Rosalind Spinage 0 1 0 31 December 2025 25.00 25.00 1 243 272 1 January 2025 0 Reserve represents current year losses and cumulative prior year profits, net of dividends paid.Ordinary 1 15000101 15000101 26612 17003 26612 17003 33054 18396 4964 3815 208 24143 10739 3585 3359 362 275 82975 69475 1076 698 1038 1779 69030 57225 11831 9773 2779 3030 2779 3030 4846 4816 1678 1605 2961 3008 207 203 Darshana Private Industries Ltd India 23111 1545 Southco S.A.R.L France 2169 134 Southco Europe Limited United Kingdom Southco Brasil Compenentes Industriais Ltda Brazil 6801 550 Southco Severn Limited United Kingdom 24562 1777 Southco GmbH Germany 11719 346 30151 1100 1100 1100 1023 38 24 824 5227 3097 1725 32 26 129 5009 4424 11279 299 6292 22294 238 435 6 14 693 4186 10844 293 6278 21601 7521 13004 331 6318 129 27303 17 1137 16 1170 695 695 7504 11867 331 6302 824 26828 1382 1382 678 678 14238 14238 704 704 13534 13534 14916 14916 14916 14916 14624 5878 750 1410 61 89 476 232 1 520 727 264 110 104 99 959 2018 3835 8071 274 2215 476 805 476 233 2412 3573 2702 912 2702 912 710 746 50 49 660 697 243 272 16268 16576 938 949 1967 1979 13188 13462 117 110 Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.Inventories 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 first in, first out (FIFO) basis. Work in progress and finished goods include labour costs and attributable overheads.Investments in subsidiaries are measured at cost less accumulated impairment.Valuation of investments 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, set to be 10 years for Trademarks and Patents, and 20 years for Goodwill and Customer Lists.Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life.Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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.Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.Where they relate to timing differences in respect of interests in subsidiaries, joint ventures and associates and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.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 reporting date.The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item recognised in other comprehensive income or directly in equity. In this case, the tax is 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 reporting date in the countries where the Company operates and generates income.The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.The cost of the defined benefit plan, recognised in the Statement of Comprehensive Income as employee costs, except where included in the cost of an asset, comprises:a) the increase in net pension benefit liability arising from employee service during the period; andb) the cost of plan introductions, benefit changes, curtailments and settlements.The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in the Statement of Comprehensive Income as a 'finance expense'.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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. If the lease does not transfer substantially all the risks and rewards incidental to ownership, it is classified as an operating lease. Lease classification is dependent on the substance of the transaction rather than the form of the contract. Classification is made at the inception of the lease and is not changed during the term of the lease unless both the lessee and lessor agree to change the provisions of the lease, at which point the classification is re-evaluated.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.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; andthe costs incurred or to be incurred in respect of the transaction can be measured reliably.Revenue for sale of goods is recognised upon shipment, product being ready for delivery, or on delivery of the product to the customer, based on specific contract terms.Tooling services policyRevenue from tooling services is recognised when the molds are ready for use in the manufacturing process and are approved by the customer.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 Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.The Company's functional and presentational currency is the Pound Sterling. The financial statements are rounded to thousands.The financial statements have been prepared under the historic 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' (FRS 102) and the Companies Act 2006.The principal activity is the manufacturing, sale and distribution of access hardware equipment predominantly in the European marketplace.15000 66533 81533 5878 5878 5878 5878 5542 5542 1119 1119 6661 6661 15000 77953 92953 15000 54924 69924 14624 14624 14624 14624 3015 3015 70 70 3085 5 August 2026 69924 81533 1983 2029 94553 96507 58715 59747 91769 78143 1169 822 35838 36760 30151 30151 24 373 94 1492 3835 8071 2412 3573 2702 912 1905 8549 40 57 35726 38405 37591 29799 66537 65899 104128 95698 5 August 2026 Birmingham Grant Thornton UK LLP Sreekanth Gaddamanugu Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined the following laws and regulations were most significant: the financial reporting framework being FRS 102 and Companies Act 2006, together with the relevant tax regulations;We obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework through researching relevant laws and regulations within the industry in which the company operates in as well as the overarching company laws within their competitive environments;We inquired with management to confirm whether there are any instances of non-compliance with laws and regulations. In addition to this, testing over a sample of legal and professional costs was completed to check that there were no indicators of potential additional liabilities;We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud; Identifying and testing journal entries, in particular journals with specific risk criteria;Completion of audit procedures to conclude on the compliance of disclosures in the annual report and financial statements with a applicable financial reporting requirements;Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s work:understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation; knowledge of the industry in which the client operates andunderstanding of the legal and regulatory requirements specific to the entity including the provisions of the applicable legislation.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 auditor’s report.As explained more fully in the directors' responsibilities statement set out on page 6, 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.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 auditors' opinion:adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; orthe financial statements are not in agreement with the accounting records and returns; orcertain disclosures of Directors' remuneration specified by law are not made; orwe have not received all the information and explanations we require for auditors' audit.The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report and financial statements. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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 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.