Company registration number 08688920 (England and Wales)
EARTHMET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
EARTHMET LIMITED
COMPANY INFORMATION
DIRECTOR
Mr M D Brown
COMPANY NUMBER
08688920
REGISTERED OFFICE
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
AUDITOR
JW Hinks LLP
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
ACCOUNTANTS
Jo Russell
EARTHMET LIMITED
CONTENTS
PAGE
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 32
EARTHMET LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The director presents the strategic report for the year ended 31 December 2025.

REVIEW OF THE BUSINESS

The directors present a balanced and comprehensive review of the development and performance of the business during the financial year and its position at the year end. This review is consistent with the size and non-complex nature of the company and is provided in the context of the principal risks and uncertainties facing the business.

The directors consider that the key financial performance indicators for the company are turnover and gross profit, as these best reflect the overall financial performance and strength of the business.

Turnover and gross margin of the company were as follows:

2025 2024

£ £

Turnover 8,324,638 7,435,250

Gross profit 758,725 890,939

(9.1%) (12.0%)

Trading Performance – 2025

The company’s financial performance during the year was impacted by a number of ongoing external challenges, including high inflation, elevated interest rates, volatility in Copper LME pricing (fluctuations of up to 25%), increased competitive pressures, and UK government budget initiatives. In addition, the continued war in Ukraine disrupted global shipping channels, with logistics and freight costs remaining elevated throughout the year.

Employee retention remained strong during the year; however, the competitive employment market continued to present challenges in attracting new talent. Although overall financial targets were not fully achieved, the company delivered ‘orders received’ and ‘revenue’ growth of 15.6% and 12% respectively, supporting the benefits of the restructuring undertaken in the prior year.

Gross profit was adversely affected by deliberate initiatives to enhance stockholding efficiency, including the clearance of aged and slow-moving inventory, which had an estimated impact of approximately 12% on gross profit for the year. These actions were taken to strengthen the balance sheet and improve long-term operational efficiency.

Business Environment – 2025

Further progress has been made in strengthening the company’s organisational structure, internal processes, and operating procedures, providing a robust platform to support future growth strategies.

Significant improvements have been achieved in procurement, particularly through closer collaboration with Earthmet’s supply partners. These initiatives have reduced the overall stock profile and improved cash flow management, while continuing to meet customer demand and service levels.

The company continues to pursue opportunities for organic growth across both existing and new market sectors, particularly those benefiting from ongoing investment in electrical infrastructure and upgrade programmes. As part of this strategy, Earthmet plans to exhibit again at the Solar & Storage Live and Data Centre World trade shows in 202 6.

Notwithstanding these opportunities, the directors recognise that uncertainty is expected to continue into Q1 2026 within the wider construction market, driven by sustained high interest rates and ongoing financial market volatility. The anticipated improvement in housebuilder activity did not materialise during the year; however, the directors remain cautiously optimistic that conditions will improve in the coming year as government policies and targets begin to take effect.

EARTHMET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

Future Outlook

Despite the challenges faced, Earthmet enters 2026 from a position of stability, supported by a clear and well-structured operational framework. Continued investment in employee development and enhanced business systems is planned, with the aim of further improving efficiency and scalability.

The company has a clearly defined growth strategy, with identified target markets and product ranges, which is expected to support the achievement of its objectives for 2026 and beyond.

EARTHMET LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
OTHER INFORMATION AND EXPLANATIONS

Community

The company actively supports a range of charitable and community initiatives. During the year, Earthmet participated in fundraising activities for Breast Cancer Awareness and Macmillan Cancer Support and made charitable donations to The Trussell Trust. The company also provided sponsorship for a local grassroots youth football team.

In addition, Earthmet donated vouchers and raffle prizes to customers to support their own employee, corporate, and community fundraising activities. These actions reflect the company’s ongoing commitment to making a positive contribution at both local and national levels.

Environment

Earthmet is committed to operating in an environmentally responsible manner and continually seeks to minimise its environmental impact. The company is progressing towards Carbon Neutrality and is actively working towards compliance with the PAS 2060 standard, with the long-term objective of achieving Carbon Net Zero status.

As part of its sustainability initiatives, Earthmet continues to increase the proportion of electric vehicles within its fleet, supporting lower emissions and reinforcing its commitment to sustainable business practices.

