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Company Registration Number: 11534723 KMF GROUP HOLDINGS LIMITED FINANCIAL STATEMENTS 31 MARCH 2026
KMF GROUP HOLDINGS LIMITED COMPANY INFORMATION
Directors | G M Higgins
| D Higgins
Company secretary | N D Owen
Registered number | 11534723
Registered office | Millennium Way
| High Carr Business Park
| Newcastle Under Lyme
| Staffordshire
| ST5 7UF
Independent auditors | Armstrong Watson Audit Limited
| Chartered Accountants & Statutory Auditors
| Number 3
| Acorn Business Park
| Airedale Business Centre
| Skipton
| North Yorkshire
| BD23 2UE
Bankers | HSBC Bank PLC
| 64 High St
| Newcastle Under Lyme
| Staffordshire
| ST5 1QN
KMF GROUP HOLDINGS LIMITED CONTENTS
| Page
Group strategic report | 1 - 3
Director's report | 4 - 7
Independent auditors' report | 8 - 11
Consolidated statement of comprehensive income | 12
Consolidated statement of financial position | 13
Company statement of financial position | 14
Consolidated statement of changes in equity | 15
Company statement of changes in equity | 16
Consolidated statement of cash flows | 17 - 18
Notes to the financial statements | 19 - 41
KMF GROUP HOLDINGS LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2026
Introduction
The directors have pleasure in presenting their report and the financial statements of the Group for the period ended 31 March 2026.
Business review
The principal activity of the Company during the period was that of a holding and investment company. The principal activities of the subsidiaries during the period consisted of: -The manufacture and fabrication of sheet metal products and precision engineered parts -The design, manufacture and sale of bicycle components -A holding and investment property company The directors aim to present a balanced and comprehensive review of the development and performance of the business during the period and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.
Principal risks and uncertainties
The market conditions in which the group operates are still extremely challenging due to the global economic climate and the competitive pressures within the industry. Financial risk The Group's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied. Credit risk The Group has implemented policies that require appropriate credit checks on customers before sales are made. Liquidity risk The directors believe that the group has sufficient funds available to support its activities in the future. Foreign exchange risk The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group with regard to foreign currency exchange rate variance. The Group does not manage its exposure to foreign currency exchange rate variance on its foreign sales portfolio. Page 1
KMF GROUP HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Financial key performance indicators
The key financial performance indicators are those that communicate the financial performance and strength of the group as a whole. These being turnover, gross margin and return on capital employed. Turnover for the year is £41,060,370 and is in line with expectations. Product mix is constantly changing, depending on the order base, and new products are constantly being developed. The sales pipeline is strong, with exciting projects at the prototype stage, ensuring the sales outlook for 2026 and beyond is positive. The gross profit percentage is 31.0% (2025 - 26.9%). Return on capital employed is 10.9% (2025 - 3.2%) and is calculated by operating profit divided by total assets less current liabilities. The directors have been seeking to increase turnover, contain operating costs, increase the number of customers, and improve product quality. To achieve these business targets, KMF continues to invest in new machinery and production processes in order to enhance the quality and delivery of customers products and control costs. The recent inflationary pressure on wages and salaries, and the uncertainty around energy prices have challenged our cost base, and our customer base. We have worked hard to ensure that we are competitive, we have developed systems to control our costs and we should benefit significantly from this going forward. Shareholders funds as at 31 March 2026 amounted to £15,874,835.
