SL Engineering Ltd Company accounts

COMPANY REGISTRATION NUMBER: 1147082

SL Engineering Ltd

Financial Statements

For the year ended

31 December 2025

SL Engineering Ltd

Financial Statements

Year ended 31 December 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	8

Statement of comprehensive income	13

Statement of financial position	14

Statement of changes in equity	16

Statement of cash flows	17

Notes to the financial statements	18

SL Engineering Ltd

Officers and Professional Advisers

The board of directors	J L Pickard
	C S Pickard
	G M Stevenson
	S C Stevenson
	J G Lynch
	S Eggleton

Registered office	Temple Road
	Aslackby
	Sleaford
	Lincs
	NG34 0HJ

Auditor	Streets Audit LLP
	Chartered Accountants & statutory auditor
	Enterprise House
	38 Tyndall Court
	Commerce Road
	Lynch Wood
	Peterborough
	Cambridgeshire
	PE2 6LR

Bankers	HSBC Bank Plc
	88 Westgate
	Grantham
	Lincs
	NG31 6LF

SL Engineering Ltd

Strategic Report

Year ended 31 December 2025

Business overview We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face. 2025 has been a good year for the Company, with strong performance across all key financial metrics. Sales increased by 8.7% to £8.1 million, reflecting continued demand and effective commercial activity. Gross margin improved from 40% in 2024 to 45% in 2025, a 5% increase driven by operational efficiencies and disciplined cost management. Pre tax net profit also strengthened, rising from 12.5% in 2024 to 16.8% in 2025, an improvement of 4.3%. Overall, the year has delivered encouraging results and provides a solid platform for continued growth into 2026. Performance analysis The Company delivered a strong performance in 2025, supported by continued development across both its product range and operational capability. The year saw a level of new product introductions, reflecting the Company's commitment to meeting evolving customer needs. Alongside this, the business continued to upskill its workforce, ensuring that staff capability keeps pace with technological and market demands. Operational improvement initiatives also remained a priority, strengthening efficiency and supporting the delivery of high quality products and services in the demanding markets in which the Company operates. Together, these developments contributed to a positive year and position the business well for sustained progress. Future prospects The order book for 2026 is buoyant and this along with a strong sales pipeline is anticipated to enable further sales growth in 2026 and beyond. The year ended 31 December 2025 unfolded against a backdrop of heightened global uncertainty, marked by geopolitical tensions, ongoing conflicts, and wider economic volatility. Despite these challenging conditions, the company continues to operate from a position of strength, supported by a solid financial base, prudent management, and a clear strategic direction. This foundation ensures that the business remains well placed to navigate future uncertainties and respond effectively to any emerging risks or opportunities. With the risks noted below and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. Financial Risk Management Objectives and Policies The company's principal financial instruments comprise cash, bank borrowings and various items, such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks. The main risks arising from the company's financial risks are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. Credit risk The customer base of the company principally comprises established blue-chip OEM companies with which clear contractual relationships are in place and credit risk is considered to be very minimal. Any overdue payment issues are dealt with in a timely manner. Liquidity risk The Company maintains a prudent approach to liquidity management, ensuring that sufficient cash resources are available to meet the future foreseeable needs of the business. This is supported by detailed cash flow forecasting on a short, medium and long term basis, enabling the Company to plan effectively and respond to changing operational requirements. Strong financial performance in 2025 has resulted in a reduction in borrowings during the year. One CBILS loan was fully repaid in 2025, and the remaining CBILS facility is scheduled to conclude in August 2026. In addition, as stocks of raw materials have now been replenished following the post Covid period, the Company has seen a reduction in raw material spend during 2025, with this trend expected to continue into 2026. These factors collectively enhance the Company's resilience going forward. Inflation risk Inflation in the purchase price of raw materials and services has been largely recovered by a targeted material price variance pricing policy. Interest rate risk The company's exposure to market risk for the changes in interest rates relates primarily to its bank borrowings. The company seeks to manage the risk by keeping bank borrowings to a minimum. Stakeholder engagement The company recognises the importance of its employees and has set up a works committee through which potential workforce improvement initiatives can be communicated, tabled, and agreed actions addressed. In addition, an employee assistance program has been set up and in 2025 external HR advice has been made available to all staff. In the local environment the company attends recruitment events and provides work experience for pupils at local schools and colleges. A number of successful fund raising events have also been held for local charities. In 2025 the company put in place a carbon reduction and management program and has an internal commitment to deliver tangible carbon reduction targets. We continue to forge strong working relationships with both our customers and suppliers as the company continues to grow.