Employees

Employees are central to the continued success of the business. Earthmet is committed to providing fair employment terms, including reasonable working hours and equitable pay. The company places strong emphasis on employee engagement, development, and well-being and continues to explore additional initiatives to enhance the overall employee offering.

The directors’ objective is to maintain a strong and positive employee social contract, supporting the retention of existing talent while attracting skilled individuals to contribute to the future growth and success of the company.

On behalf of the board

Mr M D Brown
DIRECTOR
16 April 2026
EARTHMET LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2025.

RESULTS AND DIVIDENDS

The results for the year are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

DIRECTOR

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr P Michel
(Resigned 31 March 2026)
Mr M D Brown
SUPPLIER PAYMENT POLICY

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

- settle the terms of payment with suppliers when agreeing the terms of each transaction;

- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

- pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to 39 day's purchases, based on the average daily amount invoiced by suppliers during the year.

AUDITOR

The auditors, J W Hinks LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

STATEMENT OF DISCLOSURE TO AUDITOR

Each director in office at the date of approval of this annual report confirms that:

- so far as the director is aware, there is no relevant audit information of which the company's auditor are unaware, and

- the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Mr M D Brown
DIRECTOR
16 April 2026
EARTHMET LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

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

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, International Accounting Standard 1 requires that directors:

- properly select and apply accounting policies;

- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

- provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

- make an assessment of the company's ability to continue as a going concern.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

EARTHMET LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EARTHMET LIMITED
- 6 -
OPINION

We have audited the financial statements of Earthmet Limited (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 UK adopted international accounting standards.

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 loss for the year then ended;

- have been properly prepared in accordance with UK adopted international accounting standards; 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

- the information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

EARTHMET LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EARTHMET LIMITED
- 7 -
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 identifie d material misstatements in the strategic report or the director's 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, 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 director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF DIRECTOR

As explained more fully in the director's r esponsibilities s tatement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and discussed the policies and procedures regarding compliance.

Specific areas considered were as follows:

- Enquiring with management and others to gain an understanding of the organisation itself including operations, financial reporting and known fraud or error.

- Evaluating and understanding the internal control system.

- Performing analytical procedures as expected or unexpected variances in account balances or classes of transactions appear.

- Testing documentation supporting account balances or classes of transactions.

- Observing the physical stock count.

- Confirming accounts receivable and other accounts with a third party.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected all irregularities including those leading to material misstatements in the financial statements or non-compliance with regulation, even though we have properly planned and performed our audit in accordance with auditing standards.

This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

EARTHMET LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EARTHMET LIMITED
- 8 -

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

NEAL ASTON FCA FCCA (SENIOR STATUTORY AUDITOR)
FOR AND ON BEHALF OF JW HINKS LLP
CHARTERED ACCOUNTANTS
STATUTORY AUDITOR
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
16 April 2026
EARTHMET LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Revenue
4
8,324,638
7,435,250
Cost of sales
(7,565,913)
(6,544,311)
GROSS PROFIT
758,725
890,939
Administrative expenses
(1,204,283)
(1,212,079)
OPERATING LOSS
5
(445,558)
(321,140)
Investment revenues
9
-
0
3,324
Finance costs
10
(70,016)
(84,905)
LOSS BEFORE TAXATION
(515,574)
(402,721)
Income tax expense/(income)
11
(1,304)
81,669
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(516,878)
(321,052)

The income statement has been prepared on the basis that all operations are continuing operations.

