Company registration number 04416364 (England and Wales)
METELEC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
METELEC LIMITED
COMPANY INFORMATION
DIRECTOR
Mr K Draper
COMPANY NUMBER
04416364
REGISTERED OFFICE
3 Hilton Cross Business Park
Featherstone
Wolverhampton
West Midlands
WV10 7QZ
AUDITOR
JW Hinks LLP
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
ACCOUNTANTS
Jo Rusell
METELEC LIMITED
CONTENTS
PAGE
Strategic report
1 - 2
Director's report
3 - 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 - 36
METELEC 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

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and our position at the year end.

Our review is consistent with the size and non-complex nature of the business and is written in the context of the principal risks and uncertainties we face.

We consider that our key financial performance indicators are those that best communicate our overall financial performance and strength, namely turnover and gross margin.

Turnover and gross margin for the year were as follows:

20 25 20 24

£ £

Turnover 31,326,847 27,231,913

Gross margin 3,449,988 2,800,123

(11.01%) (10.28%)

The company continues to buy copper for sale to the electrical industries and also now sells component stocks. The business is very susceptible to market price fluctuations.

Trading Performance 2025

2025 saw an increase in top line of almost £4.1 m with little increase in product volume. This was influenced by an unprecedented 43% Jan25 – Dec 25 LME increase due to a range of macro-economic factors. General economic conditions remained very challenging with UK continuing at the edge of recession for the third consecutive year, and like most businesses Metelec was impacted by legislative implementation of increase d E mploye r National Insurance Contributions. The alignment to attractive growth sectors of Data Centres and Electric Vehicle charging infrastructure played a key role in continued growth.

With increased market volatility and geopolitical activity, the business focuses on controlling the controllables. This included significant increase in production of high value component kits, ready to assemble directly into Data Centre power systems, and improvements in supply chain management with significant inventory reductions to counter the appreciation in base copper value, whilst maintaining customer service.

The year’s record increase in LME copper value was influenced by world events, mainly driven around speculation and eventual implementation of Copper Tariffs into the US, tempered by uncertainties and weak demand in EU and China. The LME value started the year at <$9,000/ tonne, rising to $10,000 at the beginning of April before crashing to $8,500 when reciprocal country Tariffs were announced. Speculation around Copper specific Tariffs ensued, creating a record COMEX/ LME Arbitrage of $3000 per tonne which stimulated flows of physical primary refined copper product to the US. The Arbitrage collapse in a single day once the nature of the Copper Tariffs was revealed. Semi product being subjected to 50% tariff and primary cathode and scrap not affected with export restrictions. The LME copper value then continued to increase with supply imbalances across the Globe (refined primary copper attracted to the, US and mining concentrates migrating towards China where most refining (over) capacity is located. The LME finished the year at $12,500 with rising record breaking daily highs.

The business profitability was achieved through improving the mix of added value components, with competitive Copper Bar Pricing in UK from EU Mills with available capacity.

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

Business Environment 2026

The UK outlook continues to be weak, but with commitment to Grid Infrastructure investment in play for future clean energy transition. Demand for Electric Vehicle charging infrastructure and data centres are likely to continue to grow as the application of AI intensifies. Globally, China continues to struggle with a depressed construction sector and uncertainties in the manufacturing sector leading to a drive for exports. US Tariffs are likely to continue to influence volatility in copper LME valuations with some risk of inflationary pressure later in the year. Supply side mining has some constraints, but China consumption continues to be slow. It is anticipated that these global events may influence product flows and drive supply chains towards valuing supply certainty.

With continued volatility expected, Metelec continues to develop a resilient position by improving profitability by increasing its added value component mix and implementing supply chain improvement initiatives with parent Gindre Group. Optimisation of inventory and further development of a circular supply chain approach will be important for operational and financial resilience as LME copper valuation escalates.

On behalf of the board

Mr K Draper
DIRECTOR
16 April 2026
METELEC LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of specialist suppliers of copper to the electrical industries.

RESULTS AND DIVIDENDS

The results for the year are set out on page 9.

