Company registration number 16340408 (England and Wales)
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2026
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
A C G Eddy
(Appointed 25 March 2025)
S C Eddy
(Appointed 1 April 2026)
Company number
16340408
Registered office
4 Merse Road
Moons Moat North Industrial Estate
Redditch
B98 9HL
Auditor
bk plus Audit Limited
Azzurri House Walsall Business Park,
Walsall Road, Aldridge
Walsall
West Midlands
WS9 0RB
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 35
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2026
- 1 -

The directors present the strategic report for the period ended 31 March 2026.

Review of the business

During the year, the company continued its principal activities of designing, manufacturing, and supplying windscreen wiper systems and associated components for commercial vehicles, marine vessels, and rail industries worldwide.
The company has continued to strengthen its position as a specialist manufacturer, focusing on delivering high-quality, technically advanced products supported by strong customer relationships and responsive service.
During the year, the company achieved a significant improvement in profitability and operational performance, supported by improved gross margins, effective cost management, operational efficiencies, and continued demand across its key market sectors.
Hepworth continues to invest in Research and Development activities to support innovation, product improvements, and the development of new solutions aligned with evolving customer requirements.
The company continued to manage inflationary pressures, material cost fluctuations, labour cost increases, and supply chain uncertainty through strategic procurement and operational planning.

Principal risks and uncertainties

The market for windscreen wiper systems remains highly competitive. The company mitigates this risk through strong customer relationships, technical support, responsive service, and product innovation.
The company remains exposed to foreign currency fluctuations due to sales in US dollars and Euros. Exchange rates are monitored regularly.
Credit risk is managed through established credit control procedures, customer credit assessments, monitoring of payment performance, and credit insurance where appropriate.
The company utilises invoice finance and overdraft facilities to support working capital requirements.

Key performance indicators

Turnover increased to £18,112,193 (2025: £17,722,820).
Gross profit increased to £6,062,540 (2025: 5,440,874), with gross margin being 3 3.5%.
Operating profit increased to £1,605,353 (2025: £92,617).
Profit before tax increased to £1,511,113 (2025: £16,610).
Profit after tax was £1,357,758 (2025: £22,584).
Net assets at year end were £3,513,707 (2025: £4,245,439).
In addition to financial KPIs, the company monitors product quality, customer satisfaction, delivery performance, manufacturing efficiency, and employee development.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 2 -
Other information and explanations

The company remains well positioned to pursue further growth opportunities in domestic and international markets. The improved financial performance achieved during the year, together with continued investment in research and development, manufacturing capability, and operational improvements, provides a strong platform for future expansion.
The directors are confident that the company’s established market position, experienced workforce, strong customer relationships, and continued focus on innovation provide a solid foundation for future profitability and value creation.

During the financial year ended 31 March 2026, the Group underwent a restructuring which resulted in the introduction of a new group entity. This entity was newly incorporated during the year and has been included within the consolidation from the date of its incorporation.

Accordingly, the consolidated financial statements for the year reflect the revised Group structure. Comparative amounts presented for the year ended 31 March 2025 relate to the Group structure as it existed in that prior period and therefore are not directly comparable in all respects.

Key performance indicators disclosed within this Strategic Report have been prepared on a consistent basis; however, users of the financial statements should note that the current year figures reflect the expanded Group, whereas the prior year comparatives relate to the pre-restructuring Group.

On behalf of the board

A C G Eddy
Director
18 August 2026
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2026
- 3 -

The directors present their annual report and financial statements for the period ended 31 March 2026.

Principal activities

The principal activity of the company and group continued to be that of designing, manufacturing and marketing windscreen wiper systems for commercial vehicles, marine vessels and rail industries worldwide.

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

A C G Eddy
(Appointed 25 March 2025)
S C Eddy
(Appointed 1 April 2026)
Research and development

The Group continues to invest in research and development activities to main its competitive advantage and respond to evolving customer needs.

Future developments

Details of the future development can be found in the strategic report of this annual report.

