REGISTERED NUMBER: 01838700 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

AQ Wiring Systems Rockford Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

10

Statement of Financial Position

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

15

DIRECTORS:

P A Lion

A C Bjork

E Mattsson

N Olsauskas

REGISTERED OFFICE:

Rockford House

Acer Road

Rendlesham

Woodbridge

Suffolk

IP12 2GJ

REGISTERED NUMBER:

01838700 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

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

REVIEW OF BUSINESS

Trading performance and operational change

During the year, the company undertook major works at its facilities and implemented new systems. These initiatives created a period of significant change and some operational disruption.

Despite these challenges, the company generated a modest profit. The directors consider this a satisfactory trading performance given the scale of investment undertaken.

Investment in facilities

The company continued to invest in its facilities during the year, including significant capital expenditure at its Worksop and Salisbury sites. These investments were designed to:

- upgrade and modernise the facilities;

- optimise the use of available space;

- improve operational efficiency;

- streamline operational workflows;

- enhance site safety and security;

- improve the working environment for employees; and

- strengthen the company's ability to respond to changing customer needs.

Investment in systems

The company also invested significantly in a new enterprise resource planning (ERP) system. The directors expect the system to improve integration across key business processes, enhance the quality and availability of management information, and support more efficient operational and financial reporting.

Outlook

The directors consider these investments to be a strong platform for the company's continued development, supporting further improvements in operational capability and efficiency.

The company remains focused on maintaining effective operations while continuing to invest appropriately in its facilities, technology and processes to support its long-term objectives.

It is committed to supporting its customers through long-term partnerships, high-quality manufacturing, continuous improvement, and compliance with the highest industry standards.

PRINCIPAL RISKS AND UNCERTAINTIES

Market and customer concentration

The company's performance is influenced by demand within the defence and industrial sectors. Changes in customer spending, government procurement priorities, capital investment cycles, or delays to major programmes could affect revenues and profitability. The company seeks to mitigate this risk by maintaining a diversified customer base, developing long-term customer relationships, and expanding opportunities across multiple market sectors and geographic regions.

Supply chain disruption

The company relies on a network of suppliers for the timely provision of raw materials, components and specialist services. Disruption arising from supplier capacity constraints, geopolitical events, transport issues or shortages of key materials could impact production schedules and customer deliveries. Management actively monitors supplier performance, maintains relationships with multiple approved suppliers where practicable, and reviews inventory levels for critical components.

Regulatory and compliance risk

The company operates in sectors subject to stringent regulatory, contractual and quality requirements. Failure to comply with applicable legislation, customer specifications or certification standards could result in financial penalties, loss of contracts or reputational damage. Management maintains relevant internal controls and compliance procedures and appropriate external certifications to reduce these risks and support ongoing compliance.

Recruitment and retention of skilled employees

The company's continued success depends upon attracting, developing and retaining appropriately skilled employees. Competition for engineering, manufacturing and technical personnel remains strong and shortages of key skills could constrain future growth. The company seeks to mitigate this risk through competitive remuneration, training and development programmes, succession planning and employee engagement initiatives.

Economic environment

The company is affected by wider economic conditions, including inflation, exchange rate movements, interest rates and energy costs, which may influence customer demand and operating costs. Management regularly monitors economic developments and seeks to mitigate these risks through pricing reviews, cost control measures and operational efficiencies.

Financial risks

The company is exposed to financial risks including credit risk, foreign exchange risk and interest rate risk. Credit risk is managed through monitoring customer balances, while foreign exchange risk is monitored as part of the company’s financial management processes. Interest rate risk is limited as the company’s financing requirements are supported by the parent company.

KEY PERFORMANCE INDICATORS

Financial Year

2025

2024

Turnover

£11,011,763

£10,393,466

Gross profit

£3,501,626

£3,092,479

Gross profit rate %

31.80%

29.75%

Profit before taxation

£33,677

£72,979

Profit after taxation

£33,677

£94,462

Net assets

£1,693,433

£1,659,756

ON BEHALF OF THE BOARD:

A C Bjork - Director

20 August 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of design, manufacture, installation and the supply of cable assemblies, wiring harnesses, electromechanical sub-assemblies and systems solutions for the Defence, Aerospace, Marine, Automotive and Industrial sectors.

DIVIDENDS

Dividends totalling £Nil (2024 - £Nil) were paid during the year.

DIRECTORS

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

P A Lion

A C Bjork

E Mattsson

N Olsauskas

FINANCIAL INSTRUMENTS

The company only utilises basic financial instruments such as trade and other accounts receivables and payable, bank facilities and loans with related parties.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Knights Lowe Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A C Bjork - Director

20 August 2026

Qualified opinion

We have audited the financial statements of AQ Wiring Systems Rockford Ltd (the 'company') for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, 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, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion section of our report, 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 qualified opinion

In respect of the year ended 31 December 2023, the directors took advantage of audit exemption under Section 477 of the Companies Act 2006 and hence we did not observe the counting of physical stocks on 31 December 2023. Furthermore, for the audit for the year ended 31 December 2024 we were unable to satisfy ourselves by alternative means the quantities of stock held on 31 December 2023 or the adequacy of the related stock obsolescence provision. Since opening stocks affect the determination of the results of operations, we were unable to ascertain whether there was any consequential effect on the cost of sales for the year ended 31 December 2024. Our audit opinion on the financial statements for the year ended 31 December 2024 was modified accordingly. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.

