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Registered number: 04925636









PIL MEMBRANES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

 
PIL MEMBRANES LIMITED
 

COMPANY INFORMATION


Directors
J Faissat 
M McAlpine 
M Whiskens 
S Sweetland 
S Youngs 
R Wybrow (resigned 17 February 2026)




Company secretary
S Youngs



Registered number
04925636



Registered office
Riverside Industrial Estate
Estuary Road

King's Lynn

Norfolk

PE30 2HS




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Anglia House, 6 Central Avenue

St Andrews Business Park

Thorpe St Andrew

Norwich

Norfolk

NR7 0HR




Bankers
HSBC Bank Plc
18 London Street

Norwich

NR2 1LG





 
PIL MEMBRANES LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 28


 
PIL MEMBRANES LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2025

Business review
 
The principal activity of the Company is the development, manufacture, and sale of breathable membranes to the apparel, footwear and technical fabrics markets.

The Company's results for the period are promising, progress has been made in existing and new market areas and the Company continues to expand its range of membranes to the textile industry.

Financial key performance indicators
 
                 2025   2024
               £        £
Turnover        18,390,737   19,718,058
Operating profit         1,238,302     2,197,364
Net assets          4,348,329     4,771,488

            
No.     No.
Average employees         125     129

Turnover decreased over the year due to lower volumes sold and worse product mix. Operating profit reduced further by increased energy and labour costs and overall efficiency of the Company’s operations. Average employee numbers reduced by four over the year.

Analysis of development and performance during the year

The Company made good progress on new product developments in the year in line with its strategy.

Efforts were made during the year to improve operational performance and negate inflationary costs from energy and labour.

Looking ahead to 2026 the Company considers itself in a strong position to take advantage of opportunities in existing and new markets..

Principal risks and uncertainties
 
The principal risks and uncertainties for the Company are explained below:

Personnel risks

The Company is at risk in the attraction and retention of key staff. To mitigate this we train and develop key staff and look to recruit and retain staff by aligning personal objectives with the Company's key strategic objectives.

Health & Safety risks

Prevention of injury to employees and other stakeholders including suppliers and customers; this is mitigated by clear policies and procedures which we have put in place detailing the controls required to manage health and safety and product safety risks across the business and compliance with all applicable  regulations..

Increased competition

The Company is at risk from increased competition in its markets, to mitigate this it continues to develop new technologies and maintains its high level of customer service globally.

Page 1

 
PIL MEMBRANES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025

Financial risk management objectives and policies
 
The directors have assessed the main risks facing the Company to be the instability of the worldwide economic environment, together with exchange rate volatility and the political situation in some of our export markets. However the extremely diverse markets and extensive geographical coverage ensure that any adverse impact related to these risks is minimised.

Credit risk
 
The Company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors. Risks associated with cash are limited as the Company uses reputable banks.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.


This report was approved by the board on 24 March 2026 and signed on its behalf.



J Faissat
Director

Page 2

 
PIL MEMBRANES LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2025

The directors present their report and the financial statements for the year ended 30 November 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £960,781 (2024 - £1,767,466).

There were £Nil dividends paid in 2025 (2024 - £Nil).

Directors

The directors who served during the year were:

J Faissat 
M McAlpine 
M Whiskens 
S Sweetland 
S Youngs 
R Wybrow (resigned 17 February 2026)

Future developments

Uncertainties remain in both the UK and overseas economies. The directors are confident that the Company is in a strong position to take advantage of growth opportunities as they arise. 

Employee ownership trust

During the year contributions totalling £1,401,609 (2024 - £1,804,800) were made to the PIL Membranes
Employee Ownership Trust

Page 3

 
PIL MEMBRANES LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPrice Bailey LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 March 2026 and signed on its behalf.
 





J Faissat
Director

Page 4

 
PIL MEMBRANES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIL MEMBRANES LIMITED
 

Opinion


We have audited the financial statements of PIL Membranes Limited (the 'Company') for the year ended 30 November 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and related notes, including a summary of significant accounting policiesThe 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 30 November 2025 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
PIL MEMBRANES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIL MEMBRANES LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been    received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the 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.


Page 6

 
PIL MEMBRANES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIL MEMBRANES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We reviewed a sample of manual postings into the financial statements and obtained an understanding of their
rationale;

- We carried out a critical review of accounting estimates to identify any indications of management bias;

- We obtained confirmation directly from the Company's bank, to confirm the accounts and balances held in their
name at the balance sheet date;

- We undertook testing to confirm the existence of a sample of employees to ensure that no ficticious employees
are paid, and checked that said employees were being paid in accordance with their contracts of employment.

- We reviewed a randomly selected payroll run to identify any duplicated employee names or bank details.