Auditor

In accordance with the company's articles, a resolution proposing that bk plus Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
A C G Eddy
Director
18 August 2026
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2026
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B. HEPWORTH AND COMPANY HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of B. Hepworth and Company Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2026 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 March 2026 and of the group's profit for the period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 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 auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport for the financial period 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.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. HEPWORTH AND COMPANY HOLDINGS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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 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' r esponsibilities s tatement, 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 group's and 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance, if available;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. HEPWORTH AND COMPANY HOLDINGS LIMITED
- 7 -

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Keval Dattani ACA (Senior Statutory Auditor)
For and on behalf of bk plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House Walsall Business Park,
Walsall Road, Aldridge
Walsall
West Midlands
WS9 0RB
18 August 2026
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2026
- 8 -
Period ended
31 March
2026
Notes
£
Turnover
3
18,112,193
Cost of sales
(12,049,653)
Gross profit
6,062,540
Distribution costs
(1,659,598)
Administrative expenses
(2,957,576)
Other operating income
159,987
Operating profit
4
1,605,353
Interest receivable and similar income
8
1,218
Interest payable and similar expenses
9
(94,458)
Amounts written off investments
10
(1,000)
Profit before taxation
1,511,113
Tax on profit
11
(153,355)
Profit for the financial period
1,357,758
Profit for the financial period is all attributable to the owners of the parent company.
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2026
- 9 -
Period ended
31 March
2026
£
Profit for the period
1,357,758
Other comprehensive income
Currency translation loss taken to retained earnings
(9,282)
Cash flow hedges gain arising in the period
-
0
Total comprehensive income for the period
1,348,476
Total comprehensive income for the period is all attributable to the owners of the parent company.
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2026
31 March 2026
- 10 -
2026
Notes
£
£
Fixed assets
Goodwill
12
2,097,230
Total intangible assets
2,097,230
Tangible assets
13
1,428,229
3,525,459
Current assets
Stocks
16
3,818,011
Debtors
17
4,181,121
Cash at bank and in hand
58,852
8,057,984
Creditors: amounts falling due within one year
18
(7,193,093)
Net current assets
864,891
Total assets less current liabilities
4,390,350
Creditors: amounts falling due after more than one year
19
(657,317)
Provisions for liabilities
Deferred tax liability
22
219,326
(219,326)
Net assets
3,513,707
Capital and reserves
Called up share capital
24
42,510
Profit and loss reserves
1,348,477
Equity attributable to owners of the parent company
1,390,987
Non-controlling interests
2,122,720
Total equity
3,513,707

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 18 August 2026 and are signed on its behalf by:
18 August 2026
A C G Eddy
Director
Company registration number 16340408 (England and Wales)
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2026
31 March 2026
- 11 -
2026
Notes
£
£
Fixed assets
Investments
14
4,409,720
Current assets
-
Creditors: amounts falling due within one year
18
(2,825,000)
Net current liabilities
(2,825,000)
Net assets
1,584,720
Capital and reserves
Called up share capital
24
42,510
Profit and loss reserves
1,542,210
Total equity
1,584,720

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £1,542,210.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 18 August 2026 and are signed on its behalf by:
18 August 2026
A C G Eddy
Director
Company registration number 16340408 (England and Wales)
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2026
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 25 March 2025
-
-
-
-
-
Period ended 31 March 2026:
Profit for the period
-
1,357,758
1,357,758
-
1,357,758
Other comprehensive income:
Currency translation differences
-
(9,282)
(9,282)
-
(9,282)
Total comprehensive income
-
1,348,476
1,348,476
-
1,348,476
Issue of share capital
24
42,510
-
42,510
-
42,510
Purchase of shares in subsidiary from non-controlling interest
-
-
-
2,122,720
2,122,720
Balance at 31 March 2026
42,510
1,348,477
1,390,987
2,122,720
3,513,707
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2026
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 25 March 2025
-
-
-
Period ended 31 March 2026:
Profit and total comprehensive income
-
1,542,210
1,542,210
Issue of share capital
24
42,510
-
42,510
Balance at 31 March 2026
42,510
1,542,210
1,584,720
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2026
- 14 -
Period ended
31 March 2026
Notes
£
£
Cash flows from operating activities
Cash generated from operations
30
616,042
Interest paid
(94,458)
Net cash inflow from operating activities
521,584
Investing activities
Purchase of subsidiary
(262,353)
Proceeds from disposal of tangible fixed assets
21,170
Interest received
1,218
Net cash used in investing activities
(239,965)
Financing activities
Repayment of borrowings
(811,381)
Payment of finance leases obligations
358,350
Net cash used in financing activities
(453,031)
Net decrease in cash and cash equivalents
(171,412)
Cash and cash equivalents at beginning of period
-
Effect of foreign exchange rates
(9,282)
Cash and cash equivalents at end of period
(180,694)
Relating to:
Cash at bank and in hand
58,852
Bank overdrafts included in creditors payable within one year
(239,546)
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2026
- 15 -
Period ended
31 March 2026
Notes
£
£
Cash flows from operating activities
Cash generated from operations
31
2,825,000
Investing activities
Purchase of subsidiaries
(4,409,720)
Dividends received
1,542,210
Net cash used in investing activities
(2,867,510)
Financing activities
Proceeds from issue of shares
42,510
Net cash generated from financing activities
42,510
Net increase in cash and cash equivalents
-
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
-
0
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2026
- 16 -
1
Accounting policies
Company information

