ACCOUNTS - Final Accounts

Operating profit

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

Registered number: 09166246

LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

COMPANY INFORMATION

Directors	P S Davidson
	B M Johnson
	M J Turner (resigned 19 January 2026)
	B J Davidson (appointed 19 January 2026)


Company secretary	M J Phillips


Registered number	09166246


Registered office	59 Imperial Way
	Croydon
	England
	CR0 4RR


Independent auditor	S&W Audit
	Chartered Accountants & Statutory Auditor
	Brockbourne House
	77 Mount Ephraim
	Royal Tunbridge Wells
	TN4 8BS


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10 - 11
Company Balance Sheet	12 - 13
Consolidated Statement of Changes in Equity	14 - 15
Company Statement of Changes in Equity	16
Consolidated Statement of Cash Flows	17 - 18
Consolidated Analysis of Net Debt	19
Notes to the Financial Statements	20 - 41


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

The directors present their strategic report of the company and the Group for the year ended 31 December 2025.

Business review

Growth has remained steady throughout 2025 resulting in its highest ever turnover. Confidence has returned and there has been signs of many big projects being undertaken by both the Private & Public sector.

Turnover increased to £17.3m (2024 - £15.7m) with operating margins of 11.17% (2024 - 13.00%). These margins have levelled out as we have seen material costs stabilize somewhat.

We are continually looking at areas to increase our market share so as to bolster our all round profitability. To this end we acquired a small company (Lion Lift Controls (2026) Ltd) who are in the same market as us but provide regional support (west of England) and also allows us to tap into smaller markets.

The industry per say still, as ever remains strong and we are still front runners for many large and prestigious projects.

Principal risks and uncertainties

In managing the Group the directors monitor the results against the budget and the previous year through monthly management reports and snapshots of the trading result following each period end. Risk management is an important issue to the Group. The key risks to the business include:

Laws and regulation

No new legislation has affected our industry so far. The EN 81-76 (Evac for Lifts) London Plan – BS9792 Autumn 2025, BS9994 Spring 2026 has more timelines and is nearing full release.

EN 81-76:2025 was published in July 2025 and covers guidance for Lift Evacuation. This is set to impact our industry as further consideration will be required for evacuation procedures.

Economic uncertainties

The Government’s hold on inflation is a worry. Employment costs, new SSP rules are sure to impact the business in the future. Middle East tensions are affecting shipping channels and prices from Far East along with the price of oil affecting the whole world markets.

Financial key performance indicators
The group regularly reviews a number of financial and non-financial key performance indicators at both board and operational levels. The group carries out monthly detailed reviews of each operational and support function at which all aspects of each business and key performance indicators are reviewed.
	2025	2024
	£	£

Turnover (£'000s)	17,305	15,700
Gross profit percentage	31.13%	32.14%
Average number of employees	113	106
Average turnover per employees (£'000s)	153	148

Page 1


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Other key performance indicators

The group reviews non-financial KPls on a regular basis in a number of areas:

Health and safety - the group aims to achieve below the year-on-year improvement in accident incidence rate and remain Health and Safety Executive benchmark for the UK.

Customer experience - the group aspires to deliver a high level of customer satisfaction which supporting sustainable long-term growth in the sector is key to most of our customers. Feedback received during the year demonstrated that are fully or mostly satisfied with our services.

Employee welfare - the group strives to attract and retain highly motivated, high-performing teams. The group's employee turnover is low.

This report was approved by the board and signed on its behalf.

P S Davidson

Director

Date: 27 July 2026

Page 2


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

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

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £1,649,851 (2024 -£2,067,952).

The dividends for the year amount to £67,500 (2024 - £615,000).

Directors

The directors who served during the year were:

P S Davidson

B M Johnson

M J Turner (resigned 19 January 2026)

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Page 3


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Auditor

The auditor, S&W Audit (a trading name of S&W Partners Audit Limited), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

P S Davidson

Director

Date: 27 July 2026

Page 4

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

Opinion

We have audited the financial statements of Lester Control Systems (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated and parent Company Balance Sheets, Consolidated and parent Company Statement of Changes in Equity, Consolidated Statement of Cash flows and the 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2025 and of the Group's 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 Group and parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Page 5


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

Other information

The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual report and financial statements. 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 the 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.