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 qualified 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 Directors' Responsibilities Statement set out on page five, 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and through discussions with directors and management identified laws and regulations that could reasonably be expected to have a material effect on the financial statements. The outcomes of these discussions were shared with the audit team and consideration given as to where and how fraud may occur in the company.

The laws and regulations considered as being significant to the company included UK company law and financial reporting standards, ISO9001-2015, AS9100, IPC620 and Cyber Essentials Plus standards and certifications.

We undertook audit procedures in response to the potential risks relating to irregularities which include risks of fraud and non-compliance with laws and regulations. These procedures comprised of enquiry of management concerning any actual or potential claims or litigation, review of board minutes and relevant legal documentation, review and testing of both journal and other entries in the nominal ledger and review of transactions around the end of the accounting period, together with undertaking analytical procedures to assist in identifying any unexpected amounts and variances within the financial statements that may be an indication of fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are however inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting irregularities resulting from fraud is higher than the risk of not detecting irregularities resulting from an error, as fraud may involve deliberate concealment. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been undertaken in accordance with applicable auditing standards.

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.

Michael Mortimer FCA FCCA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

20 August 2026

TURNOVER

4

11,011,763

10,393,466

Cost of sales

7,510,137

7,300,987

GROSS PROFIT

3,501,626

3,092,479

Administrative expenses

3,185,738

2,734,832

315,888

357,647

Other operating income

5

-

4,759

OPERATING PROFIT

7

315,888

362,406

Interest receivable and similar income

-

87

Interest payable and similar expenses

8

(282,211

)

(289,514

)

PROFIT BEFORE TAXATION

33,677

72,979

Tax on profit

9

-

(21,483

)

PROFIT FOR THE FINANCIAL YEAR

33,677

94,462

Retained earnings at beginning of year

124,529

30,067

RETAINED EARNINGS AT END OF YEAR

158,206

124,529

FIXED ASSETS

Intangible assets

10

162,353

-

Tangible assets

11

943,282

565,870

1,105,635

565,870

CURRENT ASSETS

Stocks

12

5,136,453

3,112,569

Debtors

13

2,238,170

3,350,176

Cash at bank and in hand

1,267,995

855,572

8,642,618

7,318,317

CREDITORS

Amounts falling due within one year

14

4,694,700

3,672,923

NET CURRENT ASSETS

3,947,918

3,645,394

TOTAL ASSETS LESS CURRENT LIABILITIES

5,053,553

4,211,264

CREDITORS

Amounts falling due after more than one year

15

3,360,120

2,551,508

NET ASSETS

1,693,433

1,659,756

CAPITAL AND RESERVES

Called up share capital

20

1,535,227

1,535,227

Retained earnings

21

158,206

124,529

SHAREHOLDERS' FUNDS

1,693,433

1,659,756

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2026 and were signed on its behalf by:

A C Bjork - Director

Cash flows from operating activities

Cash generated from operations

1

(20,926

)

(2,130,887

)

Interest paid

(281,966

)

(289,514

)

Interest element of hire purchase payments paid

(245

)

-

Tax paid

-

21,483

Net cash from operating activities

(303,137

)

(2,398,918

)

Cash flows from investing activities

Purchase of intangible fixed assets

(187,401

)

-

Purchase of tangible fixed assets

(434,490

)

(3,250

)

Sale of tangible fixed assets

700

75,000

Interest received

-

87

Net cash from investing activities

(621,191

)

71,837

Cash flows from financing activities

New loans from parent company in year

1,547,913

4,455,404

Loan repayments in year

(210,000

)

(334,952

)

Invoice discounting facilities

-

(865,053

)

Capital repayments in year

(1,162

)

-

Amount withdrawn by directors

-

(1,658,637

)

Share issue

-

1,535,127

Net cash from financing activities

1,336,751

3,131,889

Increase in cash and cash equivalents

412,423

804,808

Cash and cash equivalents at beginning of year

2

855,572

50,764

Cash and cash equivalents at end of year

2

1,267,995

855,572

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

2025

2024

£

£

Profit before taxation

33,677

72,979

Depreciation charges

99,552

60,373

Profit on disposal of fixed assets

(700

)

(10,000

)

Freehold property impairment reversal

-

(20,088

)

Finance costs

282,211

289,514

Finance income

-

(87

)

414,740

392,691

Increase in stocks

(2,023,884

)

(828,410

)

Decrease/(increase) in trade and other debtors

1,112,006

(2,023,201

)

Increase in trade and other creditors

476,212

328,033

Cash generated from operations

(20,926

)

(2,130,887

)

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

1,267,995

855,572

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

855,572

50,764

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

855,572

412,423

1,267,995

855,572

412,423

1,267,995

Debt

Finance leases

-

1,162

(17,426

)

(16,264

)

Debts falling due

within 1 year

(10,000

)

5,833

-

(4,167

)

Debts falling due

after 1 year

(4,167

)

4,167

-

-

(14,167

)

11,162

(17,426

)

(20,431

)

Total

841,405

423,585

(17,426

)

1,247,564

1.	STATUTORY INFORMATION

AQ Wiring Systems Rockford Ltd 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

The directors have assessed the company's ability to continue as a going concern for at least twelve months from the date these financial statements are approved. This assessment considered the company's latest management accounts, financial forecasts and other relevant information.