This report was approved by the board of directors on 25 March 2026 and signed on behalf of the board by:

J L Pickard

Director

Registered office:

Temple Road

Aslackby

Sleaford

Lincs

NG34 0HJ

SL Engineering Ltd

Directors' Report

Year ended 31 December 2025

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

Directors

The directors who served the company during the year were as follows:

J L Pickard
C S Pickard
G M Stevenson
S C Stevenson
J G Lynch
S Eggleton

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Disclosure of information in the strategic report

The company has chosen to set out in the strategic report information about the future developments of the company and the financial instruments.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 25 March 2026 and signed on behalf of the board by:

J L Pickard

Director

Registered office:

Temple Road

Aslackby

Sleaford

Lincs

NG34 0HJ

SL Engineering Ltd

Independent Auditor's Report to the Members of SL Engineering Ltd

Year ended 31 December 2025

Opinion

We have audited the financial statements of SL Engineering Ltd (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 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 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; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 misstatement in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement in the other information. 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. The prior year financial statements were not audited.

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The financial statements of the company for the year ended 31 December 2024, were not audited due to the directors of the company taking advantage of the audit exemption under s477 of the Companies Act 2006.

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.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered Accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Lynch Wood

Peterborough

Cambridgeshire

PE2 6LR

26 March 2026

SL Engineering Ltd

Statement of Comprehensive Income

Year ended 31 December 2025

		2025	2024
Note		£	£
Turnover	4	8,067,828	7,419,838

Cost of sales	4,431,443	4,450,224
	-------------	-------------
Gross profit	3,636,385	2,969,614

Administrative expenses		2,240,459	1,986,994
Other operating income	5	10,702	11,428
		-------------	-------------
Operating profit	6	1,406,628	994,048

Interest payable and similar expenses	10	63,067	65,712
		-------------	-------------
Profit before taxation		1,343,561	928,336

Tax on profit	11	336,882	324,005
		-------------	----------
Profit for the financial year		1,006,679	604,331
		-------------	----------

Revaluation of tangible assets	–	476,308
	-------------	-------------
Total comprehensive income for the year	1,006,679	1,080,639
	-------------	-------------

All the activities of the company are from continuing operations.

SL Engineering Ltd

Statement of Financial Position

31 December 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible assets	13		1,320,479	1,368,928

Current assets

Stocks	14	2,547,391	2,014,706
Debtors	15	1,925,895	1,962,333
Cash at bank and in hand		12,311	10,875
		-------------	-------------
		4,485,597	3,987,914

Creditors: amounts falling due within one year	16	2,120,934		2,483,506
		-------------		-------------
Net current assets			2,364,663	1,504,408
			-------------	-------------
Total assets less current liabilities			3,685,142	2,873,336

Creditors: amounts falling due after more than one year	17		391,447	539,514

Provisions

Taxation including deferred tax	19	115,622	122,428
		-------------	-------------
Net assets		3,178,073	2,211,394
		-------------	-------------

SL Engineering Ltd

Statement of Financial Position (continued)

31 December 2025

	2025		2024
Note	£	£	£

Capital and reserves

Called up share capital	23	10,000	10,000
Revaluation reserve	24	476,308	476,308
Profit and loss account	24	2,691,765	1,725,086
		-------------	-------------
Shareholders funds		3,178,073	2,211,394
		-------------	-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 25 March 2026 , and are signed on behalf of the board by:

J L Pickard

Director

Company registration number: 1147082

SL Engineering Ltd

Statement of Changes in Equity

Year ended 31 December 2025

			Called up share capital	Revaluation reserve	Profit and loss account	Total
Note			£	£	£	£
At 1 January 2024			10,000	–	1,230,755	1,240,755

Profit for the year					604,331	604,331
Other comprehensive income for the year:
	Revaluation of tangible assets	13	–	476,308	–	476,308
			---------	----------	-------------	-------------
Total comprehensive income for the year			–	476,308	604,331	1,080,639

Dividends paid and payable		12	–	–	( 110,000)	( 110,000)
			---------	----------	-------------	-------------
Total investments by and distributions to owners			–	–	( 110,000)	( 110,000)

At 31 December 2024			10,000	476,308	1,725,086	2,211,394

Profit for the year					1,006,679	1,006,679
			---------	----------	-------------	-------------
Total comprehensive income for the year			–	–	1,006,679	1,006,679

Dividends paid and payable		12	–	–	( 40,000)	( 40,000)
			----	----	---------	---------
Total investments by and distributions to owners			–	–	( 40,000)	( 40,000)

			---------	----------	-------------	-------------
At 31 December 2025			10,000	476,308	2,691,765	3,178,073
			---------	----------	-------------	-------------

SL Engineering Ltd

Statement of Cash Flows

Year ended 31 December 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	1,006,679	604,331