Other key performance indicators
The directors and management team are committed to a culture of continuous improvement and recognise that continued investment in facilities, equipment, technology and people are crucial to enable the group to continue to deliver the exceptional level of service that it is renowned for. As part of the Group's continued growth strategy, the group has continued to invest in its overseas manufacturing facility, and utilised the skills of the UK Company. The directors are confident that the overseas operation will deliver consistent profits during the course of 2026/27, as the benefit of operational leverage will continue. Executive board meetings are held monthly, with full board meetings held three times a year. Actual performance is compared to budget at these meetings and significant variances are investigated. The management of working capital is also reviewed at these meetings. With the risks and uncertainties of the current economic climate, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control. Page 2
KMF GROUP HOLDINGS LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Directors' statement of compliance with section 172(1)
The directors consider, both individually and together, that they have acted in the way they consider in good faith, would be most likely to promote the success of the Company and the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172 of the Act) in the decisions taken during the year. - Our plans are designed to have long term beneficial impact on the Group and to contribute to its success by providing our customers with high-quality products. We achieve these objectives by continuing to monitor market trends, by investing in people and focusing on improving our customer service, along with continued focus on bringing new products and services to market that generate value for our customers, employees and stakeholders. - Our employees are fundamental to the delivery of our plans. We aim to be a responsible and attractive employer in our approach to the pay and benefits our employees receive and the opportunities they have to grow their careers. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions where required. - Our plans are formed by engagement with our suppliers and customers, enabling us to gain an in depth understanding of their needs and priorities. We aim to act responsibly and fairly in how we engage with all stakeholders. - We consider the impact of the Group's operations on the community and environment. We aim to employ local people and utilise the services of local companies as far as is possible. - As directors, our intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute positively to the delivery of our plans. - As directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally so that they too may benefit from the successful delivery of our plans. This report was approved by the board and signed on its behalf.
G M Higgins Director
Date: 11 August 2026
Page 3
KMF GROUP HOLDINGS LIMITED DIRECTOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2026 The director presents his report and the financial statements for the year ended 31 March 2026.
Director's responsibilities statement
The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: ∙select suitable accounting policies for the Group'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 Group will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £1,211,703 (2025 - £112,129). The directors have not recommended a final dividend.
Directors
The directors who served during the year were:
G M Higgins
M F Higgins (deceased 19 October 2025)
D Higgins S Acton (deceased 29 September 2025)
Future developments
The directors are not expecting to make any significant changes in the nature of the business in the near future.
Engagement with employees
During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the Group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Page 4
KMF GROUP HOLDINGS LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Engagement with suppliers, customers and others
The directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts of supply with our customers. The Group actively plays a part within the local community as it aims to employ local people and utilise the services of local companies as far as is possible. The directors are committed to employees' health, wellbeing and training engaging with specialists for external training and providing in-house sessions for team leaders and managers during working time.
Disabled employees
Applications for employment by disabled persons are always fully considered, taking into account the aptitudes of the applicant concerned, in the event of members of staff becoming disabled, every effort is made to ensure that their employment with the Group continues and that appropriate arrangements are made. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Requirements under the Disability Discrimination Act 2005 are complied with and wherever possible reasonable accommodation is made. Page 5
KMF GROUP HOLDINGS LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Greenhouse gas emissions, energy consumption and energy efficiency action
This section includes our mandatory reporting of greenhouse gas emissions for the year 1 April 2025 to 31 March 2026, the latest annual period for which the data is available, and is pursuant to the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. The Group consumes electricity, gas and transport equivalents for its own offices and factory use. Consumption figures have been computed from utility bills provided by energy providers. The transport energy consumption in litres and carbon footprint in kgCO2e for the year ending 31 March 2026 is disclosed as follows: The energy consumption in kWh and carbon footprint in kgCO2e for the year ending 31 March 2026 is disclosed as follows: Total (kgCO2e) = 1,398,909 (2025 - 1,697,363) We have selected an emissions intensity ratio of 'kgCO2e per £m of revenue' as, in our view, this provides the best comparative measure over time:- 2026 Intensity Ratio - 34kgCO2e per £m of revenue 2025 Intensity Ratio - 39kgCO2e per £m of revenue The above data refers to energy consumed by KMF Precision Sheet Metal Limited. Energy consumed by other members of the Group are deemed negligible in comparison and therefore disclosure is not deemed necessary. Reducing carbon emissions The Group takes its responsibility to energy consumption and climate control very seriously and therefore takes steps to monitor and control usage with a commitment to reduce consumption. During the year we have continued to assess and monitor our energy use and, where practicable, we have implemented measures to reduce the environmental impact of our activities. Within our manufacturing facilities and offices we have also introduced various measures to reduce energy consumption. We continue to replace old equipment with newer, more efficient units. Page 6
KMF GROUP HOLDINGS LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Matters covered in the Group strategic report
Information is not shown in the directors' report because it is shown in the strategic report under s414C(11). The strategic report includes a business review, principal risks and uncertainties and financial key performance indicators.
Disclosure of information to auditors
The director at the time when this Director's report is approved has confirmed that: ∙so far as is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙ has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited 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.