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;give a true and fair view of the state of the group 's and of the parent Company's affairs as at 31 December 2025 and of the group's for the year then ended;the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; andthe financial statements have been prepared in accordance with the requirements of the Companies Act 2006.We have audited the financial statements of Southco Manufacturing Limited (the 'company') for the year ended 31 December 2025, which comprise the statement of comprehensive income, the statement of financial position, the 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).5 August 2026 Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:so far as the Directors are aware, there is no relevant audit information of which the Company's auditors are unaware, andthe Directors has taken all the steps that ought to have been taken as a Directors in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.The Company is committed to eliminating discrimination amongst our workforce with the objective to create a working environment in which all individuals are able to make the best use of their skills, free from discrimination or harassment, where there is no unlawful discrimination and all decisions are based on merit. This also applies to applications for employment, and the Company is committed to giving full and fair consideration to opportunities for employment from disabled candidates. Equally, the Company is committed to training, career development and promotion of all individuals, and to make reasonable adjustments to accommodate those who are disabled or suffer some form of disablement while employed by the Company.Business review, principal risks and uncertainties facing the Company and key performance indicators have been included in the strategic report. In addition, the s172 declaration is contained in the strategic report.Philip Kempson Daniel Bush The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.In preparing these financial statements, the Directors are required to:select suitable accounting policies for the Company's financial statements and then apply them consistently;make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;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.Bank of America Touchpoint Wainwright Road Worcester WR4 9FA 04328069 31 December 2025 Annual Report and Financial Statements Southco Manufacturing Limited Financials UK FRS 102 2026.7.0+87708 4007.00 3184.00 3318.00 3085.00 04328069 core:ComputerEquipment 2024-12-31 04328069 core:ComputerEquipment 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:LandBuildings 2025-12-31 04328069 bus:Audited 2025-01-01 2025-12-31 04328069 bus:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 04328069 core:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 04328069 core:Subsidiary6 2025-12-31 04328069 bus:OrdinaryShareClass1 2025-12-31 04328069 core:RetainedEarningsAccumulatedLosses 2025-12-31 04328069 core:Subsidiary3 2025-12-31 04328069 core:RetainedEarningsAccumulatedLosses 2024-12-31 04328069 bus:Agent1 2025-01-01 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:LandBuildings 2025-01-01 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:Land 2025-12-31 04328069 bus:Director2 2025-01-01 2025-12-31 04328069 core:PlantMachinery 2025-01-01 2025-12-31 04328069 core:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 04328069 core:ShareCapital 2024-12-31 04328069 core:RetainedEarningsAccumulatedLosses 2024-01-01 04328069 core:OtherPropertyPlantEquipment 2025-01-01 2025-12-31 04328069 core:Goodwill 2024-12-31 04328069 bus:Director1 2025-01-01 2025-12-31 04328069 core:Subsidiary2 2025-01-01 2025-12-31 04328069 core:ShareCapital 2025-12-31 04328069 core:CurrentFinancialInstruments 2025-12-31 04328069 core:Subsidiary5 2025-01-01 2025-12-31 04328069 core:Goodwill 2025-01-01 2025-12-31 04328069 core:Subsidiary5 2025-12-31 04328069 core:ComputerEquipment 2025-01-01 2025-12-31 04328069 core:Subsidiary1 2025-01-01 2025-12-31 04328069 bus:Director3 2025-01-01 2025-12-31 04328069 bus:RegisteredOffice 2025-01-01 2025-12-31 04328069 core:ShareCapital 2024-01-01 04328069 bus:FullAccounts 2025-01-01 2025-12-31 04328069 curr:PoundSterling 2025-01-01 2025-12-31 04328069 core:Non-currentFinancialInstruments 2024-12-31 04328069 core:FurnitureFittingsToolsEquipment 2024-12-31 04328069 bus:OrdinaryShareClass1 2024-12-31 04328069 core:Land 2024-12-31 04328069 core:OtherPropertyPlantEquipment 2025-12-31 04328069 core:PlantMachinery 2024-12-31 04328069 core:Subsidiary2 2025-12-31 04328069 core:Land 2025-12-31 04328069 2025-01-01 04328069 core:OwnedOrFreeholdAssets core:FurnitureFittingsToolsEquipment 2025-01-01 2025-12-31 04328069 core:CurrentFinancialInstruments 2024-12-31 04328069 bus:OrdinaryShareClass1 2025-01-01 2025-12-31 04328069 core:FurnitureFittingsToolsEquipment 2025-12-31 04328069 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 04328069 core:Non-currentFinancialInstruments 2025-12-31 04328069 core:OtherPropertyPlantEquipment 2024-12-31 04328069 core:Subsidiary3 2025-01-01 2025-12-31 04328069 core:PlantMachinery 2025-12-31 04328069 core:Subsidiary4 2025-01-01 2025-12-31 04328069 core:Subsidiary1 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:ComputerEquipment 2025-01-01 2025-12-31 04328069 1 2025-01-01 2025-12-31 04328069 bus:FRS102 2025-01-01 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:PlantMachinery 2025-01-01 2025-12-31 04328069 core:OwnedOrFreeholdAssets core:LandBuildings 2024-12-31 04328069 core:Goodwill 2025-12-31 04328069 core:Subsidiary6 2025-01-01 2025-12-31 04328069 2024-12-31 04328069 2025-12-31 04328069 2024-01-01 2024-12-31 04328069 2025-01-01 2025-12-31 04328069 2024-01-01 xbrli:pure xbrli:pure xbrli:shares xbrli:pure iso4217:GBP iso4217:GBP xbrli:shares iso4217:GBP

Registered number: 04328069 # Southco Manufacturing Limited ​​​​​ #### Annual Report and ​​Financial Statements #### For the year ended 31 December 2025
SOUTHCO MANUFACTURING LIMITED
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Company information #### ​Directors Daniel Bush Philip Kempson Rosalind Spinage #### Registered number 04328069​ #### Registered office ​​Touchpoint​ Wainwright Road​ ​ Worcester​ ​ WR4 9FA​ #### ​Independent auditors Grant Thornton UK LLP​​​ 17th Floor, 103 Colmore Row​ ​ ​ Birmingham​ ​ B3 3AG​ #### Bankers Bank of America​ 2 King Edward Street​ ​ ​ London​ ​ EC1A 1HQ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
SOUTHCO MANUFACTURING LIMITED Strategic report For the year ended 31 December 2025 #### Introduction The Directors present their strategic report for the year ended 31 December 2025. #### Business review The Company is a wholly owned subsidiary of Touchpoint Inc. which is incorporated in the United States of America, and operates as part of the group's European division. The Company's principal activities are the manufacturing, sale and distribution of access hardware equipment predominantly in the European marketplace. The Company has one branch that operates outside of the UK, situated in the Czech Republic. The Directors are not aware, at the date of this report, of any likely major changes to the Company's activities in the next year. The Statement of financial position in these financial statements shows the Company's financial position at the year ended 31 December 2025. #### Principal risks and uncertainties Business risk Competitive pressure throughout Europe is an ongoing risk for the Company, which could result in it losing sales to its key competitors. The Company manages this risk by providing value added products and services to its customers taking full advantage of its global footprint and ability to address the needs of customers anywhere in the world. The Company continues to maintain strong relationships with its customers and positions itself as the innovation partner of choice. Increasing costs and inflationary pressures seen globally, primarily as a result of external events have impacted the company. However, the company continues to have a solid customer base and remains well positioned to absorb cost pressures and mitigate these where possible. The company also benefits from being part of a global group, and plays an important strategic part within that group. The company continues to display strong performance against company objectives in the first half of 2026. Foreign currency risk The vast majority of sales are made in Euros and operating costs are denominated in Sterling. Strategic currency trades are performed at a group level and the strategy is therefore to achieve an overall balance in buying and selling currencies across the group. Credit risk The Company’s principal financial assets are cash, trade and other debtors, and investments. The Company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the statement of financial position are net of allowances for doubtful debtors.