The total distribution of dividends for the year ended 31 December 20 25 will be £nil (20 24: £nil).

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 K Draper
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 10 day's purchases, based on the average daily amount invoiced by suppliers during the year.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise cash and commercial factoring finance. The main purpose of these financial instruments is to raise finance for the company's operations and expansion plans. The company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations. The company does not enter into derivative transactions.

It is, and has been throughout the period under review, the company's policy that no trading in financial instruments shall be undertaken. The main risks arising from the company's financial instruments are interest rate risk, credit risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

Interest rate risk

The company's exposure to market risk for changes in interest rates is limited to the company's commercial factoring finance. The additional requirement for medium to long term debt finance will be reviewed by the directors based on the company's forecast working capital requirements.

Credit risk

The company trades with only recognised, credit worthy third parties. It is the company policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the company's exposure to bad debts is minimal.

Liquidity risk

The company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and short term deposits.

AUDITOR

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

METELEC LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
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 K Draper
DIRECTOR
16 April 2026
METELEC 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.

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

We have audited the financial statements of Metelec 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 profit 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.

METELEC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF METELEC 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 and the director's r eport.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of director's remuneration specified by law are not made; or

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

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the director's 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.

METELEC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF METELEC 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
16 April 2026
METELEC LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
as restated
Notes
£
£
Revenue
4
31,326,847
27,231,913
Cost of sales
(27,876,859)
(24,431,790)
GROSS PROFIT
3,449,988
2,800,123
Other operating income
154,557
108,668
Administrative expenses
(2,711,503)
(2,274,349)
OPERATING PROFIT
5
893,042
634,442
Finance costs
9
(358,700)
(351,870)
PROFIT BEFORE TAXATION
534,342
282,572
Income tax expense
10
(218,834)
(167,232)
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR
315,508
115,340

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

METELEC LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
as restated
Notes
£
£
NON-CURRENT ASSETS
Property, plant and equipment
12
4,426,258
4,778,954
Investments
13
100
100
Deferred tax asset
22
753,297
787,154
5,179,655
5,566,208
CURRENT ASSETS
Inventories
15
8,690,408
10,188,328
Trade and other receivables
16
5,851,533
4,509,730
Cash and cash equivalents
577,335
616,533
15,119,276
15,314,591
CURRENT LIABILITIES
Trade and other payables
20
4,739,581
5,803,277
Current tax liabilities
66,948
-
0
Borrowings
18
1,984,994
2,024,154
Lease liabilities
21
120,507
183,252
6,912,030
8,010,683
NET CURRENT ASSETS
8,207,246
7,303,908
NON-CURRENT LIABILITIES
Lease liabilities
21
3,896,485
3,813,238
Deferred tax liabilities
22
1,209,242
1,091,212
5,105,727
4,904,450
NET ASSETS
8,281,174
7,965,666
EQUITY
Called up share capital
24
700,000
700,000
Retained earnings
7,581,174
7,265,666
TOTAL EQUITY
8,281,174
7,965,666
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 K Draper
DIRECTOR
Company registration number 04416364 (England and Wales)
METELEC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Retained earnings
Total
£
£
£
AS RESTATED FOR THE PERIOD ENDED 31 DECEMBER 2024:
BALANCE AT 1 JANUARY 2024
700,000
7,150,326
7,850,326
BALANCE AT 1 JANUARY 2024
700,000
7,150,326
7,850,326
YEAR ENDED 31 DECEMBER 2024:
Profit and total comprehensive income
-
115,340
115,340
BALANCE AT 31 DECEMBER 2024
700,000
7,265,666
7,965,666
YEAR ENDED 31 DECEMBER 2025:
Profit and total comprehensive income
-
315,508
315,508
BALANCE AT 31 DECEMBER 2025
700,000
7,581,174
8,281,174
METELEC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
as restated
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
29
480,927
822,048
Interest paid
(358,700)
(351,870)
Income taxes refunded
-
0
62,490
NET CASH INFLOW FROM OPERATING ACTIVITIES
122,227
532,668
INVESTING ACTIVITIES
Purchase of property, plant and equipment
(43,786)
(59,519)
NET CASH USED IN INVESTING ACTIVITIES
(43,786)
(59,519)
FINANCING ACTIVITIES
Payment of lease liabilities
(78,479)
-
0
NET CASH USED IN FINANCING ACTIVITIES
(78,479)
-
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(38)
473,149
Cash and cash equivalents at beginning of year
(1,407,621)
(1,880,770)
Cash and cash equivalents at end of year
(1,407,659)
(1,407,621)
RELATING TO:
Bank balances and short term deposits
577,335
616,533
Bank overdrafts
(1,984,994)
(2,024,154)
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
ACCOUNTING POLICIES
COMPANY INFORMATION

