REGISTERED NUMBER: 02223162 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

FOR

ORBITAL FABRICATIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr I C Pearson

Mr P A Pearson

Mr J P Bridges

Mr E Persson

Mr L M Soderlind

REGISTERED OFFICE:

Unit 1

Stephenson Road

St Ives

Cambridgeshire

PE27 3WJ

REGISTERED NUMBER:

02223162 (England and Wales)

BANKERS:

Barclays Bank Plc

Ouse Valley Business Park

PO Box 177

Huntingdon

Cambridgeshire

PE18 6GU

ACCOUNTANTS:

S J Kilshaw Partners Ltd

11c Kings Parade

Cambridge

Cambridgeshire

CB2 1SJ

The board of directors are pleased to provide their review of the company for the year to 31st March 2026.

REVIEW OF BUSINESS

During the year to 31 March 2026 the business experienced strengthening demand with turnover increasing to £17.9m (2025: £13.9m), reflecting increased activity in both in-house production and installation services.

Operating profit increased to £3.0m (2025: £2.2m). The company continues to maintain a strong balance sheet, with cash reserves of £6.5m at the year end, supporting ongoing investment and providing resilience against market uncertainty.

The board maintains strategic focus on operational efficiency and developing revenue in emerging and high-growth markets aligned to Orbital's specialist engineering capabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

LIQUIDITY RISK

The company seeks to manage its financial risk by ensuring sufficient cash resources are available to meet foreseeable needs.

CREDIT RISK

Credit risk associated with trade debtors is managed by the credit control functions which continually monitors the age and size of balances due.

RECRUITMENT AND RETENTION OF STAFF

The loss of key individuals is important to the delivery of the company's strategy. The company seeks to retain its key employees by providing above market rates of compensation and benefits.

CYBER SECURITY

Cyber and data security remain a key risk as technology and third-party cloud-based applications remain susceptible to the threat of cyber-attacks. A data breach or attack could result in operational disruption which could reduce the effectiveness of company IT systems. This in turn could result in the loss of income, financial, customer or employee data resulting in reputational damage. To mitigate these risks the company employees a range of proactive and reactive security controls.

INFLATIONARY COST PRESSURES

Suppliers may look to pass on inflationary increases in their input prices. Other areas may also be subject to inflationary pressure such as utility bills, staff costs and other variable costs. Such increases may be difficult to offset or fully pass on to customer. However, the board seek to mitigate this risk through the continued negotiation with suppliers to reduce the impact of price inflation and undertake regular dialogue with customers concerning pricing.

PREMISES CAPACITY

The company has fully utilised its available office and factory floor capacity and therefore this could be a limiting factor in the ability of the company to undertake further contracts. This has been mitigated in part by taking possession of a freehold industrial unit previously let to a third party by the company.

KEY PERFORMANCE INDICATORS

The directors monitor the company's progress and strategic direction by reference to certain financial key performance indicators. A summary of key performance indicators used is set out below:

2026

2025

Turnover

£17.9m

£13.9m

Gross margin

35%

39%

Operating profit margin

18%

16%

FUTURE DEVELOPMENTS

The board remains positive in its outlook for 2026/2027. The company continues to benefit from a solid order book and the support of its parent undertaking.

However, the market is expected to remain competitive and sensitive to wider macro-economic pressures including inflation, geopolitical uncertainties and customer investment cycles.

Orbital recently entered a lease on a new premises which provides a significant increase in capacity and capability and enables the business to target a revenue goal of £30m within five years.

The board remains confident that strategic actions and ongoing operational investments leave Orbital well positioned to navigate near-term challenges and achieve sustainable long-term growth.

ON BEHALF OF THE BOARD:

Mr J P Bridges - Director

13 July 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2026 will be £ 1,500,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2025 to the date of this report.

Mr I C Pearson

Mr P A Pearson

Mr J P Bridges

Other changes in directors holding office are as follows:

Mr N O A Fredell - resigned 2 September 2025

Mr D P King - appointed 2 September 2025

Mr M T Kay - resigned 2 September 2025

Mr A Lamb - resigned 30 June 2025

Mr E Persson - appointed 2 September 2025

Mr L M Soderlind was appointed as a director after 31 March 2026 but prior to the date of this report.

Daniel Philip King resigned on the 5th May 2026.