Matters on which we are required to report by exception

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.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 3, 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.

Page 6


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained a general understanding of the Group’s and the parent Company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Group’s and parent Company’s industry and regulation.

We understand that the Group and the parent Company complies with the framework through:

∙Outsourcing accounting services, accounts preparation and tax compliance to external experts.

∙Subscribing to relevant updates from external experts, and making changes to internal procedures and controls as necessary.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Group’s and the parent Company’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Group and the parent Company:

∙The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.

∙UK taxation law.

∙British and EU standards regarding lift safety. EN8120-50 (lift shaft regulations), BS5655, EN8171, BSEN12015.

Page 7


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and the parent Company’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

∙Revenue recognition, in particular cut-off and completeness, which is an inherent risk common to owner managed companies.

∙Manipulation of the financial statements, especially transactions with directors and management override, via fraudulent journal entries, particularly as the size of the Company means that there is little opportunity for segregation of duties.

∙As with many owner-managed businesses, family members may be on the Company's payroll and awarded salaries which are not commensurate with their roles.

The procedures we carried out to gain evidence in the above areas included:

∙Testing of revenues recognised after the year-end to verify that they should not have been recognised in the financial statements.

∙Challenging management regarding the nature and appropriateness of unexpected or unusual accounting adjustments.

∙Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times.

∙Reviewing transactions with family members, including salaries, and assessing whether they are at market rates.

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

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.

Matthew Neill BA (Hons) MA FCA (Senior Statutory Auditor)

for and on behalf of

S&W Audit

Chartered Accountants

Statutory Auditor

Brockbourne House

77 Mount Ephraim

Royal Tunbridge Wells

TN4 8BS

31 July 2026

Page 8


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	17,305,693	15,699,136
Cost of sales		(11,918,905)	(10,653,329)
Gross profit		5,386,788	5,045,807
Administrative expenses		(3,457,293)	(3,008,573)
Other operating income	5	3,927	3,135
Operating profit	6	1,933,422	2,040,369
Income from fixed assets investments		-	2,881
Interest receivable and similar income	11	207,442	173,654
Profit before taxation		2,140,864	2,216,904
Tax on profit	12	(466,654)	(130,937)
Profit for the financial year		1,674,210	2,085,967

Profit for the year attributable to:
Non-controlling interests	24,359	18,015
Owners of the parent Company	1,649,851	2,067,952
	1,674,210	2,085,967

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

The notes on pages 20 to 41 form part of these financial statements.

Page 9


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED REGISTERED NUMBER:09166246

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		As restated
	2025	2024
Note	£	£

Fixed assets
Intangible fixed assets	13		41,183		35,775
Tangible fixed assets	14		335,294		227,014
Fixed asset investments	15		3,169,313		2,626,154
			3,545,790		2,888,943
Current assets
Stocks	16	2,062,938		2,217,639
Debtors: amounts falling due within one year	17	2,870,361		2,877,463
Cash at bank and in hand	18	4,783,240		3,936,978
		9,716,539		9,032,080
Creditors: amounts falling due within one year	19	(2,689,188)		(2,971,438)
Net current assets			7,027,351		6,060,642
Total assets less current liabilities			10,573,141		8,949,585
Provisions for liabilities
Deferred taxation	20	(13,209)		(17,307)
Other provisions	21	(145,008)		(108,064)
			(158,217)		(125,371)
Net assets			10,414,924		8,824,214

Page 10


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED REGISTERED NUMBER:09166246

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2025

		As restated
	2025	2024
Note	£	£

Capital and reserves
Called up share capital	22	5,447	5,447
Share premium account	23	88,525	88,525
Capital redemption reserve	23	5,033	5,033
Merger reserve	23	(1,350,000)	(1,350,000)
Profit and loss account	23	11,622,878	10,040,527
Equity attributable to owners of the parent Company		10,371,883	8,789,532
Non-controlling interests		43,041	34,682
		10,414,924	8,824,214

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

P S Davidson

Director

Date: 27 July 2026

The notes on pages 20 to 41 form part of these financial statements.