EARTHMET LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
NON-CURRENT ASSETS
Property, plant and equipment
12
1,298,198
1,559,391
Investments
13
1
1
Deferred tax asset
23
218,555
251,753
1,516,754
1,811,145
CURRENT ASSETS
Inventories
15
1,407,124
1,567,952
Trade and other receivables
16
1,190,175
1,283,420
Current tax recoverable
1,801
3,324
2,599,100
2,854,696
CURRENT LIABILITIES
Trade and other payables
21
1,183,463
1,301,494
Borrowings
18
383,839
101,604
Lease liabilities
22
172,494
165,420
1,739,796
1,568,518
NET CURRENT ASSETS
859,304
1,286,178
NON-CURRENT LIABILITIES
Lease liabilities
22
929,030
1,101,523
Deferred tax liabilities
23
244,721
276,615
1,173,751
1,378,138
NET ASSETS
1,202,307
1,719,185
EQUITY
Called up share capital
25
100
100
Retained earnings
1,202,207
1,719,085
TOTAL EQUITY
1,202,307
1,719,185
The financial statements were approved by the board of directors and authorised for issue on 16 April 2026 and are signed on its behalf by:
Mr M D Brown
DIRECTOR
Company registration number 08688920 (England and Wales)
EARTHMET LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Retained earnings
Total
£
£
£
BALANCE AT 1 JANUARY 2024
100
2,040,137
2,040,237
YEAR ENDED 31 DECEMBER 2024:
Loss and total comprehensive income
-
(321,052)
(321,052)
BALANCE AT 31 DECEMBER 2024
100
1,719,085
1,719,185
YEAR ENDED 31 DECEMBER 2025:
Loss and total comprehensive income
-
(516,878)
(516,878)
BALANCE AT 31 DECEMBER 2025
100
1,202,207
1,202,307
EARTHMET LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (absorbed by)/generated from operations
29
(48,323)
167,824
Interest paid
(70,016)
(84,905)
Income taxes refunded/(paid)
1,523
(3,323)
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
(116,816)
79,596
INVESTING ACTIVITIES
Purchase of property, plant and equipment
-
0
(39,258)
Interest received
-
0
3,324
NET CASH USED IN INVESTING ACTIVITIES
-
(35,934)
FINANCING ACTIVITIES
Payment of lease liabilities
(165,419)
(160,778)
NET CASH USED IN FINANCING ACTIVITIES
(165,419)
(160,778)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(282,235)
(117,116)
Cash and cash equivalents at beginning of year
(101,604)
15,512
Cash and cash equivalents at end of year
(383,839)
(101,604)
RELATING TO:
Bank overdrafts
(383,839)
(101,604)
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
ACCOUNTING POLICIES
COMPANY INFORMATION

Earthmet Limited is a private company limited by shares incorporated in England and Wales. The registered office is 19 Highfield Road, Edgbaston, Birmingham, B15 3BH. The trading address of the company is Unit 5, Vaughan Park, Sedgley Road, Tipton, DY4 7UJ.

1.1
ACCOUNTING CONVENTION

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
GOING CONCERN

The director has at the time of approving the financial statements, a reasonable expectation that the true company has adequate resources to continue in operational existence and the Gindre Group have confirmed that, if necessary, the group will financially support Earthmet Limited for the forseeable future. Thus t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
REVENUE

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.

1.4
PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment 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
Over period of lease
Leasehold improvement
Over period of lease
Plant and equipment
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost
Fixtures and fittings
20% to 40% on cost

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 income statement.

1.5
NON-CURRENT INVESTMENTS

Investments in subsidiaries are stated at cost at the balance sheet date.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 14 -
1.6
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

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.

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.

1.7
INVENTORIES

Inventories 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 inventories to their present location and condition.

Inventories 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.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

1.8
CASH AND CASH EQUIVALENTS

Cash and cash equivalents 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.

1.9
FINANCIAL ASSETS

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 15 -
Financial assets at fair value through profit or loss

Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:

- the asset has been acquired principally for the purpose of selling in the near term, or

- on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or

- it is a derivative that is not designated and effective as a hedging instrument.

Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.

Financial assets held at amortised cost

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 16 -
Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
FINANCIAL LIABILITIES

The company recogni s es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

- it has been incurred principally for the purpose of selling or repurchasing it in the near term, or

- on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or

- it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, t rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
EQUITY INSTRUMENTS

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

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 17 -
1.12
DERIVATIVES

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.

1.13
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 income statement 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

1.14
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 inventories or non-current 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.

1.15
RETIREMENT BENEFITS

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

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

1.16
LEASES

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 18 -

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is re assessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value asset s. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.17
FOREIGN EXCHANGE

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
ADOPTION OF NEW AND REVISED STANDARDS AND CHANGES IN ACCOUNTING POLICIES

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

The accounting policies adopted are consistent with those of the previous period’s financial period, except for the following amendments to IFRS effective for annual period beginning on or before January 1, 2025 which did not have a material effect on the financial statements;

Pronouncements applicable to entities applying IFRSs at the IASB effective dates

Pronouncement

Amendments

- Lack of Exchangeability (Amendments to IAS 21) - Effective 01 January 2025 (Mandatory)

- Amendments to the SASB standards to enhance their international applicability - Effective 01 January 2025. (Will not be endorsed)

- Revised IFRS Practice Statement 1 Management Commentary - Effective 23 June 2025. (Not yet endorsed)