Investment in systems, infrastructure and operational facilities during the year led to some short-term operational disruption and contributed to modest profits. These investments are, however, expected to support stronger performance in future periods.

The company continues to benefit from financial and operational support from its ultimate parent undertaking, which has confirmed its intention to provide support as required. This support is intended to enable the company to meet its obligations as they fall due for at least twelve months from the date these financial statements are approved.

On the basis of this assessment and the continued support of the parent undertaking, the directors reasonably expect the company to have sufficient resources to continue operating for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

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 preparing these financial statements the directors have made the following significant judgements and estimates:

Intangible fixed assets

The determination of the useful life of computer software requires management to exercise judgement. The software is amortised on a straight-line basis over its estimated useful life of five years, which reflects management's assessment of the period over which the software is expected to provide economic benefits to the company. The useful life is reviewed annually and revised where necessary to reflect changes in expected usage, technological developments or other relevant factors.

Tangible fixed assets

The determination of the useful economic lives of tangible fixed assets requires management to exercise judgement. Depreciation is charged as detailed below and the methods and rates used reflects management's assessment of the period over which the assets are expected to provide economic benefits to the company. The useful economic lives and residual values of tangible fixed assets are reviewed annually and revised where necessary to reflect changes in expected usage, technological developments, physical wear and tear, or other relevant factors.

Stocks

The determination of the provision required for slow-moving, obsolete and excess stock requires management to make an estimate. The provision is calculated taking into account the age of stock, expected future demand, and known obsolescence. The assumptions and methodology used in the calculation of the provision are reviewed at each reporting date.

Change in accounting estimate

During the year, the company enhanced the methodology used to estimate the stock obsolescence provision by implementing a more sophisticated analytical software solution. The revised estimation technique incorporates additional stock ageing and usage data and is considered to provide a more reliable estimate of the provision required.

The change has been accounted for prospectively as a change in accounting estimate in accordance with FRS 102. It is not practicable to determine the financial effect of the change in estimation technique separately from the impact of changes in the underlying stock balances and other assumptions used in determining the provision

Turnover

Turnover represents sales of goods and services, derived from ordinary activities, net of VAT and trade discounts. Turnover is recognised either on delivery or, when appropriate, where there is a right to consideration based on contract performance.

Intangible assets

Know-how is stated at cost less accumulated amortisation and accumulated impairment losses. The asset continues to be recognised within intangible assets and has been fully amortised.

Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight-line basis over its estimated useful life of five years.

Tangible fixed assets

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

Freehold land

-

not provided

Freehold buildings

-

over 50 years

Freehold buildings improvements

-

over 20 years

Improvements to leasehold property

-

over 20 years

Plant and machinery

-

over 5 years

Motor vehicles

-

25% on reducing balance

Computer equipment

-

over 3 years

Stocks and work in progress

Stocks comprise materials, components and consumables not used in manufacturing products at the statement of financial position date. Work in progress includes materials, direct labour and an appropriate share of production overheads incurred to bring items to their current location and condition. Stocks and work in progress are measured at the lower of cost and net realisable value, after appropriate allowance for obsolete items.

At each reporting date, stock is assessed for impairment indicators, including obsolescence, slow movement and excess quantities. A provision is recognised when the carrying amount of stock is not expected to be fully recovered through use or sale.

The provision is calculated using a systematic methodology that considers:

- the time since an item was last issued or used;

- inventory levels compared with expected future consumption or demand;

- known product obsolescence, discontinued lines and engineering changes; and

- other information affecting estimated net realisable value.

Provision percentages are applied to stock using predefined ageing and overstock criteria. Management reviews the methodology and assumptions at each reporting date and recognises a specific provision where information indicates that an item's recoverable amount differs from the standard provision matrix.

Provisions are reversed when the circumstances causing the impairment no longer apply.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, bank facilities and loans with related parties.

Debt instruments that are payable or receivable within one year, such as trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Debt instruments that are repayable or receivable after one year are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each financial year for evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Income Statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

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 plan for the benefit of its employees. Contributions are expensed as they become payable.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

9,757,648

8,859,973

Europe

1,192,891

1,009,409

Rest of the World

61,224

524,084

11,011,763

10,393,466

5.	OTHER OPERATING INCOME

2025

2024

£

£

Other income

-

4,759

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,776,375

3,315,901

Social security costs

418,189

295,209

Other pension costs

70,769

64,186

4,265,333

3,675,296

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

2025

2024

Office, technical and management

26

27

Production

101

89

127

116

2025

2024

£

£

Directors' remuneration

204,900

194,418

Directors' pension contributions to money purchase schemes

1,321

1,775

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

Money purchase schemes

1

2