REGISTERED NUMBER: 03954360 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st December 2025

for

Mec Com Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

Notes to the Financial Statements

18

DIRECTORS:

Mr R J Bunce

Mr N J Lathe

Mr M Bell

SECRETARY:

Mr N J Lathe

REGISTERED OFFICE:

Units 15A-C

Airfield Industrial Estate

Hixon

Staffordshire

ST18 0PF

REGISTERED NUMBER:

03954360 (England and Wales)

AUDITORS:

Rice & Co Limited

Chartered Accountants

Statutory Auditors

14a Market Place

Uttoxeter

Staffordshire

ST14 8HP

The directors present their strategic report for the year ended 31st December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was as a key provider of a comprehensive range of electromechanical components as well as an assembly and test service for customers requiring TMS (Total Manufacturing Solutions).

Key disciplines include sheet metal fabrication, electromechanical assembly and test.

REVIEW OF BUSINESS

The company recorded Sales Turnover of £14,043,563 a decrease of 19% from the previous year. P.B.I.T. (Profit before Interest and Taxation) decreased from 5.8% in 2024 to 0.1% for 2025.

Sales Order intake figures received in the year totalled £12.5M compared to £14M in 2024.

Trading performance in 2025 was impacted by difficult macroeconomic conditions and a temporary reduction in demand across a key operational sector (Electrical Transmission & Distribution - Protection & Control).

Indications are that demand is set to increase again with higher levels of order intake received so far in 2026.

Review of 2025 Results:

Sales Turnover in the year was £14,043,563, a decrease of 19% from the £17,383,748 achieved in the previous year.

Raw Materials and Consumables costs decreased by £1,520,805 from 2024 to £8,864,233 and represented 63.1% of Sales, an increase from the previous year of 3.4%.

Staff Costs (Payroll) decreased by £620,819 to £3,660,172 and represented 26.1% of Sales, an increase of 1.5% from 2024.

The average number of employees decreased to 105 employees during the year, a reduction of 14 from 2024.

Profit before Taxation on continuing trade activities decreased by £936,741 to £23,842 from the previous year (2024 - £960,583).

KEY PERFORMANCE INDICATORS

The board of directors recognise Key Performance Indicators as an integral part of monitoring the progress of the business.

Performance indicators are identified in the Annual Business Plan and appropriate targets set.

It is the responsibility of the management team to regularly monitor and review these figures and report the results and any corrective actions to the board.

The key performance indicators used to monitor the financial performance of the company include profit before interest and taxation (P.B.I.T.) as a % of sales which closed the year on 0.1% down from 5.8% from the previous year.

Sales per employee decreased from £146,000 to £134,000, whilst Net Profit before taxation per employee decreased from £8,100 to stand at £227 during 2025.

Other Balance Sheet indicators showed the following movements:

Inventory days remained constant at 133 days, Trade receivables/debtor days increased by 17 days to close on 27 days during the year with Trade payables/average creditor days decreasing by 13 days to close on 22 days average by the end of the year.

RESEARCH AND DEVELOPMENT ACTIVITIES

Ongoing capital investment and the implementation of lean manufacturing techniques have created a truly flexible and cost-effective manufacturing environment. Included within this the company undertakes regular activities to innovate and introduce new manufacturing processes, techniques and solution requirements, including building prototypes and testing in-house.

PRINCIPAL RISKS AND UNCERTAINTIES

Commercial Relationships

The Company benefits from close commercial relationships with a number of key customers and suppliers. The loss of any of these key customers or suppliers, or a significant worsening in commercial terms could have a material impact on results.

The Company devotes significant resources to supporting these relationships to ensure they continue to operate satisfactorily. Wherever practical, the Company endeavours to maintain more than one source of a particular supply.

Competitors

The Company faces fierce competition from low cost countries namely China, India and from those located in Eastern Europe.

The Company continually works to streamline its cost base to ensure it remains competitive. Part of this ongoing initiative is the expansion of a global supply chain involving the procurement of high volume parts from China as well as medium to high volume products from facilities in Romania.

Maintaining High Quality

As the Company primarily supplies products into the protection and control systems of major electrical distribution networks, maintaining high quality standards are essential. Failure to comply with the necessary standards could significantly damage the Company's reputation and performance.

The Company has established policies and operating procedures which are periodically subject to both internal and external audit. The Company is accredited under ISO 9001 and ISO 14001 Environmental standard.