G M Higgins Director
Date: 11 August 2026
Page 7
KMF GROUP HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED
Opinion
We have audited the financial statements of KMF Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2026, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2026 and of the Group's profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 Group's or the parent 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 director with respect to going concern are described in the relevant sections of this report. Page 8
KMF GROUP HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of director's remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Director's responsibilities statement set out on page 4, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 9
KMF GROUP HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • we identified the laws and regulations applicable to the company through discussions with directors and other management and review of appropriate industry knowledge; • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and • identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: • performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; and tested the operating effectiveness of key controls over purchase cycles on a sample basis. • reviewed the application of accounting policies with focus on those with heightened estimation uncertainty. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: • agreeing financial statement disclosures to underlying supporting documentation; and • enquiring of management as to actual and potential litigation and claims. Page 10
KMF GROUP HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF GROUP HOLDINGS LIMITED (CONTINUED) Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Rohan Day (Senior statutory auditor) for and on behalf of Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Skipton 11 August 2026 Page 11
KMF GROUP HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026
| 2026 | 2025
Note | £ | £
Turnover | 4 | 41,060,370 | 43,485,437
Cost of sales |  | (28,334,682) | (31,778,946)
Gross profit |  | 12,725,688 | 11,706,491
Administrative expenses |  | (10,812,749) | (11,113,327)
Operating profit | 5 | 1,912,939 | 593,164
Interest receivable and similar income | 9 | 107,274 | 84,500
Interest payable and similar expenses | 10 | (344,219) | (455,797)
Profit before taxation |  | 1,675,994 | 221,867
Tax on profit | 11 | (464,291) | (109,738)
Profit for the financial year |  | 1,211,703 | 112,129
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 1,211,703 | 112,129
|  | 1,211,703 | 112,129
The notes on pages 19 to 41 form part of these financial statements.
Page 12
KMF GROUP HOLDINGS LIMITED REGISTERED NUMBER: 11534723 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 13 |  | 4,666 |  | 6,298
Tangible assets | 14 |  | 11,587,245 |  | 12,552,063
|  |  | 11,591,911 |  | 12,558,361
Current assets |  |  |  |  |
Stocks | 16 | 2,926,048 |  | 2,704,070 |
Debtors: amounts falling due within one year | 17 | 8,919,167 |  | 8,507,392 |
Cash at bank and in hand | 18 | 4,692,384 |  | 3,517,934 |
|  | 16,537,599 |  | 14,729,396 |
Creditors: amounts falling due within one year | 19 | (10,470,147) |  | (9,102,377) |
Net current assets |  |  | 6,067,452 |  | 5,627,019
Total assets less current liabilities |  |  | 17,659,363 |  | 18,185,380
Creditors: amounts falling due after more than one year | 20 |  | (1,254,363) |  | (2,884,883)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 23 | (530,165) |  | (606,919) |
|  |  | (530,165) |  | (606,919)
Net assets |  |  | 15,874,835 |  | 14,693,578
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 150 |  | 150
Foreign exchange reserve | 25 |  | (17,724) |  | 12,722
Share premium | 25 |  | 2,749,940 |  | 2,749,940
Profit and loss account | 25 |  | 13,142,469 |  | 11,930,766
|  |  | 15,874,835 |  | 14,693,578
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
G M Higgins
Director
Date: 11 August 2026
The notes on pages 19 to 41 form part of these financial statements. Page 13
KMF GROUP HOLDINGS LIMITED REGISTERED NUMBER: 11534723 COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments | 15 |  | 8,026,355 |  | 8,026,355
|  |  | 8,026,355 |  | 8,026,355
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 17 | 90 |  | 90 |
Cash at bank and in hand | 18 | 6,351 |  | 7,193 |
|  | 6,441 |  | 7,283 |
Creditors: amounts falling due within one year | 19 | (4,960,716) |  | (4,958,714) |
Net current liabilities |  |  | (4,954,275) |  | (4,951,431)
Total assets less current liabilities |  |  | 3,072,080 |  | 3,074,924
Net assets |  |  | 3,072,080 |  | 3,074,924
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 150 |  | 150
Merger reserve | 25 |  | 2,749,940 |  | 2,749,940
Profit and loss account brought forward |  | 324,834 |  | 321,138 |
Loss/(profit) for the year |  | (2,844) |  | 3,696 |
Profit and loss account carried forward |  |  | 321,990 |  | 324,834
|  |  | 3,072,080 |  | 3,074,924
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
G M Higgins
Director
Date: 11 August 2026
The notes on pages 19 to 41 form part of these financial statements. Page 14

