REGISTERED NUMBER: 00961458 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 December 2025

for

Aalberts Surface Technologies Limited

Page

Strategic Report

1

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

Review of business

The Company is a wholly owned subsidiary of Aalberts N.V., a Netherlands-based industrial technology and manufacturing group.

Day-to-day management of the business is delegated to the local Senior Management Team, supported as required by Aalberts Group functions and specialist resources.

KPI's

2025 (£'000)

2024 (£'000)

2023 (£'000)

Revenue:

7.88

7.34

7.12

EBITA:

1.89

1.69

1.59

Economic environment and business performance

The business delivered another year of strong financial performance, achieving revenue growth of 7.4% and an EBITA increase of 27.9% compared with the previous year.

This performance has been driven primarily by the continued recovery of the aerospace sector and sustained growth in defence-related demand in response to an increasingly complex global geopolitical landscape. In particular, vacuum coating technologies (IVD) continue to represent a key growth area and remain a significant contributor to overall revenue expansion.

To support forecast market growth, the Company has continued to invest substantially in both the development of new vacuum coating technologies and the enhancement of existing processes. These investments have resulted in improved Right First Time (RFT) performance, increased operational efficiency, and the creation of additional production capacity.

Capital investment programmes will continue throughout 2026 and 2027 to ensure the business remains well positioned to support anticipated increases in customer demand while replacing and upgrading critical assets. In line with this strategy, additional IVD coating equipment is currently under manufacture and is scheduled for deployment during late 2027.

Internal and external factors affecting the business

International trading continues to present challenges following changes to regulatory and customs requirements. While these activities remain administratively complex and costly, the business has implemented the necessary systems, controls, training programmes, and authorisations to ensure ongoing compliance and uninterrupted support of its customer base.

The Company has maintained a strong focus on the development and implementation of REACH-compliant alternatives to Substances of Very High Concern (SVHCs). Prime customer approvals have now been secured for a number of environmentally safer alternative coating processes, enabling the phased withdrawal of certain non-compliant processes during 2026.

Health, Safety and Environmental Sustainability remain strategic priorities for both the Company and the wider Aalberts Group. The implementation of safer alternative technologies forms an important part of the Company's commitment to regulatory compliance, environmental responsibility, and the wellbeing of employees, customers and other stakeholders.

The Company continues to maintain a comprehensive portfolio of aerospace and defence industry approvals, alongside AS9100 and NADCAP certifications. While the maintenance of these accreditations has become increasingly demanding and costly, they remain essential for operating successfully within the markets served by the business. Consequently, management remains fully committed to maintaining the highest standards of compliance and operational excellence.

Management has also continued its strategic review of accreditation requirements to ensure resources are focused on approvals that deliver the greatest value and support the long-term growth and development of the organisation.

Outlook

The Company's short-to-medium-term outlook remains positive, with order intake and market forecasts supporting expectations of continued strong performance throughout 2026.

Over the longer term, management remains focused on delivering sustainable growth through the adoption of lean manufacturing principles, cost-efficient operations, and environmentally compliant technologies. Continued investment in alternative chemical processes, energy efficiency initiatives, and operational improvements will further strengthen the business's long-term competitiveness and sustainability.

Ongoing strategic capital investment programmes and technological advancements will continue to expand capacity, improve operational capability, and create opportunities with both existing and prospective customers. These investments position the Company favourably to benefit from anticipated growth across the aerospace and defence sectors over the coming years.

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a range of risks and uncertainties. The principal risks currently facing the Company are outlined below.

Global economic and industrial uncertainty

Although the Company primarily serves UK and European manufacturers, prevailing conditions in global industrial and financial markets continue to influence business performance and growth opportunities.

A significant proportion of aerospace and defence products manufactured within these regions are ultimately destined for international markets. Consequently, adverse geopolitical developments, economic instability, or disruptions to global supply chains may negatively affect demand and impact future growth prospects.

Approvals and accreditations

The maintenance of key customer, industry, and regulatory accreditations remains critical to the Company's ability to operate within its chosen markets.

The increasing complexity and cost associated with maintaining these approvals continue to present challenges. Management therefore undertakes regular reviews to ensure all critical certifications are maintained while resources remain focused on those accreditations that provide the greatest strategic and commercial value.

People and skills

The Company's continued success depends significantly on the expertise, experience, and commitment of both its Senior Management Team and its highly skilled workforce.

The loss of key personnel or difficulties in recruiting suitably qualified individuals could adversely affect business performance. To mitigate this risk, the Company continues to invest in employee development, succession planning, knowledge transfer, and structured training programmes to ensure the long-term sustainability of critical skills and capabilities.

Disaster recovery and information technology

The Company's core IT infrastructure is managed and supported by an Aalberts Group company based in Germany.

Business-critical data is routinely backed up to secure servers located within the Group's infrastructure, complemented by local backup arrangements. These measures provide resilience and enable the timely recovery of systems and data in the event of a significant IT disruption or systems failure.

