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

Kannegiesser UK Limited concludes 2025 with a solid trading performance despite the continued national and international challenges affecting all businesses. Domestic policy changes, Brexit‑related administration, and ongoing global conflicts have contributed to a complex operating environment. Our expanded UK factory facilities have proved valuable, providing capacity for storing finished products and enabling bulk purchasing to manage supplier pricing effectively.

As a business with extensive EU trade, Brexit continues to have a significant impact. We must still comply with evolving EU legislation and regulatory requirements. Our Brexit project team monitors legislative developments, working closely with internal teams, suppliers, carriers, and customers to ensure compliance and continuity. This has included ongoing staff training, increased stockholding, and active communication with customers to maintain project delivery standards.

We have reviewed our supply chains to minimise disruption from global conflicts. Recent escalations across the wider Middle East, such as attacks on commercial vessels near the Strait of Hormuz, regional tensions involving Israel and Iran, and associated airspace restrictions, have increased uncertainty and created operational challenges for global logistics and overseas installations. These pressures continue to affect energy costs, insurance premiums, shipping routes, and transit times, driving up overall operating costs.

We remain committed to our sustainability policy, co-ordinating with our German parent company’s methodology. Our internal sustainability team continues to review and reduce both internal and external emissions. Like many medium‑sized businesses, we face increasing sustainability‑related obligations, including the EU’s Carbon Border Adjustment Mechanism (CBAM). We also monitor developments in the Corporate Sustainability Reporting Directive (CSRD), which continues to influence the reporting we provide to our parent company. In the UK, emerging Sustainability Disclosure Requirements are shaping expectations for clearer, more consistent ESG reporting, driven by customers and stakeholders across the value chain.

The Company maintains a strong financial foundation and a capable and experienced team. The addition of new talent into key roles further strengthens our ability to address future challenges. We remain vigilant and adaptable in our planning, continuing to invest carefully in the business, particularly in research and development for both existing and new products.

The Company operates in the following key business streams:

1. Importing – Importing Kannegiesser products from Germany for the UK market.

2. Manufacturing – Producing the Supertrack Monorail system in the UK for distribution domestically and internationally.

3. Facilities Management – UK-based service provision.

4. Support for Revolutions Towel Processing Machines

All business streams are supported by comprehensive after‑sales service and spare parts provision.

The Company delivered a profit in the UK for 2025. Profitability remained strong despite economic challenges, and we will continue to invest in the business to support sustainable growth.

Looking ahead to 2026, we anticipate a new range of challenges. These include the further development of new markets, increased operational demands associated and continuing pressures within global supply chains. Additionally, evolving economic, political, and environmental conditions may introduce further uncertainties requiring proactive management.

With higher turnover and increased stability across operations, the Company is now performing at levels exceeding those achieved before the pandemic. Continued investment in our manufacturing capability has delivered measurable improvements in both product quality and delivery performance, further strengthening our position as we enter 2026.

The retained profit for the year before tax was £2.9m, and £450k was invested in fixed assets. At year-end, Company gross assets totalled £39.7m, and net assets stood at £16.8m, representing a 14% increase on 2024.

Company performance is monitored by comparing monthly actual results with forecasts. Monthly end‑of‑year projections are reviewed, and variances are analysed. Key performance indicators include:

• Monthly sales and order book position

• Gross margin (total sales less direct cost of goods sold)

• Contract‑specific margins after direct costs

• Cashflow analysis

• Liquidity ratios

• Departmental performance metrics

• Daily liquidity reporting

In 2025, the Company maintained strict control over distribution and administrative costs despite a challenging economic backdrop.

The Company's key objective is to provide products and services that meet its customers' needs in its chosen markets, and to deliver a sustainable future for the Company, its employees and its shareholders.

The Board recognises its duty to promote the long‑term success of the Company for the benefit of its shareholders while having full regard to the matters set out in section 172 of the Companies Act 2006. In doing so, the Board carefully considers the impact of its decisions on the Company’s employees, customers, suppliers, the environment, and the wider community. These principles are embedded in the Company’s culture and reflected in the values upheld through our ESG Committee.

The Board meets regularly to review corporate strategy, operational performance, and progress against key objectives. As part of this oversight, the Board receives detailed updates on financial and non-financial metrics, including environmental, social, and governance considerations central to our long‑term sustainability.

The Board is committed to responsible and ethical business conduct. It sets the tone for integrity across the organisation, ensuring that management operates to the standards expected of a leading engineering and service provider. Principal risks and uncertainties, including those relating to safety, compliance, environmental impact, and supply‑chain resilience, are reviewed routinely to support informed decision‑making and robust governance.

Our workforce is fundamental to the Company’s success. We strive to create an environment in which employees feel valued, supported, and able to contribute to continuous improvement. Communication channels between management, employees, and the Board encourage open dialogue, allowing feedback and concerns to be raised and acted upon.

We expect all employees to uphold the Company’s values and ESG commitments. Performance, conduct, training needs, and career development are monitored, fostering a culture of professionalism, safety, and accountability. Where actions fall short of our standards, appropriate steps are taken to maintain a respectful and compliant workplace.

Delivering exceptional service remains central to our purpose. Our customers depend on us for expertise, reliability, and technical innovation, and we seek to build long‑standing, trusted partnerships. The Board takes into account customer feedback and future industry needs when shaping the Company’s strategic direction, ensuring that our solutions continue to support operational efficiency and sustainability within the markets we serve.

