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

Alcon Components Limited (“Alcon”, or "the company") is one of the world’s foremost companies in the field of high performance brakes and clutches, serving premium motorsport, performance automotive OEMs and special vehicle constructors. Operating a B2B business model, the business innovates, develops and manufactures some of the highest performing products available, often as part of a bespoke solution, and always accompanied by exceptional service response, to a range of predominantly blue-chip clients throughout the world.

The company operates from a 9,200m2/99,000sq.ft. campus in Tamworth, UK.

• Revenues showed a 12.6% YoY dip, a temporary position as one significant OEM contract ramped down as planned, new contracts to replace it were both delayed in starting and slow to ramp up.

• Gross margin of 46.2%, up 0.8pp YoY, reflecting effective material and operating cost control, and adjustments to fully reflect product value in outbound pricing.

• Administrative expenses reduced YoY by 5.7%, achieved through efficiency initiatives and the transition of major new contracts from the pre-revenue phase into series production.

• EBITDA was slightly lower than prior year, 12.0% vs. 12.3%, reflecting the revenue reduction though shored up the reduction in operating costs.

• All ISO9001, ISO14001, ISO45001 and IATF16949 certifications covering management systems for quality, environment and health and safety were audited and retained.

Alcon’s markets experienced uncertainty arising from wider economic and geo-political factors during the period. The imposition of tariffs of varying severity and duration on imports to the USA from across the globe impacted margins, pricing and consumer confidence in the USA, with the threat of increased cost of living suppressing appetite to make discretionary expenditure on performance and racing product. In the European electric vehicle market, several factors including continuing fears about ownership costs, development of the charging infrastructure, and the availability of lower cost alternatives from China, combined to dampen demand especially for vehicles produced within the EU territory.

In the Automotive OEM space, the period was one of considerable transition for Alcon. Substantial revenues from a high-profile OEM hypercar programme reduced in line with the planned production ramp down, while two new automotive OEM programmes went into series production. In both instances the customers’ start of production was later than planned, and volume ramp up was slower than forecast. In one instance this was hindered by a supplier quality issue, now resolved, and the customer has now requested that Alcon produces over contract by up to 67% over the next two model years because the vehicle has been so positively received by the media and public. In the other – a performance EV platform built in Europe for the European market – initial vehicle sales have been substantially behind the OEM’s forecast, though the launch of new models on the same platform is expected to address this to a degree.

In the high-end motorsport arena, Alcon continued to benefit from strong sales across the series it serves, with sales especially buoyant in the fields of professional rallying, rally raid and GT racing, supplying homologated product mostly to the motorsport departments of automotive OEMs under multi-year arrangements. Additionally, Alcon continued to supply specialist brake actuation hardware into Formula 1.

Sales into the Special Vehicles sector, which includes defence, armoured protection and off-highway, were buoyant with strong demand from defence vehicle constructors in Europe, and builders of civilian protection vehicles, predominantly in the USA and Middle East. The company continued to be active in support of programmes to develop specialist electric and autonomous vehicles, applying its knowledge of configuring brakes to operate in concert with in-wheel electric motors, as well as progressing the development and commercialisation of brake-by-wire technology for use in hybrid and electric vehicle systems. In particular it is addressing the needs of the increasing number of autonomous vehicle development programmes, including participation in collaborative grant funded projects.

The rising interest in autonomous and specialist electric vehicles to meet transport needs in a variety of applications and environments is creating a growing demand for control braking (brake-by-wire) solutions. Requiring capability in electronics, control systems and code generation, Alcon has been working for several years with a specialist in this field, Rockfort Engineering Ltd (“Rockfort”) and continues to further enhance focus and capability in the development and commercialisation of this technology to meet growing future demand, through its joint venture business with Rockfort, Alcon Advanced Technologies Ltd.

Alcon maintains its position at the forefront of performance braking technology through innovation and a steady flow of new and improved product designs. During the period the company launched several new caliper and pedal box designs, and the second generation of its award-winning SMART articulating caliper piston, first launched the previous year, was released. The implications and opportunities with respect to productivity and product origination provided by machine learning have started to be actively investigated.

While Alcon’s average headcount was 4% higher than the prior period, the peak was around the mid-year and was adjusted back by the year-end. Recruiting of staff of the appropriate skills and attitude became a little easier compared with prior years, and once again, continued investment in all aspects of the company’s employee value proposition has been shown to be a worthwhile differentiator.

In reviewing macro factors impacting on the business during the period, the continuing effects of Britain’s exit from the European Union, while sometimes inconvenient, are being accommodated with little adverse impact on Alcon’s client relationships or supply chain. Of potentially greater significance has been the impact of tariffs imposed on the import of goods to the USA which, having peaked around Q2 of the financial year, now appear to be stable and manageable, and ultimately the impact on revenues and margins experienced by Alcon was largely immaterial.