SOUTHCO MANUFACTURING LIMITED Strategic report For the year ended 31 December 2025 The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Company has no significant concentration of third party credit risk, with exposure spread over a large number of counterparties and customers. Liquidity risk In order to maintain liquidity to ensure sufficient funds are available for ongoing operations and future developments, the Company balances the long term external debt with short term borrowings from the ultimate parent undertaking, Touchpoint Inc. At 31 December 2025, the Company’s trade creditors represented 20 days (2024: 18 days) of purchases for the year. At 31 December 2025, the Company’s trade debtors represented 42 days (2024: 37 days) of sales for the year. The Company manages this risk by ensuring cash is collected daily and purchases are paid weekly. #### Financial key performance indicators The following key performance indicators are presented for the full year:
Description | 2025 000 | 2024 000
--- | --- | ---
Gross Profit Margin (%) | 36 | 31
Operating Profit/(Loss) Margin (%) | 2 | (9)
Debtor Days | 42 | 37
Creditor Days | 20 | 18
Return on Equity (%) | 4 | (8)
The movements in key performance indicators are in line with management expectations based on company performance for the year ended 31 December 2025, with improved margins and returns on equity. Movement in debtor and creditor days has been consistent and the Company continue to balance the granting of credit terms for customers in excess of payment terms with suppliers with supporting the growth of the business.
SOUTHCO MANUFACTURING LIMITED Strategic report For the year ended 31 December 2025 #### Directors' statement of compliance with duty to promote the success of the Company The Directors have acted in the way that they considered, in good faith, would be most likely to promote the success of the Company for the benefit of its member as a whole and this section forms our Section 172 disclosure, describing how, in doing so, the Directors considered the matters set out in section 172(1)(a) to (f) of the Companies Act 2006. The Directors also took into account the views and interests of a wider set of stakeholders, including customers, suppliers, employees and Regulators. The Directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its member as a whole, and in doing so had regard, amongst other matters, to: • the likely consequences of any decision in the long term; • the need to foster the Company’s business relationships with suppliers, customers and others; • the impact of the Company’s operations on the community and the environment; • the impact of the Company’s operations on the Company’s employees; • the desirability of the Company maintaining a reputation for high standards of business conduct. In addition, the Company exists within the wider TouchPoint Inc. Group and relationships with other Group companies including the Company’s shareholder, Southco International Inc. are key to the Company’s success. This report was approved by the board and signed on its behalf:
Rosalind Spinage Director |
5 August 2026 |
SOUTHCO MANUFACTURING LIMITED Directors' responsibilities statement For the year ended 31 December 2025 The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
| • | select suitable accounting policies for the Company's financial statements and then apply them consistently;
| • | make judgements and accounting estimates that are reasonable and prudent;
| • | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
| • | 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.
SOUTHCO MANUFACTURING LIMITED Directors' report For the year ended 31 December 2025 The Directors present​​ their​ report and the financial statements for the year ended 31 December 2025. #### Directors​​​​​ The Directors​ who served during the year: Daniel Bush Philip Kempson Rosalind Spinage #### Principal activity The Company’s principal activities are the manufacturing, sale and distribution of access hardware equipment predominantly in the European marketplace. #### Matters covered in the Strategic report Business review, principal risks and uncertainties facing the Company and key performance indicators have been included in the strategic report. In addition, the s172 declaration is contained in the strategic report. #### Results and Dividends The profit for the year, after taxation, amounted to £3,085,000 (2024 : loss £6,661,000). A dividend of £14,624,000 was paid in the year (2024 : £5,878,299). #### Events since the reporting​ date There have been no significant events affecting the Company since the year end.
SOUTHCO MANUFACTURING LIMITED Directors' report For the year ended 31 December 2025 #### Going Concern Following a review of forecasts, statement of comprehensive income and statement of financial position, the board is satisfied the Company has sufficient financial resources to meet its obligations as they fall due for a period of 12 months from the date of approval of these financial statements. In addition to this, the Company has access to a group revolving credit facility managed by the parent company, TouchPoint Inc. In August 2022, the parent company amended and restated the credit facility to increase it to $400 million and extend its expiration date to August 2027. The Directors are comfortable that the parent company will remain in compliance with all covenants as part of this credit facility. A guarantee from Touchpoint Inc is obtained to cover any shortfall in Southco's cash position in the succeeding months to December 2027 and the Directors have satisfied themselves of TouchPoint Inc's ability to provide the support. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully and are further satisfied that the going concern basis is appropriate. #### Future developments The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on existing markets and customers and development of new products, the directors are confident in the company's ability to maintain and build on this position. As in 2025, the company continues to be committed to research and development of new markets and product lines where this fits with strategic goals. #### Qualifying indemnity provisions For the full period and up to the date of the directors’ report being approved, a qualifying third party indemnity provision was in force during the financial year for the benefit of one or more of the directors of the company in accordance with the provisions of the Companies Act of 2006. #### Employment policy The Company is committed to eliminating discrimination amongst our workforce with the objective to create a working environment in which all individuals are able to make the best use of their skills, free from discrimination or harassment, where there is no unlawful discrimination and all decisions are based on merit. This also applies to applications for employment, and the Company is committed to giving full and fair consideration to opportunities for employment from disabled candidates. Equally, the Company is committed to training, career development and promotion of all individuals, and to make reasonable adjustments to accommodate those who are disabled or suffer some form of disablement while employed by the Company.