|  | KMF GROUP HOLDINGS LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026
|  | Called up share capital | Foreign exchange reserve | Share premium reserve | Profit and loss account | Equity attributable to owners of parent Company | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 April 2024 | 150 | 3,694 | 2,749,940 | 11,818,637 | 14,572,421 | 14,572,421
| Comprehensive income for the year |  |  |  |  |  |
| Profit for the year | - | - | - | 112,129 | 112,129 | 112,129
| Foreign exchange movement | - | 9,028 | - | - | 9,028 | 9,028
| At 1 April 2025 | 150 | 12,722 | 2,749,940 | 11,930,766 | 14,693,578 | 14,693,578
| Comprehensive income for the year |  |  |  |  |  |
| Profit for the year | - | - | - | 1,211,703 | 1,211,703 | 1,211,703
| Foreign exchange movement | - | (30,446) | - | - | (30,446) | (30,446)
| At 31 March 2026 | 150 | (17,724) | 2,749,940 | 13,142,469 | 15,874,835 | 15,874,835
| The notes on pages 19 to 41 form part of these financial statements.
Page 15

|  | KMF GROUP HOLDINGS LIMITED |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026
|  | Called up share capital | Share premium reserve | Profit and loss account | Total equity
|  | £ | £ | £ | £
| At 1 April 2024 | 150 | 2,749,940 | 321,138 | 3,071,228
| Comprehensive income for the year |  |  |  |
| Profit for the year | - | - | 3,696 | 3,696
| At 1 April 2025 | 150 | 2,749,940 | 324,834 | 3,074,924
| Comprehensive income for the year |  |  |  |
| Loss for the year | - | - | (2,844) | (2,844)
| At 31 March 2026 | 150 | 2,749,940 | 321,990 | 3,072,080
| The notes on pages 19 to 41 form part of these financial statements.
Page 16

KMF GROUP HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026
|  |  | 2026 | 2025
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,211,703 | 112,129
Adjustments for: |  |
Amortisation of intangible assets | 1,632 | 1,343
Depreciation of tangible assets | 1,502,797 | 1,739,915
Profit on disposal of tangible assets | (80,930) | (13,187)
Interest paid | 344,219 | 455,797
Interest received | (107,274) | (84,500)
Taxation charge | 464,291 | 109,738
(Increase)/decrease in stocks | (221,978) | 399,200
(Increase)/decrease in debtors | (531,004) | 837,704
Increase/(decrease) in creditors | 660,517 | (152,369)
Corporation tax (paid) | (177,230) | (435,034)
Movements on foreign exchange reserves | (30,446) | 9,028
Net cash generated from operating activities | 3,036,297 | 2,979,764
Cash flows from investing activities |  |
Purchase of intangible fixed assets | - | (7,000)
Purchase of tangible fixed assets | (687,454) | (1,254,495)
Sale of tangible fixed assets | 230,405 | 41,001
Interest received | 107,274 | 84,500
HP interest paid | - | (82,792)
Net cash from investing activities | (349,775) | (1,218,786)
Cash flows from financing activities |  |
Repayment of loans | (1,298,060) | (688,610)
Repayment of finance leases | (828,262) | (842,287)
New finance leases | 302,340 | 699,900
Movements on invoice discounting | 656,129 | (1,302,261)
Interest paid | (344,219) | (373,005)
Net cash used in financing activities | (1,512,072) | (2,506,263)
Page 17
KMF GROUP HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
|  | 2026 | 2025
|  | £ | £
Net increase/(decrease) in cash and cash equivalents | 1,174,450 | (745,285)
Cash and cash equivalents at beginning of year | 3,517,934 | 4,263,219
Cash and cash equivalents at the end of year | 4,692,384 | 3,517,934
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 4,692,384 | 3,517,934
| 4,692,384 | 3,517,934
Page 18
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
1. | General information
KMF Group Holdings Limited is a holding company to a trading group. The company is a private company limited by shares incorporated and domiciled in the United Kingdom. The company is a tax resident in the United Kingdom. The company operates from their registered office address at Millennium Way, High Carr Business Park, Newcastle-Under-Lyme, Staffordshire, England, ST5 7UF. The principal activities of the subsidiaries during the year consisted of: - The manufacture and fabrication of sheet metal products and precision engineered parts - The design, manufacture and sale of bicycle components - A holding and investment property company KMF Group Limited operates from their registered office address at Millennium Way, High Carr Business Park. Newcastle-Under-Lyme, Staffordshire, England. ST5 7UF. KMF Precision Sheet Metal Limited operates from their premises at High Carr Business Park, Millennium Way, Newcastle-Under-Lyme, Staffordshire, England, ST5 7UF. The registered office is Caledonian Exchange, 19a Canning Street, Edinburgh, EH3 8HE. KMF (Precision Sheet Metal) S.R.O operates from their registered office at Johanna Vaillanta 3043/2, 91311 Trencianske Stankovce, Slovakia. BETD Components Limited operates from their registered office address at Millennium Way, High Carr Business Park. Newcastle-Under-Lyme, Staffordshire, England. ST5 7UF. These financial statements have been prepared in Pound Sterling as this is the currency of the primary economic environment in which the company operates. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied: Page 19
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2017.