The procedures performed in order to identify non-compliance are as follows:

- We held discussions with those charged with governance to enquire whether they were aware of any instances of non-compliance;

- We reviewed legal expenses to indentify any instances of non-compliance with laws and regulations;

- We reviewed the accident log and gained an understanding of the Health & Safety procedures in place at the manufacturing sites;

- We reviewed correspondence with key regulators to understand if any instances of non-compliance with those regulations had occurred in the period.

We performed the procedures set out above after gaining an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and after considering the risk of acts by the Company contrary to applicable laws and regulations including fraud. We obtained this understanding from our general commercial and sector experience, though discussion with the Directors (as required by the auditing standards), including discussion around the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.




 
Page 7

 
PIL MEMBRANES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIL MEMBRANES LIMITED (CONTINUED)


The Company is also subject to many other laws and regulations where the consequences of non compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: the General Data Protection Regulation, competition law, employment law and certain aspects of company legislation recognising the regulated nature of part of the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.


Following detailed team briefings, the Responsible Individual has assessed that the audit engagement team collectively has the appropriate competence and capability to identify or recognise non-compliance with applicable laws and regulation. Nonetheless, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Aaron Widdows ACA FCCA (Senior Statutory Auditor)
for and on behalf of
Price Bailey LLP
Chartered Accountants
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR

25 March 2026
Page 8

 
PIL MEMBRANES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2025

2025
2024
Note
£
£

  

Turnover
 4 
18,390,737
19,718,058

Cost of sales
  
(15,169,165)
(15,127,585)

Gross profit
  
3,221,572
4,590,473

Administrative expenses
  
(2,115,254)
(2,401,020)

Other operating income
  
131,984
7,911

Operating profit
 5 
1,238,302
2,197,364

Tax on profit
 9 
(277,521)
(429,898)

Profit for the financial year
  
960,781
1,767,466

There was no other comprehensive income for 2025 (2024 - £Nil).

The notes on pages 12 to 28 form part of these financial statements.

Page 9

 
PIL MEMBRANES LIMITED
REGISTERED NUMBER: 04925636

BALANCE SHEET
AS AT 30 NOVEMBER 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 10 
798,195
749,170

Investments
 11 
54
54

  
798,249
749,224

Current assets
  

Stocks
 12 
3,075,837
2,703,574

Debtors: amounts falling due within one year
 13 
2,146,412
2,244,169

Cash at bank and in hand
  
1,271,457
2,138,330

  
6,493,706
7,086,073

Creditors: amounts falling due within one year
 14 
(2,776,949)
(2,907,484)

Net current assets
  
 
 
3,716,757
 
 
4,178,589

Total assets less current liabilities
  
4,515,006
4,927,813

Provisions for liabilities
  

Deferred tax
 16 
(166,677)
(156,325)

Net assets
  
4,348,329
4,771,488


Capital and reserves
  

Called up share capital 
 17 
150,000
150,000

Share based payment reserve
 18 
82,456
64,787

Profit and loss account
 18 
4,115,873
4,556,701

  
4,348,329
4,771,488


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 March 2026.




J Faissat
Director

The notes on pages 12 to 28 form part of these financial statements.

Page 10

 
PIL MEMBRANES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2025


Called up share capital
Share based payment reserve
Profit and loss account
Total equity

£
£
£
£


At 30 November 2023
150,000
47,118
4,594,035
4,791,153


Comprehensive income for the year

Profit for the year
-
-
1,767,466
1,767,466


Contributions by and distributions to owners

Capital contribution to Employee Ownership Trust
-
-
(1,804,800)
(1,804,800)

Share option movement
-
17,669
-
17,669


Total transactions with owners
-
17,669
(1,804,800)
(1,787,131)



At 30 November 2024
150,000
64,787
4,556,701
4,771,488


Comprehensive income for the year

Profit for the year
-
-
960,781
960,781


Contributions by and distributions to owners

Capital contribution to Employee Ownership Trust
-
-
(1,401,609)
(1,401,609)

Share option movement
-
17,669
-
17,669


Total transactions with owners
-
17,669
(1,401,609)
(1,383,940)


At 30 November 2025
150,000
82,456
4,115,873
4,348,329


The notes on pages 12 to 28 form part of these financial statements.

Page 11

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

1.


General information

PIL Membranes Limited is a private company limited by shares incorporated in England & Wales. The registered office is Riverside Industrial Estate, Estuary Road, King's Lynn, Norfolk, PE30 2HS. The nature of the Company's operations and its principal activities are set out in the Strategic Report.

The financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of PIL Membranes Holdings Limited as at 30 November 2025 and these financial statements may be obtained from Companies House.