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
ADOPTION OF NEW AND REVISED STANDARDS AND CHANGES IN ACCOUNTING POLICIES
(Continued)
- 19 -

New and revised standards

The standards and interpretations that are issued, up to the date of issuance of the Company’s financial statements are disclosed below. The management anticipates that these standards and amendments will have no material effect on the financial statements. The Company intends to adopt these standards, if applicable, as they become effective.

| Effective for annual periods
New and revised IFRSs | beginning on or after
New or revised pronouncement |
- IFRS 18 Presentation and Disclosures in Financial Statements | 01 January 2027 (Optional)
- IFRS 19 Subsidiaries without Public Accountability: Disclosures Amendments New or revised pronouncement - Editorial Corrections - Lack of Exchangeability (Amendments to IAS 21) - Amendments to SASB standards to enhance their international applicability - Revised IFRS Practice Statement 1 Management Commentary - Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments - Annual Improvements to IFRS Accounting Standards — Volume 11 (Makes amendments to): - IFRS 1 First-time Adoption of International Financial Reporting Standards - Hedge accounting by a first-time adopter - IFRS 7 Financial Instruments: Disclosures - Gain or loss on derecognition - IFRS 7 Financial Instruments: Disclosures (implementation guidance only) Disclosure of deferred difference between fair value and transaction price. - IFRS 7 Financial Instruments: Disclosures (implementation guidance only) - Introduction and credit risk disclosures - FRS 9 Financial Instruments -Lessee derecognition of lease liabilities - IFRS 9 Financial Instruments - Transaction price - IFRS 10 Consolidated Financial Statements - Determination of a ‘de facto agent’ - IAS 7 Statement of Cash Flows - Cost method | 01 January 2027 (Not endorsed) (Effective immediately) 01 January 2025 (Mandatory) 01 Jan 2025 - (Not endorsed) 23 June 2025 (Not endorsed) 01 January 2026 (Optional) 01 January 2026 (Optional)

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
ADOPTION OF NEW AND REVISED STANDARDS AND CHANGES IN ACCOUNTING POLICIES
(Continued)
- 20 -

| Effective for annual periods
New and revised IFRSs | beginning on or after
- Amendments New or revised pronouncement - Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) - Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures’. - Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) - Amendments to Greenhouse Gas Emissions Disclosures (Amendments to IFRS S2) | 01 Jan 2026 (Optional) 01 Jan 2027 (Not endorsed) 01 Jan 2027 (Not endorsed) 01 Jan 2027 (Not endorsed)

Management anticipates that the adoption of the above standards in future years will have no material impact on the financial statements of the Company in the period of initial application.

3
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

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

CRITICAL JUDGEMENTS
VALUATION OF LEASE LIABILITIES AND RIGHT-OF-USE ASSETS

The application of IFRS 16 requires the company to make judgments that affect the valuation of the lease liabilities and the valuation of right-of-use assets. These include: determining contracts in scope of IFRS 16, determining the contract term and determining the interest rate used for discounting of future cash flows.

Accounting policy 1.16 sets out the company's policy for accounting for leases within the scope of IFRS 16.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
4
REVENUE

An analysis of the company's revenue is as follows:

2025
2024
£
£
REVENUE ANALYSED BY CLASS OF BUSINESS
Earthing and cable jointing supplies
8,324,638
7,435,250
5
OPERATING LOSS
2025
2024
Operating loss for the year is stated after charging/(crediting):
£
£
Depreciation of property, plant and equipment
261,193
277,776
Cost of inventories recognised as an expense
7,446,972
6,415,122
6
AUDITOR'S REMUNERATION
2025
2024
Fees payable to the company's auditor and associates:
£
£
FOR AUDIT SERVICES
Audit of the financial statements of the company
10,600
10,300
FOR OTHER SERVICES
Other services pursuant to legislation
-
1,950
Other services
1,071
1,071
Total non-audit fees
1,071
3,021
7
EMPLOYEES

The average monthly number of persons (ex cluding directors) employed by the company during the year was:

2025
2024
Number
Number
Sales and administration
15
16

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
559,608
559,630
Social security costs
71,880
60,009
Pension costs
21,824
21,566
653,312
641,205
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
8
DIRECTOR'S REMUNERATION
2025
2024
£
£
Remuneration for qualifying services
117,140
140,125
Company pension contributions to defined contribution schemes
11,438
10,938
128,578
151,063