Adjustments for:
Depreciation of tangible assets	170,406	174,183
Government grant income	( 10,702)	( 11,428)
Interest payable and similar expenses	63,067	65,712
Tax on profit	336,882	346,108
Accrued expenses	152,682	15,739

Changes in:
Stocks	( 532,685)	( 660,629)
Trade and other debtors	36,438	( 170,990)
Trade and other creditors	( 449,224)	386,892
	-------------	----------
Cash generated from operations	773,543	749,918

Interest paid	( 63,067)	( 65,712)
Tax paid	( 132,238)	( 81,632)
	----------	----------
Net cash from operating activities	578,238	602,574
	----------	----------

Cash flows from investing activities

Purchase of tangible assets	( 121,957)	( 154,386)
	----------	----------
Net cash used in investing activities	( 121,957)	( 154,386)
	----------	----------

Cash flows from financing activities

Proceeds from borrowings	( 385,621)	( 271,337)
Government grant income	10,702	11,428
Payments of finance lease liabilities	( 39,926)	( 73,617)
Dividends paid	( 40,000)	( 110,000)
	----------	----------
Net cash used in financing activities	( 454,845)	( 443,526)
	----------	----------

Net increase in cash and cash equivalents	1,436	4,662
Cash and cash equivalents at beginning of year	10,875	6,213
	---------	---------
Cash and cash equivalents at end of year	12,311	10,875
	---------	---------

SL Engineering Ltd

Notes to the Financial Statements

Year ended 31 December 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Temple Road, Aslackby, Sleaford, Lincs, NG34 0HJ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the profit and loss.

Research & development

Research and Development expenditure is written off in the period in which it is incurred.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) are those that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:- Depreciation The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors. Recognition of turnover and on-going contracts at the year end Turnover is recognised when the outcome of a transaction involving the rendering of on going contracts can be reliably estimated. Turnover from the rendering of such contracts is measured by reference to the stage of completion of the contract transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of on-going contracts cannot be reliably estimated, turnover is recognised only to the extent that expenses recognised are recoverable.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Property	-	2%, 7% & 10% straight line
Plant & Machinery	-	7%, 10%, 14%, 20% & 33% straight line
Fixtures & Fittings	-	20% straight line

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	8,067,828	7,419,838
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	5,959,400	5,205,791
Overseas	2,108,428	2,214,047
	-------------	-------------
	8,067,828	7,419,838
	-------------	-------------

5. Other operating income

	2025	2024
	£	£
Government grant income	10,702	11,428
	---------	---------

6. Operating profit

Operating profit or loss is stated after charging:

	2025	2024
	£	£
Depreciation of tangible assets	170,406	174,183
Operating lease payments	34,570	24,631
	----------	----------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	15,000	–
	---------	----

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Production staff	70	66
Management staff	8	8
	----	----
	78	74
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	2,924,202	2,640,590
Social security costs	344,389	260,804
Other pension costs	120,391	116,537
	-------------	-------------
	3,388,982	3,017,931
	-------------	-------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	269,166	219,228
Company contributions to defined contribution pension plans	36,980	36,894
	----------	----------
	306,146	256,122
	----------	----------

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	No.	No.
Defined contribution plans	4	4
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	129,381	87,823
Company contributions to defined contribution pension plans	3,175	2,340
	----------	---------
	132,556	90,163
	----------	---------

10. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	15,342	18,939
Interest on obligations under finance leases and hire purchase contracts	47,060	46,773
Other interest payable and similar charges	665	–
	---------	---------
	63,067	65,712
	---------	---------

11. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	343,688	132,238
Adjustments in respect of prior periods	–	81,632
	----------	----------
Total current tax	343,688	213,870
	----------	----------

Deferred tax:

Origination and reversal of timing differences	( 6,806)	110,135
	----------	----------
Tax on profit	336,882	324,005
	----------	----------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	1,343,561	928,336
	-------------	----------
Profit on ordinary activities by rate of tax	335,890	232,084
Adjustment to tax charge in respect of prior periods	–	81,632
Effect of expenses not deductible for tax purposes	1,074	3,656
Effect of capital allowances and depreciation	( 82)	108,514
Utilisation of tax losses	–	( 101,881)
	-------------	----------
Tax on profit	336,882	324,005
	-------------	----------

12. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	40,000	110,000
	---------	----------

13. Tangible assets

	Land and buildings	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 January 2025	793,473	2,773,731	118,974	3,686,178
Additions	–	84,014	37,943	121,957
	----------	-------------	----------	-------------
At 31 December 2025	793,473	2,857,745	156,917	3,808,135
	----------	-------------	----------	-------------
Depreciation
At 1 January 2025	4,626	2,256,860	55,764	2,317,250
Charge for the year	19,156	124,013	27,237	170,406
	----------	-------------	----------	-------------
At 31 December 2025	23,782	2,380,873	83,001	2,487,656
	----------	-------------	----------	-------------
Carrying amount
At 31 December 2025	769,691	476,872	73,916	1,320,479
	----------	-------------	----------	-------------
At 31 December 2024	788,847	516,871	63,210	1,368,928
	----------	-------------	----------	-------------

Tangible assets held at valuation

The Freehold Property was valued on 6 October 2024 by Brown & Co J H Walter at Market Value.

