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Company Registration Number: SC049123 KMF PRECISION SHEET METAL LIMITED FINANCIAL STATEMENTS 31 MARCH 2026
KMF PRECISION SHEET METAL LIMITED COMPANY INFORMATION
Directors | G M Higgins
| D Higgins
| K Nicholl
| T Stanway
| N D Owen
Company secretary | N D Owen
Registered number | SC049123
Registered office | Caledonian Exchange
| 19a Canning Street
| Edinburgh
| EH3 8HE
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
| Crown Bank
| Hanley
| Stoke on Trent
| Staffordshire
| ST1 1DA
KMF PRECISION SHEET METAL LIMITED CONTENTS
| Page
Strategic Report | 1 - 3
Directors' Report | 4 - 5
Independent Auditors' Report | 6 - 9
Statement of Comprehensive Income | 10
Statement of Financial Position | 11
Statement of Changes in Equity | 12
Notes to the Financial Statements | 13 - 28
KMF PRECISION SHEET METAL LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2026
Introduction
The directors have pleasure in presenting their report and the financial statements of the company for the year ended 31 March 2026.
Business review
The principal activity of the company is the manufacture and fabrication of sheet metal products. The registered office is Caledonian Exchange, 19a Canning Street, Edinburgh, EH3 8HE. The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year 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 company operates are still extremely challenging due to the global economic climate and the competitive pressures within the industry. Financial Risk The company's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied. Credit Risk The company has implemented policies that require appropriate credit checks on customers before sales are made. In addition to this the company insures the recoverability of all commercial sales through an outside credit agency. Liquidity Risk The directors believe that the company has sufficient funds available to support its activities in the future. Page 1
KMF PRECISION SHEET METAL LIMITED 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 company as a whole. These being turnover, gross margin and return on capital employed. Turnover has decreased in the year from £30,220,758 in 2025 to £28,954,364 in 2026. The decrease in sales revenue was in line with expectations. In addition to this the product mix is constantly changing, depending on the order base, and new products are constantly being developed. The sales pipeline is strong, with exciting new projects at the prototype stage, ensuring the sales outlook for 2027 and beyond is positive. The gross profit percentage has increased from 28.3% in 2025 to 30.3% in 2026. Return on capital employed is approximately 5.2% (2025 - 3.5%) and is calculated by operating profit divided by total assets less current liabilities. The directors have been seeking to maintain margin, 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 customer's products and control costs. Additions to fixed assets amount to £435,940. 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. 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 company to continue to deliver the exceptional level of service that it is renowned for. It has always been the company’s strategy to retain the skills within the business whilst developing the skills of its apprentices; this is a key strength of the business. KMF will continue to invest in apprentices to ensure the future of the business. As part of the company'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 2027, 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. Shareholders funds as at 31 March 2026 amounted to £14,246,203. Page 2
KMF PRECISION SHEET METAL LIMITED 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 PRECISION SHEET METAL LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2026 The directors present their report and the financial statements for the year ended 31 March 2026.
Directors' responsibilities statement
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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £479,748 (2025 - £280,649). The directors do not recommend a final dividend.
Directors
The directors who served during the year were:
G M Higgins
D Higgins
K Nicholl
T Stanway
J D Eeles (resigned 6 January 2025)
N D Owen (appointed 6 January 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 company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Page 4
KMF PRECISION SHEET METAL LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
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 company continues and that appropriate arrangements are made. It is the policy of the company 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 Equality Act 2010 are complied with and wherever possible reasonable accommodation is made.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Company has taken the exemption not to disclose this information as it is included in the consolidated financial statements of KMF Group Holdings Limited as at 31 March 2026. These financial statements may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.
