2025 was a successful year in terms of orders received, revenue generated, profit and projects delivered. The company has successfully introduced the Microsoft D365 ERP system to future proof company infrastructure. The business continues to grow with ongoing recruitment and several new engineers joining the company in 2025. As part of our future expansion plans, the machine shop located at the Manor Lane facility was relocated from the main office building to the adjacent “Vbay” building, this provides space for expansion of the main design office in line with future growth plans for our engineering workforce.

Our support business remains strong with predicted growth in line with Airbus production ramps-ups. We have also launched a new section of our support business known as “support plus” this is for customers who require support but do not need engineers on site 100% of the time. A framework has been set up with several customers that allows them to engage EI engineers to resolve production problems within a pre-existing contractual framework.

Production support continued for our first major assembly line outside of the aerospace industry at Caterpillar with many small follow-on orders following the initial production start.

Major Project Deliveries

The SA riveting project continued during 2025, with one machine entering production and another going through acceptance testing and process refinement with our customers. The machines are performing beyond both customer expectations and agreed contractual performance metrics and have been profitable for Electroimpact.

The Airbus A350 wing program continued to be a significant revenue source for Electroimpact with tooling orders that were delivered in 2025 in support of production ramp up projections and a change of the A350 product mix to include more freighter versions of the aircraft being produced.

Two machines for BAE Systems have undergone final assembly, integration with a host of subcontractor supplied subsystems, Customer and regulatory conformance testing, these machines will continue to be supported into 2026 by Electroimpact as the customer starts production.

Major Orders Received

Q1 saw the receipt of a purchase order for a production line equipping A321 wings for Airbus at the Broughton site. This is a major project which will occupy ~25% of the UK engineering capacity for approximately two years and allows us to mature many new technologies and build our capability base.

Also received in Q1 was an order for a fibre placement machine for the Airbus A350 program going to Illescas, Spain. This project allows us to build our UK capabilities in terms of developing and supporting fibre placement projects with support from our US colleagues.

A major order for A350 machine refurbishment was received Q2 , this is a 5-year project that will occupy half of one our major assembly facilities for the project duration, it provides a level of long-term visibility and security that is not typical within the industry in which Electroimpact operates and allows us to solidify our growth plans.

Both the civilian and military aerospace markets are anticipating growth, with several notable developments. Airbus expects strong sales of their Single Aisle and A350 aircraft, while defence customers are expressing similarly optimistic outlooks.

Work on the Airbus Single Aisle program continues, with the delivery of two additional panel assembly machines to the Broughton factory. A particularly notable development is the creation of a machine capable of lower panel assembly. Although this is a more complex process, if successful, it may lead to future orders for this class of machine.

Customer interest is high in our fibre placement products and we are in contract negotiations for two major projects. There are also multiple large scale projects where early-stage proposals are being developed, and therefore we believe the current growth trend will continue through 2026 and beyond.

The board uses the following KPIs to monitor performance.

The general financial environment has stabilised from the volatility of previous years, and we have adapted our pricing models to consider the new cost base; our ongoing projects are profitable, and we expect this to continue with future projects. Current projects and likely prospects keep our entire workforce busy through to mid-2027 with a significant portion of our workforce allocated through to 2029. We continue to invest in company growth both in terms of engineering capacity and facilities to support our operations.

Electroimpact UK remains a strong business with sustainable growth plans, good support from our customers and our supply chain. The revenue, profit and orders received in 2025 shows that we are in a strong position in terms of market belief in our products and the support we provide to our customers will sustain the company well into the future.

The directors, in accordance with Section 172(1) of the Companies Act 2006, have acted to promote the long-term success of the company while considering stakeholder interests. This statement highlights how these considerations influenced decisions and strategies during the financial year.

The Board recognises that sustainable business practices are fundamental to the long-term success of the Company and the creation of value for its stakeholders. As a manufacturer of precision tooling for the aviation industry, the Company is committed to conducting its operations responsibly whilst supporting the evolving sustainability objectives of its customers and the wider aerospace sector.

The Company seeks to minimise the environmental impact of its activities through the efficient use of energy, raw materials and other resources. Continuous investment in manufacturing processes, machinery and technology supports improvements in productivity whilst reducing waste generation and enhancing resource efficiency. The Company also promotes the responsible management and recycling of materials used within its operations wherever practicable.

Environmental considerations form part of the Company's decision-making process and are integrated into operational planning, capital investment decisions and supply chain management. The Board regularly reviews opportunities to improve environmental performance and to ensure compliance with all applicable environmental legislation and industry requirements.