POLITICAL DONATIONS AND EXPENDITURE

During the year, the Company made charitable donations totalling £3,499 (2025: £1,197). No individual donation exceeded £2,000. All donations were made for non-political purposes.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT 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 company's auditors are unaware, and each director 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

Subsequent to the year end, Thompson Taraz Rand Audit & Assurance Limited resigned as statutory auditor on 20th March 2026 and TC Group was appointed in their place. The directors confirm that no circumstances connected with the resignation were brought to the attention of members or creditors under section 519 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr J P Bridges - Director

13 July 2026

Opinion

We have audited the financial statements of Orbital Fabrications Limited (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 March 2026 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the 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 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 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 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

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

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

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:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. Employment Legislation

We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particular relating to allocation of overhead, slow moving and obsolete stock provision and revenue recognition.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and. performed our audit in accordance with auditing standards; For example, the further· removed none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Andrew Rand BA FCA (Senior Statutory Auditor)

for and on behalf of Thompson Taraz Rand Audit and Assurance Ltd

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

13 July 2026

TURNOVER

17,875,874

13,948,825

Cost of sales

11,528,926

8,480,830

GROSS PROFIT

6,346,948

5,467,995

Administrative expenses

3,304,123

3,316,030

3,042,825

2,151,965

Other operating income

125

95,002

OPERATING PROFIT

4

3,042,950

2,246,967

Interest receivable and similar income

151,367

111,263

3,194,317

2,358,230

Interest payable and similar expenses

5

639

1,469

PROFIT BEFORE TAXATION

3,193,678

2,356,761

Tax on profit

6

748,333

582,870

PROFIT FOR THE FINANCIAL YEAR

2,445,345

1,773,891

PROFIT FOR THE YEAR

2,445,345

1,773,891

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,445,345

1,773,891

FIXED ASSETS

Tangible assets

8

897,305

731,640

CURRENT ASSETS

Stocks

9

2,613,567

2,860,379

Debtors

10

2,726,625

2,045,030

Cash and cash equivalents

6,494,484

5,299,411

11,834,676

10,204,820

CREDITORS

Amounts falling due within one year

11

(2,393,587

)

(1,589,849

)

NET CURRENT ASSETS

9,441,089

8,614,971

TOTAL ASSETS LESS CURRENT LIABILITIES

10,338,394

9,346,611

PROVISIONS FOR LIABILITIES

13

(115,535

)

(69,097

)

NET ASSETS

10,222,859

9,277,514

CAPITAL AND RESERVES

Called up share capital

14

1,000

1,000

Retained earnings

15

10,221,859

9,276,514

SHAREHOLDERS' FUNDS

10,222,859

9,277,514

The financial statements were approved by the Board of Directors and authorised for issue on 13 July 2026 and were signed on its behalf by:

Mr J P Bridges - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

1,000

7,502,623

7,503,623

Changes in equity

Total comprehensive income

-

1,773,891

1,773,891

Balance at 31 March 2025

1,000

9,276,514

9,277,514

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

2,445,345

2,445,345

Balance at 31 March 2026

1,000

10,221,859

10,222,859

Cash flows from operating activities

Cash generated from operations

1

3,430,767

2,618,503

Interest paid

(639

)

(1,469

)

Provisions

7,200

(8,660

)

Tax paid

(600,633

)

(862,618

)

Net cash from operating activities

2,836,695

1,745,756

Cash flows from investing activities

Purchase of tangible fixed assets

(303,589

)

(105,390

)

Sale of tangible fixed assets

10,600

312

Interest received

151,367

111,263

Net cash from investing activities

(141,622

)

6,185

Cash flows from financing activities

Equity dividends paid

(1,500,000

)

-

Net cash from financing activities

(1,500,000

)

-

Increase in cash and cash equivalents

1,195,073

1,751,941

Cash and cash equivalents at beginning of year

2

5,299,411

3,547,470

Cash and cash equivalents at end of year

2

6,494,484

5,299,411

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.26

31.3.25

£

£

Profit before taxation

3,193,678

2,356,761

Depreciation charges

130,214

100,756

(Profit)/loss on disposal of fixed assets

(2,890

)

1,506

Finance costs

639

1,469

Finance income

(151,367

)

(111,263

)

3,170,274

2,349,229

Decrease/(increase) in stocks

246,812

(467,718

)

(Increase)/decrease in trade and other debtors

(681,595

)

334,625

Increase in trade and other creditors

695,276

402,367

Cash generated from operations

3,430,767

2,618,503

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

6,494,484

5,299,411

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

5,299,411

3,547,470

Included in cash and cash equivalents is £4,300,000 (2025: £1,500,000) held on group treasury that is available to the company at short notice.

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash and cash equivalents

5,299,411

1,195,073

6,494,484

5,299,411

1,195,073

6,494,484

Total

5,299,411

1,195,073

6,494,484

1.	STATUTORY INFORMATION

Orbital Fabrications Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Critical accounting judgements and key sources of estimation uncertainty

Useful economic lives of tangible fixed assets:

Tangible fixed assets are depreciated over their expected useful lives taking into consideration residual values, where appropriate. The actual lives of the assets and residual values are assessed and amended when necessary to reflect the current estimates based on economic utilisation and physical condition of the assets.

Doubtful debts:

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing of the debtor and historical experience regarding payment history.

Slow moving stock:

Management apply judgement in evaluating stock movement and possible obsolescence. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate.