Matters covered in the 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
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Company 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 5
KMF PRECISION SHEET METAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF PRECISION SHEET METAL LIMITED
Opinion
We have audited the financial statements of KMF Precision Sheet Metal Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 March 2026 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6
KMF PRECISION SHEET METAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF PRECISION SHEET METAL LIMITED (CONTINUED)
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 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 by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 7
KMF PRECISION SHEET METAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF PRECISION SHEET METAL LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 Company’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 8
KMF PRECISION SHEET METAL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KMF PRECISION SHEET METAL 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 non-detection 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 9
KMF PRECISION SHEET METAL LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026
| 2026 | 2025
Note | £ | £
Turnover | 4 | 28,954,364 | 30,220,758
Cost of sales |  | (20,168,446) | (21,665,639)
Gross profit |  | 8,785,918 | 8,555,119
Administrative expenses |  | (7,992,212) | (8,016,356)
Operating profit | 5 | 793,706 | 538,763
Interest receivable and similar income | 9 | 34,914 | 7,108
Interest payable and similar expenses | 10 | (190,019) | (212,068)
Profit before tax |  | 638,601 | 333,803
Tax on profit | 11 | (158,853) | (53,154)
Profit for the financial year |  | 479,748 | 280,649
There were no recognised gains and losses for 2026 or 2025 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2026 (2025:£NIL).
The notes on pages 13 to 28 form part of these financial statements.
Page 10
KMF PRECISION SHEET METAL LIMITED REGISTERED NUMBER: SC049123 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 12 |  | 3,437,866 |  | 4,135,734
|  |  | 3,437,866 |  | 4,135,734
Current assets |  |  |  |  |
Stocks | 13 | 1,813,088 |  | 1,806,348 |
Debtors: amounts falling due within one year | 14 | 17,297,835 |  | 15,975,775 |
Cash at bank and in hand | 15 | 208,918 |  | 185,230 |
|  | 19,319,841 |  | 17,967,353 |
Creditors: amounts falling due within one year | 16 | (7,486,495) |  | (6,826,187) |
Net current assets |  |  | 11,833,346 |  | 11,141,166
Total assets less current liabilities |  |  | 15,271,212 |  | 15,276,900
Creditors: amounts falling due after more than one year | 17 |  | (448,411) |  | (860,679)
Provisions for liabilities |  |  |  |  |
Deferred tax | 19 | (576,598) |  | (649,766) |
|  |  | (576,598) |  | (649,766)
Net assets |  |  | 14,246,203 |  | 13,766,455
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 1,000 |  | 1,000
Other reserves | 21 |  | 208 |  | 208
Profit and loss account | 21 |  | 14,244,995 |  | 13,765,247
|  |  | 14,246,203 |  | 13,766,455
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 13 to 28 form part of these financial statements. Page 11
KMF PRECISION SHEET METAL LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026
| Called up share capital | Other reserves | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 April 2024 | 1,000 | 208 | 13,484,598 | 13,485,806
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 280,649 | 280,649
At 1 April 2025 | 1,000 | 208 | 13,765,247 | 13,766,455
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 479,748 | 479,748
At 31 March 2026 | 1,000 | 208 | 14,244,995 | 14,246,203
| The notes on pages 13 to 28 form part of these financial statements.
Page 12
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
1. | General information
KMF Precision Sheet Metal Limited is engaged in the manufacture and fabrication of sheet metal products. During the year the company operated from its 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. 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. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of KMF Group Holdings Limited as at 31 March 2026 and these financial statements may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.
| 2.3 | Going concern
The directors believe that the company has adequate resources to continue in operational existence for at least 12 months from signing these financial statements. The company 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 13
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
| 2.5 | 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 Company 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 Company 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 Company. 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. 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:
|  |  |  | Plant and machinery | - | between 12.5% & 50% on cost
|  |  |  | Motor vehicles | - | 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. Page 14
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.6 | 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.
| 2.7 | 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.
| 2.8 | 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.
| 2.9 | 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.
| 2.10 | 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. Page 15
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.11 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
| 2.12 | 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. Page 16
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.13 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.14 | Leased assets: the Company 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.
