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Registered number: 15431546 SILCOMS II LIMITED DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
SILCOMS II LIMITED COMPANY INFORMATION
Directors | R Robinson
| M A Welden
| D S Holmes
Registered number | 15431546
Registered office | 14th Floor
| 33 Cavendish Square
| London
| W1G 0PW
Independent auditors | Sumer Auditco Limited
| Chartered Accountants & Statutory Auditors
| 14th Floor
| 33 Cavendish Square
| London
| W1G 0PW
SILCOMS II LIMITED CONTENTS
| Page
Directors' report | 1 - 2
Independent auditors' report | 3 - 6
Statement of comprehensive income | 7
Balance sheet | 8 - 10
Statement of changes in equity | 10
Notes to the financial statements | 11 - 28
SILCOMS II LIMITED DIRECTORS' REPORT FOR THE PERIOD ENDED 31 DECEMBER 2025 The directors present their report and the financial statements for the period ended 31 December 2025. The company was incorporated on 22 January 2024. On 20 February the company changed its name to Silcoms II Limited from Breal Capital (106) Limited. These accounts have been prepared for the 11 month period ended 31 December 2025, the company acquired the trade and assets of Silcoms Limited and commenced trading on 4th March 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
Results and dividends
The profit for the period, after taxation, amounted to £774,364.
Principal activity
The principal activity of the company during the year was the manufacturing of aero-engineering components, chains and other general machined components.
Directors
The directors who served during the period were:
R Robinson (appointed 24 February 2025)
M A Welden
D S Holmes (appointed 3 March 2025)
Page 1
SILCOMS II LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2025
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 31 July 2026 and signed on its behalf.
M A Welden Director
Page 2
SILCOMS II LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SILCOMS II LIMITED
Opinion
We have audited the financial statements of Silcoms II Limited (the 'Company') for the 11 month period ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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 period then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 3
SILCOMS II LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SILCOMS II LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and ∙the Directors' report has 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 Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 4
SILCOMS II LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SILCOMS II LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered: • the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities; • the nature of the company, including its management structure and control systems, including the opportunity for management to override such controls; • management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and • the industry and environment in which it operates. We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006. Based on this understanding we identified the following matters as being of significance to the entity: • laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation; • the timing of the recognition of commercial income; • management bias in selecting accounting policies and determining estimates; • inappropriate journal entries; • recoverability of debtors; and • the requirement to include provisions against aged stock and the amount of any such provision. We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: • enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; • enquiries with the same concerning any actual or potential litigation or claims; • discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; • assessment of matters reported to management and the result of the subsequent investigation; • obtaining an understanding of the relevant controls and testing their operation during the period; • challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to carrying value of stock; • identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash; and Page 5
SILCOMS II LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SILCOMS II LIMITED (CONTINUED) • reviewing the financial statements for compliance with the relevant disclosure requirements. . No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Andrew Hill (Senior statutory auditor) for and on behalf of Sumer Auditco Limited Chartered Accountants Statutory Auditors 14th Floor 33 Cavendish Square London W1G 0PW 31 July 2026 Page 6
SILCOMS II LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2025
| 11 month period to 31 December
| 2025
Note | £
Turnover |  | 9,457,961
Cost of sales |  | (4,402,360)
Gross profit |  | 5,055,601
Administrative expenses |  | (4,495,216)
Amortisation of intangibles |  | 315,934
Other operating income |  | 65,991
Operating profit |  | 942,310
Interest payable and similar expenses |  | (167,946)
Profit before tax |  | 774,364
Profit for the financial period |  | 774,364
Other comprehensive income for the period |  |
Unrealised surplus on revaluation of tangible fixed assets |  | 63,038
Deferred tax on revaluation |  | (15,760)
Other comprehensive income for the period |  | 47,278
Total comprehensive income for the period |  | 821,642
The notes on pages 11 to 28 form part of these financial statements.
The company did not trade prior to 1 February 2025.
Page 7
SILCOMS II LIMITED REGISTERED NUMBER: 15431546 BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 31 December 2025 |  | 31 January 2025
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 10 |  | (81,855) |  | -
Tangible assets | 11 |  | 1,336,999 |  | -
|  |  | 1,255,144 |  | -
Current assets |  |  |  |  |
Stocks | 12 | 1,225,152 |  | - |
Debtors: amounts falling due within one year | 13 | 2,222,794 |  | - |
Cash at bank and in hand | 14 | 255,799 |  | - |
|  | 3,703,745 |  | - |
Creditors: amounts falling due within one year | 15 | (2,791,670) |  | - |
Net current assets |  |  | 912,075 |  | -
Total assets less current liabilities |  |  | 2,167,219 |  | -
Creditors: amounts falling due after more than one year | 16 |  | (1,229,816) |  | -
Provisions for liabilities |  |  |  |  |
Deferred tax |  | (15,760) |  | - |
Other provisions |  | (100,000) |  | - |
|  |  | (115,760) |  | -
Net assets |  |  | 821,643 |  | -
Capital and reserves |  |  |  |  |
Called up share capital |  |  | 1 |  | -
Revaluation reserve | 21 |  | 47,278 |  | -
Profit and loss account | 21 |  | 774,364 |  | -
|  |  | 821,643 |  | -
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 July 2026.