Metelec Limited is a private company limited by shares incorporated in England and Wales. The registered office and primary trading address is 3 Hilton Cross Business Park, Featherstone, Wolverhampton, West Midlands, WV10 7QZ.

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 for the foreseeable 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 delivery 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
GOODWILL

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

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. An impairment loss recognised for goodwill is not subsequently reversed.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 14 -
1.5
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:

Leased property
Over period of lease
Leasehold improvements
Over period of lease
Fixtures and fittings
at varying rates on cost
Plant and equipment
20% on cost
Computers
33% on cost
Motor vehicles
20% 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.

1.6
NON-CURRENT INVESTMENTS

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

1.7
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

At each reporting end date, the company 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.

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.

1.8
INVENTORIES

Inventories are stated at the lower of a verage 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.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 15 -

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

1.9
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.

1.10
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.

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.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 16 -
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.

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.

1.11
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.

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

1.12
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.

1.13
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.

1.14
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.

1.15
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.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.16
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.

1.17
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.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any 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 depreciated using the straight-line method 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. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

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 remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. 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 assets. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.18
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.

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

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)

METELEC 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 -

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)

METELEC 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)
- 21 -

| 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.

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

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
4
REVENUE

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

2025
2024
£
£
REVENUE ANALYSED BY CLASS OF BUSINESS
Sale of copper and related goods
31,326,847
27,231,913
2025
2024
£
£
REVENUE ANALYSED BY GEOGRAPHICAL MARKET
United Kingdom
21,803,971
25,577,809
European Union
484,733
734,539
Rest of world
9,038,143
919,565
31,326,847
27,231,913
2025
2024
£
£
OTHER INCOME
Management charges
153,162
108,668
5
OPERATING PROFIT
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,442
(107,007)
Depreciation of property, plant and equipment
495,463
424,054
Cost of inventories recognised as an expense
27,052,379
23,756,605
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
17,500
17,000
FOR OTHER SERVICES
Other services pursuant to legislation
3,500
4,500
Other services
2,268
2,268
Total non-audit fees
5,768
6,768
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
7
EMPLOYEES

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

2025
2024
Number
Number
Directors
2
2
Direct, sales and administration
40
36
Total
42
38

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,747,966
1,453,387
Social security costs
214,583
139,983
Pension costs
166,169
44,325
2,128,718
1,637,695
8
DIRECTOR'S REMUNERATION
2025
2024
£
£
Remuneration for qualifying services
143,221
130,703
Company pension contributions to defined contribution schemes
67,681
14,039
210,902
144,742

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

9
FINANCE COSTS
2025
2024
£
£
Interest on lease liabilities
358,302
351,870
Other interest payable
398
-
0
Total interest expense
358,700
351,870
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
10
INCOME TAX EXPENSE
2025
2024
£
£
CURRENT TAX
Current year taxation
66,948
-
0
Adjustments in respect of prior periods
-
0
36,922
66,948
36,922
DEFERRED TAX
Origination and reversal of temporary differences
151,886
130,310
Total tax charge
218,834
167,232