Looking forward, the company continues to review the implications of uncertainty in the global economy and the forces reshaping its core market sectors. In the automotive market, the strong demand for performance vehicles in the USA is being exploited to mitigate the effect of soft sales in the European market. Conflicts around the world are driving an uptick in demand for defence vehicles over the next decade for which Alcon is well positioned. The company continues to monitor its sourcing risks, both on and offshore, including the Middle and Far East, and where appropriate seeks mitigation through dual sourcing. The Directors are applying a balanced approach to meeting the growing demand while ensuring expansion plans are prudent and cost-effective.

In summary, the period has delivered a strong performance in many areas although this was not sufficient to entirely mitigate sluggish automotive OEM sales in Europe. This is expected to recover during the ensuing period and contracted sales elsewhere are forecast to grow substantially. As such, the board is confident in its forecasts for growth through the next financial year.

The company monitors a variety of financial key performance indicators including those set out on page 2 of this report and continues to recognise the need to enhance their use via the continuous improvement of its performance management system.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company continued to be that of the design and manufacture of brake systems and clutches.

The profit for the year, after taxation, amounted to £4,918 (2024: £146,810).

Dividends paid during the year amounted to £24,530 (2024: £110,830).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, PKF Smith Cooper Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the annual 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 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; and

• 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.

The directors have chosen to set out in the Strategic report information required to be included in the directors report including a review of the business and principal risks and uncertainties. An indication of likely future developments in the business and research and development activities are also included in the Strategic report.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Changes to the company’s leasehold units were made after the reporting period. Further details are disclosed in note 27 of these financial statements.

Following the balance sheet date, the company completed the renewal and extension of its revolving credit facility with its principal banking provider. The facility has been extended to September 2027 and will continue to support the company's ongoing working capital requirements and operations. The directors consider the renewed facility to provide an appropriate funding arrangement for the company's foreseeable requirements.

We have audited the financial statements of Alcon Components Limited (the 'Company') for the year ended 30 September 2025, which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity 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 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 September 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 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

As explained more fully in the directors' responsibilities statement, as set out on page 5, 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.

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 Auditors' 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.

Based on our understanding of the Company and industry, key laws and regulations that we identified included:

• Companies Act 2006

• Tax legislation; and

• Health and safety and employment legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

• Management bias in respect of accounting estimates and judgements made;

• Management override of controls; and

• Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the financial statements.

Our procedures included, but were not limited to:

• Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;

• Reviewing legal expenditure during the year to identify instances of non-compliance with laws and regulations and fraud;

• Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular, the carrying value of stocks, the capitalisation and amortisation of development costs, depreciation and useful economic lives of tangible fixed assets and the recoverability of amounts owed by group undertakings.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Use of our report

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

There was no other comprehensive income for 2025 (2024: £nil)

The notes on pages 14 to 29 form part of these financial statements.

The notes on pages 14 to 29 form part of these financial statements.

The notes on pages 14 to 29 form part of these financial statements.

Alcon Components Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN.

The principal place of business is Apollo, Lichfield Road Industrial Estate, Tamworth, Staffordshire, B79 7TN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Alcon Performance Engineering Group Limited. These consolidated financial statements are available from Companies House.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is recognised as the fair value of consideration received or receivable, excluding VAT, recognised on the despatch of the company’s products when the significant risks and rewards of ownership have transferred to the buyer. The company sells all of its products on an ex-works basis and it is at this point that the risks and rewards of ownership are deemed to have transferred.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 simultaneously.

Basic financial assets, which include trade and other debtors, amounts owed by group undertakings, cash and cash equivalents 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 the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, including trade and other creditors, bank loans, loans from fellow group companies and obligations under finance leases and hire purchase agreements are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the statement of profit and loss.

Work-in-progress

Work in progress represents partially completed manufactured products at the reporting date. Cost comprises direct materials, direct labour and an appropriate proportion of production overheads incurred in bringing the inventories to their present location and condition. Work in progress is stated at the lower of cost and net realisable value.

Dividends

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

Exceptional costs

Exceptional costs are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

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

The company reviews the carrying value of capitalised development costs for indicators of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve estimation of future cash flows which are likely to be generated by the asset.

The directors have reviewed the asset lives and associated residual values of all fixed asset classes, in particular, the useful economic lives and residual values of plant and machinery. The company’s plant and machinery includes high value tooling machinery, which is maintained to a high standard and the residual value of which is readily ascertainable. The directors, therefore, consider that plant and machinery are likely to have a strong residual value at the end of their useful economic life and this has been taken into account when calculating the annual depreciation charge.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. At the balance sheet date, the carrying value of tangible fixed assets totalled £10,887,557 (2024: £11,105,750).

Management review the market value of and demand for its stocks to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. Management use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company’s products and achievable selling prices. At the balance sheet date, the carrying value of stocks totalled £7,302,279 (2024: £7,784,417).

Trade, other debtors and amounts due from group undertakings are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against balances where recoverability is uncertain.

Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the Statement of profit and loss.

The whole of the turnover is attributable to the design and manufacture of automotive braking systems and clutches as noted in the principal activities.

The average monthly number of persons (including directors) employed by the company during the year was:

Staff costs, including directors' remuneration, were as follows:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The highest paid director received remuneration of £169,784 (2024 - £166,780).

