REGISTERED NUMBER: 07453211 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2025

for

S.A.R. Metals Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

Mr J Valentinas

Mrs R Poceviciene

Mr D Kavleiskij

Mr M Marcinkevicius

Mr S I Barry

REGISTERED OFFICE:

RJA House

Manby Road

Immingham

N.E. Lincolnshire

DN40 2DW

REGISTERED NUMBER:

07453211 (England and Wales)

AUDITORS:

BK Plus Ltd Chartered Accountants

and Statutory Auditors

Abacus House

Pennine Business Park

Huddersfield

West Yorkshire

HD2 1GQ

The directors present their strategic report for the year ended 30 November 2025.

During 2025, turnover increased by 0.6% from £31 million to £31.3 million following the previous years' of increase of 7.68%. Following the increase in turnover the gross profit margin has increased from 17.09% to 21.36%. The company has also increased it's net profit by £1,021,510.

The director is aware of the strong results for the year and feels that the business is still well placed to deal with future challenges that may arise in the future. The management accounts for the subsequent period showed that the company is trading at high levels of profitability.

Business model and principal activities

SAR Metals operates in the recovery, processing and responsible onward supply of recyclable materials, with expertise in catalytic converters and waste electrical and electronic equipment (WEEE). The business combines purchasing and collection capability, controlled receipt and storage, technical identification and assessment, processing, stock management, secure handling, and sales to approved downstream outlets in the United Kingdom and international markets.

The operating model is organised around three complementary areas:

Catalytic converters (CATS): purchasing, grading, sampling, processing and sale of materials containing platinum group metals. Commercial returns depend on accurate material assessment, disciplined purchasing and stock control, and effective management of commodity price exposure.

WEEE and IT assets: collection, receipt, segregation, processing and downstream recovery of electrical equipment and components. During 2025 the Company strengthened its focus with investment on ability to complete secure IT asset disposition, including controlled data sanitisation and the development of an auditable data wiping service through accreditation.

International trading and supply: development of overseas supplier and customer relationships, export and logistics coordination, and access to specialist refiners and downstream processors. This diversifies routes to market while increasing the need for effective currency, customs, transport and counterparty controls.

The Company seeks to create value through technical knowledge, speed of service, reliable settlement, compliance led operations and the ability to offer customers an integrated route for both commodity recovery and secure data bearing equipment.

REVIEW OF BUSINESS

Operational development

Throughout 2025 management continued to develop the business beyond a predominantly commodity led model. Greater emphasis was placed on operational control, traceability, margin recognition within controls of the management team not market volatility.

The Company continued to invest in its Immingham operations, including site capacity, workflow design, security, material segregation and the management information needed to monitor stock, processing and customer activity. Management maintained oversight across purchasing, collections, warehouse processing, international movements and downstream sales, with a focus on protecting margin.

Systems, data and management information

During the year the Company progressed the digitisation of operational and commercial workflows. The strategic direction is to connect customer due diligence, collections, weights, stock, laboratory or assay information, commissions, compliance records and management reporting more effectively. Better quality operational data is expected to improve purchasing decisions, margin visibility, traceability and management accountability.

Systems development brings its own governance requirements. Management therefore recognises the need for access controls, change management, reliable backups, supplier due diligence, data protection compliance, testing and clear ownership of automated decisions.

People, health and safety

The Company’s operations rely on experienced employees across purchasing, logistics, warehouse processing, technical assessment, compliance, finance, security and management. Recruitment, retention, supervision and competency are therefore key operational priorities.

Management heavily focussed on a safe environment and continued to promote safe systems of work, incident reporting, housekeeping, segregation and accountability. The Company recognises that growth must be matched by sufficient management capacity and consistent standards across permanent employees, agency workers, contractors and transport providers.

Customers, suppliers and markets

The Company serves a broad range of suppliers and customers, from smaller collectors and recyclers to larger commercial and institutional organisations. Its strategy is to deepen relationships with quality counterparties while avoiding excessive dependence on any single customer, supplier, refiner, territory or route to market.