Turnover

Turnover represents amounts receivable for goods and services supplied in the normal course of business, excluding VAT and net of trade discounts, rebates and other sales-related allowances.

Revenue from the sale of manufactured components and assemblies is recognised when the significant risks and rewards of ownership have transferred to the customer, which is generally on delivery or despatch in accordance with the agreed contractual terms, and where the amount of revenue can be measured reliably and recovery is probable.

Revenue from engineering design, fabrication, installation and other contract-based services is recognised by reference to the stage of completion of the contract where the outcome of the contract can be estimated reliably. Stage of completion is assessed by reference to costs incurred to date as a proportion of total estimated contract costs, unless another method more appropriately reflects the substance of the work performed. Where the outcome of a contract cannot be estimated reliably, revenue is recognised only to the extent of contract costs incurred that are expected to be recoverable.

Amounts recoverable on contracts, including accrued income and retentions, are included within debtors where the related work has been performed, the amount can be measured reliably and recovery is considered probable.

Retentions are recognised as revenue where the company has satisfied the relevant contractual obligations and any remaining uncertainty does not prevent reliable measurement or recovery. Where further remedial or completion work is required, revenue recognition is assessed by reference to the substance of the remaining obligations, with any expected costs or losses recognised when identified.

Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately in profit or loss.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

20% on reducing balance

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Stocks

Stocks 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.

Work in progress is valued at the cost of materials, plus direct labour and an apportionment of overheads.

Slow moving stock:

Management apply judgement in evaluating stock movement and possible obsolescence concerning stock items that have been held for a period of 2 years. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate using management best estimate of the likely usage of the stock line.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets or financial liabilities or equity instruments.

Basic financial assets:

Basic financial assets which include assets and such as debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of future receipts are discounted at a market rate of interest. Assets receivable within one year are not discounted.

Basic financial liabilities:

Basic financial liabilities. including creditors, are initially measured at transaction price net of transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not discounted.

Impairment of financial assets

At each reporting date the company assesses whether there is objective evidence of impairment.

Impairment losses are measured as the difference between the carrying amount and the present value of estimated future cash flows. Losses are recognised in profit or loss

Offsetting of financial assets and liabilities

Financial assets and liabilities are only offset where the company has a legally enforceable right to do so.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 material 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

Leasing commitments

Leases where substantially all the risks and rewards incidental to ownership remain with the lessor are classified as operating leases.

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, even if payments are not made on this basis.

Lease incentives are recognised as a reduction of rental expense over the lease term.

The company considers the lease term to include any options to extend where it is reasonably certain these will be exercised

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.

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Cash and cash equivalents

Cash equivalents represent ‘short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value’, and,shall include any investments with a maturity of three months or less from acquisition.

Going concern

The financial statements have been prepared on the going concern basis.

In assessing going concern, the directors have considered the company’s financial position, cash reserves of £6.5m, historic profitability, forecast trading performance and the continued support of the ultimate parent undertaking.

The directors have also considered the financial strength of the wider Bergman & Beving Group and are satisfied that adequate support would be available if required. Whilst the company forms part of the Bergman & Beving Group, the directors have not relied upon any formal financial support from the parent undertaking in reaching their going concern assessment

The directors have reviewed cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. Based on this review, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties which cast significant doubt over the company’s ability to continue as a going concern.

3.	EMPLOYEES AND DIRECTORS

31.3.26

31.3.25

£

£

Wages and salaries

4,004,505

3,991,577

Social security costs

521,460

472,010

Other pension costs

395,493

122,608

4,921,458

4,586,195

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

31.3.26

31.3.25

Admin

33

26

Production

56

48

89

74

31.3.26

31.3.25

£

£

Directors' remuneration

508,074

564,367

Directors' pension contributions to money purchase schemes

15,373

11,216

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

Money purchase schemes

3

4

Information regarding the highest paid director is as follows:

31.3.26

31.3.25

£

£

Emoluments etc

249,681

404,961

Pension contributions to money purchase schemes

-

1,321

4.	OPERATING PROFIT

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

31.3.26

31.3.25

£

£

Hire of plant and machinery

86,578

65,633

Other operating leases

70,209

73,666

Depreciation - owned assets

130,214

100,756

(Profit)/loss on disposal of fixed assets

(2,890

)

1,506

Auditors' remuneration

14,800

14,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.26

31.3.25

£

£

Bank interest

639

651

HMRC interest

-

818

639

1,469

6.

TAXATION

Analysis of the tax charge

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

31.3.26

31.3.25

£

£

Current tax:

UK corporation tax

786,787

598,348

R & D tax refunds for 2023

(77,692

)

-

R & D tax refund for 2022

-

(22,690

)

Total current tax

709,095

575,658

Deferred tax

39,238

7,212

Tax on profit

748,333

582,870

UK corporation tax has been charged at 25% (2025 - 25%).