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

2025
2024
£
£
Profit before taxation
534,342
282,572
Expected tax charge/(credit) based on a corporation tax rate of 25.00%
133,586
70,643
Expenses not deductible in determining taxable profit
5,165
(4,695)
Utilisation of tax losses not previously recognised
(129,305)
(58,900)
Adjustment in respect of prior years
-
0
36,922
Permanent capital allowances in excess of depreciation
57,502
(37,505)
Deferred tax movement
151,886
160,767
Tax charge for the year
218,834
167,232
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
11
INTANGIBLE ASSETS
Goodwill
£
COST
At 1 January 2024
542,727
At 31 December 2024
542,727
At 31 December 2025
542,727
AMORTISATION AND IMPAIRMENT
At 1 January 2024
542,727
At 31 December 2024
542,727
At 31 December 2025
542,727
CARRYING AMOUNT
At 31 December 2025
-
0
At 31 December 2024
-
0
At 31 December 2023
-
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 26 -
12
PROPERTY, PLANT AND EQUIPMENT
Leased property
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
COST
At 1 January 2024
3,312,187
84,271
769,866
1,121,722
33,447
225,742
5,547,235
Additions
-
0
22,070
343,034
26,335
4,140
-
0
395,579
IFRS 16 adjustments to cost
73,419
-
0
-
0
-
0
-
0
-
0
73,419
Disposals
-
0
-
0
-
0
(11,045)
-
0
(36,860)
(47,905)
At 31 December 2024
3,385,606
106,341
1,112,900
1,137,012
37,587
188,882
5,968,328
Additions
-
0
-
0
54,046
-
0
19,108
48,608
121,762
IFRS 16 adjustments to cost
-
0
-
0
-
0
-
0
-
0
21,005
21,005
At 31 December 2025
3,385,606
106,341
1,166,946
1,137,012
56,695
258,495
6,111,095
ACCUMULATED DEPRECIATION AND IMPAIRMENT
At 1 January 2024
88,325
3,537
486,806
103,300
32,501
87,711
802,180
Charge for the year
148,667
4,201
121,837
89,423
1,457
58,469
424,054
Eliminated on disposal
-
0
-
0
-
0
-
0
-
0
(36,860)
(36,860)
At 31 December 2024
236,992
7,738
608,643
192,723
33,958
109,320
1,189,374
Charge for the year
135,424
24,505
151,231
99,599
4,697
80,007
495,463
At 31 December 2025
372,416
32,243
759,874
292,322
38,655
189,327
1,684,837
CARRYING AMOUNT
At 31 December 2025
3,013,190
74,098
407,072
844,690
18,040
69,168
4,426,258
At 31 December 2024
3,148,614
98,603
504,257
944,289
3,629
79,562
4,778,954
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -

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
3,013,190
3,148,614
Plant and equipment
252,160
295,046
Motor vehicles
38,504
25,768
3,303,854
3,469,428
TOTAL ADDITIONS IN THE YEAR
98,981
381,707
DEPRECIATION CHARGE FOR THE YEAR
Property
135,424
148,667
Plant and equipment
72,254
48,495
Motor vehicles
56,877
32,267
264,555
229,429
13
INVESTMENTS
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Investments in subsidiaries
-
0
-
0
100
100

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

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

Name of undertaking
Registered office
Principal activities
Class of
% Held
shares held
Direct
Indirect
Metelec Ireland Limited
Ireland
Copper supplies
Ordinary
100.00
100.00
15
INVENTORIES
2025
2024
£
£
Raw materials
8,690,408
10,188,328
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 28 -
16
TRADE AND OTHER RECEIVABLES
Current
2025
2024
£
£
Trade receivables
3,392,646
3,411,757
Provision for bad and doubtful debts
(10,981)
(50,323)
3,381,665
3,361,434
Amounts due from fellow group undertakings
2,394,531
1,087,315
Prepayments
75,337
60,981
5,851,533
4,509,730

Trade debtors are stated net of a provision of £10,981 (2024: £50,323).

At 31 December 2025 trade debtors and amounts due from group undertakings included euro denominated balances of €1,022,346 (2024: €298,439) and (€25,310) (2024: €229,883) 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.

Thee is no concentration of credit risk.