Customer expectations increasingly extend beyond price and collection speed to include evidence of legal compliance, environmental performance, information security, reporting and downstream transparency. The Company’s investment in certifications, documented processes and digital reporting is intended to improve its ability to compete for larger and longer term contracts.

Strategy and priorities

The Company’s strategy is to develop a resilient, compliance led recycling and resource recovery business with a broader service offering and stronger recurring customer relationships. The principal priorities are:

Grow secure IT asset disposition and data-destruction services using ISO 27001 controls, auditable evidence and clear customer service levels.

Increase WEEE processing volumes within permitted capacity while maintaining segregation, fire prevention, battery control and downstream assurance.

Maintain technical and commercial strength in catalytic converters through disciplined buying, accurate grading and assay, stock control and diversified refining routes.

Develop larger corporate and public sector opportunities where compliance, security, reporting and national collection capability are valued.

Strengthen management information so that decisions are based on physical volumes, unit economics, cash conversion and risk adjusted return as well as headline revenue and gross profit.

Invest selectively in sites, plant, security and people where there is a clear operational need which emphasis on a sales approach with growth targets in the forefront of our priority.

PRINCIPAL RISKS AND UNCERTAINTIES

Commodity price risk

The value of catalytic converters and recovered metals is influenced by global markets. Rapid price movements can affect purchasing margins, stock values and customer behaviour. The Company manages this through selective purchasing, shorter exposure periods where practicable, stock monitoring, diversified outlets and regular review of margin and market exposure.

Foreign currency risk

International purchases and sales create exposure to sterling, euro and US dollar movements. Management monitors currency positions, seeks to match receipts and payments where possible and considers the timing of conversions. Formal hedging has been investigated and continues to be in the pipeline conversation.

People and skills

Specialist knowledge and effective supervision are essential. Loss of key employees or insufficient management capacity could affect service and control. The Company addresses this through recruitment, training, succession planning, documented procedures and clearer accountability.

Stakeholder considerations

In making strategic and operational decisions, the director considers the likely long term consequences for the Company and the interests of employees, customers, suppliers, regulators, local communities, lenders and other business partners. Attention is given to safe employment, reliable customer service, fair dealing, environmental compliance, information security, cash discipline and maintaining the Company’s reputation for responsible recycling.

Key decisions involving new services, sites, equipment, contracts or international movements are assessed based on commercial return, operational capability, legal permissions, health and safety, environmental impact, data protection, insurance and the availability of competent people to deliver the activity.

Outlook

The director believes that the Company remains well placed to develop its position in catalytic converter recovery, WEEE processing while new VAS offering with secure IT asset disposition. Demand for transparent recycling, secure data handling and auditable downstream recovery is expected to create opportunities with larger commercial and public sector customers.

The outlook is nevertheless subject to commodity prices, exchange rates, regulation, working capital requirements, insurance conditions and the pace at which new contracts convert into profitable activity. Management’s focus will therefore remain on controlled growth, compliance, margin quality, cash conversion and the delivery of projects within the Company’s operational capacity.

ON BEHALF OF THE BOARD:

Mr S I Barry - Director

26 August 2026

The directors present their report with the financial statements of the company for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of collection of non-hazardous waste.

DIVIDENDS

The total distribution of dividends for the year ended 30 November 2025 will be £ 500,000 .

DIRECTORS

Mr J Valentinas has held office during the whole of the period from 1 December 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mrs R Poceviciene - appointed 1 December 2024

Mr D Kavleiskij - appointed 1 December 2024

Mr M Marcinkevicius - appointed 1 December 2024

Mr S I Barry - appointed 1 December 2024

DISCLOSURE IN THE STRATEGIC REPORT

The director's review of the business and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, BK Plus Ltd Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S I Barry - Director

26 August 2026

Opinion

We have audited the financial statements of S.A.R. Metals Limited (the 'company') for the year ended 30 November 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 November 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 six, 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:

Our work involves obtaining an understanding of the company and the relevant laws and regulations applicable in the industry.