ON BEHALF OF THE BOARD:

P T Brown - Director

16 July 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

In accordance with section 414C(11) of the Companies Act 2006, the directors have chosen to set out in the Strategic Report information in respect of future developments and research and development activities which would otherwise be required to be disclosed in this Report of the Director

PRINCIPAL ACTIVITY

The principal activity of the company is the provision of specialist surface engineering and metal finishing services.

The company operates in high level critical industries with very exacting quality management system and appropriate/applicable accreditation requirements.

The business maintains a very high number of approvals in the aerospace and defence sector and continues to successfully develop systems / procedures / skills etc. required to support this challenging environment.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTOR

P T Brown held office during the whole of the period from 1 January 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

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

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Bourne & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P T Brown - Director

16 July 2026

Opinion

We have audited the financial statements of Aalberts Surface Technologies Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

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, 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 director

As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:

-

the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the financial reporting legislation, Companies Act 2006, taxation legislation, anti-bribery, employment, and environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of suspected and alleged fraud; and

-

considering the internal controls in place to mitigate the risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions

-

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

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

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 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.

Callum Edwards BFP ACA (Senior Statutory Auditor)

for and on behalf of Bourne & Co

Statutory Auditors

6 Lichfield Street

Burton-on-Trent

Staffordshire

DE14 3RD

16 July 2026

TURNOVER

3

7,877,376

7,335,878

Cost of sales

4,386,935

4,195,701

GROSS PROFIT

3,490,441

3,140,177

Administrative expenses

1,600,726

1,477,696

OPERATING PROFIT

5

1,889,715

1,662,481

Interest receivable and similar income

95,302

133,065

1,985,017

1,795,546

Interest payable and similar expenses

6

10,676

11,024

PROFIT BEFORE TAXATION

1,974,341

1,784,522

Tax on profit

7

514,665

538,079

PROFIT FOR THE FINANCIAL YEAR

1,459,676

1,246,443

FIXED ASSETS

Tangible assets

8

5,228,013

5,397,118

Investments

9

4,032,001

4,032,001

9,260,014

9,429,119

CURRENT ASSETS

Stocks

10

234,366

264,905

Debtors

11

4,226,702

2,431,384

Cash in hand

750

750

4,461,818

2,697,039

CREDITORS

Amounts falling due within one year

12

985,302

849,304

NET CURRENT ASSETS

3,476,516

1,847,735

TOTAL ASSETS LESS CURRENT LIABILITIES

12,736,530

11,276,854

PROVISIONS FOR LIABILITIES

14

499,685

499,685

NET ASSETS

12,236,845

10,777,169

CAPITAL AND RESERVES

Called up share capital

15

514,000

514,000

Share premium

16

26,000

26,000

Revaluation reserve

16

2,211,501

2,211,501

Retained earnings

16

9,485,344

8,025,668

SHAREHOLDERS' FUNDS

12,236,845

10,777,169

The financial statements were approved by the director and authorised for issue on 16 July 2026 and were signed by:

P T Brown - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

514,000

6,779,225

26,000

2,211,501

9,530,726

Changes in equity

Total comprehensive income

-

1,246,443

-

-

1,246,443

Balance at 31 December 2024

514,000

8,025,668

26,000

2,211,501

10,777,169

Changes in equity

Total comprehensive income

-

1,459,676

-

-

1,459,676

Balance at 31 December 2025

514,000

9,485,344

26,000

2,211,501

12,236,845

1.	STATUTORY INFORMATION

Aalberts Surface Technologies Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

00961458

Registered office:

Field Industrial Estate

Clover Street

Kirkby-In-Ashfield

Nottinghamshire

NG17 7LJ

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Aalberts Surface Technologies Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Aalberts Surface Technologies Limited is consolidated in the financial statements of its ultimate parent company, Aalberts N.V., which may be obtained at www.aalberts.com. Exemptions have been taken in these separate financial statements in respect of the cashflow statement.

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 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions regarding the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant. They are reviewed on a regular basis and changes recognised in the period in which the estimate is revised. Actual results mar differ from these estimates.

The following are the critical accounting judgements and key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The acute lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technical innovation, product life cycles and maintainable programmes are taken into account. Residual values consider such things as future market condition, the remaining life of the asset and projected disposal values.

The value of stock is assessed for impairment. In assessing stock value, factors such as slow movement and obsolescence are taken into account.

The company holds an investment in a wholly owned subsidiary. Management reviews the carrying amount of the investment annually to determine whether there is any indication of impairment. Where indicators exist, the recoverable amount of the investment is assessed by reference to the subsidiary’s net asset position, profitability, and expected future cash flows. The valuation includes consideration of non-financial indicators such as market position, business forecasts, and strategic plans.

Due to the inherent uncertainty in forecasting future performance, significant judgement is involved in determining the appropriate assumptions used, including discount rates, growth rates, and the estimated future profitability of the subsidiary. If actual results differ from those estimated, future results may be materially impacted.

