hand

16,651

4,325

20,026

25,582

CREDITORS

Amounts falling due within one year

15

12,584,331

12,568,781

NET CURRENT LIABILITIES

(12,564,305

)

(12,543,199

)

TOTAL ASSETS LESS CURRENT LIABILITIES

816,690

837,741

CAPITAL AND RESERVES

Called up share capital

19

667,060

667,060

Retained earnings

20

149,630

170,681

SHAREHOLDERS' FUNDS

816,690

837,741

Company's profit for the financial year

101,949

41,641

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

S Hall - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2024

667,060

9,258,002

9,925,062

-

9,925,062

Prior year adjustment

-

(511,372

)

(511,372

)

-

(511,372

)

As restated

667,060

8,746,630

9,413,690

-

9,413,690

Changes in equity

Dividends

-

(99,000

)

(99,000

)

-

(99,000

)

Total comprehensive income

-

(95,662

)

(95,662

)

-

(95,662

)

Balance at 31 December 2024

667,060

8,551,968

9,219,028

-

9,219,028

Changes in equity

Increase in share capital

-

-

-

45

45

Dividends

-

(123,000

)

(123,000

)

-

(123,000

)

Total comprehensive income

-

483,941

483,941

6,755

490,696

Balance at 31 December 2025

667,060

8,912,909

9,579,969

6,800

9,586,769

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

667,060

228,040

895,100

Changes in equity

Dividends

-

(99,000

)

(99,000

)

Total comprehensive income

-

41,641

41,641

Balance at 31 December 2024

667,060

170,681

837,741

Changes in equity

Dividends

-

(123,000

)

(123,000

)

Total comprehensive income

-

101,949

101,949

Balance at 31 December 2025

667,060

149,630

816,690

Cash flows from operating activities

Cash generated from operations

1

(897,365

)

4,017,693

Interest paid

(652,290

)

(917,255

)

Tax paid

12,339

(1,168,310

)

Net cash from operating activities

(1,537,316

)

1,932,128

Cash flows from investing activities

Purchase of tangible fixed assets

(496,736

)

(464,814

)

Purchase of fixed asset investments

-

372

Sale of tangible fixed assets

-

34,792

Interest received

5,621

20,966

Net cash from investing activities

(491,115

)

(408,684

)

Cash flows from financing activities

Amount introduced by directors

940

9,532

Share capital issue

45

-

Other short-term finance

1,357,653

(851,866

)

Equity dividends paid

(123,000

)

(99,000

)

Net cash from financing activities

1,235,638

(941,334

)

(Decrease)/increase in cash and cash equivalents

(792,793

)

582,110

Cash and cash equivalents at beginning of year

2

1,062,913

480,803

Cash and cash equivalents at end of year

2

270,120

1,062,913

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

643,805

(110,063

)

Depreciation charges

307,689

286,213

Profit on disposal of fixed assets

-

(11,686

)

(Profit)/ Loss on joint venture holding

(19,691

)

3,432

Finance costs

652,290

917,255

Finance income

(5,621

)

(20,966

)

1,578,472

1,064,185

Increase in inventories

(2,981,361

)

(2,071,381

)

Decrease/(increase) in trade and other debtors

2,176,150

(1,572,967

)

(Decrease)/increase in trade and other creditors

(1,670,626

)

6,597,856

Cash generated from operations

(897,365

)

4,017,693

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

270,120

1,062,913

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,062,913

480,803

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,062,913

(792,793

)

270,120

1,062,913

(792,793

)

270,120

Total

1,062,913

(792,793

)

270,120