We design our audit work based on our assessment of the risk of material misstatement in the accounts but recognising that the risk of not detecting fraud is higher as this is likely to involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We plan our work so that the information disclosed in the financial statements agrees to supporting documentation and management expectations. Our tests included agreeing the financial statement disclosures to underlying supporting

documentation, enquiries with management, review of client's operation of controls within the year. There are inherent limitations in the audit procedures described 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 would become aware of it.

Our work includes an assessment of the company's accounting systems which enables us to focus our testing on areas that may be more susceptible to misstatement. This work involves :assessing the company's susceptibility to material misstatement or occurrence of fraud the testing of transactions where the assessment of risk is higher including in particular journal entries, management estimates and large or unusual transactions checking that the information contained in the financial statements is consistent with the company's underlying accounting records and the results of our audit work

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.

Chris Hession C.A (Senior Statutory Auditor)

for and on behalf of BK Plus Ltd Chartered Accountants

and Statutory Auditors

Abacus House

Pennine Business Park

Huddersfield

West Yorkshire

HD2 1GQ

26 August 2026

TURNOVER

31,285,944

31,009,068

Cost of sales

24,603,175

25,711,146

GROSS PROFIT

6,682,769

5,297,922

Distribution costs

2,761,774

2,194,546

Administrative expenses

2,395,800

2,797,198

5,157,574

4,991,744

OPERATING PROFIT

5

1,525,195

306,178

Interest receivable and similar income

33,033

230,543

1,558,228

536,721

Interest payable and similar expenses

8

-

3

PROFIT BEFORE TAXATION

1,558,228

536,718

Tax on profit

9

260,966

(11,773

)

PROFIT FOR THE FINANCIAL YEAR

1,297,262

548,491

PROFIT FOR THE YEAR

1,297,262

548,491

OTHER COMPREHENSIVE INCOME

Property revaluation

Interest from group undertakings

-

15,075

Reversed interest from group undertaking

1,034

(144,990

)

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,034

(129,915

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,298,296

418,576

FIXED ASSETS

Intangible assets

11

8,124

23,643

Tangible assets

12

544,244

558,215

Investments

13

123,722

122,157

676,090

704,015

CURRENT ASSETS

Stocks

14

2,288,122

634,481

Debtors

15

6,768,600

5,194,062

Cash at bank and in hand

319,760

1,621,912

9,376,482

7,450,455

CREDITORS

Amounts falling due within one year

16

3,528,555

2,875,042

NET CURRENT ASSETS

5,847,927

4,575,413

TOTAL ASSETS LESS CURRENT LIABILITIES

6,524,017

5,279,428

CREDITORS

Amounts falling due after more than one year

17

(450,000

)

-

PROVISIONS FOR LIABILITIES

19

(135,066

)

(138,773

)

NET ASSETS

5,938,951

5,140,655

CAPITAL AND RESERVES

Called up share capital

20

17

17

Capital redemption reserve

21

83

83

Retained earnings

21

5,938,851

5,140,555

SHAREHOLDERS' FUNDS

5,938,951

5,140,655

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2026 and were signed on its behalf by:

Mr S I Barry - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2023

17

7,721,979

83

7,722,079

Changes in equity

Dividends

-

(3,000,000

)

-

(3,000,000

)

Total comprehensive income

-

418,576

-

418,576

Balance at 30 November 2024

17

5,140,555

83

5,140,655

Changes in equity

Dividends

-

(500,000

)

-

(500,000

)

Total comprehensive income

-

1,298,296

-

1,298,296

Balance at 30 November 2025

17

5,938,851

83

5,938,951

Cash flows from operating activities

Cash generated from operations

1

(1,069,260

)

3,650,726

Interest paid

-

(3

)

Tax paid

38,977

(102,769

)

Taxation refund

-

277,769

Net cash from operating activities

(1,030,283

)

3,825,723

Cash flows from investing activities

Purchase of intangible fixed assets

(2,205

)