Page 11


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED REGISTERED NUMBER:09166246

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Fixed asset investments	15		2,468,111		2,468,111
Current assets
Debtors: amounts falling due within one year	17	472,108		95,560
Cash at bank and in hand	18	24,790		219,929
		496,898		315,489
Creditors: amounts falling due within one year	19	(100,144)		(275,130)
Net current assets			396,754		40,359
Total assets less current liabilities			2,864,865		2,508,470


Net assets			2,864,865		2,508,470

Capital and reserves
Called up share capital	22	5,447	5,447
Share premium account	23	88,525	88,525
Capital redemption reserve	23	5,033	5,033
Profit and loss account	23	2,765,860	2,409,465
		2,864,865	2,508,470

Page 12


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED REGISTERED NUMBER:09166246

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2025

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The Company made a profit for the year of £423,895 (2024 - £419,173).

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

P S Davidson

Director

Date: 27 July 2026

The notes on pages 20 to 41 form part of these financial statements.

Page 13

		LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Capital redemption reserve	Other reserves	Merger reserve	Profit and loss account	Equity attributable to owners of parent Company	Non Controlling Interests
	£	£	£	£	£	£	£	£
At 1 January 2024	4,967	-	5,033	74,798	(1,350,000)	8,587,575	7,322,373	34,167

Profit for the year	-	-	-	-	-	2,067,952	2,067,952	18,015
Dividends: Equity capital	-	-	-	-	-	(615,000)	(615,000)	(17,500)
Shares issued during the year	480	-	-	-	-	-	480	-
Transfer between other reserves	-	88,525	-	(88,525)	-	-	-	-
Share based payments	-	-	-	13,727	-	-	13,727	-

								Total equity
								£
At 1 January 2024								7,356,540

Profit for the year								2,085,967
Dividends: Equity capital								(632,500)
Shares issued during the year								480
Transfer between other reserves								-
Share based payments								13,727

At 1 January 2025

5,447

88,525

5,033

(1,350,000)

10,040,527

8,789,532

34,682

Page 14

		LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Comprehensive income for the year
Profit for the year	-	-	-	-	-	1,649,851	1,649,851	24,359
Dividends: Equity capital	-	-	-	-	-	(67,500)	(67,500)	(16,000)
At 31 December 2025	5,447	88,525	5,033	-	(1,350,000)	11,622,878	10,371,883	43,041

At 1 January 2025								8,824,214
Comprehensive income for the year
Profit for the year								1,674,210
Dividends: Equity capital								(83,500)
At 31 December 2025								10,414,924

Page 15


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Capital redemption reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2024	4,967	-	5,033	74,798	2,605,292	2,690,090

Profit for the year	-	-	-	-	419,173	419,173
Dividends	-	-	-	-	(615,000)	(615,000)
Shares issued during the year	480	-	-	-	-	480
Transfer between other reserves	-	88,525	-	(88,525)	-	-
Shared based payments	-	-	-	13,727	-	13,727

At 1 January 2025	5,447	88,525	5,033	-	2,409,465	2,508,470

Profit for the year	-	-	-	-	423,895	423,895
Dividends	-	-	-	-	(67,500)	(67,500)
At 31 December 2025	5,447	88,525	5,033	-	2,765,860	2,864,865

The notes on pages 20 to 41 form part of these financial statements.

Page 16


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

				As restated
			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,674,210	2,085,967
Adjustments for:
Amortisation of intangible assets	13,727	48,874
Depreciation of tangible assets	74,514	67,030
(Profit)/loss on disposal of tangible assets	-	(67,007)
Interest received	(207,442)	(173,654)
Taxation charge	466,654	130,937
Decrease/(increase) in stocks	154,701	(414,002)
Decrease/(increase) in debtors	7,102	(238,715)
(Decrease)/increase in creditors	(305,907)	511,049
Increase/(decrease) in provisions	36,944	(113,848)
Corporation tax (paid)	(447,095)	(728,903)
Share based payment	-	13,727
Net cash generated from operating activities	1,467,408	1,121,455

Cash flows from investing activities
Purchase of intangible fixed assets	(19,135)	(32,878)
Purchase of tangible fixed assets	(182,794)	(84,590)
Sale of tangible fixed assets	-	4,690
Purchase of unlisted and other investments	(1,152,979)	(2,626,154)
Sale of investments	609,820	261,044
Interest received	207,442	173,654
Net cash from investing activities	(537,646)	(2,304,234)

Page 17


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

			As restated
		2025	2024
		£	£


Cash flows from financing activities
Issue of ordinary shares	-	480
Dividends paid	(67,500)	(615,000)
Dividends paid to non-controlling interests	(16,000)	(17,500)
Net cash used in financing activities	(83,500)	(632,020)
Net increase/(decrease) in cash and cash equivalents	846,262	(1,814,799)
Cash and cash equivalents at beginning of year	3,936,978	5,751,777
Cash and cash equivalents at the end of year	4,783,240	3,936,978

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	4,783,240	3,936,978
	4,783,240	3,936,978

The notes on pages 20 to 41 form part of these financial statements.

