REGISTERED NUMBER: 02113767 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

STULZ U.K. LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Income Statement

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

M Blackmore

A H N Fens

J Stulz

SECRETARY:

M Blackmore

REGISTERED OFFICE:

Unit 64 Barwell Business Park

Leatherhead Road

Chessington

Surrey

KT9 2NY

REGISTERED NUMBER:

02113767 (England and Wales)

AUDITORS:

GBJ Financial Limited

Sterling House

27 Hatchlands Road

Redhill

Surrey

RH1 6RW

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

REVIEW OF BUSINESS

The principal activity of the company continues to be that of buying, selling, commissioning and servicing air conditioning equipment, primarily of the Stulz brand and primarily to the Data Centre and Telecommunications markets.

The turnover is derived nearly exclusively from sales within the United Kingdom. The company has one shareholder, Stulz GmbH, Hamburg, Germany, holding the entire share capital of £214,000. The company does not carry out research and development activities.

Financial position

The companyfs financial position remains strong, with a healthy balance sheet and sufficient cash to support ongoing operations.

Results of operations

Turnover has risen by £0.02 million (0.11%) this year to £13.6 million. Gross profit has reduced slightly to £4 million with the gross profit margin falling from 31.31% to 29.61%. Administrative expenses have increased by £0.4 million (12.93%) to £3.75 million. Net profit before tax has fallen by £0.8million (89%) to £0.1 million.

Future developments

Looking ahead, the following factors underpin a robust outlook:

- Strong position within the data centre cooling market

- High technical expertise in precision climate control

- Long.term relationships with major data centre operators

- Stable recurring revenue from service contracts

The company has an active service department attracting revenue from service, maintenance contracts and spare part sales to achieve and maintain customer satisfaction.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a highly regulated and diverse business environment. The Directors and management of the company therefore perform regular reviews of business

Liquidity risk

Liquidity risk arises from the company's management of working capital. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due. At the end of the financial year, projections prepared for the Board of Directors indicated that the company expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances. The company also seeks to reduce liquidity risk by ageing forward rate contracts where possible (which is further discussed in the "exchange rate risk" section below).

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to provide funds for the company's operations and to finance the company's operations. The liquidity of the business is regularly reviewed by the Directors to ensure that sufficient resources are maintained to fund the company's transactions.

Bank balances are managed by maintaining a balance between the continuity of funding and flexibility through the use of money market facilities where funds are available. Trade debtors credit and cash flow risks are managed by keeping a tight control on the company's credit control regime and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Interest rate risk

The company manages its cash and borrowing requirements to maximize interest income and minimise interest expenses, whilst ensuring that sufficient resources are maintained to meet the operating needs of the business.

Foreign currency risk

A substantial proportion of the company's purchases are undertaken in Euros and the company is therefore exposed to exchange rate risk in relation to those transactions. The Directors manage this risk and look to mitigate the effect of exchange rate fluctuations through the use of hedging and foreign exchange forward contracts as appropriate.

Stulz UK has taken proactive steps to minimise the potential impact on our Customers, as a result of the United Kingdom leaving the European Union. These steps include but are not limited to, increasing component stock levels, working with our suppliers and putting plans in place with our European supply chain. These steps will maximise our chance to maintain continuity of supply to our valued customers.

However, Stulz UK is not insulated from the effects of Brexit and due to the continued level of uncertainty that surrounds the issue, there may be some material impact on Stulz UK's costs or supply of products or services. With this in mind we are looking to maintain a close level of communication with our customers to ensure that the pricing and lead time inhumation is accurate.

Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales and it is the company's policy to assess the credit risk of new customers before entering contracts. Debtor balances are therefore monitored on an ongoing basis and provision is made for doubtful debts wherenecessary.

Investments of cash surpluses and derivative instruments are only made through banks and companies which have sufficient credit ratings according to the Board of Directors.

Operating risk

The Directors will regularly review the operation of the business and have put management in place to ensure that operating systems and internal controls are adequate. Risks are identified, assessed and appropriate remedial action decided upon by the Directors as appropriate.

ON BEHALF OF THE BOARD:

M Blackmore - Director

1 April 2026

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

DIVIDENDS

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

RESEARCH AND DEVELOPMENT

The company does not carry out any research and development activities.