B. Hepworth and Company Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4 Merse Road, Moons Moat North Industrial Estate, Redditch, B98 9HL.

The group consists of B. Hepworth and Company Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The accounting reference date was extended to align the reporting period of the Group with that of the wider group to which it belongs. This ensures consistency in financial reporting and facilitates the preparation of consolidated financial information.

As a result of the extended reporting period, the amounts presented in these financial statements are not directly comparable with the comparative period, which covered a standard 12-month period.

1.2
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 17 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company B. Hepworth and Company Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 March 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

A t the time of approving the financial statements, t he directors have a reasonable expectation that the group and parent company ha ve adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 18 -
1.7
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is are 10 and 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
in accordance with property lease
Plant and equipment
15% - 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 20 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 21 -
Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock

The valuation of stock involves a degree of estimation and judgement by management. This includes assessing the net realisable value of stock and determining appropriate provision for obsolete or slow-moving stock or which may not be used going forward and which may therefore realise less than their full cost.

It is the company's policy to recognises stock obsolescence provision of 5% of total stock value. This is based on historical trends, stock turnover rates, and management's expectation of future sales. The provision included in these financial statements for slow moving and obsolete stock is £184,433 (2025: £148,594).

Useful economic life of non current assets

Management estimates the useful economic life of non-current assets based on the period over which the asset is expected to be used and provided for depreciation accordingly. Where an indication of impairment is identified the estimation of recoverable value requires estimation. No factors have arisen that give indication of an impairment, as at the year ended 31 March 2026.

3
Turnover and other revenue
2026
£
Turnover analysed by class of business
Design and manufactrue of windscreen wipers systems
18,112,193
2026
£
Turnover analysed by geographical market
United Kingdom
5,209,839
Europe
5,409,518
Rest of the World
7,492,836
18,112,193
2026
£
Other revenue
Interest income
1,218
Management recharges
159,987
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 24 -
4
Operating profit
2026
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(130,236)
Research and development costs
234,258
Depreciation of tangible fixed assets
295,262
Profit on disposal of tangible fixed assets
(21,170)
Amortisation of intangible assets
250,420
Operating lease charges
509,387
5
Auditor's remuneration
2026
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
15,425
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2026
2026
Number
Number
Production
90
-
Administration
38
-
Management
7
-
Total
135
0

Their aggregate remuneration comprised:

Group
Company
2026
2026
£
£
Wages and salaries
4,723,028
-
0
Social security costs
590,894
-
Pension costs
245,199
-
0
5,559,121
-
0
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 25 -
7
Directors' remuneration
2026
£
Remuneration for qualifying services
342,307
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2026
£
Remuneration for qualifying services
150,000
Company pension contributions to defined contribution schemes
36,000
8
Interest receivable and similar income
2026
£
Interest income
Interest on bank deposits
1,218
2026
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
1,218
9
Interest payable and similar expenses
2026
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
74,572
Other finance costs:
Interest on finance leases and hire purchase contracts
19,886
Total finance costs
94,458
10
Amounts written off investments
2026
£
Other gains and losses
(1,000)
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 26 -
11
Taxation
2026
£
Current tax
UK corporation tax on profits for the current period
(66,252)
Foreign current tax on profits for the current period
281
Total current tax
(65,971)
Deferred tax
Origination and reversal of timing differences
219,326
Total tax charge
153,355