M A Welden
Director
The notes on pages 11 to 28 form part of these financial statements. Page 8
SILCOMS II LIMITED REGISTERED NUMBER: 15431546 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025 Page 9
SILCOMS II LIMITED REGISTERED NUMBER: 15431546 STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER 2025
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £ | £ | £ | £
Comprehensive income for the period |  |  |  |
Profit for the period | - | - | 774,364 | 774,364
Surplus on revaluation of freehold property | - | 47,278 | - | 47,278
Shares issued during the period | 1 | - | - | 1
At 31 December 2025 | 1 | 47,278 | 774,364 | 821,643
| The notes on pages 11 to 28 form part of these financial statements.
Page 10
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
1. | General information
The company is a private limited company by shares, and is incorporated in England and Wales. The address of its registered office is 14th Floor, 33 Cavendish Square, London, United Kingdom, W1G 0PW. The company was incorporated on 22 January 2024. On 20 February the company changed its name to Silcoms II Limited from Breal Capital (106) Limited. These accounts have been prepared for the 11 month period ended 31 December 2025, the company acquired the trade and assets of Silcoms Limited and commenced trading on 4th March 2025. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The financial statements contain information about Silcoms II Limited as an individual company and do not contain consolidated financial information as the parent of the group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it is included by full consolidation in the consolidated financial statements of Breal Capital (Beagle) Limited, a company registered in England & Wales, and the parent undertaking of the smallest group of which the company is a member and for which group financial statements are prepared. The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Breal Capital (Beagle) Limited as at 31 December 2025 and these financial statements may be obtained from 14th Floor, 33 Cavendish Square, London, W1G 0PW. Page 11
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The directors have assessed the Company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements and have concluded that the going concern basis remains appropriate. In reaching this conclusion, the directors have reviewed the Company’s current trading performance, cash flow forecasts, budgeted results and funding requirements through to July 2027. The directors are satisfied that the Company is expected to trade in line with its approved budget during this period and that adequate funding facilities will be available to meet its operational requirements as they fall due.
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Page 12
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
| 2.9 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 13
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.11 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.12 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The amortisation rate of the goodwill recognised on acquisition of the trade and assets of Silcoms Limited is attached to the underlying nature of the assets and liabilities acquired.
| 2.13 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 14
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.13 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% straight line
|  |  |  | Plant and machinery | - | 10% to 25% straight line
|  |  |  | Fixtures and fittings | - | 10% straight line
|  |  |  | Office equipment | - | 25% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.14 | Revaluation of tangible fixed assets
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
| 2.15 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a standarding cost basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.16 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Page 15
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.17 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
| 2.18 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.19 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.20 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. 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 Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as Page 16
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.20 | Financial instruments (continued)
subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Page 17
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.20 | Financial instruments (continued)
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The Company makes estimates and assumptions concerning the future. Management are also required to exercise judgment in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: Significant Judgements and Estimates Stock provision Management has implemented specific provisions against slow-moving inventories based on their experience of the company's stock holding and the period of time that an inventory line has not moved. The provision is offset against the stock balance. Page 18
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Aero engine part sales | 7,173,753
| Chains sales | 1,384,208
| Commissions received | 900,000
|  | 9,457,961
Analysis of turnover by country of destination:
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| United Kingdom | 8,737,416
| Rest of Europe | 237,619
| Rest of the world | 482,926
|  | 9,457,961
5. | Auditors' remuneration
| During the period, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 27,000
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the Parent Company.
Page 19
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
6. | Employees
| Staff costs were as follows:
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Wages and salaries | 3,041,364
| Social security costs | 329,101
| Cost of defined contribution scheme | 112,175
|  | 3,482,640
| The average monthly number of employees, including the directors, during the period was as follows:
|  |  | 31 December
|  |  | 2025
|  |  | No.