DIRECTORS

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

A H N Fens

J Stulz

Other changes in directors holding office are as follows:

M Blackmore - appointed 8 September 2025

B A Leonard - resigned 31 July 2025

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all businesses the company faces risks and uncertainties. The Directors adopt prudent policies to minimise risks and are actively involved in reducing the effects of any adverse circumstances which might arise. Further details of the risks faced by the company are outlined in the strategic report.

KEY PERFORMANCE INDICATORS

Financial position, financial performance and liquidity

The financial position of the company remains strong with a robust balance sheet and adequate cash to finance operations despite the recent coronavirus pandemic and Brexit agreement. While both these events undoubtedly had an effect on the business with a drop in turnover and return on capital employed, the directors have taken (and continue to take) appropriate action to safeguard the company's assets and minimise the impact to its customers, suppliers and other stakeholders.

There were no capital commitments as at 31 December 2025 or 2024.

There have been no significant post-balance sheet events that require disclosure.

Financial and non-financial key performance indicators

2025

2024

Gross profit/ ration

29.61%

31.31%

Return of capital employed

41.11%

29.99%

Asset utilisation

172.65

171.74

Liquidity

1.40

1.52

Non-financial

Non.financial indicators include service response times, system reliability, customer satisfaction and project delivery performance.

Environmentally responsible and Health & Safety conscious, the company has put in place environmental policies and procedures. The company takes its responsibility of health and safety of its staff and sub-contractors seriously and irrespective of the current wave of legislation has in place safety training, risk assessments and method statements to minimise the risk of accidents.

The results for the period were considered satisfactory by the directors. The financial position of the company at the year end remained robust with adequate cash retained to finance outgoing operations for the foreseeable future.

No dividends were declared in the year (2024: £500,000).

DISCLOSURE IN THE STRATEGIC REPORT

Items required under Schedule. 7 of the Companies Act to be disclosed in the directors' report may be contained within the strategic report

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 auditors are aware of that information.

AUDITORS

The auditors, GBJ Financial Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Blackmore - Director

1 April 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Reviewing minutes of meetings between those charged with governance.

- Challenging assumptions and judgements made by management in determining their significant accounting estimates.

- Challenging why certain items are excluded or included from the underlying profit.

- Reviewing journal entries for appropriateness and to identify any unusual accounting entries.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Alison Palmer (Senior Statutory Auditor)

for and on behalf of GBJ Financial Limited

Sterling House

27 Hatchlands Road

Redhill

Surrey

RH1 6RW

1 April 2026

TURNOVER

3

13,621,248

13,605,919

Cost of sales

9,588,345

9,345,461

GROSS PROFIT

4,032,903

4,260,458

Administrative expenses

3,936,837

3,454,228

96,066

806,230

Other operating income

4

(26,410

)

53,064

OPERATING PROFIT

7

69,656

859,294

Interest receivable and similar income

30,950

34,219

100,606

893,513

Interest payable and similar expenses

8

4,293

-

PROFIT BEFORE TAXATION

96,313

893,513

Tax on profit

9

50,510

245,645

PROFIT FOR THE FINANCIAL YEAR

45,803

647,868

FIXED ASSETS

Tangible assets

11

132,909

79,225

CURRENT ASSETS

Stocks

12

126,018

136,984

Debtors

13

5,257,717

3,249,011

Cash at bank

2,372,468

3,122,553

7,756,203

6,508,548

CREDITORS

Amounts falling due within one year

14

5,548,777

4,280,957

NET CURRENT ASSETS

2,207,426

2,227,591

TOTAL ASSETS LESS CURRENT LIABILITIES

2,340,335

2,306,816

PROVISIONS FOR LIABILITIES

16

134,414

146,698

NET ASSETS

2,205,921

2,160,118

CAPITAL AND RESERVES

Called up share capital

17

214,000

214,000

Retained earnings

18

1,991,921

1,946,118

SHAREHOLDERS' FUNDS

2,205,921

2,160,118

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2026 and were signed on its behalf by:

M Blackmore - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

214,000

1,798,250

2,012,250

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

647,868

647,868

Balance at 31 December 2024

214,000

1,946,118

2,160,118

Changes in equity

Total comprehensive income

-

45,803

45,803

Balance at 31 December 2025

214,000

1,991,921

2,205,921

Cash flows from operating activities

Cash generated from operations

1

(472,041

)

