REGISTERED NUMBER: 00942287 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

S.I.P. (INDUSTRIAL PRODUCTS) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr P Ippaso

Mrs AE Ippaso

Mr RC Povoas

SECRETARY:

Mr P Ippaso

REGISTERED OFFICE:

Gelders Hall Road

Shepshed

Leicestershire

LE12 9NH

REGISTERED NUMBER:

00942287 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr A Turner FCA FMAAT

AUDITORS:

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

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

PRINCIPAL ACTIVITY

The principal activity of the company during the year continued to be the sale of air compressors, welding equipment, generators and machinery tools.

REVIEW OF BUSINESS

The company continues to perform in-line with management's expectations with similar turnover and profitability for the year when compared to the previous year.

Despite increasingly challenging trading conditions, the company is on a strong footing and expectations for 2026 remain positive.

During 2025 Administrative expenses have been high due to high energy prices and spiralling labour costs as well as continued investment in the business in order to retain skilled people, develop new products, introduce improved models in current ranges, win new customers, develop new trading channels and invest in IT, internet and enhanced customer facing technology.

The Directors continually monitor the Company's performance internally and externally and consider the level of turnover, gross profit and overheads for the year satisfactory in the given circumstances.

Our commitment is to continue to provide our customers with a varied stock range, high standard of customer service and high level of stock availability and continue to invest in the development of Company's employees, in purchasing stock, warehouse, marketing and business systems and expectation of improved turnover, profit and efficiencies in future years.

SIP Group continues to show a very strong balance sheet; the business is not carrying any undesirable debt and continues with an investment strategy for the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategies are subject to a number of risks. The key ones continue, as they have been for the last few years, to be competition, currency exchange rates and the threat of recession.

FINANCIAL KEY PERFORMANCE INDICATORS

2025

2024

2023

Turnover

£16.3m

£16.3m

£16.3m

Profit/(Loss) after tax

£990k

£381k

£461k

Given the nature of the business, the directors are of the opinion that the analysis using KPI's, other than turnover and profit referred to above, are not necessary for an understanding of the development, performance and position of the company.

ON BEHALF OF THE BOARD:

Mr P Ippaso - Director

9 July 2026

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

DIVIDENDS

Results and dividends:

The profit/(loss) for the year, after taxation, amounted to £989,619 (2024: £380,859).

During the year, £300,000 (2024: £NIL) of dividends have been paid to the holders of Ordinary A shares.

DIRECTORS

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

Mr P Ippaso

Mrs AE Ippaso

Mr RC Povoas

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P Ippaso - Director

9 July 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 three, 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:

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 have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, significant one-off or unusual transaction and going concern.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of sales using the sales list reports in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.

- A review of laws and regulations the company is subject to and discussion with management to ensure no instances of non compliance within the year.

- Addressing the risks of fraud through management override of controls by performing journal entry testing.

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.

Mr A Turner FCA FMAAT (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

28 July 2026

TURNOVER

3

16,307,196

16,260,920

Cost of sales

9,936,030

10,536,075

GROSS PROFIT

6,371,166

5,724,845

Administrative expenses

5,747,732

5,830,141

OPERATING PROFIT/(LOSS)

5

623,434

(105,296

)

Income from shares in group undertakings

500,000

390,000

Interest receivable and similar income

36,142

29,459

536,142

419,459

PROFIT BEFORE TAXATION

1,159,576

314,163

Tax on profit

6

169,957

(66,696

)

PROFIT FOR THE FINANCIAL YEAR

989,619

380,859

PROFIT FOR THE YEAR

989,619

380,859

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

989,619

380,859

FIXED ASSETS

Intangible assets

8

6,253

7,898

Tangible assets

9

59,886

95,219

Investments

10

91

91

66,230

103,208

CURRENT ASSETS

Stocks

11

4,680,312

5,474,181

Debtors

12

3,860,295

4,491,908

Cash at bank and in hand

3,553,761

1,043,294

12,094,368

11,009,383

CREDITORS

Amounts falling due within one year

13

4,100,356

3,737,184

NET CURRENT ASSETS

7,994,012

7,272,199

TOTAL ASSETS LESS CURRENT LIABILITIES

8,060,242

7,375,407

PROVISIONS FOR LIABILITIES

15

5,071

9,855

NET ASSETS

8,055,171

7,365,552

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Retained earnings

8,054,171

7,364,552

SHAREHOLDERS' FUNDS

8,055,171

7,365,552

The financial statements were approved by the Board of Directors and authorised for issue on 9 July 2026 and were signed on its behalf by:

Mr P Ippaso - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

6,983,693

6,984,693

Changes in equity

Total comprehensive income

-

380,859

380,859

Balance at 31 December 2024

1,000

7,364,552

7,365,552

Changes in equity

Dividends

-

(300,000

)

(300,000

)

Total comprehensive income

-

989,619

989,619

Balance at 31 December 2025

1,000

8,054,171

8,055,171

1.	STATUTORY INFORMATION

S.I.P. (Industrial Products) 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements show the company had net current assets of £7,994,012 and net assets of £8,055,171 at the balance sheet date. The directors have assessed that the company will be able to meet all liabilities as they fall due for 12 months from the date of approval.