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Fixtures and fittings	Total
	£	£	£
At 31 December 2025	291,024	58,414	349,438
	----------	---------	----------
At 31 December 2024	331,657	–	331,657
	----------	---------	----------

14. Stocks

	2025	2024
	£	£
Raw materials and consumables	1,202,150	896,223
Work in progress	1,345,241	1,118,483
	-------------	-------------
	2,547,391	2,014,706
	-------------	-------------

15. Debtors

	2025	2024
	£	£
Trade debtors	1,184,883	1,374,172
Directors loan account	61,522	–
Amounts recoverable on contracts	548,171	351,175
Other debtors	131,319	236,986
	-------------	-------------
	1,925,895	1,962,333
	-------------	-------------

16. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	491,962	752,820
Trade creditors	589,963	1,140,317
Accruals and deferred income	305,699	153,017
Corporation tax	343,688	132,238
Social security and other taxes	251,971	149,959
Obligations under finance leases and hire purchase contracts	121,022	94,086
Director loan accounts	–	43,558
Other creditors	16,629	17,511
	-------------	-------------
	2,120,934	2,483,506
	-------------	-------------

Bank loans are secured on assets held in the company.

The bank overdraft includes a Recourse Invoice Discounting Facility which is secured on the assets to which it relates.

Included in other creditors are hire purchase liabilities which are secured on the assets to which they relate.

17. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	132,449	213,654
Obligations under finance leases and hire purchase contracts	238,998	305,860
Director loan accounts	20,000	20,000
	----------	----------
	391,447	539,514
	----------	----------

Bank loans and overdrafts are secured on assets held in the company.

Included in other creditors are hire purchase liabilities which are secured on the assets to which they relate.

Included in other creditors are loans made by two directors, one of whom has a debenture secured over the assets held in the company.

The company is in receipt of a Coronavirus business interruption loan. The lender has been provided with a partial guarantee from the UK Government.

18. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2025	2024
	£	£
Not later than 1 year	121,022	94,086
Later than 1 year and not later than 5 years	238,998	305,860
	----------	----------
	360,020	399,946
	----------	----------

19. Provisions

	Deferred tax (note 20)
	£
At 1 January 2025	122,428
Charge against provision	( 6,806)
	----------
At 31 December 2025	115,622
	----------

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 19)	115,622	122,428
	----------	----------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	115,622	122,428
	----------	----------

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 120,391 (2024: £ 116,537 ).

22. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2025	2024
	£	£

Recognised in other operating income:

Government grants released to profit or loss	10,702	11,428
	---------	---------

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	10,000	10,000	10,000	10,000
	---------	---------	---------	---------

24. Reserves

Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.

25. Analysis of changes in net debt

	At 1 Jan 2025	Cash flows	At 31 Dec 2025
	£	£	£
Cash at bank and in hand	10,875	1,436	12,311
Debt due within one year	(890,464)	277,480	(612,984)
Debt due after one year	(539,514)	148,067	(391,447)
	-------------	----------	----------
	( 1,419,103)	426,983	( 992,120)
	-------------	----------	----------

26. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2025	2024
	£	£
Not later than 1 year	25,131	21,067
Later than 1 year and not later than 5 years	35,944	16,652
	---------	---------
	61,075	37,719
	---------	---------

27. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2025
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
J L Pickard	4,300	( 50,700)	21,500	( 24,900)
C S Pickard	13,979	( 23,340)	–	( 9,361)
G M Stevenson	17,865	( 27,840)	–	( 9,975)
S C Stevenson	414	( 50,700)	26,000	( 24,286)
	---------	----------	---------	---------
	36,558	( 152,580)	47,500	( 68,522)
	---------	----------	---------	---------

	2024
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
J L Pickard	( 325)	( 50,700)	55,325	4,300
C S Pickard	36,144	( 22,165)	–	13,979
G M Stevenson	39,705	( 21,840)	–	17,865
S C Stevenson	( 9,886)	( 50,700)	61,000	414
	---------	----------	----------	---------
	65,638	( 145,405)	116,325	36,558
	---------	----------	----------	---------

No interest has been charged and all loans are repayable on demand. All loans will be repaid after the year end.