724,789

Interest paid

(4,293

)

-

Tax paid

(176,786

)

(68,859

)

Net cash from operating activities

(653,120

)

655,930

Cash flows from investing activities

Purchase of tangible fixed assets

(140,911

)

(17,613

)

Sale of tangible fixed assets

12,996

65,310

Interest received

30,950

34,219

Net cash from investing activities

(96,965

)

81,916

Cash flows from financing activities

Equity dividends paid

-

(500,000

)

Net cash from financing activities

-

(500,000

)

(Decrease)/increase in cash and cash equivalents

(750,085

)

237,846

Cash and cash equivalents at beginning of year

2

3,122,553

2,884,707

Cash and cash equivalents at end of year

2

2,372,468

3,122,553

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

2025

2024

£

£

Profit before taxation

96,313

893,513

Depreciation charges

53,612

40,021

Loss on disposal of fixed assets

12,215

8,986

Finance costs

4,293

-

Finance income

(30,950

)

(34,219

)

135,483

908,301

Decrease in stocks

7,086

13,941

Increase in trade and other debtors

(2,008,706

)

(2,437

)

Increase/(decrease) in trade and other creditors

1,394,096

(195,016

)

Cash generated from operations

(472,041

)

724,789

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,372,468

3,122,553

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,122,553

2,884,707

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

3,122,553

(750,085

)

2,372,468

3,122,553

(750,085

)

2,372,468

Total

3,122,553

(750,085

)

2,372,468

1.	STATUTORY INFORMATION

Stulz U.K. Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

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

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

Critical judgements

The following critical judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Treatment of leases

Determine whether leases entered into by the company either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Tangible fixed assets

Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life-cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Regular reviews are carried out to determine whether there are indicators of impairment of the company's tangible fixed assets.

Key sources of estimation uncertainty

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

Warranty provisions

The company measures warranty provisions at the Directors' best estimate of the amount required to settle the obligation at the balance sheet date, discounted where the time value of money is considered material. These estimates take account of available information, historical experience and the likelihood of different possible outcomes. Both the amount and the maturity of these liabilities could be different from those estimated.

Turnover

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

Tangible fixed assets

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

The following depreciation rates have been used:

Leasehold improvements: 20% straight line

Fixtures, fittings and equipment: 25% reducing balance/ 33.3% straight line

Motor vehicles: 17.5% reducing balance

Stocks

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

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

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Contract sales

9,362,481

7,819,722

Spare sales and service work

4,258,767

5,786,197

13,621,248

13,605,919

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

13,347,747

13,603,593

Europe

273,501

2,326

13,621,248

13,605,919

Turnover represents amounts receivable for buying, servicing and commissioning of air conditioning equipment net of VAT and trade discounts.

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.

Revenue from maintenance contracts is recognised on a straight line basis over the life of the contract. Amounts relating to contract periods after the balance sheet date is deferred, to be released in the following accounting period.

Revenue from long-term contracts for the design and installation of air conditioning equipment is recognised on the stage of completion method, where costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, manly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Profits are recognised at a constant rate across the life of a contract and, if it becomes evident that any contract will become loss-making, this loss is recognised to the profit and loss account immediately. Where the outcome of a contract cannot be measured reliably revenue is recognised only to the extent that the expenses recognised will be recovered.

4.	OTHER OPERATING INCOME

2025

2024

£

£

Exchange gains

(26,410

)

53,064

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,125,247

3,127,152

Social security costs

411,130

394,803

Other pension costs

232,339

241,223

3,768,716

3,763,178

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

2025

2024

Administrative

7

6

Service

20

20

Service administrative

10

11

Sales

4

5

Sales support

8

9

49

51

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

249,794

189,239

Information regarding the highest paid director for the year ended 31 December 2025 is as follows:

2025

£

Emoluments etc

200,371

7.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

306,991

249,333

Depreciation - owned assets

62,016

40,021

Loss on disposal of fixed assets

12,215

8,986

Auditors' remuneration

31,500

19,000

Foreign exchange differences

26,410

(53,064

)

Other audit work- corporation tax

100

100

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

4,293

-

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

50,510

245,645

Tax on profit

50,510

245,645