REGISTERED NUMBER: 10418987 (England and Wales)

CASTALLOY EUROPE LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

R Shaw

REGISTERED OFFICE:

Wheelabrator House

22 Edward Court

Altrincham

Cheshire

WA14 5GL

REGISTERED NUMBER:

10418987 (England and Wales)

AUDITORS:

Rushtons

Chartered Accountants

Statutory Auditors

Shorrock House

1 Faraday Court

Fulwood

Preston

Lancashire

PR2 9NB

The director presents his strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

The company ceased to trade on 26 March 2026, as a result these accounts have been prepared on a basis other than going concern.

During the financial year the company's principal activity was the manufacture of castings for use within a variety of industries.

The company's turnover decreased to £3.4m in 2025, from £4.3m in 2024. The operating loss increased to £1.6m from £0.5m in 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company arise from the levels of economic activity in its customers' markets.

Employee engagement

The directors placed considerable value on the involvement of the company's employees and kept everyone informed on matters affecting them as employees and important stakeholders. This was achieved through a range of methods including formal and informal communication briefings, an employee engagement portal on the wider group intranet, company-wide emails and official notice boards.

We were committed to providing equal opportunities in all areas of work and business for all of our employees regardless of race, nationality, religion, age, sexual orientation, disability or social background. We are proud to be a diverse company and we welcomed candidates from all backgrounds to apply for vacancies. As part of the wider group's code of conduct, we have a whistleblowing policy in place to enable employees to anonymously raise concerns.

We want people to achieve their best, which in turn will positively impact on our customers and the communities in which we live and work.

Engagement with customers and suppliers

The company placed considerable value on having strong relationships with customers and suppliers. The company engaged in regular, open and proactive dialogue with connected stakeholders and their opinions were considered when making operational and strategic decisions.

Community, environment and members

The company engaged with the community and contributes to local charities and organisations.

The company monitored and seeked to reduce its impact on the environment, for example, moving towards paperless communications with customers, suppliers and employees.

KEY PERFORMANCE INDICATORS

The company measures its performance by monitoring margins achieved against an annual budget and against estimates prepared at the time orders are accepted. A comprehensive reporting package, comparing actual performance to both budget and previous periods, is produced each month. This, along with a monthly rolling forecast, constitutes the key performance indicators used within the business.

2025

2024

£

£

Turnover

3,364

4,277

Gross profit/(loss)

(1,214

)

(168

)

Operating loss

(1,599

)

(541

)

FUTURE OUTLOOK

As of the date of signing these financial statements, all the Company's activities have ceased and the directors have made the decision to put the company into voluntary liquidation, which is expected to be completed during 2026.

ON BEHALF OF THE BOARD:

R Shaw - Director

28 July 2026

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

DIVIDENDS

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

FUTURE DEVELOPMENTS

An indication of likely future developments of the company is noted within the Strategic Report.

DIRECTOR

R Shaw held office during the whole of the period from 1 January 2025 to the date of this report.

GOING CONCERN

The directors do not consider the company to be a going concern. As a result of this, these financial statement have been prepared on a basis other than that of a going concern in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. Further details regarding the adoption of the basis of preparation can be found in the notes to the financial statements.

POST BALANCE SHEET EVENTS

The company ceased to trade on 26 March 2026. The freehold property held in tangible fixed assets has been disposed of in 2026. The process of liquidation is expected to be completed during 2026.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's activities exposed it to a variety of financial risks: market risk (including foreign currency risk), credit risk and liquidity risk. The company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial performance. The company used derivative financial instruments to hedge certain risk exposures.

The company's risks and uncertainties were therefore reviewed fully through regular quarterly Board meetings and weekly and monthly Executive meetings.

Credit risk

The company's principal financial assets were bank balances and trade receivables.

The company's credit risk was primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds was limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The company had no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

The company's principal source of liquidity was cash generated from its operations, with additional funding, if required, made available by the Group.