SOUTHCO MANUFACTURING LIMITED Directors' report For the year ended 31 December 2025 #### Engagement with employees Employees of the Company are key assets of the business. As a Company our policy is to demonstrate that all employees, regardless of role, seniority or where they are located, feel an integral and valued part of our business. Employee satisfaction and involvement underpins the success of the business. We set high standards and our employees are expected to work to the best of their ability. This is reciprocated and reflected in the competitive salaries and benefits packages we aim to offer our staff. The Company also places particular emphasis on equal pay for equal jobs and strictly adheres to the UK Modern Slavery Act. Salaries and benefits are only part of the broader staff engagement factors. We also have a number of employee health and welfare programmes which target both physical and mental wellbeing. Our workplaces are designed to be safe and secure and our facilities and health and safety teams support this target. The Company has always recognised that staff development and learning is an integral part of the organisation’s strategic planning, equipping all staff with the knowledge and skills to perform their individual jobs effectively and in doing so ensure that the Company meets its strategic objectives. Feedback from employees is regularly obtained on through normal reporting channels, including escalation up to senior managers or directors where appropriate, with actions undertaken as needed. The Company is an equal opportunities employer and operates a zero tolerance non-discrimination policy. This is reflected in our recruitment and selection processes, and continues throughout the employee’s career with opportunities for training, further development and progression provided based entirely on individuals’ skills and abilities, with adjustments made to accommodate disabilities. A major part of the Company success has been based on the ability to identify, develop and promote talent from within the organisation. The Company places considerable value on the involvement of its employees and has continued to keep them informed, via detailed HR communications and departmental management meetings, on matters affecting them as employees, and on the various factors affecting the performance of the Company. All communications encourage employees to both raise questions and put suggestions to Directors and senior management.
SOUTHCO MANUFACTURING LIMITED Directors' report For the year ended 31 December 2025 #### Engagement with suppliers, customers and others in a business relationship The company seeks to maintain good business relationships with suppliers and customers and continues to engage with inter-company partners and others to foster a strong working relationship. #### Greenhouse gas emissions, energy consumption and energy efficiency action The Company's greenhouse gas emissions and energy consumption for the year are 607 tCO2e and 3,125MWh (2024 : 564 tCO2e and 2,812 MWh) Annual MWh per Average No. of FTE Employees -- 12.86 MWh (2024 : 10.34 MWh) Annual tCO2e per Average No. of FTE Employees -- 2.50 tCO2e (2024 : 2.07 tCO2e) Energy consumption figures have been taken from suppliers' invoices based on actual consumption. Greenhouse gas emissions are based on actual fuel and energy consumption converted into carbon dioxide equivalents using the 2020 "UK Government Greenhouse Gas Conversion Factors for Company Reporting". The company continues to explore energy efficiency improvement areas, including sourcing energy efficient replacement equipment where suitable. Additionally, reusable and/or recyclable packaging materials are used by the company and requested from suppliers. #### 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 Directors are​​​​​ aware, there is no relevant audit information of which the Company's auditors are unaware, and
| • | the Directors​​​ has taken all the steps that ought to have been taken as a Directors​ in order to be aware of any relevant audit information and to establish that the Company​'s auditors​​​​ are​​​ aware of that information.
SOUTHCO MANUFACTURING LIMITED Directors' report For the year ended 31 December 2025 Auditors​ The auditors​, Grant Thornton UK LLP​, have​ indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting. Under section 487(2) of the Companies Act 2006, Grant Thornton UK LLP​ will be deemed to have been reappointed as auditors​ 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf:
​​​​ | ​​
Rosalind Spinage Director | ​​​
Date: 5 August 2026
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED #### Opinion We have audited the financial statements of Southco Manufacturing Limited (the 'company') for the year ended 31 December 2025, which comprise the statement of comprehensive income, the statement of financial position, the 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 Auditors' 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;
| • | the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
| • | the financial statements 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.
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED #### Conclusions relating to going concern We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern. In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the geopolitical situation and the impact of that on the UK economic activity, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period. 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 and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report and financial statements. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED #### Opinion on other matters prescribed by the Companies Act 2006 In auditors' opinion, based on the work undertaken in the course of the audit:
| • | the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
| • | the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
#### Matters on which we are required to report under the Companies Act 2006 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. #### Matters on which we are required to report by exception 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 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 auditors' 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 auditors' audit.
#### Responsibilities of directors As explained more fully in the directors' responsibilities statement set out on page 6, 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.
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED #### 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 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.
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
| • | We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined the following laws and regulations were most significant: the financial reporting framework being FRS 102 and Companies Act 2006, together with the relevant tax regulations;
| • | We obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework through researching relevant laws and regulations within the industry in which the company operates in as well as the overarching company laws within their competitive environments;
| • | We inquired with management to confirm whether there are any instances of non-compliance with laws and regulations. In addition to this, testing over a sample of legal and professional costs was completed to check that there were no indicators of potential additional liabilities;
|  | We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included: Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud; Identifying and testing journal entries, in particular journals with specific risk criteria; Completion of audit procedures to conclude on the compliance of disclosures in the annual report and financial statements with a applicable financial reporting requirements; Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.
| • | Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud;
| • | Identifying and testing journal entries, in particular journals with specific risk criteria;
| • | Completion of audit procedures to conclude on the compliance of disclosures in the annual report and financial statements with a applicable financial reporting requirements;
| • | Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.
| • | These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
|  | The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s work: understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation; knowledge of the industry in which the client operates and understanding of the legal and regulatory requirements specific to the entity including the provisions of the applicable legislation.
| • | understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation;
| • | knowledge of the industry in which the client operates and
| • | understanding of the legal and regulatory requirements specific to the entity including the provisions of the applicable legislation.
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 auditor’s report.