Page 18


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025 (As restated)	Cash flows	At 31 December 2025
£	£	£

Cash at bank and in hand	3,936,978	846,262	4,783,240

	3,936,978	846,262	4,783,240

The notes on pages 20 to 41 form part of these financial statements.

Page 19


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Lester Control Systems (Holdings) Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number is 09166246. The registered office is 59 Imperial Way, Croydon, England, CR0 4RR.

The principal activity of the Group is the manufacture and supply of lift control equipment and building control panels for heating, ventilation and air-conditioning.

The presentational currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

Page 20


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 21


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is therefore recognised once the goods have been dispatched.

Revenue received in respect of deposits are fully refundable until the goods have entered the design and build phase. Where an order is cancelled part way through, the amount of unfinished work in progress is deemed refundable on the deposit.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Revenue from the provision of services is therefore recognised once the service has been carried out.

2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 22


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.10

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 23


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Software

years

Page 24


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery	-	25%	on reducing balance
Motor vehicles	-	25%	on reducing balance
Fixtures and fittings	-	25%	on reducing balances
Office equipment	-	25%	on reducing balance
Computer equipment	-	25%	on reducing balances
Assets under construction	-		not depreciated

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets under construction are not depreciated and are transferred to the relevant class once ready for use and are then depreciated over their useful economic life.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where Merger Relief is available, the cost of the investment is accounted for at the nominal value of the related equity instrument.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 25


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.20

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

∙at fair value with changes recognised in the Consolidated statement of comprehensive income if

Page 26


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.20

Financial instruments (continued)

the shares are publicly traded or their fair value can otherwise be measured reliably;

∙at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors are required to make judgements, estimates and assumption about the carrying values of assets and liabilities that are not readily apparent from other sources.

The estimates and associated assumptions are based on historical experiences and other factors that are considered 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 key assumptions and other key sources of uncertainty that have a significant effect of the amount recognised in the financial statements are described below:

Warranty provisions

Provisions for damaged or faulty products are calculated and provided for based on historic trends, managements knowledge of products and technological improvements in components. The directors have concluded that the valuations of £145,008 (2024 - £108,064) for provisions are appropriate.

WIP valuation

Work in progress within stock of £460,278 (2024 - £465,840) is estimated at: 55% (2024 - 55%) of the final sales value whilst being assembled; 57% (2024 - 57%) once production is complete; and 63% (2024 - 63%) once the product is tested and awaiting delivery. These estimates broadly reflect gross profit margins on the products.

4.	Turnover
		2025	2024
		£	£

	Turnover	17,305,693	15,699,136

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	16,659,209	15,023,933
Rest of Europe	646,484	675,203
	17,305,693	15,699,136

Page 28


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

5.	Other operating income
		2025	2024
		£	£

	Government grants receivable	3,927	3,135

Depreciation charge	74,514	67,030
Amortisation charge	13,727	48,874
Exchange differences	5,934	(92)
Other operating lease rentals	265,578	287,566
Defined contributions pension	363,446	257,968
Government grants	(3,927)	(3,135)
Share based payments	-	13,727

Fees payable to the Group's auditor for the audit of the consolidated and parent Company's financial statements	49,250	30,050

Fees payable to the Group's auditor in respect of non-audit services	66,400	19,575

Page 29


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	4,857,598	4,517,924	-	13,727
Social security costs	692,592	470,039	-	-
Cost of defined contribution scheme	363,446	275,253	-	-
	5,913,636	5,263,216	-	13,727

The average monthly number of employees, including the directors, during the year was as follows:

	Group	Group	Company	Company
	2025	2024	2025	2024
	No.	No.	No.	No.