AGEING OF PAST DUE BUT NOT IMPAIRED RECEIVABLES
2025
2024
£
£
Not more than 3 months
3,031,961
3,227,473
More than 3 months
360,684
184,283
3,392,645
3,411,756

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

MOVEMENT IN THE ALLOWANCES FOR DOUBTFUL DEBTS
2025
2024
£
£
Balance as at 31 December
10,981
50,323
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
18
BORROWINGS
2025
2024
£
£
BORROWINGS HELD AT AMORTISED COST:
Bank - invoice financing
1,984,994
2,024,154

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
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 2025.

20
TRADE AND OTHER PAYABLES
2025
2024
£
£
Trade payables
804,839
606,855
Amounts owed to fellow group undertakings
3,167,213
4,620,734
Accruals
283,393
129,515
Social security and other taxation
434,100
397,712
Other payables
50,036
48,461
4,739,581
5,803,277
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
TRADE AND OTHER PAYABLES
(Continued)
- 30 -

At 31 December 2025 trade creditors and amounts due to group undertakings included euro denominated balances of €8,433 (2024: €60,420) and €449,586 (20 24: €78,911) respectively. Also, within trade creditors, a balance of $97,038 (20 24: $82,861) and amounts due to group undertakings of $nil (20 24: $nil) remained on US dollar denominated balances. 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.

21
LEASE LIABILITIES
2025
2024
MATURITY ANALYSIS
£
£
Within one year
120,507
183,252
In two to five years
250,329
100,243
In over five years
3,646,156
3,712,995
Total undiscounted liabilities
4,016,992
3,996,490

Lease obligations 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
120,507
183,252
Non-current liabilities
3,896,485
3,813,238
4,016,992
3,996,490
2025
2024
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
358,302
351,870

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.

22
DEFERRED TAXATION
Liabilities
Assets
2025
2024
2025
2024
£
£
£
£
Deferred tax balances
1,209,242
1,091,212
753,297
787,154
Deferred tax assets are expected to be recovered over the period of the leases to which they relate.
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
22
DEFERRED TAXATION
(Continued)
- 31 -

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
Tax losses
IFRS 16
Total
£
£
£
£
Liability at 1 January 2024
259,000
(158,000)
878,714
979,714
Asset at 1 January 2024
-
0
-
0
(805,966)
(805,966)
DEFERRED TAX MOVEMENTS IN PRIOR YEAR
Charge/(credit) to profit or loss
35,000
59,000
66,767
160,767
Other
-
(30,457)
-
(30,457)
Liability at 1 January 2025
294,000
(129,457)
926,669
1,091,212
Asset at 1 January 2025
-
0
-
0
(787,154)
(787,154)
DEFERRED TAX MOVEMENTS IN CURRENT YEAR
Charge/(credit) to profit or loss
(48,110)
129,457
70,540
151,887
Liability at 31 December 2025
245,890
-
0
963,352
1,209,242
Asset at 31 December 2025
-
0
-
0
(753,297)
(753,297)

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

23
RETIREMENT BENEFIT SCHEMES
2025
2024
DEFINED CONTRIBUTION SCHEMES
£
£
Charge to profit or loss in respect of defined contribution schemes
166,169
44,325

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.

24
SHARE CAPITAL
2025
2024
2025
2024
ORDINARY SHARE CAPITAL
Number
Number
£
£
AUTHORISED
Ordinary of £1 each
700,000
700,000
700,000
700,000
ISSUED AND FULLY PAID
Ordinary of £1 each
700,000
700,000
700,000
700,000
25
OTHER LEASING INFORMATION
AS LESSEE

Leases not reflected in the measurement of lease liabilities.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
25
OTHER LEASING INFORMATION
(Continued)
- 32 -
2025
2024
Amounts recognised in profit or loss:
£
£
Expense relating to leases of low-value assets
600
600
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 th e review considers that cost of capital and the risks associated with each class of capital.