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2026
£
Profit before taxation
1,511,113
Expected tax charge based on the standard rate of corporation tax in the UK of 25%
377,778
Effects of:
Expenses that are not deductible in determining taxable profit
(120,602)
Unutilised tax losses carried forward
(337,794)
Amortisation on assets not qualifying for tax allowances
62,605
Research and development tax credit
(44,408)
Overseas tax rates
(3,550)
Losses tax relief
219,326
Taxation charge in the financial statements
153,355
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 27 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 25 March 2025
-
0
Additions
2,347,650
Disposals
(240,623)
At 31 March 2026
2,107,027
Amortisation and impairment
At 25 March 2025
-
0
Amortisation charged for the period
250,420
Disposals
(240,623)
At 31 March 2026
9,797
Carrying amount
At 31 March 2026
2,097,230
The company had no intangible fixed assets at 31 March 2026.
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 25 March 2025
-
0
-
0
-
0
Additions
88,276
1,635,215
1,723,491
Disposals
(7,915)
(219,959)
(227,874)
At 31 March 2026
80,361
1,415,256
1,495,617
Depreciation and impairment
At 25 March 2025
-
0
-
0
-
0
Depreciation charged in the period
15,185
280,077
295,262
Eliminated in respect of disposals
(7,915)
(219,959)
(227,874)
At 31 March 2026
7,270
60,118
67,388
Carrying amount
At 31 March 2026
73,091
1,355,138
1,428,229
The company had no tangible fixed assets at 31 March 2026.
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
13
Tangible fixed assets
(Continued)
- 28 -

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Group
Company
2026
2026
£
£
Plant and equipment
1,070,000
-
0

Freehold land and buildings with a carrying amount of £73,091 (2025 - £18,276) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

14
Fixed asset investments
Group
Company
2026
2026
Notes
£
£
Investments in subsidiaries
15
-
0
4,409,720
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 25 March 2025
-
Additions
4,409,720
At 31 March 2026
4,409,720
Carrying amount
At 31 March 2026
4,409,720

During the year, the Group underwent a restructuring of its ownership structure.

As part of this process, the existing shareholders of B. Hepworth and C ompany Limited entered into a share‑for‑share exchange, whereby their shareholdings were exchanged for an aggregate of 42,510 ordinary shares in the newly established B. Hepworth and Company H olding s company. This transaction resulted in the creation of a new parent entity and the trading company becoming a wholly owned subsidiary of that company.

In addition, one shareholder disposed of their entire shareholding during the year. The consideration comprised a combination of an amount settled upfront and a deferred consideration payable over an agreed period. The deferred element has been recognised within creditors in accordance with the terms of the agreement.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2026 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
B. Hepworth and Company Limited
England
Ordinary
100.00
Window Wipers Tecnology Inc
United States of America
Ordinary
100.00
Monitor Marine Limited
England
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
4 Merse Road, Moons Moat North Industrial Estate, Redditch, B98 9HL
2
800 Flanders Road, Unit 1-1, Mystic, CT 0635, USA
3
2-4 Merse Road, North Moons Moat, Redditch, Worcestershire, B98 9HL

Monitor Marine Limited was a dormant company incorporated in England which was dissolved on 11 November 2025.

16
Stocks
Group
Company
2026
2026
£
£
Raw materials and consumables
3,183,062
-
Work in progress
519,823
-
Finished goods and goods for resale
115,126
-
0
3,818,011
-

Stock includes an impairment provision of £184,433 (2025: £148,494) in respect of slow moving and obsolete stocks.

17
Debtors
Group
Company
2026
2026
Amounts falling due within one year:
£
£
Trade debtors
3,376,101
-
0
Corporation tax recoverable
66,252
-
0
Other debtors
221,315
-
0
Prepayments and accrued income
517,453
-
0
4,181,121
-
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2026
2026
Notes
£
£
Bank loans and overdrafts
20
239,546
-
0
Obligations under finance leases
21
192,700
-
0
Trade creditors
2,301,934
-
0
Other taxation and social security
129,071
-
0
Other creditors
4,194,485
2,825,000
Accruals and deferred income
135,357
-
0
7,193,093
2,825,000

Included within other creditors is a balance of £1,346,809 relating to an invoice discounting facility secured by a charge with Barclays Bank plc, dated 05/11/2025. This is secured on a fixed and floating charge over the company's property and assets.

Finance leases are secured on the assets which they relate to.