Employees	113	106	3	3

9.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	1,015,483	773,328
Group contributions to defined contribution pension schemes	97,132	134,111

	During the year retirement benefits were accruing to 5 directors (2024 -5) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £215,000 (2024 -£179,813).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £31,676 (2024 -£20,000).

10.	Income from investments
		2025	2024
		£	£

	Income from current asset investments	-	2,881

Page 30


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.	Interest receivable
		2025	2024
		£	£

Other interest receivable

207,442

173,654

Corporation tax
Current tax on profits for the year	470,752	96,956
Adjustments in respect of previous periods	-	21,359

Total current tax	470,752	118,315

Deferred tax
Origination and reversal of timing differences	(4,098)	12,622
Total deferred tax	(4,098)	12,622


	Tax on profit	466,654	130,937

Page 31


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.Taxation (continued)

Profit on ordinary activities before tax

2,140,864

2,216,904

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 -25%)	535,216	554,226
Effects of:
Non-tax deductible amortisation of goodwill and impairment	-	7,636
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	35,176	22,259
Adjustments to tax charge in respect of prior periods	-	21,539
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	38,280	(150,729)
Changes in provisions leading to an increase (decrease) in the tax charge	10,450	2,563
Dividends from UK companies	-	(720)
Movement in deferred tax not recognised	(9,727)	(1,651)
Tax deduction arising from exercise of employee options	-	(22,212)
Patent box additional deduction under S357A (2)	(142,741)	(301,974)
Total tax charge for the year	466,654	130,937

Page 32


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Intangible assets
	Group

	Computer software	Goodwill	Total
	£	£	£
Cost
At 1 January 2025	136,788	456,799	593,587
Additions	19,135	-	19,135
At 31 December 2025	155,923	456,799	612,722
Amortisation
At 1 January 2025	101,013	456,799	557,812
Charge for the year	13,727	-	13,727
At 31 December 2025	114,740	456,799	571,539
Net book value
At 31 December 2025	41,183	-	41,183
At 31 December 2024	35,775	-	35,775

Page 33


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Tangible fixed assets
	Group

	Plant and machinery	Motor vehicles	Office equipment	Assets under construction	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2025	382,143	114,746	39,181	-	536,070
Additions	80,189	14,748	7,857	80,000	182,794
At 31 December 2025	462,332	129,494	47,038	80,000	718,864
Depreciation
At 1 January 2025	260,848	25,816	22,392	-	309,056
Charge for the year	49,896	17,576	7,042	-	74,514
At 31 December 2025	310,744	43,392	29,434	-	383,570
Net book value
At 31 December 2025	151,588	86,102	17,604	80,000	335,294
At 31 December 2024	121,295	88,930	16,789	-	227,014

Page 34


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.	Fixed asset investments
	Group

	Unlisted investments	Other fixed asset investments	Total
	£	£	£
Cost or valuation
At 1 January 2025 (As restated)	100,000	2,626,154	2,726,154
Additions	-	1,152,979	1,152,979
Disposals	-	(609,820)	(609,820)
At 31 December 2025	100,000	3,169,313	3,269,313
Impairment
At 1 January 2025	100,000	-	100,000
At 31 December 2025	100,000	-	100,000
Net book value
At 31 December 2025	-	3,169,313	3,169,313
At 31 December 2024 (As restated)	-	2,626,154	2,626,154

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	2,468,111
	At 31 December 2025	2,468,111

	Net book value
	At 31 December 2025	2,468,111
	At 31 December 2024	2,468,111

Page 35


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

	Lester Control Systems Limited	59 Imperial Way, Croydon, England, CR0 4RR	Ordinary	100%
	Sarum Electronics Limited	59 Imperial Way, Croydon, England, CR0 4RR	Ordinary	90%

All subsidiaries have been included within the consolidated financial statements.