| 2.3 | Going concern
The directors believe that the group has adequate resources to continue in operational existence for at least 12 months from signing these financial statements. The group continues to have the support of the directors, shareholders and creditors and therefore continue to adopt the going concern basis of accounting in preparing the financial statements. After consideration of all factors, the directors continue to adopt the going concern basis in preparing the financial statements. Page 20
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. 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 profit or loss 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 Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. Page 21
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group 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 Group 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. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.6 | Operating leases: the Group as lessor
Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
| 2.7 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.8 | Leased assets: the Group as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.9 | Interest income
Interest income is recognised in profit or loss using the effective interest method. Page 22
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.10 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.11 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.12 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
| 2.13 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.14 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Page 23
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.15 | Current and deferred 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 of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income. 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; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures 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.
| 2.16 | Intangible assets
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 the Group's share 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 Consolidated statement of comprehensive income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases:
|  |  |  | Website | - | 20% | on cost
Page 24
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.17 | 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. At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% on cost
|  |  |  | Long-term leasehold property | - | 2% on cost
|  |  |  | Plant and machinery | - | between 12.5% and 25% on cost
|  |  |  | Motor vehicles | - | 25% on cost
|  |  |  | Fixtures and fittings | - | 25% on cost
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.18 | Investment property
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
| 2.19 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. Page 25
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.20 | 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. In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.21 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.22 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.23 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Page 26
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.23 | Financial instruments (continued)
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The directors consider the key accounting estimates to be provision for trade debtors, useful life and residual value of tangible fixed assets, provision for obsolete stock and carrying value of investments. Provisions for trade debtors are reviewed by the directors on an ongoing basis who use their specific industry knowledge and experience to ensure the correct judgements. The useful lives and residual values of tangible fixed assets are reviewed on an ongoing basis by the directors. Provisions for obsolete stock are reviewed by the directors on an ongoing basis who use their specific industry knowledge and experience to ensure the correct judgements. The carrying value of investment in subsidiary undertakings is reviewed for impairment on an ongoing basis. Page 27
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
4. | Turnover
The whole of the turnover is attributable to the principal activities described in general information. Analysis of turnover by country of destination:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| United Kingdom | 27,314,794 | 28,679,871
| Overseas | 13,745,576 | 14,805,566
|  | 41,060,370 | 43,485,437
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Depreciation on tangible fixed assets | 1,502,797 | 1,739,915
| Amortisation of intangible assets | 1,632 | 1,343
| Exchange differences | (6,978) | 31,383
| Other operating lease rentals | 28,648 | 23,210
| Defined contribution pension cost | 448,971 | 456,643
6. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors and their associates:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fees payable to the Company's auditors and their associates for the audit of the Group's annual financial statements | 48,750 | 48,500
| Fees payable to the Group's auditors and their associates in respect of: |  |
| All other services | 23,400 | 17,950
Page 28
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
7. | Employees
| Staff costs, including director's remuneration, were as follows:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Wages and salaries | 12,614,693 | 13,270,385
| Social security costs | 1,193,230 | 843,345
| Cost of defined contribution scheme | 448,971 | 456,643
|  | 14,256,894 | 14,570,373
| The average monthly number of employees, including the director, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2026 | 2025 | 2026 | 2025
|  |  | No. | No. | No. | No.