19
Creditors: amounts falling due after more than one year
Group
Company
2026
2026
Notes
£
£
Obligations under finance leases
21
657,317
-
0
20
Loans and overdrafts
Group
Company
2026
2026
£
£
Bank overdrafts
239,546
-
0
Payable within one year
239,546
-
0

The Company’s bank borrowings are secured by a legal charge granted in favor of Barclays Bank plc over the Company’s freehold and leasehold properties.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 31 -
21
Finance lease obligations
Group
Company
2026
2026
Amounts due:
£
£
Current liabilities
192,700
-
0
Non-current liabilities
657,317
-
0
850,017
-
Group
Company
2026
2026
Future minimum lease payments due:
£
£
Within one year
135,414
-
0
In two to five years
856,500
-
0
991,914
-
Less: future finance charges
(141,897)
-
0
850,017
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company:

Liabilities
2026
Group
£
Accelerated capital allowances
126,708
Statutory database figures differ from the trial balance:
Deferred tax balances
219,326
Difference
(92,618)
The company has no deferred tax assets or liabilities.
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
22
Deferred taxation
(Continued)
- 32 -
Group
Company
2026
2026
Movements in the period:
£
£
Asset at 25 March 2025
-
-
Charge to profit or loss
219,326
-
Liability at 31 March 2026
219,326
-
23
Retirement benefit schemes
2026
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
245,199

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2026
2026
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
42,510
42,510
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 33 -
25
Acquisition of a business

On 31 March 2025 the group acquired 50 percent of the issued capital of B. Hepworth and Company Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
2,492
-
2,492
Property, plant and equipment
982,925
-
982,925
Inventories
3,114,423
-
3,114,423
Trade and other receivables
2,561,426
-
2,561,426
Cash and cash equivalents
348,647
-
348,647
Borrowings
(811,381)
-
(811,381)
Obligations under finance leases
(491,667)
-
(491,667)
Trade and other payables
(1,757,639)
-
(1,757,639)
Tax liabilities
234,341
-
234,341
Deferred tax
61,872
-
61,872
Total identifiable net assets
4,245,439
-
4,245,439
Non-controlling interests
(2,122,720)
Goodwill
2,239,791
Total consideration
4,362,510
The consideration was satisfied by:
£
Cash
60,000
Issue of shares
42,510
Deferred consideration
4,260,000
4,362,510
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
17,722,820
Profit after tax
22,584
B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 34 -
26
Operating lease commitments
As lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2026
2026
£
£
Within 1 year
592,494
-
Years 2-5
597,486
-
After 5 years
8,165
-
1,198,145
-
27
Related party transactions
Transactions with related parties

During the period the group entered into the following transactions with related parties:

Northwest Marine Distributors Limited of which J P Eddy is a shareholder. All transactions were conducted on an arms length basis on normal trading terms.

Sales
2026
£
Group
Northwest Marine Distributors Limited
287,786

The following amounts were outstanding at the reporting end date:

As as the year end, £74,988 (2025: £81,775) was due to the company from North West Marine Distributors Limited.

28
Directors' transactions

J Eddy, who was a shareholder and remains a director of the Group, disposed of his entire shareholding. The consideration for the disposal comprised an amount payable upfront, with the remaining balance deferred.

In respect of the deferred consideration, a debenture was granted by the Group by providing security over the Group's property.

29
Controlling party

The ultimate controlling party of the group is Andrew Eddy by virtue of his shareholding.

B. HEPWORTH AND COMPANY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2026
- 35 -
30
Cash generated from group operations
2026
£
Profit after taxation
1,357,758
Adjustments for:
Taxation charged
153,355
Finance costs
94,458
Investment income
(1,218)
Gain on disposal of tangible fixed assets
(21,170)
Amortisation and impairment of intangible assets
250,420
Depreciation and impairment of tangible fixed assets
295,262
Other gains and losses
1,000
Decrease in provisions
(4,260,000)
Movements in working capital:
Increase in stocks
(703,588)
Increase in debtors
(1,553,443)
Increase in creditors
5,003,208
Cash generated from operations
616,042
31
Cash generated from operations - company
2026
£
Profit after taxation
1,542,210
Adjustments for:
Investment income
(1,542,210)
Movements in working capital:
Increase in creditors
2,825,000
Cash generated from operations
2,825,000
32
Analysis of changes in net debt - group
25 March 2025
Cash flows
Exchange rate movements
31 March 2026
£
£
£
£
Cash at bank and in hand
-
68,134
(9,282)
58,852
Bank overdrafts
-
(239,546)
-
(239,546)
-
(171,412)
(9,282)
(180,694)
Payment of finance leases obligations
-
(850,017)
-
(850,017)
-
(1,021,429)
(9,282)
(1,030,711)
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