Page 12

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the month end exchange rate at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. This is considered to be on despatch of goods. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Page 13

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 14

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
5 - 20 years
Office equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 15

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

 

Page 16

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 17

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these judgments and estimates have been made are addressed below.

Useful economic life of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual values of the assets. The economic lives and residual values are reassessed annually and, where necessary, amended to reflect current conditions.

Stock provisioning

The Company manufactures and sells product subject to the demands of the market in which it operates. As a result, it is necessary to consider the recoverability of cost of stock and the associated provisioning required. The Company considers the condition and age of the stock using assumptions over the sale of finished goods and usage of raw materials in estimating the provision required.

Impairment of debtors

The Company makes an estimate of the recoverable value of trade, intragroup and other debtors. When assessing the impairment of trade and other debtors the directors consider factors including age, independent credit rating and historical experience.


4.


Turnover

The whole of the turnover is attributable to the principal activity set out in the Strategic Report.

Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
173,349
142,153

Rest of Europe
7,997,530
9,483,451

Rest of the world
10,219,858
10,092,454

18,390,737
19,718,058


Page 18

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Depreciation of tangible fixed assets
125,506
127,637

Research and development
61,787
26,111

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
19,950
19,000

Exchange differences
(54,161)
(3,287)

Other operating lease rentals
375,142
437,622

Defined contribution pension cost
472,577
466,397


6.


Employees

Staff costs were as follows:


2025
2024
£
£

Wages and salaries
4,998,201
5,102,507

Social security costs
613,177
512,270

Cost of defined contribution scheme
472,577
466,397

6,083,955
6,081,174


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Production staff
71
67



Technical and administrative staff
54
62

125
129

Page 19

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

7.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
678,597
711,401

Company contributions to defined contribution pension schemes
84,546
77,370

763,143
788,771


During the year retirement benefits were accruing to 5 directors (2024 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £277,147 (2024 - £298,202).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £23,883 (2024 - £20,462).

The total number of directors who exercised share options during the year was Nil (2024 - Nil).


8.


Share based payments

During the period ended 30 November 2025, the Company had the following share based payment agreement as follows:

Type of arrangement: PIL Membranes EMI Option Plan 
Date of initial grant: 23 March 2021 with vesting period of 6 years
Number of option shares granted: 90,611
Number of employees: 5

Share options are over shares in the parent company, PIL Membranes Holdings Limited.

The estimated fair value of each share option granted is £1.17. This was calculated by applying a Black-Scholes option pricing model. The model inputs were the share price at the grant date of £1.80, expected volatility of 75%, maturity of 6 years and a risk free interest rate of 0.81%.

The amount of employee remuneration expense in respect of the share options granted amounts to £17,669 (2024 - £17,669).


9.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
267,169
462,223

Deferred tax


Origination and reversal of timing differences
10,352
(32,325)


Taxation on profit on ordinary activities
277,521
429,898
Page 20

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
1,238,302
2,197,364


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
309,576
549,341

Effects of:


Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(46,825)
(65,285)

Adjustment in research and development tax credit leading to a decrease in the tax charge
8,100
(53,219)

Other disallowable items
4,979
(939)

Other differences
1,691
-

Total tax charge for the year
277,521
429,898


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

10.


Tangible fixed assets







Plant and machinery
Office equipment
Total

£
£
£



Cost or valuation


At 30 November 2024
2,750,263
39,651
2,789,914


Additions
174,531
-
174,531



At 30 November 2025

2,924,794
39,651
2,964,445



Depreciation


At 30 November 2024
2,016,792
23,952
2,040,744


Charge for the year on owned assets
120,179
5,327
125,506



At 30 November 2025

2,136,971
29,279
2,166,250



Net book value



At 30 November 2025
787,823
10,372
798,195



At 30 November 2024
733,471
15,699
749,170

Page 22

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

11.


Fixed asset investments








Investments in group undertakings

£



Cost or valuation


At 30 November 2024
54



At 30 November 2025
54






Net book value



At 30 November 2025
54



At 29 November 2024
54


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

KL Technologies (US) Inc
100 Coxe Avenue, Asheville, NorthCarolina, United States of America
Ordinary
100%
KL Technologies (Shanghai) International Trading Co Limited
Room 674, 6/F, No 88 Tai Gu Road,Shanghai Free Trade Zone, China
Ordinary
100%
KL Technologies (Hong Kong) Limited
16th Floor, Shing Lee CommercialBuilding, 8 Wing Kut Street, Central,Hong Kong
Ordinary
100%

The aggregate of the share capital and reserves as at 30 November 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

KL Technologies (US) Inc
203,182
-

KL Technologies (Shanghai) International Trading Co Limited
515,831
10,332

KL Technologies (Hong Kong) Limited
103,939
9,219

Page 23

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

12.