|  | Production | 307 | 325 | - | -
|  | Administration | 118 | 118 | 2 | 4
|  |  | 425 | 443 | 2 | 4
8. | Director's remuneration
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Director's emoluments | 319,106 | 275,700
| Group contributions to defined contribution pension schemes | 60,000 | 65,000
|  | 379,106 | 340,700
| During the year retirement benefits were accruing to 2 directors (2025 - 2) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £200,070 (2025 - £151,100).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2025 - £10,000).
Page 29
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
9. | Interest receivable
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Bank interest receivable | 107,274 | 84,500
|  | 107,274 | 84,500
10. | Interest payable and similar expenses
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Bank interest payable | 144,914 | 230,870
| Other loan interest payable | 112,907 | 142,135
| Finance leases and hire purchase contracts | 86,398 | 82,792
|  | 344,219 | 455,797
11. | Taxation
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 556,798 | 237,396
| Adjustments in respect of previous periods | (15,753) | (120,022)
|  | 541,045 | 117,374
| Total current tax | 541,045 | 117,374
| Deferred tax |  |
| Origination and reversal of timing differences | (69,133) | (35,934)
| Short term timing differences | (8,287) | (11,192)
| Losses and other deductions | 666 | 39,490
| Total deferred tax | (76,754) | (7,636)
| Tax on profit | 464,291 | 109,738
Page 30
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 11.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2025 - higher than) the standard rate of corporation tax in the UK of 25% (2025 - 25%). The differences are explained below:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,675,994 | 221,866
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 418,999 | 55,467
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 18,625 | 9,034
| Capital allowances for year in excess of depreciation | 38,676 | 38,676
| Adjustments to tax charge in respect of prior periods | (15,753) | (120,022)
| Non-taxable income | - | (69)
| Deferred tax not recognised | 22,546 | 48,312
| Other differences leading to an increase (decrease) in the tax charge | (18,802) | 78,689
| Marginal relief | - | (349)
| Total tax charge for the year | 464,291 | 109,738
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
12. | Parent company profit for the year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £2,844 (2025 - profit of £3,696). Page 31
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
13. | Intangible assets
| Group and Company
|  | Website
|  | £
| Cost |
| At 1 April 2025 | 26,538
| At 31 March 2026 | 26,538
| Amortisation |
| At 1 April 2025 | 20,240
| Charge for the year on owned assets | 1,632
| At 31 March 2026 | 21,872
| Net book value |
| At 31 March 2026 | 4,666
| At 31 March 2025 | 6,298
Page 32
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
14. | Tangible fixed assets
| Group
|  | Freehold property | Long-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 April 2025 | 8,446,402 | 1,817,796 | 19,531,073 | 1,014,512 | 10,327 | 30,820,110
| Additions | - | - | 327,575 | 359,879 | - | 687,454
| Disposals | - | - | (229,250) | (420,838) | - | (650,088)
| At 31 March 2026 | 8,446,402 | 1,817,796 | 19,629,398 | 953,553 | 10,327 | 30,857,476
| Depreciation |  |  |  |  |  |
| At 1 April 2025 | 2,376,785 | 263,114 | 15,095,955 | 521,866 | 10,327 | 18,268,047
| Charge for the year on owned assets | 125,628 | 29,076 | 799,343 | 137,104 | - | 1,091,151
| Charge for the year on financed assets | - | - | 324,613 | 87,033 | - | 411,646
| Disposals | - | - | (154,172) | (346,441) | - | (500,613)
| At 31 March 2026 | 2,502,413 | 292,190 | 16,065,739 | 399,562 | 10,327 | 19,270,231
| Net book value |  |  |  |  |  |
| At 31 March 2026 | 5,943,989 | 1,525,606 | 3,563,659 | 553,991 | - | 11,587,245
| At 31 March 2025 | 6,069,617 | 1,554,682 | 4,435,118 | 492,646 | - | 12,552,063
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Plant and machinery | 1,941,017 | 2,859,038
| Motor vehicles | 380,808 | 273,054
|  | 2,321,825 | 3,132,092
Page 33
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
15. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 April 2025 | 8,026,355
| At 31 March 2026 | 8,026,355
| Direct subsidiary undertaking
| The following was a direct subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| KMF Group Limited | Millennium Way, High Carr Business Park, Newcastle-Under-Lyme, Staffordshire, ST5 7UF | Ordinary | 100
| Indirect subsidiary undertakings
| The following were indirect subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| KMF Precision Sheet Metal Limited | Caledonian Exchange, 19a Canning Street, Edinburgh, EH3 8HE | Ordinary | 100%
| KMF (Precision Sheet Metal) S.R.O | Johanna Vaillanta 3043/2, 91311 Trencianske Stankovce, Slovakia | Ordinary | 100%
| BETD Components Limited | Millennium Way, High Carr Business Park, Newcastle-Under-Lyme, Staffordshire, ST5 7UF | Ordinary | 100%
| BETD Components Limited is exempt from audit by virtue of S479a of The Companies Act 2006. KMF Group Holdings Limited guarantees all outstanding liabilities to which the company is subject to as at 31 March 2026 until they are satisfied in full. The guarantee is enforceable against KMF Group Holdings Limited by any person to whom BETD Components Limited are liable in respect of those liabilities.