|  | Staff numbers | 88
7. | Interest payable and similar expenses
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Bank interest payable | 77,849
| Other loan interest payable | 64,126
| Finance leases and hire purchase contracts | 25,971
|  | 167,946
Page 20
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
8. | Taxation
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Total current tax | -
| Factors affecting tax charge for the period
| The tax assessed for the period is the same as the standard rate of corporation tax in the UK of 25% as set out below:
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Profit on ordinary activities before tax | 774,364
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% | 193,591
| Effects of: |
| Negative goodwill amortisation | (78,984)
| Expenses not deductible for tax purposes | 7,737
| Capital allowances for period in excess of depreciation | (111,305)
| Group relief received at nil cost | (11,039)
| Total tax charge for the period | -
9. | Exceptional items
|  |  |  |  | 31 December
|  |  |  |  | 2025
|  |  |  |  | £
| Amortisation of negative goodwill | (315,934)
Page 21
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
10. | Intangible assets
|  | Negative goodwill
|  | £
| Additions | (397,789)
| At 31 December 2025 | (397,789)
| Charge for the period on owned assets | (315,934)
| At 31 December 2025 | (315,934)
| Net book value |
| At 31 December 2025 | (81,855)
11. | Tangible fixed assets
|  | Freehold property | Plant and machinery | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| Additions | 806,962 | 351,376 | 168,279 | 27,214 | 1,353,831
| Revaluations | 63,038 | - | - | - | 63,038
| At 31 December 2025 | 870,000 | 351,376 | 168,279 | 27,214 | 1,416,869
| Depreciation |  |  |  |  |
| Charge for the period on owned assets | 7,250 | 34,949 | 30,642 | 7,029 | 79,870
| At 31 December 2025 | 7,250 | 34,949 | 30,642 | 7,029 | 79,870
| Net book value |  |  |  |  |
| At 31 December 2025 | 862,750 | 316,427 | 137,637 | 20,185 | 1,336,999
Page 22
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 11.Tangible fixed assets (continued)
| The company's land and buildings were subject to a revaluation of £870,000 on 26 February 2025 by Landwood Group, chartered surveyors. If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
|  | 2025
|  | £
| Cost | 806,962
| Accumulated depreciation | (6,725)
|  | 800,237
12. | Stocks
|  |  |  |  | 2025
|  |  |  |  | £
| Work in progress | 1,225,152
13. | Debtors
|  |  |  |  | 2025
|  |  |  |  | £
| Trade debtors | 2,101,735
| Prepayments and accrued income | 121,059
|  | 2,222,794
14. | Cash and cash equivalents
|  |  |  |  | 2025
|  |  |  |  | £
| Cash at bank and in hand | 255,799
Page 23
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
15. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025
|  |  |  |  | £
| Bank loans | 1,266,834
| Trade creditors | 421,119
| Other taxation and social security | 252,213
| Other creditors | 432,714
| Accruals and deferred income | 418,790
|  | 2,791,670
16. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025
|  |  |  |  | £
| Bank loans | 903,699
| Other loans | 326,117
|  | 1,229,816
Page 24
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
17. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025
|  |  |  |  | £
| Amounts falling due within one year |
| Bank loans | 1,266,834
|  | 1,266,834
| Amounts falling due 1-2 years |
| Bank loans | 420,096
| Other loans | 326,117
|  | 746,213
| Amounts falling due 2-5 years |
| Bank loans | 483,603
|  | 2,496,650
18. | Deferred taxation
|  | 2025
|  | £
| Charged to other comprehensive income | (15,760)
| At end of year | (15,760)
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2025
|  |  |  |  | £
| Deferrred tax on revalued assets | (15,760)
Page 25
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
19. | Provisions
|  | £
| Charged to profit or loss | 100,000
| At 31 December 2025 | 100,000
20. | Share capital
|  |  |  |  | 2025
|  |  |  |  | £
|  | Allotted, called up and fully paid |
|  | 100 Ordinary shares shares of £0.01 each | 1
21. | Reserves
Revaluation reserve The revaluation reserve represents the revaluation of the company's freehold property net of associated deferred tax. Page 26
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025
22. | Business combinations
Acquisition of the trade and assets of Silcoms Limited on 4th March 2025.
| Acquisition of Silcoms Limited
| Recognised amounts of identifiable assets acquired and liabilities assumed
|  |  |  |  | Book value | Fair value adjustments | Fair value
|  |  |  |  | £ | £ | £
| Fixed Assets |  |  |
| Tangible | 465,860 | - | 465,860
|  | 465,860 | - | 465,860
| Current Assets |  |  |
| Stocks | 2,669,193 | (535,879) | 2,133,314
| Total Assets | 3,135,053 | (535,879) | 2,599,174
| Creditors |  |  |
| Due within one year | (901,294) | - | (901,294)
| Total Identifiable net assets | 2,233,759 | (535,879) | 1,697,880
| Goodwill | (397,789)
| Total purchase consideration | 1,300,091
| Consideration
|  |  |  |  | £
| Cash | 917,298
| Deferred consideration | 300,000
| Directly attributable costs | 82,793
| Total purchase consideration | 1,300,091
Page 27
SILCOMS II LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2025 22.Business combinations (continued)
| Cash outflow on acquisition
|  |  |  |  | £
| Purchase consideration settled in cash, as above | 1,217,298
| Directly attributable costs | 82,793
|  | 1,300,091
| Net cash outflow on acquisition | 1,300,091
23. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £112,175. Contributions totalling £26,884 were payable to the fund at the balance sheet date and are included in creditors.
24. | Parent undertaking and Controlling party
The immediate parent undertaking is Beagle Group Limited and Breal Capital (Beagle) Limited is the ultimate parent undertaking. There is no ultimate controlling party. The group for which consolidated financial statements are prepared which include the results of this company is that headed by Breal Capital (Beagle) Limited. Copies of the financial statements for Breal (Capital) Beagle Limited can be obtained from its registered office at 14th Floor, 33 Cavendish Square London, W1G 0PW.
Page 28