Stocks

2025
2024
£
£

Raw materials
1,615,594
1,144,068

Work in progress
1,080,780
1,077,169

Finished goods
379,463
482,337

3,075,837
2,703,574


The carrying value of stocks are stated net of impairment losses totalling £570,042 (2024 - £682,099).

The replacement value of stock is not materially different to carrying value.


13.


Debtors

2025
2024
£
£


Trade debtors
1,671,053
1,882,998

Amounts owed by group undertakings
60,854
182,503

Other debtors
303,090
145,963

Prepayments and accrued income
111,415
32,705

2,146,412
2,244,169


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Page 24

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

14.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
1,243,050
1,106,012

Amounts owed to group undertakings
208,326
208,326

Corporation tax
198,457
252,254

Other taxation and social security
134,138
123,361

Other creditors
257,784
194,338

Accruals and deferred income
735,194
1,023,193

2,776,949
2,907,484


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Other securities:
Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 13 May 2011.


15.


Financial instruments

2025
2024
£
£

Financial assets


Financial assets measured at amortised cost
3,388,826
4,224,482


Financial liabilities


Financial liabilities measured at amortised cost
(2,444,354)
(2,531,869)


Financial assets that are measured at amortised cost comprise cash, trade debtors, amounts owed by group undertakings and other debtors.

Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals.

In the prior year the Company had outstanding forward currency contracts which matured within 12 months of the year end. The Company was committed to selling $1,000,000) at rates between 1.26947-1.27028. There are no such contracts in place as at 30 November 2025.

Page 25

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

16.


Deferred taxation






2025


£






At beginning of year
(156,325)


Credited to profit or loss
(10,352)



At end of year
(166,677)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
196,750
182,187

Short-term timing differences
(30,073)
(25,862)

166,677
156,325


17.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



150,000 (2024 - 150,000) Ordinary shares of £1.00 each
150,000
150,000

Ordinary shares have full voting rights, full dividend rights, full distributions rights and no redemption options or conditions.



18.


Reserves

Share based payment reserve

Movement of the equity-based share options.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

Page 26

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

19.


Contingent liabilities

The Company has provided a guarantee, dated 8 June 2011, in favour of HM Revenue & Customs for £80,000 (2024 - £80,000). 

The Company has provided a charge over its assets as security in favour of the previous shareholders.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £472,577 (2024 - £466,397). Contributions totalling £41,717 (2024 - £41,878) were payable to the fund at the Balance Sheet date.


21.


Commitments under operating leases

At 30 November 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
432,992
376,996

Later than 1 year and not later than 5 years
1,548,118
60,625

1,981,110
437,621

Page 27

 
PIL MEMBRANES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025

22.


Related party transactions

During the year, sales of £2,820 (2024: £7,103) and purchases of £346,876 (2024: £470,540) were made to/from a company related by virtue of common key management personnel. At the year-end, £6,218 was due from the related company.

During the year, sales of £119,427 (2024: £36,392) and purchases of £188,060 (2024: £27,312) were made to/from a company related by virtue of common key management personnel. At the year-end, £146,533 was due to the related company.

During the year, sales of £nil and purchases of £624,463 (2024: £495,181) were made to/from a company related by virtue of common key management personnel. At the year-end, £3,000 (2024: £45,403) was due from the related company.

During the year, sales of £14,983 (2024: £23,980) and purchases of £220,539 (2024: £nil) were made to/from a company related by virtue of common key management personnel. At the year-end, £24,693 (2024: £9,608) was due to the related company.

During the year, sales of £270,351 (2024: £231,070) and purchases of £nil (2024: £nil) were made to/from a company related by virtue of common key management personnel. At the year-end, £4,901 (2024: £66,473) was due from the related company.

During the year, sales of £nil (2024: £nil) and purchases of £8,199 (2024: £8,226) were made to/from a company related by virtue of being controlled by the close family of a member of the parent company's KMP. At the year-end, £789 (2024: £820) was due to the related company.

All amounts due to or from related companies are interest free and unsecured.


23.


Controlling party

The immediate parent Company is PIL Membranes Holdings Limited. The ultimate parent company and controlling party is PIL Membranes EOT Limited.

The smallest and largest group in which the results of the Company are consolidated is that headed by PIL Membranes Holdings Limited, whose registered office is Riverside Industrial Estate, Estuary Road, Kings Lynn, Norfolk, PE30 2HS

The consolidated accounts of PIL Membranes Holdings Limited are available to the public and may be
obtained from Companies House, Crown Way, Cardiff.


Page 28