SOUTHCO MANUFACTURING LIMITED Independent auditors' report to the shareholders of SOUTHCO MANUFACTURING LIMITED #### 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 Sreekanth Gaddamanugu Senior statutory auditor For and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham 17th Floor, 103 Colmore Row ​Birmingham B3 3AG 5 August 2026
SOUTHCO MANUFACTURING LIMITED Statement of comprehensive income​ ​For the year ended 31 December 2025
| Note | 2025 £ 000 | 2024 £ 000
--- | --- | --- | ---
Turnover | 4 | 104,128 | 95,698
Cost of sales |  | (66,537) | (65,899)
Gross Profit |  | 37,591 | 29,799
Administrative expenses |  | (35,726) | (38,405)
Other operating income |  | 40 | 57
Operating Profit/(loss) |  | 1,905 | (8,549)
Income from shares in group undertakings | 10 | 2,702 | 912
Income from participating interests | 11 | 2,412 | 3,573
Finance costs | 12 | (3,184) | (4,007)
Profit/(loss) before tax |  | 3,835 | (8,071)
Tax on Profit/(loss) | 13 | (750) | 1,410
Profit/(loss) for the financial year |  | 3,085 | (6,661)
Other comprehensive income |  |  |
Remeasurement of net defined benefit obligation |  | (94) | 1,492
Deferred tax on components of other comprehensive income | 25 | 24 | (373)
Other comprehensive income |  | (70) | 1,119
Other comprehensive income, net of tax |  | (70) | 1,119
Total comprehensive income/(loss) |  | 3,015 | (5,542)
The notes on 21 to 47 form part of these financial statements. All amounts relate to continuing activities.
SOUTHCO MANUFACTURING LIMITED Registered number: 04328069​ Statement of financial position​ As at 31 December 2025
| Note | 2025 £ 000 | 2024 £ 000
--- | --- | --- | ---
Fixed assets |  |  |
Intangible assets | 15 | 678 | 1,382
Property, plant and equipment | 16 | 5,009 | 5,227
Investments | 17 | 30,151 | 30,151
|  | 35,838 | 36,760
Current assets |  |  |
Inventories | 18 | 4,846 | 4,816
Trade receivables: amounts falling due after more than one year | 19 | 2,779 | 3,030
Trade receivables: amounts falling due within one year | 19 | 82,975 | 69,475
Cash |  | 1,169 | 822
|  | 91,769 | 78,143
Creditors: amounts falling due within one year | 21 | (33,054) | (18,396)
Net current assets |  | 58,715 | 59,747
Total assets less current liabilities |  | 94,553 | 96,507
Creditors: amounts falling due after more than one year | 22 | (26,612) | (17,003)
|  | 67,941 | 79,504
Pensions assets/(obligations) | 30 | 1,983 | 2,029
Net assets |  | 69,924 | 81,533
Equity |  |  |
Called up share capital | 26 | 15,000 | 15,000
Profit and loss account | 27 | 54,924 | 66,533
Total equity |  | 69,924 | 81,533
The financial statements were approved and authorised for issue by the board and were signed on its behalf:
Rosalind Spinage |
Director |
Date: 5 August 2026 The notes 21 on to 47 form part of these financial statements.
SOUTHCO MANUFACTURING LIMITED Statement of changes in equity For the year ended 31 December 2025​
| Note | Called up share capital £ 000 | Profit and loss account £ 000 | Total £ 000
--- | --- | --- | --- | ---
At 1 January 2025 | 27, 28 | 15,000 | 66,533 | 81,533
Profit for the year |  | - | 3,085 | 3,085
Other comprehensive income |  | - | (70) | (70)
Total comprehensive income for the year |  | - | 3,015 | 3,015
Dividends declared and paid |  | - | (14,624) | (14,624)
At 31 December 2025 |  | 15,000 | 54,924 | 69,924
| Note | Called up share capital £ 000 | Profit and loss account £ 000 | Total £ 000
--- | --- | --- | --- | ---
At 1 January 2024 | 27, 28 | 15,000 | 77,953 | 92,953
Loss for the year |  | - | (6,661) | (6,661)
Other comprehensive income |  | - | 1,119 | 1,119
Total comprehensive income for the year |  | - | (5,542) | (5,542)
Dividends declared and paid |  | - | (5,878) | (5,878)
At 31 December 2024 |  | 15,000 | 66,533 | 81,533
The notes on 21 to 47 form part of these financial statements.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 1. General information Southco Manufacturing Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is located at Touchpoint, Wainwright Road, Worcester, WR4 9FA. The principal activity is the manufacturing, sale and distribution of access hardware equipment predominantly in the European marketplace. 2. Accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all periods presented, unless otherwise stated. a. Basis of preparation of financial statements The financial statements have been prepared under the historic 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' (FRS 102) 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 judgement in applying the Company's​ accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. The Company's functional and presentational currency is the Pound Sterling. The financial statements are rounded to thousands.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued b. Disclosure exemptions for qualifying entities under FRS 102 The Company has taken advantage of the following disclosure exemptions in preparing its financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
| • | the requirements ofSection 7 Statement of Cash Flows and paragraph 3.17(d).
| • | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29Aas equivalent information is included in the consolidated financial statements of the group in which the Company is consolidated.
| • | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23 as the Company is a subsidiary and the share-based payment arrangement concerns equity instruments of another group entity.
| • | the requirement of paragraph 33.7.
The company is a wholly owned subsidiary of Touchpoint Inc. It is included in the consolidated financial statements of Touchpoint Inc, which are publicly available. The company is exempt by virtue of section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is TouchPoint Inc. The registered address of the ultimate parent undertaking is 2595 Interstate Dr., Ste. 103. Harrisburg, PA, 17110.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued c. Going Concern After making enquiries, including the review of forecasts, statement of comprehensive income and statement of financial position, the board is satisfied the Company has sufficient financial resources to meet its obligations as they fall due for a period of 12 months from the date of approval of these financial statements. These forecasts extend to December 2027, and have considered reasonable deteriorations in revenue, as well as unexpected cost increases. In addition to this the Company has access to a group revolving credit facility managed by the parent company, TouchPoint Inc. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully. In August 2022, the parent company amended and restated the credit facility to increase it to $400M and extend its expiration date to August 2027. A guarantee from Touchpoint Inc is obtained to cover any shortfall in Southco's cash position to December 2027. As of 31 December 2025, the Company was in compliance with all related financial covenants. As per company forecasts at date of signing, it is expected that all covenants will be complied with to December 2027. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they are satisfied to continue to adopt the going concern basis in preparing the annual report and accounts. d. 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 Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued e. Revenue Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 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.