The company owns a freehold property that is held for operational use and stated at fair value in accordance with FRS 102 Section 17. The fair value of the property is based on periodic valuations carried out by qualified external valuers or through management’s own estimation, considering recent market transactions for similar properties, condition of the property, location, and current use.

Valuations are inherently subjective and dependent on various market factors and assumptions, including yield rates and market demand. Accordingly, there is a risk that the carrying amount of the property may not reflect its actual market value, particularly in times of market volatility.

Changes in the valuation are recognised in other comprehensive income and accumulated in the revaluation reserve unless the revaluation results in a decrease below historical cost, in which case it is recognised in the profit and loss account.

Turnover

Turnover represents net invoiced sale of goods and services excluding value added tax and is recognised at the fair value of the consideration received for sale of goods and services to external customers in the ordinary course of business. Turnover is recognised when the goods have been delivered to the customer's place of business. The fair value of consideration takes into account returns, discounts and rebates.

Tangible fixed assets

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

Freehold property

-

not provided and at varying rates on cost

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

at varying rates on cost

Tangible fixed assets are initially recognised at cost, including transaction costs. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings are subsequently subject to fair value measurement, based on an open market basis and deferred tax is provided on the fair value movements.

Gains and losses arising from changes in the fair value of land and buildings are included within the Statement of Income and Retained Earnings in the period in which they arise.

Investments in subsidiaries

Investments in subsidiary undertakings are initially recognised at cost, including transaction costs. Annually the company conducts an impairment review and any impairments are shown in the profit or loss account.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

The company is a member of the Aalberts N.V. group, which is within the scope of the OECD Pillar Two model rules, enacted in the United Kingdom as Multinational Top-up Tax and Domestic Top-up Tax with effect for accounting periods beginning on or after 31 December 2023. The group has performed an assessment of its exposure to Pillar Two income taxes and no top-up tax arises in respect of the company for the year ended 31 December 2025 (2024: £nil). Accordingly, no current tax charge in respect of Pillar Two income taxes has been recognised in these financial statements. The company has applied the exemption from recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

Foreign currencies

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Financial assets and liabilities

Short term debtors are measured at transaction price.

Short term creditors are measured at transaction price, less any impairment.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.25

31.12.24

£

£

United Kingdom

3,939,089

3,889,252

Europe

480,943

1,267,293

Rest of World

3,457,344

2,179,333

7,877,376

7,335,878

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

2,155,328

2,017,539

Social security costs

231,395

191,989

Other pension costs

138,015

160,172

2,524,738

2,369,700

The average number of employees during the year was as follows:

31.12.25

31.12.24

Production

50

48

Administration and support

18

15

68

63

31.12.25

31.12.24

£

£

Director's remuneration

106,340

136,513

Director's pension contributions to money purchase schemes

57,587

58,654

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.25

31.12.24

£

£

Hire of plant and machinery

28,564

24,428

Depreciation - owned assets

376,412

341,217

(Profit)/loss on disposal of fixed assets

(4,212

)

155

Auditors' remuneration

20,285

21,309

Foreign exchange differences

13,823

(10,547

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Other interest paid

10,676

11,024

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

514,665

446,824

Under/over provision of tax

-

11,619

Total current tax

514,665

458,443

Deferred tax

-

79,636

Tax on profit

514,665

538,079

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.25

31.12.24

£

£

Profit before tax

1,974,341

1,784,522

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

493,585

446,131

Effects of:

Expenses not deductible for tax purposes

20,775

20,914

Capital allowances in excess of depreciation

-

(20,928

)

Depreciation in excess of capital allowances

4,435

-

Adjustments to tax charge in respect of previous periods

(4,130

)

91,962

Total tax charge

514,665

538,079

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

There is no expiry date on timing differences, unused tax losses or tax credits.

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2025

3,345,333

3,603,232

17,402

6,965,967

Additions

40,467

164,528

3,100

208,095

Disposals

(387

)

(1,956

)

-

(2,343

)

At 31 December 2025

3,385,413

3,765,804

20,502

7,171,719

DEPRECIATION

At 1 January 2025

67,940

1,494,609

6,300

1,568,849

Charge for year

94,412

278,318

3,682

376,412

Eliminated on disposal

(353

)

(1,202

)

-

(1,555

)

At 31 December 2025

161,999

1,771,725

9,982

1,943,706

NET BOOK VALUE

At 31 December 2025

3,223,414

1,994,079

10,520

5,228,013

At 31 December 2024

3,277,393

2,108,623

11,102

5,397,118

Cost or valuation at 31 December 2025 is represented by:

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

Valuation in 2019

1,505,816

-

-

1,505,816

Valuation in 2023

412,182

-

-

412,182

Cost

1,467,415

3,765,804

20,502

5,253,721

3,385,413

3,765,804

20,502

7,171,719

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.12.25

31.12.24

£

£

Cost

1,427,335

1,427,335

Freehold land and buildings were valued on an open market basis on 11 October 2023 by WA Barnes LLP .