Page 34
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
16. | Stocks
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Raw materials and consumables | 2,672,324 | 2,453,702
| Work in progress (goods to be sold) | 253,724 | 250,368
|  | 2,926,048 | 2,704,070
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
| There has been no impairment loss recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.
17. | Debtors
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £ | £ | £ | £
| Trade debtors | 7,978,091 | 7,086,108 | - | -
| Other debtors | 325,807 | 743,122 | - | -
| Called up share capital not paid | 90 | 90 | 90 | 90
| Prepayments and accrued income | 536,279 | 479,943 | - | -
| Tax recoverable | 78,900 | 198,129 | - | -
|  | 8,919,167 | 8,507,392 | 90 | 90
18. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £ | £ | £ | £
| Cash at bank and in hand | 4,692,384 | 3,517,934 | 6,351 | 7,193
|  | 4,692,384 | 3,517,934 | 6,351 | 7,193
Page 35
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
19. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2026 | 2025 | 2026 | 2025
|  | £ | £ | £ | £
| Bank loans | 689,963 | 768,853 | - | -
| Trade creditors | 5,135,393 | 4,448,653 | - | -
| Amounts owed to group undertakings | - | - | 4,960,716 | 4,954,468
| Corporation tax | 308,491 | 63,905 | - | 4,246
| Other taxation and social security | 916,774 | 662,367 | - | -
| Obligations under finance lease and hire purchase contracts | 717,003 | 831,574 | - | -
| Invoice discounting | 1,503,638 | 847,510 | - | -
| Other creditors | 203,017 | 187,911 | - | -
| Accruals and deferred income | 995,868 | 1,291,604 | - | -
|  | 10,470,147 | 9,102,377 | 4,960,716 | 4,958,714
| The following liabilities were secured:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Bank loans | 689,963 | 768,853
| Obligations under finance lease and hire purchase contracts | 717,003 | 831,574
| Invoice discounting | 1,503,638 | 847,510
|  | 2,910,604 | 2,447,937
| Details of security provided:
The obligations under finance lease and hire purchase contracts are secured by charges over the assets acquired under relevant agreements. Invoice financing is secured against trade debtors. The Group has a multilateral guarantee between KMF Group Holdings Limited, KMF Group Limited and KMF Precision Sheet Metal Limited to secure certain of the bank borrowings. Security is given by way of a legal charge over the Group's freehold property and a debenture over assets of the Group. Page 36
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
20. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Bank loans | 692,107 | 1,911,276
| Net obligations under finance leases and hire purchase contracts | 562,256 | 973,607
|  | 1,254,363 | 2,884,883
| The following liabilities were secured:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Bank loans | 692,107 | 1,911,276
| Net obligations under finance leases and hire purchase contracts | 562,256 | 973,607
|  | 1,254,363 | 2,884,883
| Details of security provided:
The obligations under finance lease and hire purchase contracts are secured by charges over the assets acquired under relevant agreements. The Group has a multilateral guarantee between KMF Group Holdings Limited, KMF Group Limited and KMF Precision Sheet Metal Limited and to secure certain of the bank borrowings. Security is given by way of a legal charge over the Group's freehold property and a debenture over assets of the Group. Page 37
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
21. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 689,963 | 768,853
| Amounts falling due 1-2 years |  |
| Bank loans | 414,963 | 743,853
| Amounts falling due 2-5 years |  |
| Bank loans | 277,144 | 863,769
| Amounts falling due after more than 5 years |  |
| Bank loans | - | 303,654
|  | 1,382,070 | 2,680,129
| The bank loan is repayable in monthly instalments terminating during the year ending 31 March 2029. Interest is calculated at the rate of 1.95% over the base rate of HSBC Bank plc. The base term loan is repayable in monthly instalments terminating during the year ending 31 March 2035. Interest is calculated at the rate of 2% over the base rate of HSBC Bank plc. The base term loan is repayable in monthly instalments terminating during the year ending 31 March 2036. Interest is calculated at the rate of 2% over the base rate of HSBC Bank plc.
22. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Within one year | 717,003 | 831,574
| Between 1-5 years | 562,256 | 973,607
|  | 1,279,259 | 1,805,181
Page 38
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
23. | Deferred taxation
| Group
|  | 2026 | 2025
|  | £ | £
| At beginning of year | 606,919 | 614,555
| Charged to profit or loss | (76,754) | (7,636)
| At end of year | 530,165 | 606,919
| Company
|  | 2026 | 2025
| At end of year | - | -
| The provision for deferred taxation is made up as follows:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Accelerated capital allowances | 615,962 | 693,808
| Losses and other deductions | (11,321) | (74,973)
| Short term timing differences | (74,476) | (11,916)
|  | 530,165 | 606,919
24. | Share capital
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 500 (2025 - 500) Ordinary A shares of £0.10 each | 50.00 | 50.00
|  | 300 (2025 - 300) Ordinary B shares of £0.10 each | 30.00 | 30.00
|  | 375 (2025 - 375) Ordinary C shares of £0.10 each | 37.50 | 37.50
|  | 325 (2025 - 325) Ordinary D shares of £0.10 each | 32.50 | 32.50
|  |  | 150.00 | 150.00
| All classes of share capital carry full voting rights and no restriction on the distribution of dividends and the repayment of capital.
Page 39
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
25. | Reserves
Foreign exchange reserve This reserve arises on the retranslation of the net assets or liabilities of the company's subsidiary undertakings. Share premium account Arises when a premium is paid for new shares above their nominal value.
| 26. | Analysis of net debt
|  |  | At 1 April 2025 | Cash flows | New finance leases | Repayment of finance leases | At 31 March 2026
|  |  | £ | £ | £ | £ | £
| Cash at bank and in hand | 3,517,934 | 1,174,450 | - | - | 4,692,384
| Bank loans | (2,680,129) | 1,988,022 | - | - | (692,107)
| Invoice discounting | (847,510) | 157,547 | - | - | (689,963)
| Finance leases | (1,805,181) | - | (302,340) | 828,262 | (1,279,259)
|  | (1,814,886) | 3,320,019 | (302,340) | 828,262 | 2,031,055
27. | Contingent liabilities
The company has a multilateral guarantee including KMF Group Holdings Limited, KMF Group Limited and KMF Precision Sheet Metal Limited to secure any borrowings. At the year end the net outstanding borrowings with HSBC Bank PLC were £519,268 (2025 - £812,946).
28. | Pension commitments
The group operates various defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £448,971 (2025 - £456,643). Included in creditors is an amount due to the schemes of £90,433 (2025 - £48,303).
29. | Commitments under operating leases
| At 31 March 2026 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2026 | 2025
|  | £ | £
| Not later than 1 year | 26,271 | 27,004
| Later than 1 year and not later than 5 years | 55,042 | 69,235
|  | 81,313 | 96,239
Page 40
KMF GROUP HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
30. | Related party transactions
| The company has taken advantage of the exemption contained in Section 33 of Financial Reporting Standard 102 'Related Party Disclosures' from disclosing transactions with entities which are part of the group, since 100% of the voting rights in the Company are controlled within the group, and the Company is included within the group accounts which are publicly available.
31. | Controlling party
KMF Group Holdings Limited is under the control of G M Higgins and his close family members who are interested in 100% of the issued share capital.
Page 41