(3,488

)

Purchase of tangible fixed assets

(255,011

)

(242,839

)

Sale of tangible fixed assets

18,899

36,390

Interest received

33,033

85,553

Loans to related undertakings

433,415

(20,527

)

Net cash from investing activities

228,131

(144,911

)

Cash flows from financing activities

Equity dividends paid

(500,000

)

(3,000,000

)

Net cash from financing activities

(500,000

)

(3,000,000

)

(Decrease)/increase in cash and cash equivalents

(1,302,152

)

680,812

Cash and cash equivalents at beginning of year

2

1,621,912

941,100

Cash and cash equivalents at end of year

2

319,760

1,621,912

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

30.11.25

30.11.24

£

£

Profit before taxation

1,558,228

536,718

Depreciation charges

263,822

230,214

Loss on disposal of fixed assets

3,993

57,779

Unrealised exchange rate variances

(540

)

1,456

Finance costs

-

3

Finance income

(33,033

)

(230,543

)

1,792,470

595,627

(Increase)/decrease in stocks

(1,653,641

)

1,160,883

(Increase)/decrease in trade and other debtors

(1,562,952

)

1,429,731

Increase in trade and other creditors

354,863

464,485

Cash generated from operations

(1,069,260

)

3,650,726

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2025

30.11.25

1.12.24

£

£

Cash and cash equivalents

319,760

1,621,912

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

1,621,912

941,100

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank and in hand

1,621,912

(1,302,152

)

319,760

1,621,912

(1,302,152

)

319,760

Total

1,621,912

(1,302,152

)

319,760

1.	STATUTORY INFORMATION

S.A.R. Metals 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.

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, modified to include investment properties and certain financial instruments at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases it judgements, estimates and assumptions on historical experience and on various other factors, including expectations of future events, management believes this to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The following judgments have the most significant effect on the amounts recognised in the financial statements:

Investments

On a periodic basis of every three years the company director obtains a professional valuation of the investment properties and any adjustment to the fair value are reflected in the Income Statement. In the intervening years, assessment of fair value is made through observation of similar properties marketed in the local area.

Estimation of useful lives of assets

The company determines the estimated useful lives and related depreciation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation charge will increase where the useful lives are less than previously estimated. Technically obsolete or non-strategic assets that have been abandoned or sold will be written off or impaired.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods or terms agreed with the customer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

At each reporting date the company assess whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery

- 20% on cost

Fixtures and fittings

- 20 - 33% on cost

Motor vehicles

- 33% on cost

Computer equipment

- 33% on cost

No depreciation charge is provided in respect of freehold land, however, the depreciation charge for freehold property is assessed on an annual basis after taking into consideration the condition and value of the property. Subject to this assessment, depreciation is accounted for where deemed necessary.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is derived from the purchase price of materials.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability.

Basic financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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.

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.	EMPLOYEES AND DIRECTORS

30.11.25

30.11.24

£

£

Wages and salaries

2,627,566

2,008,831

Social security costs

292,229

202,332

Other pension costs

40,114

38,005

2,959,909

2,249,168

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

30.11.25

30.11.24

Production and maintenance

41

41

Health and Safety

2

2

Administration

20

19

63

62

4.	DIRECTORS' EMOLUMENTS

30.11.25

30.11.24

£

£

Directors' remuneration

171,395

48,000

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

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

30.11.25

30.11.24

£

£

Depreciation - owned assets

246,090

214,613

Loss on disposal of fixed assets

3,993

57,779

Computer software amortisation

17,724

16,602

Foreign exchange differences

(11,889

)

235,488

6.	AUDITORS' REMUNERATION

30.11.25

30.11.24

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

20,712

8,350

7.	EXCEPTIONAL ITEMS

30.11.25

30.11.24

£

£

Exceptional items

-

(133,013

)

Last year's exceptional items relate to the write off of a connected company loan in which the director owns 100% of the shares.

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.25

30.11.24

£

£

Bank interest

-

3