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

9
INVESTMENT INCOME
2025
2024
£
£
INTEREST INCOME
Financial instruments measured at amortised cost:
Other interest income on financial assets
-
0
3,324
Income above relates to assets held at amortised cost, unless stated otherwise.
10
FINANCE COSTS
2025
2024
£
£
Interest on lease liabilities
70,016
76,461
Other interest payable
-
0
8,444
Total interest expense
70,016
84,905
11
INCOME TAX EXPENSE
2025
2024
£
£
CURRENT TAX
Adjustments in respect of prior periods
-
0
16,974
DEFERRED TAX
Origination and reversal of temporary differences
1,304
(98,643)
TOTAL TAX CHARGE/(CREDIT)
1,304
(81,669)
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
INCOME TAX EXPENSE
(Continued)
- 23 -

The charge for the year can be reconciled to the loss per the income statement as follows:

2025
2024
£
£
Loss before taxation
(515,574)
(402,721)
Expected tax credit based on a corporation tax rate of 25.00% (2024: 25.00%)
(128,894)
(100,680)
Effect of expenses not deductible in determining taxable profit
(3,677)
4,943
Unutilised tax losses carried forward
111,981
73,007
Permanent capital allowances in excess of depreciation
20,590
23,132
Under/(over) provided in prior years
-
0
16,974
Reversing timing differences
-
0
(402)
Deferred tax movement
1,304
(98,643)
TAXATION CHARGE/(CREDIT) FOR THE YEAR
1,304
(81,669)
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
12
PROPERTY, PLANT AND EQUIPMENT
Leasehold land and buildings
Leasehold improvement
Plant and equipment
Computers
Motor vehicles
Fixtures and fittings
Total
£
£
£
£
£
£
£
COST
At 1 January 2024
1,289,667
34,983
365,296
20,242
63,578
525,028
2,298,794
Additions
-
0
-
0
-
0
995
-
0
-
0
995
IFRS16 adjustments to cost
38,263
-
0
-
0
-
0
-
0
-
0
38,263
At 31 December 2024
1,327,930
34,983
365,296
21,237
63,578
525,028
2,338,052
At 31 December 2025
1,327,930
34,983
365,296
21,237
63,578
525,028
2,338,052
ACCUMULATED DEPRECIATION AND IMPAIRMENT
At 1 January 2024
182,704
24,410
117,288
12,551
30,944
132,988
500,885
Charge for the year
138,212
1,232
59,326
4,425
16,233
58,348
277,776
At 31 December 2024
320,916
25,642
176,614
16,976
47,177
191,336
778,661
Charge for the year
132,793
1,232
56,642
3,810
9,069
57,647
261,193
At 31 December 2025
453,709
26,874
233,256
20,786
56,246
248,983
1,039,854
CARRYING AMOUNT
At 31 December 2025
874,221
8,109
132,040
451
7,332
276,045
1,298,198
At 31 December 2024
1,007,014
9,341
188,682
4,261
16,401
333,692
1,559,391
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -

Property, plant and equipment includes right-of-use assets, and assets under finance or hire purchase agreements as follows:

2025
2024
£
£
NET VALUES AT THE YEAR END
Property
874,221
1,007,014
Plant and equipment
104,621
140,491
Motor vehicles
6,781
16,952
985,623
1,164,457
TOTAL ADDITIONS IN THE YEAR
-
38,263
DEPRECIATION CHARGE FOR THE YEAR
Property
132,793
132,793
Plant and equipment
35,870
35,870
Motor vehicles
10,171
10,171
178,834
178,834
13
INVESTMENTS
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Investments in subsidiaries
-
0
-
0
1
1

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

14
SUBSIDIARIES

These financial statements are separate company financial statements for Earthmet Limited. Earthmet Limited is a subsidiary of Gindre Duchavany S.A. and the results of Earthmet Limited are included in the consolidated financial statements of Umcor AG. The results of Earthmet Limited's subsidiary are also within these consolidated financial statements.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Country of incorporation
Ownership interest (%)
Voting power held (%)
Nature of business
Cable Jointing Solutions Limited
England
100
100
Dormant
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 26 -
15
INVENTORIES
2025
2024
£
£
Raw materials
1,407,124
1,567,952

An amount of £122,158 (202 4: £58,269) has been expensed during the year in relation to stock write-downs and stock losses.

16
TRADE AND OTHER RECEIVABLES
2025
2024
£
£
Trade receivables
1,148,901
1,247,465
Amounts owed by fellow group undertakings
-
0
7,453
Prepayments
41,274
28,502
1,190,175
1,283,420

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

Trade debtors are stated net of a provision of £30,704 (2024: £48,0 00).