Revenue for sale of goods is recognised upon shipment, product being ready for delivery, or on delivery of the product to the customer, based on specific contract terms. Tooling services policy Revenue from tooling services is recognised when the molds are ready for use in the manufacturing process and are approved by the customer. f. Operating leases: the Company as lessee A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. If the lease does not transfer substantially all the risks and rewards incidental to ownership, it is classified as an operating lease. Lease classification is dependent on the substance of the transaction rather than the form of the contract. Classification is made at the inception of the lease and is not changed during the term of the lease unless both the lessee and lessor agree to change the provisions of the lease, at which point the classification is re-evaluated. 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. g. Interest income Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued h. Other income Other income is recognised in the Statement of Comprehensive Income in the year in which it is accrued. i. Finance costs Finance costs are charged to the Statement of Comprehensive Income 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. j. Borrowing costs All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred. k. 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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued k. Pensions continued #### Defined benefit pension plan The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'. The cost of the defined benefit plan, recognised in the Statement of Comprehensive Income as employee costs, except where included in the cost of an asset, comprises: a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in the Statement of Comprehensive Income as a 'finance expense'.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued l. Share-based payments Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received. m. Taxation The tax expense for the year​ comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item recognised in other comprehensive income or directly in equity. In this case, the tax is 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 reporting date in the countries where the Company ​​operates​ ​and generates​​ income.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued m. Taxation continued Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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.
| • | 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 reporting date. n. Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life. o. 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, set to be 10 years for Trademarks and Patents, and 20 years for Goodwill and Customer Lists.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued p. Tangible fixed assets Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
| • | Freehold property - 15 years
| • | Plant and machinery - 3 - 8 years
| • | Motor vehicles - 4 years
| • | Fixtures and fittings - 4 - 8 years
| • | Computer equipment - 3 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. q. Valuation of investments Investments in subsidiaries are measured at cost less accumulated impairment. r. Inventories Inventories 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 first in, first out (FIFO)​​ basis. Work in progress and finished goods​ include labour costs and attributable overheads. At each reporting date, inventories are assessed for impairment. If an item of inventory​ 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.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued s. 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. t. Cash and cash equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. u. 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. v. Provision for liabilities Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 2. Accounting policies continued w. Financial instruments The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. x. Dividends Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 3. Judgments in applying accounting policies and key sources of estimation uncertainty The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accountingestimates. It also requires management to exercise judgement in applying the Company's accounting policies. Management consider there to be no critical estimates. 4. Turnover An analysis of turnover by class of business is as follows:
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
United Kingdom | 10,064 | 10,066
Rest of Europe | 81,831 | 72,584
Rest of the World | 12,233 | 13,048
| 104,128 | 95,698
5. Other operating income
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Royalty receivable | 28 | 41
Profit on disposal of tangible assets | 12 | 16
| 40 | 57
6. Operating (loss)/profit The operating (loss)/profit is stated after charging/(crediting):
Description | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Foreign exchange (gain)/loss | (1,173) | 1,998
Other operating lease rentals | 554 | 546
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 7. Auditors'
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Fees payable to the Company's auditor and its associates for the audit of the Company and Subsidiary's annual financial statements, including expenses | 117 | 110
Fees payable to the Company's auditor and its associates for non audit services provided to the company and its Subsidiaries | 19 | 8
8. Employees Staff costs, including Directors' remuneration, were as follows:
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Wages and salaries | 13,188 | 13,462
Social security costs | 1,967 | 1,979
Costs of defined contribution scheme | 938 | 949
Other staff costs | 175 | 186
| 16,268 | 16,576
The average monthly number of employees, including the Directors, during the year was as follows:
| 2025 | 2024
--- | --- | ---
Manufacturing | 149 | 165
Engineering | 34 | 36
Selling | 33 | 42
Administrative | 27 | 29
| 243 | 272
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 9. Directors'
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Directors' emoluments | 660 | 697
Company contributions to pension schemes | 50 | 49
| 710 | 746
During the year retirement benefits were accruing to 3 Directors (2024 - 3) in respect of defined contribution pension schemes. The highest paid Director received remuneration of £390,876 (2024 - £439,000) The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £28,000 (2024 - £28,000) The total accrued pension provision of the highest paid Director at 31 December 2025 amounted to £Nil (2024 - £Nil). The amount of the accrued lump sum in respect of the highest paid Director at 31 December 2025 amounted to £Nil (2024 - £Nil). There are considered to be no key management personnel other than the directors whose remuneration has been disclosed. 10. Income from investments
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Dividends received from inter-company investments | 2,702 | 912
11. Interest receivable
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Interest receivable from group companies | 2,412 | 3,573
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 12. Finance costs
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Bank interest payable | 765 | 1,584
