REGISTERED NUMBER: SC042982 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Dustacco Engineering Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

DIRECTORS:

M P Clark

H H Liddle

Miss L H Somerville

Miss A M Somerville

REGISTERED OFFICE:

Tower Works

4-8 Stoneygate Road

Newmilns

Ayrshire

KA16 9AJ

REGISTERED NUMBER:

SC042982 (Scotland)

AUDITORS:

McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

The directors present their strategic report for the year ended 31 December 2025.

BUSINESS REVIEW AND PERFORMANCE

The results for the year are set out in the Statement of Comprehensive Income. Turnover for the year amounted to £10,597,096 (2024: £8,757,095) and the Company reported a profit before tax of £90,559 (2024: £459,192).

The Directors are pleased with the 21% increase in turnover and whilst the profit before tax has not shown the same level of growth, the Directors are confident that the additional costs incurred in the year, particularly around staffing, will stand the Company in good stead for the coming years. The business continues to maintain a strong focus on delivering high-quality products and services to its clients while managing costs and resources effectively whilst at the same time maintaining a high degree of agility to optimise resource utilisation. This safeguards our ability to achieve our purpose - to provide secure, sustainable and fulfilling employment - now and in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have considered the principal risks and uncertainties facing the Company. These include general economic conditions, market competition, fluctuations in client spend profile, and the recruitment and retention of a skilled workforce. Risks are monitored and control measures in place to mitigate their potential impact on the business.

COMPETITION

The Company operates within a fragmented sector and continues to face competition from many areas, both from within Scotland and beyond.

FUTURE DEVELOPMENTS

The Company will continue its current activities and remain focused on sustainable, profitable growth. Investment will continue to be made in our people, buildings, plant and equipment to support operational demands and to achieve our long-term goal.

MONITORING FINANCIAL PERFORMANCE

The financial performance of the Company is closely monitored and reviewed. Indicators include turnover (actual to budget) and profitability on a company-wide and project level, overhead actual to budget, cash flow and working capital.

WORKFORCE

The Company recognises that our workforce is key to its success. The Directors strive to maintain and further develop the people-centred culture which is fundamental to the business identity.

SECTION 172(1) STATEMENT

The Directors consider that they have acted in good faith to promote the success of the Company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in Section 172(1)(a-f) of the Companies Act 2006. In doing so, the Board has placed a particular focus on the needs of our workforce, ensuring their health, safety, and development are central to our long-term goals. We remain committed to fostering an inclusive, supportive environment through regular employee engagement, fair reward and open channels for workforce feedback.

ON BEHALF OF THE BOARD:

Miss A M Somerville - Director

18 August 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

There were no significant changes in the nature of the Company's business during the year.

PRINCIPAL ACTIVITY

The principal activities of the Company during the year continued to be design, manufacture and installation of piping and mechanical fabrications, cooling towers and associated support steelwork, metalwork and ancillaries.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

M P Clark

H H Liddle

Miss L H Somerville

Miss A M Somerville

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Miss A M Somerville - Director

18 August 2026

Opinion

We have audited the financial statements of Dustacco Engineering Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and

non-compliance with laws and regulations, we considered the following:

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

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

- any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or

noncompliance with laws and regulations;

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

We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings. These limited procedures did not identify actual or suspected non-compliance.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Paul Martin (Senior Statutory Auditor)

for and on behalf of McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

18 August 2026

TURNOVER

10,597,096

8,757,095

Cost of sales

(7,073,555

)

(5,778,967

)

GROSS PROFIT

3,523,541

2,978,128

Administrative expenses

(3,501,076

)

(2,661,627

)

22,465

316,501

Other operating income

64,482

138,777

OPERATING PROFIT

4

86,947

455,278

Interest receivable and similar income

25,874

10,554

112,821

465,832

Interest payable and similar expenses

5

(22,262

)

(6,640

)

PROFIT BEFORE TAXATION

90,559

459,192

Tax on profit

6

52,319

(132,484

)

PROFIT FOR THE FINANCIAL YEAR

142,878

326,708

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

142,878

326,708

FIXED ASSETS

Tangible assets

7

883,848

704,430

Investments

8

-

1

883,848

704,431

CURRENT ASSETS

Stocks

9

335,602

465,390

Debtors

10

1,947,957

3,212,890

Cash at bank and in hand

2,204,019

1,494,025

4,487,578

5,172,305

CREDITORS

Amounts falling due within one year

11

(1,546,042

)

(3,170,197

)

NET CURRENT ASSETS

2,941,536

2,002,108

TOTAL ASSETS LESS CURRENT LIABILITIES

3,825,384

2,706,539

CREDITORS

Amounts falling due after more than one year

12

(1,066,379

)

(69,204

)

PROVISIONS FOR LIABILITIES

16

(111,397

)

(132,605

)

NET ASSETS

2,647,608

2,504,730

CAPITAL AND RESERVES

Called up share capital

17

30,000

30,000

Fair value reserve

18

40,094

40,094

Retained earnings

18

2,577,514

2,434,636

SHAREHOLDERS' FUNDS

2,647,608

2,504,730

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2026 and were signed on its behalf by:

Miss A M Somerville - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

30,000

2,107,928

40,094

2,178,022

Changes in equity

Total comprehensive income

-

326,708

-

326,708

Balance at 31 December 2024

30,000

2,434,636

40,094

2,504,730

Changes in equity

Total comprehensive income

-

142,878

-

142,878

Balance at 31 December 2025

30,000

2,577,514

40,094

2,647,608

Cash flows from operating activities

Cash generated from operations

1

944,997

1,041,889

Interest paid

(11,427

)

-

Interest element of hire purchase payments paid

(10,835

)

(6,640

)

Tax paid

(121,516

)

(6,129

)

Net cash from operating activities

801,219

1,029,120

Cash flows from investing activities

Purchase of tangible fixed assets

(158,831

)

(129,486

)

Sale of tangible fixed assets

110,515

12,250

Sale of fixed asset investments

1

-

Interest received

25,874

10,554

Net cash from investing activities

(22,441

)

(106,682

)

Cash flows from financing activities

New loans in year

-

45,392

Loan repayments in year

(6,730

)

(3,145

)

Capital repayments in year

(62,054

)

(40,073

)

Net cash from financing activities

(68,784

)

2,174

Increase in cash and cash equivalents

709,994

924,612

Cash and cash equivalents at beginning of year

2

1,494,025

569,413

Cash and cash equivalents at end of year

2

2,204,019

1,494,025

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit before taxation

90,559

459,192

Depreciation charges

189,379

150,961

Profit on disposal of fixed assets

(69,361

)

(9,007

)

Finance costs

22,262

6,640

Finance income

(25,874

)

(10,554

)

206,965

597,232

Decrease in stocks

129,788

343,028

Decrease/(increase) in trade and other debtors

1,296,046

(2,337,600

)

(Decrease)/increase in trade and other creditors

(687,802

)

2,439,229

Cash generated from operations

944,997

1,041,889

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,204,019

1,494,025

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,494,025

569,413

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

1,494,025

709,994

2,204,019

1,494,025

709,994

2,204,019

Debt

Finance leases

(56,933

)

62,054

-

(246,001

)

Debts falling due

within 1 year

(6,730

)

-

-

(6,730

)

Debts falling due

after 1 year

(38,696

)

6,730

-

(31,966

)

(102,359

)

68,784

-

(284,697

)

Total

1,391,666

778,778

-

1,919,322

1.	STATUTORY INFORMATION

Dustacco Engineering Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

15% on reducing balance and 5% on cost

Long leasehold

-

15% on reducing balance

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on cost and 20% on cost

The company's policy is to review the remaining useful lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks and work in progress

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete

and slow moving items. Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

In respect of work in progress, profit is recognised in relation to work carried out.

Debtors

Trade and other debtors are recognised at the settlement amount due with appropriate allowances for irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash in hand and held at bank.

Creditors

Trade and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

3,860,982

3,240,854

Social security costs

458,471

334,218

Other pension costs

152,574

127,444

4,472,027

3,702,516

The average number of employees during the year was as follows:

31.12.25

31.12.24

Operations

46

31

Management & Administration

37

39

83

70

31.12.25

31.12.24

£

£

Directors' remuneration

410,239

231,534

Directors' pension contributions to money purchase schemes

37,323

27,283

Information regarding the highest paid director is as follows:

31.12.25

31.12.24

£

£

Emoluments etc

158,201

85,452

Pension contributions to money purchase schemes

6,806

6,371

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.25

31.12.24

£

£

Depreciation - owned assets

166,171

121,953

Depreciation - assets under hire purchase contracts

23,210

29,008

Profit on disposal of fixed assets

(69,361)

(9,007)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Other interest

6,204

-

Other loan interest

5,223

-

Hire purchase

10,835

6,640

22,262

6,640

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

(31,111

)

121,516

Deferred tax

(21,208

)

10,968

Tax on profit

(52,319

)

132,484

UK corporation tax has been charged at 25% (2024 - 25%).

7.	TANGIBLE FIXED ASSETS

Improvements

Freehold

Long

to

property

leasehold

property

£

£

£

COST

At 1 January 2025

440,445

38,746

1,657

Additions

-

3,110

-

Disposals

(29,949

)

-

-

At 31 December 2025

410,496

41,856

1,657

DEPRECIATION

At 1 January 2025

240,704

4,303

-

Charge for year

21,774

5,633

248

Eliminated on disposal

(13,831

)

-

-

At 31 December 2025

248,647

9,936

248

NET BOOK VALUE

At 31 December 2025

161,849

31,920

1,409

At 31 December 2024

199,741

34,443

1,657

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2025

698,639

412,122

203,239

1,794,848

Additions

43,449

321,398

41,996

409,953

Disposals

(34,819

)

(218,221

)

(40,727

)

(323,716

)

At 31 December 2025

707,269

515,299

204,508

1,881,085

DEPRECIATION

At 1 January 2025

411,807

305,540

128,064

1,090,418

Charge for year

46,443

78,999

36,284

189,381

Eliminated on disposal

(28,241

)

(200,414

)

(40,076

)

(282,562

)

At 31 December 2025

430,009

184,125

124,272

997,237

NET BOOK VALUE

At 31 December 2025

277,260

331,174

80,236

883,848

At 31 December 2024

286,832

106,582

75,175

704,430

Included within the net book value above are assets held under hire purchase agreements of £25,081 (2024: £48,291).