The Company recognises that its stakeholders increasingly expect organisations throughout the aerospace supply chain to demonstrate responsible environmental stewardship. Accordingly, it works closely with customers, suppliers and employees to identify opportunities to support sustainability initiatives, reduce environmental impacts and promote continuous improvement throughout the value chain.

Alongside environmental considerations, the Company remains committed to maintaining high standards of corporate governance, employee wellbeing, health and safety, and ethical business conduct. The skills, experience and engagement of the Company's workforce are critical to its success, and the Company strives to provide a safe, inclusive and supportive working environment in which employees can develop and contribute to the achievement of its strategic objectives.

The Board is committed to maintaining an appropriate sustainability framework that supports the Company's long-term growth ambitions and ensures that environmental, social and governance considerations remain embedded within the business strategy.

Electroimpact has recently engaged with Eco Vadis, an external and independent sustainability certification provider that generates an industry recognised score card required by many of our customers. Through this engagement, a roadmap has been established where tangible improvements can be made.

The Company's quality and operational management systems support a culture of continuous improvement and responsible resource management. Compliance with recognised aerospace industry standards provides a framework for managing operational risks, meeting customer requirements and promoting sustainable business practices.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the strategic report.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Electroimpact UK Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

As explained more fully in the directors' responsibilities statement, 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.

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 auditor's 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.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance;

• the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;

• the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;

• any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

(i) The presentation of the Statement of Comprehensive Income, (ii) revenue recognition and (iii) valuation of work in progress. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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 an auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Electroimpact UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Electroimpact Technology Park, Manor Lane, Hawarden, Flintshire, Nth Wales, CH5 3ST.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Where the value of work done exceeds the amounts invoiced, the excess is accounted for as amounts recoverable on contracts and is included in debtors.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

The company undertakes long-term engineering, automation and production system projects, typically lasting between 12 months and five years. Revenue is recognised over time as performance obligations are satisfied, measured by reference to costs incurred as a proportion of total estimated contract costs.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. HMRC approved exchange rates at the year end is used when translating foreign currency bank accounts.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 key sources of estimation uncertainty in the accounts are the warranty provision and the amounts recoverable on long term contracts.

A warranty provision of £853,013 (2024: £853,013) has been recognised in relation to anticipated costs upon handover and installation of two systems as described in the provisions note.

An amount of -£793,780 (2024: £4,553,049) has been included in amounts recoverable on long term contracts. Estimation used is based on expected costs and time frame until the handover of the project.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

HSBC Bank PLC holds a debenture dated 25 May 2011 including a 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 undertakings both present and future.

The two major warranty provision requirements arise from the installation and handover of two systems, the Single Aisle 4 Riveting Machine and the LSR.

As the Single Aisle 4 is the 2nd of its class, with its predecessor SA3 now exiting its warranty period, many of the anticipated failure modes have already been encountered. Fixes are already implemented on both systems. This means the anticipated liability for warranty activities should amount to no more than 4% of contract value in FY26 and beyond.

LSR is a first of class machine, with 2 distinct processes that are new to Electroimpact. As such, a warranty provision of 8% of contract value would be more appropriate.

LSR Contract = £5.2m, £416k warranty provision.

SA4 Contract = £10.925m, £437k warranty provision.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Electroimpact UK Limited (EI UK) is a subsidiary of Electroimpact Inc. (EI USA), a company incorporated in the United States of America. During the year, the following transactions took place between these two companies:

• EI UK recharged costs to EI USA of £611,444 (2024 - £180,770)

• EI USA recharged costs to EI UK of £3,152,734 (2024 - £4,024,616)

• EI UK made loan repayments to EI USA of £2,172,344 (2024 - £3,161,805)

• Simple annual interest was charged at 5% on the loan from EI USA of £2,053,428 (2024 - £2,128,676).

The amount owed to EI USA as at 31 December 2025 was £47,562,561 (2024 - £45,140,189). There are no formal repayment terms.

Electroimpact France (EI France) is a fellow subsidiary company of Electroimpact UK Limited (EI UK). During the year the following transactions took place between these two companies:

• EI UK recharged costs to EI France of £69,411 (2024 - £24,000)

• Loans were made to EI France of £nil (2024 - £1,281,285)

• A repayment was made by EI France to EI UK of £nil (2024 - £2,270,835)

The amount owed from EI France to EI UK as at 31 December 2025 was £6,306,690 (2024 - £6,237,279). There are no formal repayment terms.

Electroimpact UK Limited is a wholly owned subsidiary of Electroimpact Incorporation, a company incorporated in the United States of America. Electroimpact Incorporated is controlled by Mr P Zieve.

The ultimate controlling party is Mr P Zieve, a director of the company and president of the ultimate parent company, Electroimpact Incorporated.