At 31 December 20 2 5 trade debtors and amounts due from group undertakings included euro denominated balances of €24,850 (2024:€12,408) and €nil (202 4:€nil) respectively. All other receivables were sterling denominated.

Some of the unimpaired trade receivables are past due as at the reporting date.

17
TRADE RECEIVABLES - CREDIT RISK
FAIR VALUE OF TRADE RECEIVABLES

The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.

The company's principal financial assets are bank balances, cash, trade receivables and other expenses.

The r e is no concentration of credit risk.

EXPECTED CREDIT LOSS ASSESSMENT
2025
2024
Balance
Rate
Loss allowance
Balance
Rate
Loss allowance
TRADE RECEIVABLES
£
%
£
£
%
£
Not more than 3 months
1,031,629
-
-
1,152,587
-
-
More than 3 months
117,272
-
30,704
94,878
-
48,000
1,148,901
30,704
1,247,465
48,000

No significant receivable balances are impaired at the reporting end date.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -
18
BORROWINGS
2025
2024
£
£
BORROWINGS HELD AT AMORTISED COST:
Bank - invoice financing
383,839
101,604

On 26 July 2022, a fixed and floating charge was created covering all the property or undertaking of the company. The charge contains a negative pledge.

19
FAIR VALUE OF FINANCIAL LIABILITIES

The director considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

20
FINANCIAL INSTRUMENTS

Financial Risk Management

Financial risks include market risk, credit risk, liquidity risk and interest risk. The Group seeks to minimise the effect of these risks by developing and applying policies and procedures which are regularly reviewed for appropriateness and effectiveness. The Group's principal financial instruments comprise cash held in current accounts, trade receivables, amounts recoverable under contracts, trade payables and other payables that arise directly from its operations.

Credit Risk

Credit risk refers to the risk that a customer or counterparty to a financial instrument fails t o meet its contractual obligations, resulting in financial loss to the company, and arises principally from the company's receivables from customers. Customers that wish to trade on credit terms are subject to credit verification procedures and receivable balances are monitored on an ongoing basis.

The concentration of credit risk is subject to ongoing monitoring in conjunction with the Group, The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Liquidity Risk

The company needs to have access, at all times, to adequate financial resources not only to finance operations and the investments required to support its growth, but also to withstand the effects of any exceptional development. Liquidity is managed by the Group on behalf of subsidiaries and needs are met by long-term financing on the capital markets. Ensuring that all of the Group's net debt can be maintained over a long period, as well as through short-term commercial paper programs.

The company's intra-group debt, prior to any sales of receivables, is a key performance indicator and is subject to very close monitoring.

The company's financial obligations outside of the Group consist of trade creditors and other creditors - all of these are payable within 12 months.

Interest Risk

The Company is exposed to interest rate risk on its interest bearing liabilities. The sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on the Company's profit for one year, based on the floating rate financial assets and financial liabilities held at 31 December 20 2 5.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 28 -
21
TRADE AND OTHER PAYABLES
Current
2025
2024
£
£
Trade payables
993,514
1,037,819
Amount due to parent undertaking
9,672
17,845
Amounts due to fellow group undertakings
11,669
71,974
Accruals
31,555
22,407
Social security and other taxation
127,054
141,510
Other payables
9,999
9,939
1,183,463
1,301,494

At 31 December 20 25 trade creditors and amounts due to group undertakings included euro denominated balances of €390,102 (202 4: €482,249) and €nil (202 4: €nil) respectively. All other payables were sterling denominated.

The directors consider the carrying value of trade and other receivables to be an approximation of their fair value.

22
LEASE LIABILITIES
2025
2024
MATURITY ANALYSIS
£
£
Within one year
172,494
165,420
In two to five years
868,816
699,888
In over five years
60,214
401,635
TOTAL UNDISCOUNTED LIABILITIES
1,101,524
1,266,943

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2025
2024
£
£
Current liabilities
172,494
165,420
Non-current liabilities
929,030
1,101,523
1,101,524
1,266,943
2025
2024
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
70,016
76,461