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

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 33 -
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
£
£
£
£
Parent company
-
0
-
0
15,488,325
15,535,990
Other related parties
11,161,701
2,730,323
2,398,342
1,560,538
11,161,701
2,730,323
17,886,667
17,096,528
Payroll recharges
Management charges (net)
2025
2024
2025
2024
£
£
£
£
Parent company
269,573
86,803
-
-
Other related parties
-
-
69,578
62,864
269,573
86,803
69,578
62,864

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2025
2024
£
£
Parent company
2,271,940
3,897,621
Other related parties
895,273
723,113
3,167,213
4,620,734

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
Amounts owed by related parties
2025
2024
Balance
Provision
Net
Balance
Provision
Net
£
£
£
£
£
£
Parent company
27,780
-
0
27,780
21,312
-
0
21,312
Other related parties
2,366,751
-
0
2,366,751
1,066,003
-
0
1,066,003
2,394,531
-
0
2,394,531
1,087,315
-
0
1,087,315

No guarantees have been given or received.

METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 34 -
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.

The results of Metelec Limited are included in the consolidated financial statements of U mcor AG whose registered address is Steinstrasse 21, CH-8003, Zurich, Switzerland.

29
CASH GENERATED FROM OPERATIONS
2025
2024
£
£
Profit for the year before taxation
534,342
282,572
ADJUSTMENTS FOR:
Finance costs
358,700
351,870
Depreciation and impairment of property, plant and equipment
495,463
424,054
MOVEMENTS IN WORKING CAPITAL:
Decrease/(increase) in inventories
1,497,920
(1,158,382)
Increase in trade and other receivables
(1,341,802)
(555,932)
(Decrease)/increase in trade and other payables
(1,063,696)
1,477,866
CASH GENERATED FROM OPERATIONS
480,927
822,048
30
ANALYSIS OF CHANGES IN NET DEBT
1 January 2025
Cash flows
New leases
31 December 2025
£
£
£
£
Cash at bank and in hand
616,533
(39,198)
-
577,335
Bank overdrafts
(2,024,154)
39,160
-
(1,984,994)
(1,407,621)
(38)
-
(1,407,659)
Lease liabilities
(3,996,490)
78,479
(98,981)
(4,016,992)
(5,404,111)
78,441
(98,981)
(5,424,651)
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
30
ANALYSIS OF CHANGES IN NET DEBT
(Continued)
- 35 -
1 January 2024
Cash flows
New leases
31 December 2024
PRIOR YEAR:
£
£
£
£
Cash at bank and in hand
299,677
316,856
-
616,533
Bank overdrafts
(2,180,447)
156,293
-
(2,024,154)
(1,880,770)
473,149
-
(1,407,621)
Lease liabilities
(3,598,056)
-
(398,434)
(3,996,490)
(5,478,826)
473,149
(398,434)
(5,404,111)
31
PRIOR PERIOD ADJUSTMENT

A prior year adjustment has been made in respect of the year ended 31 December 2024. The adjustment relates to stock in transit as at 31 December 2024 that was included in turnover as at 31 December 2024. The stock was not received by the customer until January 2025 and therefore the income should have been recognised in January 2025, on receipt of the goods by the customer. Cost of sales and deferred taxation have also been amended in the year ended 31 December 2024 to reflect the impact of the adjustment.

RECONCILIATION OF CHANGES IN EQUITY
1 January
31 December
2024
2024
Notes
£
£
Equity as previously reported
7,850,326
8,057,036
ADJUSTMENTS TO PRIOR YEAR
Turnover
-
(452,974)
Cost of sales
-
331,147
Deferred taxation
-
30,457
Equity as adjusted
7,850,326
7,965,666
ANALYSIS OF THE EFFECT UPON EQUITY
Retained earnings
-
(91,370)
METELEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
31
PRIOR PERIOD ADJUSTMENT
(Continued)
- 36 -
Reconciliation of changes in profit for the previous financial period
2024
Notes
£
Profit as previously reported
206,710
ADJUSTMENTS TO PRIOR YEAR
Turnover
(452,974)
Cost of sales
331,147
Deferred taxation
30,457
Profit as adjusted
115,340
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