Foreign exchange risk

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities. The company predominantly transacted its operational activities with third parties in its local currency, although the global nature of the business can lead to transactional risks at the balance sheet date. This arises because the amount of local currency received or paid for transactions denominated in a foreign currency varies due to changes in foreign exchange rates. Where this risk was considered material, the company would enter into forward foreign exchange contracts.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

R Shaw - Director

28 July 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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.

Emphasis of matter - non going concern basis of preparation

We draw attention to the disclosure made in Note 1 to the financial statements which explains that the financial statements are not prepared on the going concern basis for the reasons set out in that note. Our opinion is not modified in respect of this matter.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered a number of issues, such as the nature of the company's industry, their control environment and business performance. We also discussed amongst our engagement team how and where fraud might occur and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the company operates in and focussed our attention on any laws and regulations which might be considered as "showstoppers". We also looked at internal controls in place at the company, established to mitigate risks related to fraud or non-compliance with laws and regulations.

In response to other identified risks, we reviewed the financial statement disclosures, we made enquiries of the company as to potential litigation and claims, we performed analytical procedures to look for unusual trends or unexpected relationships and we read any available meeting minutes.

We also addressed the risk of fraud through management override of controls by testing appropriate journal entries and other adjustments. We also assessed accounting estimates and considered any significant transactions that might be considered unusual in the normal course of business.

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.

Adam Calvert FCA (Senior Statutory Auditor)

for and on behalf of Rushtons

Chartered Accountants

Statutory Auditors

Shorrock House

1 Faraday Court

Fulwood

Preston

Lancashire

PR2 9NB

29 July 2026

TURNOVER

3

3,364

4,277

Cost of sales

4,578

4,445

GROSS LOSS

(1,214

)

(168

)

Distribution costs

132

158

Administrative expenses

253

215

385

373

OPERATING LOSS

5

(1,599

)

(541

)

Interest payable and similar expenses

6

337

337

LOSS BEFORE TAXATION

(1,936

)

(878

)

Tax on loss

7

-

471

LOSS FOR THE FINANCIAL YEAR

(1,936

)

(1,349

)

FIXED ASSETS

Tangible assets

10

643

661

CURRENT ASSETS

Stocks

11

298

463

Debtors

12

367

609

Cash at bank

155

299

820

1,371

CREDITORS

Amounts falling due within one year

13

7,079

2,683

NET CURRENT LIABILITIES

(6,259

)

(1,312

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(5,616

)

(651

)

CREDITORS

Amounts falling due after more than one year

14

-

3,029

NET LIABILITIES

(5,616

)

(3,680

)

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

(5,716

)

(3,780

)

SHAREHOLDERS' FUNDS

(5,616

)

(3,680

)

The financial statements were approved by the director and authorised for issue on 28 July 2026 and were signed by:

R Shaw - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

£'000

£'000

Balance at 1 January 2024

100

(2,431

)

(2,331

)

Changes in equity

Total comprehensive income

-

(1,349

)

(1,349

)

Balance at 31 December 2024

100

(3,780

)

(3,680

)

Changes in equity

Total comprehensive income

-

(1,936

)

(1,936

)

Balance at 31 December 2025

100

(5,716

)

(5,616

)

1.	STATUTORY INFORMATION

Castalloy Europe 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

The financial statements have been prepared on a basis other than going concern, in accordance with the Financial Reporting Framework 102 "The Financial Reporting Standard applicable in the UK and Republic or Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The functional currency of Castalloy Europe Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates. The financial statements are rounded to the nearest £1.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

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

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

Going concern

The company has ceased trading on 26 March 2026 and as explained in the above note, the financial statements have been prepared on a basis other than that of the going concern basis.This basis includes, where applicable, writing the company's assets down to net realisable value. No provision has been made for the future costs of terminating the business unless such costs were committed at the reporting date.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the company's accounting policies

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Key source of estimation uncertainty - Valuation of stock

The company reviews its stock valuation continually to ensure that items are not valued at above net realisable values. Current selling prices and historic rates of sale are reviewed to ensure that a suitable provision is made to the carrying value of the stock where there is the likelihood that an item might be sold below its historic price.

Turnover

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

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Freehold land and buildings 2-10% on cost

Plant and machinery 10-25% on cost

Computer Equipment 20% on cost

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value.

Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity.

Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

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 deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

(ii) Equity instruments

Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£'000

£'000

United Kingdom

600

467

Rest of World

2,764

3,810

3,364

4,277

4.	EMPLOYEES AND DIRECTORS

2025

2024

£'000

£'000

Wages and salaries

2,190

1,452

Social security costs

162

147

Other pension costs

137

162

2,489

1,761

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

2025

2024

Production

44

47

Selling and Distribution

2

3

46

50

The emoluments of the directors were paid by other group companies, which make no recharge to the company. They are directors and senior managers of a large number of fellow subsidiaries and it is not possible to make an accurate apportionment of their emoluments in respect of each of the subsidiaries. The total emoluments are disclosed in the financial statements of the ultimate parent company.

5.	OPERATING LOSS

The operating loss is stated after charging:

2025

2024

£'000

£'000

Other operating leases

9

11

Depreciation - owned assets

18

18

Foreign exchange differences

19

22

Impairment Losses

-

11

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£'000

£'000

Intercompany Loan Interest

Payable

337

337

337

337

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£'000

£'000

Current tax:

UK corporation tax

-

471

Tax on loss

-

471

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£'000

£'000

Loss before tax

(1,936

)

(878

)

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

(484

)

(220

)

Effects of:

Fixed Asset Differences

3

2

for changes in tax rates

tax purposes

Group Relief Surrendered

516

320

Adjustment to tax charge in respect of previous periods

(59

)

-

tax

Movement in deferred tax not recongised

24

369

Total tax charge

-

471

8.	DEFERRED TAX

The company has a deferred tax asset of £391,586 (2024: £368,528), which is made up of £143,018 fixed timing diffferences (2024: £179,008) and £248,568 of losses and other deductions (2024: £189,520).

Due to the restrictive nature of the losses and the closure of the company, a deferred tax asset has not been recognised in relation to the above.

9.	AUDITORS REMUNERATION

Fees payable to the auditors for the audit of the company's annual financial statements were £8,000 (2024: £8,000).

Fees payable to the auditors and their associates for non-audit services to the company are not required to be disclosed because the consolidated financial statements of the parent company are required to disclose such fees on a consolidated basis.

10.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Computer

property

machinery

equipment

Totals

£'000

£'000

£'000

£'000

COST

At 1 January 2025

and 31 December 2025

782

961

30

1,773

DEPRECIATION

At 1 January 2025

121

961

30

1,112

Charge for year

18

-

-

18

At 31 December 2025

139

961

30

1,130

NET BOOK VALUE

At 31 December 2025

643

-

-

643

At 31 December 2024

661

-

-

661

Since the year end the freehold property has been disposed of for £1.9m

11.

STOCKS

2025

2024

£'000

£'000

Stocks

177

355

Work-in-progress

121

108

298

463

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£'000

£'000

Trade debtors

245

288

Amounts owed by group undertakings

39

197

Other debtors

57

86

Prepayments and accrued income

26

38

367

609

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

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£'000

£'000

Trade creditors

122

73

Amounts owed to group undertakings

6,080

2,337

Social security and other taxes

43

28

Accrued expenses

834

245

7,079

2,683

Within amounts owed to group undertakings are £3,051,046 (2024: £2,337,709) of balances which are unsecured, repayable on demand and interest free. The remainder of the amounts owed to group undertakings, £3,029,302 (2024: £0), are repayable on 31 January 2027, are unsecured and carry interest at market representative rates however as the company will go into voluntary liquidation, these balances have been reclassified as falling due within one year.

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£'000

£'000

Amounts owed to group undertakings

-

3,029

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£'000

£'000

100,000

Ordinary

£1

100

100

16.

RESERVES

Retained

earnings

£'000

At 1 January 2025

(3,780

)

Deficit for the year

(1,936

)

At 31 December 2025

(5,716

)

17.	PENSION COMMITMENTS

The company operates a defined contribution scheme for its employees, for which the pension cost charge for the year was £118,156 (2024: £142,119). Contributions of £0 were payable to the scheme at 31 December 2025 (2024: £0).

18.	ULTIMATE CONTROLLING PARTY

The directors regard Norican Global A/S, registered in Denmark, as the ultimate parent company and Altor Fund IV Holding AB, registered in Sweden, as the ultimate controlling party.

The smallest and largest group in which the company's results are consolidated is that headed by Norican Global A/S, whose registered office is Hojager 8, DK-2630, Taastrup, Denmark. Group consolidated financial statements can be obtained from the registered address of Norican Global A/S.