16.	Stocks
		Group	Group
		2025	2024
		£	£

Raw materials and consumables	1,602,660	1,751,799
Work in progress (goods to be sold)	460,278	465,840
	2,062,938	2,217,639

17.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	2,578,823	2,405,746	-	-
Amounts owed by group undertakings	-	-	472,108	95,560
Other debtors	80,793	335,334	-	-
Prepayments and accrued income	196,285	124,232	-	-
Tax recoverable	14,460	12,151	-	-
	2,870,361	2,877,463	472,108	95,560

18.	Cash and cash equivalents
		Group	Group As restated	Company	Company As restated
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	4,783,240	3,936,978	24,790	219,929
	4,783,240	3,936,978	24,790	219,929

Page 36


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Trade creditors	1,600,805	1,657,393	-	-
Amounts owed to group undertakings	-	-	100,013	-
Corporation tax	80,881	57,224	-	-
Other taxation and social security	742,852	590,499	-	-
Other creditors	28,516	420,838	131	275,130
Accruals and deferred income	236,134	245,484	-	-
	2,689,188	2,971,438	100,144	275,130

20.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(17,307)
	Charged to profit or loss	4,098
	At end of year	(13,209)

		Group	Group
		2025	2024
		£	£

Accelerated capital allowances	(29,743)	(23,391)
Pension scheme liabilities	16,534	6,084
	(13,209)	(17,307)

Page 37


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Provisions
	Group

		Warranty provision
		£

	At 1 January 2025	108,064
	Charged to profit or loss	36,944
	At 31 December 2025	145,008

The warranty provision relates to the costs of faulty item returns. The timing of payment of these amounts is uncertain and therefore management consider it prudent to include them as a provision.

Page 38


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

4,947 (2023 - 4,947) Ordinary shares of £1.00 each	4,947	4,947
500 (2024 -500) Ordinary B shares of £1.00 each	500	500

	5,447	5,447

23.

Reserves

Share premium account

The share premium account represents the amount received by the Company over and above the nominal value of its shares. This reserve is not distributable by way of dividend.

Capital redemption reserve

A non-distributable reserve into which amounts are transferred following the redemption or purchase of a Company's own shares.

Merger reserve

Merger reserve arose following the group reconstruction whereby Lester Control Systems (Holdings) Limited combined with Lester Control Systems Limited.

Profit and loss account

Profit and loss account represents retained profits and losses.

Page 39


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

24.	Share-based payments
	The Group has an Enterprise Management Incentive Scheme set up in 2019 for two directors. Options are exercisable at a pre-determined price and have vested at the year end date. The options do not include any performance conditions. The options are settled in equity once exercised. The options lapse if they remain unexercised after a period of 10 years from the date of grant. Options are forfeited if the director leaves the Group before the options are exercised. Details of the changes during the year and value of options at the balance sheet date area as follows:
		Weighted average exercise price (pence) 2025	Number 2025	Weighted average exercise price (pence) 2024	Number 2024

Outstanding at the beginning of the year	-	100	480
Exercised during the year	-	(100)	(480)
Outstanding at the end of the year	-		-

At the year end there were no options outstanding.

25.	Commitments under operating leases
	At 31 December 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

Not later than 1 year	330,920	236,002
Later than 1 year and not later than 5 years	929,200	722,229
Later than 5 years	126,250	277,750
	1,386,370	1,235,981

26.Other financial commitments and guarantees

The Group has a Bonds, Guarantees, Indemnities & Standby LC's facility of £60,000.

Barclays Bank Plc holds a guarantee for £60,000 on the account of a subsidiary in favour of HMRC.

Page 40


LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

27.	Prior year adjustment

The directors have identified that in the prior year there was £1,078,697 held in a 95-day fixed-term deposit account which was inappropriately recognised as cash at bank. As the balance was not readily available the 2024 balance has been restated to be included within fixed asset investments. There is no impact on profit.

28.	Transactions with directors
		2025	2024
		£	£


Balance brought forward	(212,705)	46,960
Advances in the year	256,597	-
Repayments in the year	-	(249,755)
Amounts repaid or written off	-	(9,910)
Balance carried forward	43,892	(212,705)

Amounts due from the directors are held within other debtors (2024 - other creditors) and are interest-free and repayable on demand.

29.

Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related party transactions with wholly owned subsidiaries within the group.

At the balance sheet date the Company owed £101,569 (2024 - was owed £73,007) to a subsidiary which is not wholly owned.

Key management personnel received remuneration totalling £1,705,381 (2024 - £1,559,143).

Close family members of key management personnel received remuneration of £47,674 (2024 - £116,001), which is higher than the market-rate for their roles.

30.	Controlling party

At the balance sheet date, the ultimate controlling party was Mr P S Davidson, a director. At the date of approval of the financial statements, the ultimate controlling party is Mr B Davidson, a director of Lester Controls Systems (Group) Limited, which now owns the Company.

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