REGISTERED NUMBER: 00731549 (England and Wales)

GUTTRIDGE LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

6

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

to

13

Notes to the Financial Statements

14

to

23

DIRECTORS:

C Chen

M D Mittasch

S P Spratt

SECRETARY:

S P Spratt

REGISTERED OFFICE:

Wardentree Park

Pinchbeck

Spalding

Lincolnshire

PE11 3UU

REGISTERED NUMBER:

00731549 (England and Wales)

SENIOR STATUTORY AUDITOR:

Sally-Anne Hurn FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

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

REVIEW OF BUSINESS

Improved trading conditions in 2025 resulted in an increase in revenue and profitability. The mix between domestic and international sales changed significantly in 2025 as a result of ongoing activities to support a variety of customers in targeted geographic and vertical markets. The company continues to trade on the strengths of its technical capability, employee skills, capability and knowledge.

PRINCIPAL RISKS AND UNCERTAINTIES

Guttridge Limited operates in a variety of markets and manages the risks inherent in its activities. The company seeks to mitigate exposure to all forms of risk, both internal and external, where practical through delegated authority management, cross functional contract review, the use of common visual metrics and employee development. Where practical, risk is transferred to insurers if deemed cost effective.

External risks include political and economic conditions, actions of global competitors, the effect of legislation or other regulatory action, foreign exchange, raw material prices and the impact of conflicts in Ukraine and Gaza and global political uncertainty over trade tariffs.

Internal risks include investment in new products and technologies, controls failure, warranty and inability to supply on time.

FUTURE DEVELOPMENTS

Guttridge Limited will continue to pursue its core activities and seek new business opportunities in both the UK and overseas. We are committed to investing in the development of existing employees and continue to bring in skilled and capable people to support the business expansion. Our on-going investment into bulk solids handling capability, internally and with external research institutions, continues.

KEY PERFORMANCE INDICATORS

The key performance indicators are sales, profit and cash generation which are closely monitored throughout the year and measured and managed against pre-set targets.

ON BEHALF OF THE BOARD:

S P Spratt - Director

2 April 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the design and manufacture of materials handling machinery for the Animal feed, Cereals, Pet Foods, Chemicals, Biomass, Recycling, Minerals, Food and Pharmaceutical industries and subcontract sheet metal fabrication work.

DIVIDENDS

During the year, no interim dividends were paid.

The directors recommend that no final dividend be paid. The total distribution of dividends for the year ended 31 December 2025 is therefore nil (2024 - nil).

DIRECTORS

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

C Chen

M D Mittasch

S P Spratt

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

S P Spratt - Director

2 April 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as valuation of stock and warranty provisions, as well as the risk of inappropriate journal entries to manipulate profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive testing on accounting estimates, including reviewing the method used by management to make those estimates, re-performing the calculation, and reviewing the outcome post year-end.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management, and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

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

Sally-Anne Hurn FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

2 April 2026

TURNOVER

3

17,309,398

12,333,846

Cost of sales

12,789,804

8,582,860

GROSS PROFIT

4,519,594

3,750,986

Administrative expenses

4,172,449

4,020,552

OPERATING PROFIT/(LOSS)

5

347,145

(269,566

)

Interest receivable and similar income

4,133

5,866

351,278

(263,700

)

Interest payable and similar expenses

6

169,788

186,587

PROFIT/(LOSS) BEFORE TAXATION

181,490

(450,287

)

Tax on profit/(loss)

7

109,649

(166,935

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

71,841

(283,352

)

PROFIT/(LOSS) FOR THE YEAR

71,841

(283,352

)

OTHER COMPREHENSIVE INCOME

Revaluation of land and buildings

-

121,710

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

121,710

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

71,841

(161,642

)

FIXED ASSETS

Tangible assets

8

4,761,345

4,941,481

CURRENT ASSETS

Stocks

9

1,522,139

2,139,479

Debtors

10

2,762,319

2,498,210

Cash at bank and in hand

5,922

181,579

4,290,380

4,819,268

CREDITORS

Amounts falling due within one year

11

3,278,692

3,665,445

NET CURRENT ASSETS

1,011,688

1,153,823

TOTAL ASSETS LESS CURRENT LIABILITIES

5,773,033

6,095,304

CREDITORS

Amounts falling due after more than one year

12

(1,606,897

)

(2,099,705

)

PROVISIONS FOR LIABILITIES

17

(259,432

)

(160,736

)

NET ASSETS

3,906,704

3,834,863

CAPITAL AND RESERVES

Called up share capital

18

9,822

9,822

Revaluation reserve

19

1,413,772

1,413,772

Capital redemption reserve

19

3,078

3,078

Retained earnings

19

2,480,032

2,408,191

SHAREHOLDERS' FUNDS

3,906,704

3,834,863

The financial statements were approved by the Board of Directors and authorised for issue on 2 April 2026 and were signed on its behalf by:

S P Spratt - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

9,822

2,691,543

1,292,062

3,078

3,996,505

Changes in equity

Total comprehensive income

-

(283,352

)

121,710

-

(161,642

)

Balance at 31 December 2024

9,822

2,408,191

1,413,772

3,078

3,834,863

Changes in equity

Total comprehensive income

-

71,841

-

-

71,841

Balance at 31 December 2025

9,822

2,480,032

1,413,772

3,078

3,906,704

Cash flows from operating activities

Cash generated from operations

1

481,163

774,476

Interest paid

(102,718

)

(109,803

)

Interest element of hire purchase payments paid

(67,070

)

(76,784

)