| 2.15 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
| 2.16 | Interest income
Interest income is recognised in profit or loss using the effective interest method. Page 17
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.17 | 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 operates and generates 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; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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, and provision for obsolete stock. 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. Page 18
KMF PRECISION SHEET METAL 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 activity of the company. Analysis of turnover by country of destination:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| United Kingdom | 27,112,628 | 28,486,286
| Rest of Europe | 1,841,736 | 1,734,472
|  | 28,954,364 | 30,220,758
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 1,062,336 | 1,259,975
| Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts | 35,550 | 34,000
| Exchange differences | 3,672 | 10,208
| Other operating lease rentals | 812,848 | 807,410
| Defined contribution pension cost | 447,533 | 455,282
6. | Auditors' remuneration
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements | 35,550 | 34,000
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
Page 19
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
7. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Wages and salaries | 9,136,878 | 9,443,354
| Social security costs | 1,185,668 | 868,435
| Cost of defined contribution scheme | 447,533 | 455,282
|  | 10,770,079 | 10,767,071
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2026 | 2025
|  |  | No. | No.
|  | Production | 212 | 230
|  | Administration | 78 | 79
|  |  | 290 | 309
8. | Directors' remuneration
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Directors' emoluments | 595,023 | 579,276
| Company contributions to defined contribution pension schemes | 200,477 | 200,959
|  | 795,500 | 780,235
| During the year retirement benefits were accruing to 5 directors (2025 - 6) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £200,070 (2025 - £151,100).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2025 - £10,000).
9. | Interest receivable
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Other interest receivable | 34,914 | 7,108
|  | 34,914 | 7,108
Page 20
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
10. | Interest payable and similar expenses
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Other loan interest payable | 112,907 | 135,869
| Finance leases and hire purchase contracts | 77,112 | 76,199
|  | 190,019 | 212,068
11. | Taxation
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 254,590 | 69,754
| Adjustments in respect of previous periods | (22,569) | (72,280)
| Total current tax | 232,021 | (2,526)
| Deferred tax |  |
| Origination and reversal of timing differences | (74,331) | 21,560
| Short term timing differences | 497 | (5,368)
| Losses and other deductions | 666 | 39,488
| Total deferred tax | (73,168) | 55,680
| Tax on profit | 158,853 | 53,154
Page 21
KMF PRECISION SHEET METAL 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 lower than (2025 - lower 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 | 638,601 | 333,801
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 159,650 | 83,450
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 10,540 | 2,496
| Adjustments to tax charge in respect of prior periods | (22,569) | (72,280)
| Deferred tax not recognised | 22,040 | 39,488
| Other differences leading to an increase (decrease) in the tax charge | (8,729) | -
| Group relief | (2,079) | -
| Total tax charge for the year | 158,853 | 53,154
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 22
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
12. | Tangible fixed assets
|  | Plant and machinery | Motor vehicles | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 April 2025 | 15,770,863 | 1,007,311 | 16,778,174
| Additions | 98,200 | 337,740 | 435,940
| Disposals | (63,304) | (413,638) | (476,942)
| At 31 March 2026 | 15,805,759 | 931,413 | 16,737,172
| Depreciation |  |  |
| At 1 April 2025 | 12,124,324 | 518,116 | 12,642,440
| Charge for the year on owned assets | 516,321 | 134,369 | 650,690
| Charge for the year on financed assets | 324,613 | 87,033 | 411,646
| Disposals | (63,304) | (342,166) | (405,470)
| At 31 March 2026 | 12,901,954 | 397,352 | 13,299,306
| Net book value |  |  |
| At 31 March 2026 | 2,903,805 | 534,061 | 3,437,866
| At 31 March 2025 | 3,646,539 | 489,195 | 4,135,734
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Plant and machinery | 1,621,338 | 2,435,704
| Motor vehicles | 380,808 | 273,054
|  | 2,002,146 | 2,708,758
13. | Stocks
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Raw materials and consumables | 1,559,364 | 1,555,980
| Work in progress | 253,724 | 250,368
|  | 1,813,088 | 1,806,348
Page 23
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
14. | Debtors
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade debtors | 5,836,812 | 5,386,826
| Amounts owed by group undertakings | 10,909,088 | 9,743,741
| Other debtors | 78,938 | 394,344
| Prepayments and accrued income | 472,997 | 450,864
|  | 17,297,835 | 15,975,775
| Amounts owed by group undertakings are repayable on demand with no interest incurred on amounts due.