Loans from group undertakings | 1,588 | 1,603
Net interest on pension liability | 831 | 820
| 3,184 | 4,007
13. Taxation
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Corporation tax |  |
Adjustments in respect of prior periods | - | 572
| - | 572
Foreign tax suffered | 476 | 233
Total current tax | 476 | 805
Deferred tax |  |
Origination and reversal of timing differences | 275 | (2,163)
Adjustments in respect of prior periods | (1) | (52)
Total deferred tax | 274 | (2,215)
Tax on Profit/(loss) | 750 | (1,410)
Factors affecting tax for the year The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25.00% (2024 - 25.00%). The differences are explained below:
Reconciliation of tax | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Profit/loss before tax | 3,835 | (8,071)
Profit/loss multiplied by the standard rate of corporation tax in the UK of 25.00% (2024 - 25.00%) | 959 | (2,018)
Effects of: |  |
Expenses not deductible for tax purposes | 104 | 99
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 13. Taxation continued
Reconciliation of tax | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Effects of group relief/ other reliefs | - | 110
Capital allowances for year in excess of depreciation | (727) | (264)
Adjustment from previous periods | (1) | 520
Effect of overseas tax rates | 476 | 232
Share options | (61) | (89)
Total tax for the year | 750 | (1,410)
Factors that may affect future tax changes At the time of signing of the Directors' report, there were no proposed future changes to the rate of Corporation Tax. The Company continues to monitor legislation to remain informed of future changes to tax rates. 14. Dividends
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Dividends paid to Southco International | 14,624 | 5,878
15. Intangible assets
| Goodwill £ 000 | Total £ 000
--- | --- | ---
Cost |  |
At 1 January 2025 | 14,916 | 14,916
Amortisation and impairment |  |
At 1 January 2025 | (13,534) | (13,534)
Charge for the year on owned assets | (704) | (704)
At 31 December 2025 | (14,238) | (14,238)
Net book value |  |
At 31 December 2025 | 678 | 678
At 31 December 2024 | 1,382 | 1,382
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 16. Tangible fixed assets
| Freehold property £ 000 | Plant and machinery £ 000 | Fixtures and fittings £ 000 | Computer equipment £ 000 | Other fixed assets £ 000 | Total £ 000
--- | --- | --- | --- | --- | --- | ---
Cost |  |  |  |  |  |
At 1 January 2025 | 7,504 | 11,867 | 331 | 6,302 | 824 | 26,828
Transfers between classes | - | - | - | - | (695) | (695)
Additions | 17 | 1,137 | - | 16 | - | 1,170
At 31 December 2025 | 7,521 | 13,004 | 331 | 6,318 | 129 | 27,303
Depreciation and impairment |  |  |  |  |  |
At 1 January 2025 | (4,186) | (10,844) | (293) | (6,278) | - | (21,601)
Charge for the year on owned assets | (238) | (435) | (6) | (14) | - | (693)
At 31 December 2025 | (4,424) | (11,279) | (299) | (6,292) | - | (22,294)
Net book value |  |  |  |  |  |
At 31 December 2025 | 3,097 | 1,725 | 32 | 26 | 129 | 5,009
At 31 December 2024 | 3,318 | 1,023 | 38 | 24 | 824 | 5,227
Included in the net book value of property disclosed above are the following amounts ascribable to land:
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Freehold | 1,100 | 1,100
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 17. Fixed asset investments
| Investments in subsidiaries £ 000
--- | ---
Cost or valuation |
At 1 January 2025 | 30,151
At 31 December 2025 | 30,151
Subsidiary undertakings The following were subsidiary undertakings of the Company:
Name | Registered office | Class of shares | Holding % | Aggregate of share capital and reserves £ 000 | Profit/ (Loss) £ 000
--- | --- | --- | --- | --- | ---
Southco GmbH | Germany | Ordinary | 37.20 | 11,719 | 346
Southco Severn Limited | United Kingdom | Ordinary | 100.00 | (24,562) | (1,777)
Southco Brasil Compenentes Industriais Ltda | Brazil | Ordinary | 100.00 | 6,801 | 550
Southco Europe Limited | United Kingdom | Ordinary | 100.00 | - | -
Southco S.A.R.L | France | Ordinary | 37.20 | 2,169 | 134
Darshana Private Industries Ltd | India | Ordinary | 99.96 | 23,111 | 1,545
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 18. Inventories
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Raw materials and consumables | 207 | 203
Work in progress | 2,961 | 3,008
Finished goods and goods for resale | 1,678 | 1,605
| 4,846 | 4,816
The carrying value of stocks are stated net of impairment losses totalling £74,081 (2024 - £110,416. Impairment losses / (gains) totalling £74,081 (2024 - £110,416) were recognised in the Statement of Comprehensive Income. 19. Trade receivables
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Due after more than one year |  |
Deferred taxation | 2,779 | 3,030
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Due within one year |  |
Trade receivables | 11,831 | 9,773
Amounts owed by group undertakings | 69,030 | 57,225
Other trade receivables | 1,038 | 1,779
Prepayments and accrued income | 1,076 | 698
| 82,975 | 69,475
A credit of £51,118 (2024: credit £42,722) was recognised in administration expenses against trade debtors during the year as a result of a decrease in the bad debt provision. Amounts owed by group undertakings are unsecured, attract interest up to 3.0% and are repayable on demand.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 20. Cash and cash equivalents
Description | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Cash at bank and in hand | 1,169 | 822
less: bank overdrafts | (362) | (275)
| 807 | 547
21. Creditors: Amounts falling due within one year
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Bank overdrafts | 362 | 275
Trade payables | 3,585 | 3,359
Amounts owed to group undertakings | 24,143 | 10,739
Corporation tax | - | 208
Accruals and deferred income | 4,964 | 3,815
| 33,054 | 18,396
The bank overdraft is part of a facility available to the Touchpoint Inc. group and is secured by a floating charge over certain assets of that group. Amounts owed to group undertakings are unsecured, attract interest at between 0 and 3% and are repayable on demand. 22. Creditors: Amounts falling due after more than one year
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Loans | 26,612 | 17,003
Secured loans A bank loan bears interest at a variable rate which was linked to LIBOR in 2021, but has since moved to the Euro Short-Term Rate (ESTR). The bank loan is part of a facility available to the Touchpoint Inc. group and is secured by a floating charge over certain assets of that group.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 23. Loans
Analysis of the maturity of loans is given below: | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Amounts falling due 1-2 years |  |
Bank loan | 26,612 | 17,003
24. Analysis of net debt
Description | At 1 January 2025 £000 £ 000 | Cash flows £000 000 | At 31 December 2025 £000 £ 000
--- | --- | --- | ---
Cash at bank and in hand | 822 | 347 | 1,169
Bank overdrafts | (275) | (87) | (362)
Debt due after 1 year | (17,003) | (9,609) | (26,612)
| (16,456) | (9,349) | (25,805)
25. Deferred taxation The deferred tax balance is made up as follows:
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
At beginning of year | 3,030 | 1,190
Credit to profit or loss | (274) | 2,213