Tax paid

54,603

(43,649

)

Net cash from operating activities

365,978

544,240

Cash flows from investing activities

Purchase of tangible fixed assets

(146,122

)

(463,999

)

Sale of tangible fixed assets

-

44,000

Interest received

4,133

5,866

Net cash from investing activities

(141,989

)

(414,133

)

Cash flows from financing activities

Loan repayments in year

(168,641

)

(151,615

)

Capital repayments in year

(267,174

)

(286,900

)

Net cash from financing activities

(435,815

)

(438,515

)

Decrease in cash and cash equivalents

(211,826

)

(308,408

)

Cash and cash equivalents at beginning of year

2

181,579

489,987

Cash and cash equivalents at end of year

2

(30,247

)

181,579

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

181,490

(450,287

)

Depreciation charges

326,257

309,304

Loss on disposal of fixed assets

-

758

Finance costs

169,788

186,587

Finance income

(4,133

)

(5,866

)

673,402

40,496

Decrease/(increase) in stocks

617,340

(793,642

)

(Increase)/decrease in trade and other debtors

(353,122

)

750,858

(Decrease)/increase in trade and other creditors

(456,457

)

776,764

Cash generated from operations

481,163

774,476

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

5,922

181,579

Bank overdrafts

(36,169

)

-

(30,247

)

181,579

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

181,579

489,987

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

181,579

(175,657

)

5,922

Bank overdrafts

-

(36,169

)

(36,169

)

181,579

(211,826

)

(30,247

)

Debt

Finance leases

(1,197,115

)

267,174

-

(929,941

)

Debts falling due

within 1 year

(209,726

)

168,641

(206,908

)

(247,993

)

Debts falling due

after 1 year

(1,169,764

)

-

206,908

(962,856

)

(2,576,605

)

435,815

-

(2,140,790

)

Total

(2,395,026

)

223,989

-

(2,171,037

)

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Related party exemption

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.

Significant judgements and estimates

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

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

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Stock - Work in progress

Work in progress includes estimates in respect of labour and overhead costs. This is sensitive to changes in assumptions in relation to applicable overheads and production hours. The calculation of work in progress is consistently applied and reviewed for appropriateness.

(ii) Warranty provisions

Expected warranty claims is a subjective area and fluctuates year on year. This involves managements judgement in respect of known conditions and average claim rate in order to apply an appropriate provision.

Turnover

Sales are recognised when control of goods has transferred to its customer, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 30 to 90 days, which is consistent with market practice.

A receivable (financial asset) is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due.

Revenue from the rendering of services and construction contracts is recognised based on the stage of completion of the contracted activity over the course of the contract. Stage of completion is estimated based on agreed trigger points with the customer.

Tangible fixed assets

Freehold land and buildings are initially recognised at cost. Freehold land and buildings are subsequently carried at the revalued amount less accumulated impairment losses. As the residual value is deemed to be equal to the revalued amount no depreciation is currently being provided on this class of assets.

All other items of plant and machinery are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.

Freehold land and buildings

Depreciation not provided.

Plant and machinery

25% on written down value & 12.5%, 20% & 50% on cost

Any aggregate surplus or temporary deficit arising from a change in valuation is transferred to a revaluation reserve. Any impairments are written off to the income statement.

The part of the annual depreciation charge on revalued assets which relates to the surplus is transferred from the revaluation reserve to retained earnings.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value including an element of profit recognised to the stage of completion at the year end.

Cost of finished goods and work in progress includes overheads appropriate to the stage of manufacture. Net realisable value is based upon estimated selling price less further costs to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.

Contracted work in progress stocks are recognised based on stage of completion with the appropriate levels of contract revenue and contract costs recognised in the profit and loss account for the period. The balancing cost figure is then included in stock. Work performed to date is valued using the percentage of completion method as prescribed under FRS 102.

Financial instruments

The company has adopted the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest.

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. Accounts 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

Hire purchase and leasing commitments

Where assets are financed by leasing agreements that give rights approximating to ownership ('finance leases'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as obligations to the lessor.

Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the profit and loss account in proportion to the remaining balance outstanding.

Assets obtained under hire purchase contracts are capitalised in the statement of financial position and depreciated over their estimated useful lives The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit (2024 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

11,118,211

10,494,876

Europe

592,533

498,877

Asia

5,581,806

1,318,879

North America

16,848

21,214

17,309,398

12,333,846

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,069,799

3,620,884

Social security costs

512,554

378,414

Other pension costs

158,979

146,647

4,741,332

4,145,945

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

2025

2024

Production staff

51

46

Sales and technical

37

37

Administration

11

11

99

94

2025

2024

£

£

Directors' remuneration

216,175

184,441

Directors' pension contributions to money purchase schemes

11,015

10,440

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

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

2025

£

Emoluments etc

118,969

Pension contributions to money purchase schemes

5,839

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

32,156

16,133

Other operating leases

31,214

29,700

Depreciation - owned assets

181,903

176,564

Depreciation - assets on hire purchase contracts

144,355

132,740

Loss on disposal of fixed assets

-

758

Auditors' remuneration

19,950

16,025

Auditors' remuneration for non audit work

12,803

2,000

Foreign exchange differences

(19,797

)

6,760

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest paid

96,979

109,803

Other interest paid

5,739

-

Hire purchase interest paid

67,070

76,784

169,788

186,587

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Current tax:

Over provision in prior year

10,953

(54,603

)

Deferred tax

98,696

(112,332

)

Tax on profit/(loss)

109,649

(166,935

)