15. | Cash and cash equivalents
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Cash at bank and in hand | 208,918 | 185,230
|  | 208,918 | 185,230
Page 24
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
16. | Creditors: Amounts falling due within one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade creditors | 3,711,703 | 3,712,508
| Other taxation and social security | 786,412 | 550,442
| Obligations under finance lease and hire purchase contracts | 619,734 | 695,512
| Invoice discounting | 1,503,638 | 847,510
| Other creditors | - | 12,546
| Accruals and deferred income | 865,008 | 1,007,669
|  | 7,486,495 | 6,826,187
| The following liabilities were secured:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Obligations under finance lease and hire purchase contracts | 619,734 | 695,512
| Invoice discounting | 1,503,638 | 847,510
|  | 2,123,372 | 1,543,022
| 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.
17. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Net obligations under finance leases and hire purchase contracts | 448,411 | 860,679
|  | 448,411 | 860,679
| The following liabilities were secured:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Obligations under finance leases and hire purchase contracts | 448,411 | 860,679
|  | 448,411 | 860,679
| Details of security provided:
The obligations under finance lease and hire purchase contracts are secured by charges over the assets acquired under relevant agreements. Page 25
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
18. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Within one year | 619,734 | 695,512
| Between 1-5 years | 448,411 | 860,679
|  | 1,068,145 | 1,556,191
19. | Deferred taxation
|  | 2026 | 2025
|  | £ | £
| At beginning of year | 649,766 | 594,085
| Charged to profit or loss | (73,168) | 55,681
| At end of year | 576,598 | 649,766
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Accelerated capital allowances | 662,324 | 736,655
| Losses and other deductions | (74,476) | (74,973)
| Short term timing differences | (11,250) | (11,916)
|  | 576,598 | 649,766
20. | Share capital
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1,000 (2025 - 1,000) Ordinary voting shares of £1.00 each | 1,000 | 1,000
| The Ordinary shares carry rights of one vote per share and have no restrictions on the distribution of dividends and the repayment of capital.
Page 26
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
21. | Reserves
Other reserves Other reserves relates to a capital redemption reserve, which is a statutory, non-distributable reserve into which amounts were transferred following the purchase of the company's own shares.
22. | Contingent liabilities
The company has a multilateral guarantee with fellow group companies, KMF Group Limited and KMF Precision Engineering Limited to secure any borrowings. At the year end the net outstanding borrowings with HSBC Bank PLC were £519,268 (2025 - £812,946).
23. | Pension commitments
The company operates three defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £447,533 (2025 -£455,282). Included in accruals and deferred income is an amount due to the schemes of £90,150 (2025 -£48,030).
24. | Commitments under operating leases
| At 31 March 2026 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 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
25. | 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. T Stanway is a director of Douglas Macmillan Hospice which the company trades with. The company purchased goods/services in the year from Douglas Macmillan Hospice amounting to £9,530 (2025- £11,780) and included within trade creditors at the year end is a debit balance amounting to £Nil (2025- Debit balance - £725).
Page 27
KMF PRECISION SHEET METAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
26. | Controlling party
The company is a wholly owned subsidiary undertaking of KMF Group Limited, a company registered in England and Wales. KMF Group Limited is a wholly owned subsidiary undertaking of KMF Group Holdings Limited, a company registered in England and Wales. 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. The consolidated financial statements of KMF Group Holdings Limited are available to the public and may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.
Page 28