Health and Safety

A significant number of the Company's employees work in a manufacturing environment near machinery. In addition to the possible injury to individuals, serious accidents could result in prosecution and fines and damage the reputation and performance of the Company.

The Company works to identify and minimise all Health and Safety risks in order to provide a safe and healthy workplace for employees and visitors. Risk assessments and workplace training is undertaken in all areas of the business.

Energy and Raw Materials

The Company's products contain a number of raw materials and its operations require significant levels of energy; notably gas and electricity. Any increases or volatility in prices or any prolonged interruption in supply could have a material impact on the Company's results.

The Company regularly undertakes purchasing reviews and uses forward buying or other contractual means where appropriate to manage the risks.

Other Risks

Other external risks include global, political and economic conditions, foreign exchange, interest rates, credit risk and business continuity.

The company seeks to mitigate exposure to all forms of risk, where practicable, and to transfer risk to insurers, where cost effective.

FINANCIAL INSTRUMENTS

The directors are constantly reviewing the objectives of the business operations to identify areas where it is able to reduce financial risk without hindrance to on site operations.

Credit

To counteract the risk of bad debts the business has increased the use of credit checking facilities to assess the risk to the company of contracting with each customer.

The Company also insures its debtor book against any potential bad debts.

Liquidity

The business has a very strong relationship with its banking team. The company has the facilities to meet its needs on an ongoing basis, namely using an invoice discounting facility to factor its debtor book.

Hedging Forecast Transactions

A proportion of the Company's sales are denominated in currencies other than Sterling (Euros) which are only partially matched by expenses denominated in those currencies. A significant weakening of these currencies against sterling could materially impact the Company's performance.

The Company sets internal exchange rates for determining pricing and enters into forward contracts based on forecast transactions to achieve or better these rates.

Cash flow

Cash flow forecasts are prepared weekly and any facilities reviewed to cover any foreseeable funding requirements with an allowance for unforeseen events.

FUTURE DEVELOPMENTS

The company has committed to upgrade its ERP management and operation to EFACS E/8 a modern, comprehensive, flexible browser-based business solution.

Implementation to commence in summer 2026 with completion within 12 months.

The business will continue plans to further exploit the benefits of lean manufacturing and digital technologies, whilst reducing its carbon footprint, to ensure customers receive sustainable, high quality cost-effective products and services.

ON BEHALF OF THE BOARD:

Mr N J Lathe - Director

28th July 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £ 415,497 .

DIRECTORS

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

Mr R J Bunce

Mr N J Lathe

Mr M Bell

DISCLOSURE IN THE STRATEGIC REPORT

Information regarding financial instruments and future developments is contained within the strategic report included in these financial statements.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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

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

ON BEHALF OF THE BOARD:

Mr N J Lathe - Director

28th July 2026

Opinion

We have audited the financial statements of Mec Com Limited (the 'company') for the year ended 31st December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 company's affairs as at 31st 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 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 six, 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 obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we performed procedures which included:

-

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud.

-

Reviewing minutes of meetings of those charged with governance.

-

Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection.

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-

Performing audit work over the risk of management bias and override of controls including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with laws and regulations. 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 of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may include collusion, forgery, intentional omissions, misrepresentations, or override of the internal control.

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.

Matthew Gibbs FCA (Senior Statutory Auditor)

for and on behalf of Rice & Co Limited

Chartered Accountants

Statutory Auditors

14a Market Place

Uttoxeter

Staffordshire

ST14 8HP

28th July 2026

TURNOVER

4

14,043,563

17,383,748

Cost of sales

11,528,597

13,674,934

GROSS PROFIT

2,514,966

3,708,814

Distribution costs

165,223

205,184

Administrative expenses

2,355,350

2,502,267

2,520,573

2,707,451

(5,607

)

1,001,363

Other operating income

86,627

-

OPERATING PROFIT

6

81,020

1,001,363

Interest payable and similar expenses

7

57,178

40,780

PROFIT BEFORE TAXATION

23,842

960,583

Tax on profit

8

(114,015

)

244,398

PROFIT FOR THE FINANCIAL YEAR

137,857

716,185

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

137,857

716,185

FIXED ASSETS

Tangible assets

10

905,426

212,770

CURRENT ASSETS

Stocks

11

3,240,904

3,775,716

Debtors

12

1,400,326

852,278

Cash at bank and in hand

30,007

453,310

4,671,237

5,081,304

CREDITORS

Amounts falling due within one year

13

1,850,832

1,623,956

NET CURRENT ASSETS

2,820,405

3,457,348

TOTAL ASSETS LESS CURRENT LIABILITIES

3,725,831

3,670,118

CREDITORS

Amounts falling due after more than one year

14

(233,014

)