Credit to other comprehensive income | 23 | (373)
At end of year | 2,779 | 3,030
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 25. Deferred taxation continued The deferred tax asset is made up as follows:
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Accelerated capital allowances | (535) | (410)
Other timing differences | 314 | 623
R&D expenditure credit | 14 | 14
Losses | 2,986 | 2,803
| 2,779 | 3,030
26. Share capital
|  | 2025 Par Value £ 000 | 2025 Number | 2025 £ 000 | 2024 Number | 2024 £ 000
--- | --- | --- | --- | --- | --- | ---
Ordinary | shares of | 1 | 15,000,101 | 15,000 | 15,000,101 | 15,000
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. All shares hold the same voting rights. 27. Reserves #### Profit and loss account Reserve represents current year losses and cumulative prior year profits, net of dividends paid. #### Other reserves Reserve represents fair value movements in the defined benefit pension liability.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 28. Capital commitments
At 31 December 2025 the Company had capital commitments as follows: | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Non-cancellable purchase orders placed for capital equipment | 1,284 | 432
29. Contingent liabilities During 2024, the Company received a claim from a customer in respect of some parts that were claimed to be faulty, and damages thereon. The Company believes that the parts were not used appropriately. The dispute is currently going through a legal process. Management, having taken legal advice, have assessed that the likelihood that the customer’s claim would succeed in court is less than probable but (acknowledging the inherent uncertainty in any legal dispute) is more than remote. It is the customer’s continued submission that they are owed approximately EUR 2.0 million. The Company expects the outcome of the dispute to be somewhere between zero and EUR 2.0 million, and made a provision at the lower end of this scale as a purely technical provision as part of the year end audit which is their best estimate of the settlement of the matter. 30. Pension commitments The Company operates a Defined Benefit Pension Scheme. The Company's defined benefit pension scheme, the Southco UK Limited Pension scheme, was closed for new members and future accrual on 30 June 2007. A defined contribution scheme has been set up to replace this. For the defined contribution scheme, contributions are up to 10% for members who previously belonged to the defined benefit scheme and up to 8% for new members. The Company contributed £Nil (2024: £5,861,969) to the defined benefit scheme and £988,198 (2024: £998,410) to the defined contribution scheme during the year. The Company does not expect to contribute to the defined benefit scheme during the year ending 31 December 2025. FRS 102 section 28 requires disclosure of the assets and liabilities as at 31 December 2025 calculated in accordance with the requirements of FRS 102 section 28. A full actuarial valuation was carried out at 31 December 2023 by a qualified actuary. The assets of the scheme have been taken at market value and the liabilities have been calculated using widely accepted actuarial assumptions.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 30. Pension commitments continued
Reconciliation of present value of plan liabilities | 2025 £ 000 | 2024 £ 000
--- | --- | ---
At the beginning of the year | 15,373 | 18,658
Interest cost | 831 | 820
Actuarial losses | (455) | (3,658)
Benefits paid | (546) | (447)
At the end of the year | 15,203 | 15,373
Reconciliation of present value of plan assets | 2025 £ 000 | 2024 £ 000
--- | --- | ---
At the beginning of the year | 17,402 | 13,506
Interest income | 941 | 647
Return on plan assets less interest | (549) | (2,166)
Contributions | - | 5,862
Administration costs | (62) | -
Benefits paid | (546) | (447)
At the end of the year | 17,186 | 17,402
| 2025 £ 000 | 2024 £ 000
--- | --- | ---
Fair value of plan assets | 17,186 | 17,402
Present value of plan liabilities | (15,203) | (15,373)
Net pension scheme asset | 1,983 | 2,029
The amounts recognised in profit or loss are as follows: | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Interest on obligation | 831 | 820
Interest income on plan assets | (941) | (647)
Administration costs | 62 | -
Total | (48) | 173
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 30. Pension commitments continued
Reconciliation of fair value of plan liabilities were as follows: | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Opening defined benefit obligation | 15,373 | 18,658
Actuarial losses | (455) | (3,658)
Interest cost | 831 | 820
Benefits paid | (546) | (447)
Closing defined benefit obligation | 15,203 | 15,373
Reconciliation of fair value of plan assets were as follows: | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Opening fair value of scheme assets | 17,402 | 13,506
Interest income | 941 | 647
Return on plan assets less interest | (549) | (2,166)
Contributions | - | 5,862
Administration costs | (62) | -
Benefits paid | (546) | (447)
At the end of the year | 17,186 | 17,402
The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £12,737,963 (2024 - £12,643,963).
Principal actuarial assumptions at the Statement of Financial Position date (expressed as weighted averages): | 2025 % | 2024 %
--- | --- | ---
Discount rate | 5.60 | 5.50
Future pension increases | 2.05 | 2.15
Inflation assumption RPI | 3.20 | 3.40
Inflation assumption CPI | 2.55 | 2.75
Mortality rates | 2025 | 2024
--- | --- | ---
- for a male aged 65 now | 21.4 | 21.4
- at 65 for a male aged 45 now | 22.5 | 22.4
- for a female aged 65 now | 23.9 | 23.8
- at 65 for a female member aged 45 now | 25.0 | 25.0
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 30. Pension commitments continued
Amounts for the current and previous four periods are as follows: | 2025 £ 000 | 2024 £ 000 | 2023 £ 000 | 2022 £ 000 | 2021 £ 000
--- | --- | --- | --- | --- | ---
Defined benefit obligation | (15,203) | (15,373) | (18,658) | (17,173) | (29,577)
Related deferred tax asset | - | - | (1,288) | (988) | (1,363)
Scheme assets | 17,186 | 17,402 | 13,506 | 13,221 | 24,127
Surplus | 1,983 | 2,029 | (6,440) | (4,940) | (6,813)
31. Commitments under operating leases At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
Land and Buildings | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Not later than 1 year | 298 | 298
Later than 1 year and not later than 5 years | 1,042 | 1,191
Later than 5 years | - | 149
| 1,340 | 1,638
Other operating leases | 2025 £ 000 | 2024 £ 000
--- | --- | ---
Not later than 1 year | 171 | 183
Later than 1 year and not later than 5 years | 113 | 219
| 284 | 402
32. Post balance sheet events There have been no significant events affecting the Company since the year end.
SOUTHCO MANUFACTURING LIMITED Notes to the financial statements For the year ended 31 December 2025 33. Controlling party At 31 December 2025, the immediate parent Company was Southco International Inc, which is incorporated in the United States of America. The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is TouchPoint Inc, a company incorporated in the United States. Copies of the TouchPoint Inc consolidated financial statements can be obtained from the Company Secretary at 2595 Interstate Dr., Ste. 103. Harrisburg, PA, 17110.