On that basis, the directors have prepared these financial statements on a going concern basis.

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 33.7.

Preparation of consolidated financial statements

The financial statements contain information about S.I.P. (Industrial Products) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Trident 2020 Limited, Unit 5, Gelders Hall Road, Shepshed, Leicestershire, LE12 9NH.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

There were no areas in which the preparation of the financial statements required to make significant judgements or estimates.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover 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 turnover is recognised.

Sale of goods

Turnover 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 turnover 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.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

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

Long leasehold

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary 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 the profit and loss account.

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.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

14,921,156

15,020,399

Europe

1,304,788

1,173,897

Rest of the World

81,252

66,624

16,307,196

16,260,920

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,162,669

3,129,313

Social security costs

410,847

335,749

Other pension costs

330,681

178,268

3,904,197

3,643,330

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

2025

2024

Administration

43

41

Distribution

14

14

Sales

20

19

77

74

2025

2024

£

£

Directors' remuneration

148,456

206,924

Directors' pension contributions to money purchase schemes

236,000

91,500

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

Money purchase schemes

2

2

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging:

2025

2024

£

£

Other operating leases

93,836

94,183

Depreciation - owned assets

46,018

53,218

Computer software amortisation

4,039

3,590

Auditors remuneration

15,000

15,000

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

174,741

-

Prior year

UK corporation tax

-

(60,086

)

Total current tax

174,741

(60,086

)

Deferred taxation

(4,784

)

(6,610

)

Tax on profit

169,957

(66,696

)

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

Reconciliation of total tax charge/(credit) included in profit and loss

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

2025

2024

£

£

Profit before tax

1,159,576

314,163

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

289,894

78,541

Effects of:

Expenses not deductible for tax purposes

2,683

2,294

Income not taxable for tax purposes

(125,000

)

(97,500

)

Depreciation in excess of capital allowances

2,380

4,245

Utilisation of tax losses

-

5,810

Adjustments to tax charge in respect of previous periods

-

(60,086

)

Total tax charge/(credit)

169,957

(66,696

)

7.

DIVIDENDS

2025

2024

£

£

Ordinary A Shares shares of £1 each

'A' Ordinary dividends

300,000

-

8.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 January 2025

14,360

Additions

2,394

At 31 December 2025

16,754

AMORTISATION

At 1 January 2025

6,462

Amortisation for year

4,039

At 31 December 2025

10,501

NET BOOK VALUE

At 31 December 2025

6,253

At 31 December 2024

7,898

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

Motor

leasehold

fittings

vehicles

Totals

£

£

£

£

COST

At 1 January 2025

55,824

517,634

8,125

581,583

Additions

-

10,685

-

10,685

At 31 December 2025

55,824

528,319

8,125

592,268

DEPRECIATION

At 1 January 2025

23,910

454,329

8,125

486,364

Charge for year

13,956

32,062

-

46,018

At 31 December 2025

37,866

486,391

8,125

532,382

NET BOOK VALUE

At 31 December 2025

17,958

41,928

-

59,886

At 31 December 2024

31,914

63,305

-

95,219

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2025

and 31 December 2025

91

NET BOOK VALUE

At 31 December 2025

91

At 31 December 2024

91

The company's investments at the Balance Sheet date in the share capital of companies include the following:

S.I.P. (Machinery Europe) Limited

Registered office: First Floor Block One, Quayside Business Park, Dundalk, Louth, A91DP8R, Ireland

Nature of business: Wholesale of other machinery and equipment.

%

Class of shares:

holding

Ordinary

100.00

11.

STOCKS

2025

2024

£

£

Stocks

4,680,312

5,474,181

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

3,482,287

3,567,752

Amounts owed by group undertakings

225,607

740,407

Other debtors

53,837

51,809

Directors' current accounts

3,897

-

Taxation

-

55,485

Prepayments

94,667

76,455

3,860,295

4,491,908