Strong supplier relationships are essential to our ability to deliver high‑quality products, engineering solutions, and after‑sales support. We work collaboratively with key suppliers to uphold standards of quality, ethical conduct, and environmental responsibility. The Board recognises the importance of supply‑chain transparency and continues to support efforts that align our procurement practices with our ESG values.

The Company acknowledges its responsibility to minimise environmental impact where practicable. The Board considers energy efficiency, waste reduction, and sustainable working practices in its decisions. Through the ESG Committee, we continue to explore opportunities to support cleaner operations, responsible resource use, and wider industry sustainability objectives.

We also recognise the role we play within our local communities and seek to contribute positively through responsible operations, charitable involvement, and support for local initiatives where appropriate.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of the design and manufacture of industrial laundry equipment.

The results for the year are set out on page 10.

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

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

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

The company did not include disclosures on its emissions, energy consumption or energy efficiency activities in the prior year financial statements and so comparative disclosures are not included.

We have followed the UK Streamlined Energy and Carbon Reporting (SECR) requirements and the GHG Protocol Corporate Standard. FY2025 uses IPCC AR6 GWPs. The Directors’ Report presents Scope 2 on a location‑based basis only; any market‑based figures and supplier certificates are retained. Public EV charging for rental cars paid by the company (119 kWh) is treated as Scope 3 Category 6 (business travel) and is not reported in statutory Scope 1 or 2.

The chosen intensity measurement ratio is total gross emissions (Scopes 1 + 2, location‑based) per employee (tCO₂e/FTE).

Optimised building services (HVAC/BMS controls and scheduling); targeted lighting and small‑power improvements; continued fleet efficiency/driver initiatives; behavioural programmes (switch‑off, low‑print defaults, waste segregation); and circular‑packaging measures in outbound logistics.

The directors are responsible for preparing the annual report 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

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

We have audited the financial statements of Kannegiesser UK Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

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

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Kannegiesser UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Beaumont Road, Banbury, Oxfordshire, United Kingdom, OX16 1QZ.

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

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Herbert Kannegiesser GmbH. These consolidated financial statements are available from Herbert Kannegiesser GmbH, Kannegiesser Ring 7, 32602 Vlotho, Germany.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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 contracts for the provision of maintenance services is recognised over the period of the contract.

Long term contracts

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.

Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred. Tax credits received in relation to these activities are recognised within administrative expenses.

Intangible assets acquired as part of an acquisition are capitalised at their fair value where this can be measured reliably. Concessions, patents, licenses and trademarks purchased by the Company are amortised to nil by equal annual instalments over their useful economic lives of 10 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example, land is treated separately from buildings.

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:

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 credited or charged to profit or loss.

The company assesses at each reporting date whether tangible assets are impaired.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in brining them to their existing location and condition.

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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment costs in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

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

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

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

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

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

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

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

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

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

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

The Company operates a defined contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

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

Transactions in foreign currencies are translated to the company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.

Related parties

The Company is a wholly-owned subsidiary of Herbert Kannegiesser GmbH. The Company has taken advantage of the exemption included in FRS102 from disclosing transactions with entities which form part of the Herbert Kannegiesser GmbH group.

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.

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.

Determining the valuation of construction contracts requires judgement regarding the stage of completion of jobs at the year end. The judgements are based on the proportion of costs incurred to date, surveys of work performed and confirmations of completion of a physical proportion of the contract work.

There is also judgement involved in the assessment of total expected contract values and costs. Management takes a prudent approach in their assessment.

The valuation of warranty provisions requires judgement regarding the estimated future costs of parts currently under warranty. The judgements are based on previous costs incurred in relation to warranties.

The Company's turnover and profit in the current and prior years has been generated from customers based in the UK, Europe and the Rest of the World.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The movement in stock provision amounted to £468,877 (2024: £299,460).

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

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.

Bank gurantees and securities are as follows:

1) Gurantee dated 17 April 2018 in favour of H M Revenue and Customs for £50,000.

2) Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 01 November 2012.

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

Amounts contracted for but not provided in the financial statements:

In March 2026, Kannegiesser postponed the progress of a job that was due to take place in Dubai as a result of the escalation of conflict in the Middle East.

At the balance sheet date, Kannegiesser had recognised a profit of £403,803 on this job.

At this point, there is uncertainty surrounding the completion of the job. Due to this uncertainty, the financial impact cannot be reliably estimated.

As the circumstances resulting in the postponement of this job arose after the reporting date, this is treated as a non-adjusting event.

The Company has taken advantage of the exemption included in FRS102 from disclosing transactions with entities which form part of the Herbert Kannegiesser GmbH group.

Included within debtors are amounts owed by companies within the Herbert Kannegiesser GmbH group amounting to £4,268,884 (2024: £4,178,977)

Included within creditors are amounts owed to companies within the Herbert Kannegiesser GmbH group amounting to £4,929,420 (2024: £4,996,211).

The Company is a wholly-owned subsidiary undertaking of Herbert Kannegiesser GmbH which is the ultimate parent company incorporated in Germany.

The smallest and largest group in which the results of the Company are consolidated is that headed by Herbert Kannegiesser GmbH.

The consolidated financial statements of this group are available to the public and may be obtained from Herbert Kannegiesser GmbH, Kannegiesser Ring 7, 32602 Vlotho, Germany.