(2,043

)

PROVISIONS FOR LIABILITIES

18

(124,902

)

(22,520

)

NET ASSETS

3,367,915

3,645,555

CAPITAL AND RESERVES

Called up share capital

19

2,120

2,120

Capital redemption reserve

20

880

880

Retained earnings

20

3,364,915

3,642,555

SHAREHOLDERS' FUNDS

3,367,915

3,645,555

The financial statements were approved by the Board of Directors and authorised for issue on 28th July 2026 and were signed on its behalf by:

Mr N J Lathe - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2024

2,120

3,240,007

880

3,243,007

Changes in equity

Dividends

-

(313,637

)

-

(313,637

)

Total comprehensive income

-

716,185

-

716,185

Balance at 31st December 2024

2,120

3,642,555

880

3,645,555

Changes in equity

Dividends

-

(415,497

)

-

(415,497

)

Total comprehensive income

-

137,857

-

137,857

Balance at 31st December 2025

2,120

3,364,915

880

3,367,915

Cash flows from operating activities

Cash generated from operations

1

87,345

877,250

Interest paid

(51,258

)

(39,684

)

Interest element of hire purchase payments paid

(5,920

)

(1,096

)

Tax paid

(119,675

)

(213,624

)

Dividends paid

(415,497

)

(313,637

)

Net cash from operating activities

(505,005

)

309,209

Cash flows from investing activities

Purchase of tangible fixed assets

(370,702

)

(65,678

)

Sale of tangible fixed assets

3,000

-

Grants received - tangible fixed assets

100,000

-

Net cash from investing activities

(267,702

)

(65,678

)

Cash flows from financing activities

Hire purchase repayments

(127,475

)

(12,253

)

Movement in associated company balances

476,879

(203,217

)

Net cash from financing activities

349,404

(215,470

)

(Decrease)/increase in cash and cash equivalents

(423,303

)

28,061

Cash and cash equivalents at beginning of year

2

453,310

425,249

Cash and cash equivalents at end of year

2

30,007

453,310

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

2025

2024

£

£

Profit before taxation

23,842

960,583

Depreciation charges

167,589

88,608

Profit on disposal of fixed assets

(3,000

)

-

Government grants

(5,833

)

-

Finance costs

57,178

40,780

239,776

1,089,971

Decrease/(increase) in stocks

534,812

(639,962

)

(Increase)/decrease in trade and other debtors

(488,916

)

1,284,181

Decrease in trade and other creditors

(198,327

)

(856,940

)

Cash generated from operations

87,345

877,250

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 31st December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

30,007

453,310

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

453,310

787,321

Bank overdrafts

-

(362,072

)

453,310

425,249

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

453,310

(423,303

)

30,007

453,310

(423,303

)

30,007

Debt

Finance leases

(14,297

)

127,475

-

(376,364

)

Debts falling due

within 1 year

(201,673

)

(226,627

)

-

(428,300

)

(215,970

)

(99,152

)

-

(804,664

)

Total

237,340

(522,455

)

-

(774,657

)

1.	STATUTORY INFORMATION

Mec Com 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point the customer has signed for the delivery of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% on cost and 10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost and 10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are reviewed annually to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are valued at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. Provision is made for obsolete and slow moving items.

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 reporting 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Debtors

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

Creditors

Short term trade and other creditors are measured at transaction price. Other financial liabilities, including bank loans, are initially measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Derivative financial instruments

Derivative financial instruments are recognised at fair value with any gains or losses being reported in profit or loss.

Government grants

Grants received as a contribution towards capital expenditure are credited to income over the useful economic life of the related asset.

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Taxation

Current tax is recognised for the amount payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the reporting date.

4.

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:

2025

2024

£

£

United Kingdom

5,392,407

5,047,041

Europe

7,439,682

11,527,110

Rest of the World

1,211,474

809,597

14,043,563

17,383,748

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,173,177

3,854,899

Social security costs

340,230

330,727

Other pension costs

146,765

95,365

3,660,172

4,280,991

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

2025

2024

Directors

3

3

Administration

44

48

Production

58

68

105

119