Short term leases and low-value assets are accounted for in accordance with IFRS16.6 exemptions whereby lease payments are recognised as an expense over the lease term.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
23
DEFERRED TAXATION
Liabilities
Assets
2025
2024
2025
2024
£
£
£
£
Deferred tax balances
244,721
276,615
218,555
251,753
Deferred tax assets are expected to be recovered over the life of the leases to which they relate.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
IFRS16
Total
£
£
£
Liability at 1 January 2024
94,000
306,245
400,245
Asset at 1 January 2024
-
0
(276,741)
(276,741)
DEFERRED TAX MOVEMENTS IN PRIOR YEAR
Charge/(credit) to profit or loss
(93,000)
(5,642)
(98,642)
Liability at 1 January 2025
1,000
275,615
276,615
Asset at 1 January 2025
-
0
(251,753)
(251,753)
DEFERRED TAX MOVEMENTS IN CURRENT YEAR
Charge/(credit) to profit or loss
(1,000)
2,304
1,304
Liability at 31 December 2025
-
0
244,721
244,721
Asset at 31 December 2025
-
0
(218,555)
(218,555)

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

24
RETIREMENT BENEFIT SCHEMES
2025
2024
DEFINED CONTRIBUTION SCHEMES
£
£
Charge to profit or loss in respect of defined contribution schemes
21,824
21,566

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 30 -
25
SHARE CAPITAL
2025
2024
£
£
ORDINARY SHARE CAPITAL
Issued and fully paid
90 Ordinary A of £1 each
90
90
5 Ordinary B of £1 each
5
5
5 Ordinary C of £1 each
5
5
100
100

The Ordinary A, B and C shares shall rank pari passu in all respects except for special rights on sale.

26
CAPITAL RISK MANAGEMENT

The company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance,

The capital structure of the company consists of debt, cash and cash equivalents and equity comprising share capital, reserves and retained earnings. The company reviews the capital structure as necessary and as part of this review considers that cost of capital and the risks associated with each class of capital.

On 26 July 2022, a fixed and floating charge was created covering all the property or undertaking of the company. The charge contains a negative pledge.

The company is not subject to any externally imposed capital requirements.

27
RELATED PARTY TRANSACTIONS
OTHER TRANSACTIONS WITH RELATED PARTIES

During the year the company entered into the following transactions with companies, who are also members of the UMCOR Group of Companies:

Sale of goods
Purchase of goods
2025
2024
2025
2024
£
£
£
£
Other related parties
33,433
-
0
-
0
22,298
Management charges
Loan interest
2025
2024
2025
2024
£
£
£
£
Other related parties
29,016
56,277
-
7,790
EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
27
RELATED PARTY TRANSACTIONS
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

2025
2024
AMOUNTS DUE TO RELATED PARTIES
£
£
Parent company
9,672
17,845
Other related parties
11,669
71,973
21,341
89,818

The following amounts were outstanding at the reporting end date:

2024
AMOUNTS DUE FROM RELATED PARTIES
£
Other related parties
7,453

No guarantees have been given or received.

EARTHMET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
28
CONTROLLING PARTY

The company is wholly owned by Gindre Duchavany S AS, a company incorporated in France.

In the director's opinion the company's ultimate parent company is Imetco AG, a company incorporated in Switzerland.

29
CASH (ABSORBED BY)/GENERATED FROM OPERATIONS
2025
2024
£
£
Loss for the year before taxation
(515,574)
(402,721)
ADJUSTMENTS FOR:
Finance costs
70,016
84,905
Investment income
-
0
(3,324)
Depreciation and impairment of property, plant and equipment
261,193
277,776
MOVEMENTS IN WORKING CAPITAL:
Decrease in inventories
160,828
346,198
Decrease/(increase) in trade and other receivables
93,245
(121,243)
Decrease in trade and other payables
(118,031)
(13,767)
CASH (ABSORBED BY)/GENERATED FROM OPERATIONS
(48,323)
167,824
30
ANALYSIS OF CHANGES IN NET DEBT
1 January 2025
Cash flows
31 December 2025
£
£
£
Bank overdrafts
(101,604)
(282,235)
(383,839)
Lease liabilities
(1,266,943)
165,419
(1,101,524)
(1,368,547)
(116,816)
(1,485,363)
1 January 2024
Cash flows
31 December 2024
PRIOR YEAR:
£
£
£
Cash at bank and in hand
33,703
(33,703)
-
Bank overdrafts
(18,191)
(83,413)
(101,604)
Lease liabilities
(1,427,721)
160,778
(1,266,943)
(1,412,209)
43,662
(1,368,547)
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