The value of the company’s contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £24,000 (2024 - £24,000).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Comparative figures have been adjusted due to a presentational change. Details of the restatement are disclosed in note 30.

Included within other creditors is a balance of £2,705,487 (2024: £2,431,375) which relates to invoice discounting, secured over the trade debtors to which it relates.

Included within other creditors is a balance of £3,000,000 (2024: £3,000,000) which relates to a revolving credit facility. The facility is secured by a fixed and floating charge over the assets of the company.

Amounts due under hire purchase contracts are secured over the assets to which they relate.

Comparative figures have been restated due to a presentational change. Details of the restatement are disclosed in note 30.

Amounts due under hire purchase contracts are secured over the assets to which they relate.

Comparative figures have been restated due to a presentational change. Details of the restatement are disclosed in note 30.

The following are the major deferred tax liabilities recognised by the company and movements thereon:

Deferred taxation is provided in full, without discounting, on all tax deferred resulting from reversing timing differences at the rate of corporation tax anticipated to apply at the time of the future reversal of the timing difference. The future rate of corporation tax applied to timing differences is 25% (2024: 25%).

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Profit and loss account

The profit and loss account includes all current and prior periods retained profit and losses.

The company has entered into a guarantee arrangement with HSBC in respect of its VAT deferment account with HMRC. The amount guaranteed under this arrangement at the year end was £50,000 (2024: £50,000).

There is an inter company multilateral guarantee in place relating to the borrowings of the company and other group companies. The amount guaranteed in this way is unlimited and at 30 September 2025 the amount was £147,060 (2024: £288,202).

Certain directors have family interests in an unincorporated partnership which owns the building from which the company operated during the year.

Rentals were paid to this partnership during the year amounting to £292,719 (2024: £222,554), which were consistent with an existing lease agreement.

Fees were paid during the year to a director, and to a firm in which that director held a significant influence, for services, associated travel costs and consultancy work. The total fees paid amounted to £51,916 (2024: £79,825). Fees were also paid to a company controlled by that director totalling £16,607 (2024: £55,769).

At the year end, amounts of £105,847 (2024: £16,362) were owed to an entity in which a director held a significant influence. At the year end, a company controlled by a director was owed £11,350 (2024: £nil).

During the year, fees were paid to a director, and to entities in which that director held a significant interest, for services and consultancy work. The total fees paid amounted to £40,535 (2024: £54,619). At the year end, this entity was due an amount of £25,486 (2024: £6,483) and another entity owed the company £nil (2024: £2,118).

During the year, fees were paid to a director, and to a company controlled by that director, for services and consultancy work. The total fees paid amounted to £43,200 (2024: £nil). At the year end, that company was due £nil (2024: £nil).

During the year, fees were paid to a company controlled by that director, for services and consultancy work. The total fees paid amounted to £45,545 (2024: £55,412). At the year end, that company was due £18,463 (2024: £8,370).

Included within shareholder and equity-related long term loans shown in Note 17 are the following loans from directors and related undertakings: £880,000 (2024: £550,000), £350,000 (2024: £350,000), £885,000 (2024: £450,000), and £450,000 (2024: £nil).

During the year, interest of £254,044 (2024: £nil) payable to directors and to entities in which the directors held a significant interest was waived.

The company has taken advantage of Section 33.1A of FRS 102 to not disclose transactions between subsidiaries which are wholly owned.

Following a detailed operational review of our cost base the company is re-organising its manufacturing footprint in Tamworth resulting in the planned closure of one leased unit in June 2026 and the addition of two further units to provide better space utilisation and facilities suited to its foreseeable requirements. The total value of the new lease commitments is equal to £1,242,500.

Following the balance sheet date, the company completed the renewal and extension of its revolving credit facility with its principal banking provider. The facility has been extended to September 2027 and will continue to support the company's ongoing working capital requirements and operations. The directors consider the renewed facility to provide an appropriate funding arrangement for the company's foreseeable requirements.

Key management personnel are considered to be the directors of the company only and the remuneration paid to these individuals is disclosed in note 7.

The immediate parent company is Automotive Performance Technologies Limited, a company incorporated in England and Wales, United Kingdom. The registered office address is 82. St. John Street, London, EC1M4JN.

The ultimate parent company is Alcon Performance Engineering Group Limited, a company incorporated in England and Wales, United Kingdom. The registered office address is 82. St. John Street, London, EC1M4JN.

The largest and the smallest group in which the results of the company are consolidated is that headed by Alcon Performance Engineering Group Limited. This company has no ultimate controlling party.

The consolidated financial statements of the group are available to the public from the Registrar of Companies in England and Wales.

Brought forward tangible fixed assets balances in note 13 have been restated in respect of leasehold improvements, plant and machinery and assets under construction to reflect reclassifications identified in prior periods. This reclassification has no impact on profit, net assets or cash flows.

During the year the company reviewed the presentation of certain loan balances with shareholders of the company and group members. An amount equal to £5,150,000 has been reclassified from creditors due within one year note 16 to creditors due after more than one year note 17 to better reflect the expected timing of settlement. This reclassification has no impact on profit, net assets or cash flows.