REGISTERED NUMBER: 00541560 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 APRIL 2025 TO 31 JANUARY 2026

FOR

SARGINSONS INDUSTRIES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTOR:

T M Nunan

REGISTERED OFFICE:

Sarginsons Industries Ltd

Torrington Avenue

Coventry

West Midlands

CV4 9AG

REGISTERED NUMBER:

00541560 (England and Wales)

SENIOR STATUTORY AUDITOR:

Brian Melville Leighton

INDEPENDENT AUDITORS:

Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

The director presents his strategic report for the period 1 April 2025 to 31 January 2026.

REVIEW OF BUSINESS

BUSINESS REVIEW

Sarginsons has historically been an aluminium foundry specializing in high-precision castings for the automotive industry, but is evolving into a casting technology centre, which specialises in developing, industrialising and commercialising casting technologies, best practice and new products for OEMs, Foundries and Academia alike.

Central to this new strategic positioning is the £6m grant funded PIVOT research project, culminating in 2027, which is developing Sarginsons breakthrough technologies in digital twin simulations of variable TYE and in stronger recycled aluminium alloys. Guaranteed global distribution of both products, to every OEM, is an integral component of PIVOT and will serve to make Sarginsons a gateway for the design and development of complex, structural, low carbon aluminium castings in every corner of the world.

2026 saw Sarginsons win a grant, under the Drive35: Feasibility grant scheme, to assess the viability of obtaining a second grant to build a state-of-the-art aluminium foundry. This world class facility would give Sarginsons the casting capacity, technical capability and research facilities that the new casting technology will require. Sarginsons is in discussions with numerous potential equity investors and OEMs about the potential of this new site and the potential of other, equivalent sites abroad.

It was anticipated that the focus on PIVOT development, particularly the creation of datasets, would affect new business sales and gross margins in 2025, but what was not anticipated was the fall in sales from existing, long term contract clients. Fortunately, the excitement over the new technology has generated a wave of new business since year end with numerous new components under contract. This surge in new business is expected to accelerate as the PIVOT products are launched in 2027, particularly with its inherent marketing.

STRATEGIC OBJECTIVES

The strategic objective is to occupy the communications vacuum that currently exists between OEMs, Foundries and Academia by developing, understanding and applying the latest casting technology and best practice as well as low volume production of cast components in sand, gravity, and low pressure.

It is felt that the interactive nature of the PIVOT project provides a once in a generation opportunity to build the relationships and trust required to overcome the misunderstandings, assumptions and technical shortcomings behind the communications void with OEMs that has so hindered the casting inability to exploit modern technological advances.

Whilst the automotive sector, particularly the ZEV industry, is of primary importance for these new technologies, it is felt that the aerospace market has huge, untapped potential for the products that Sarginsons is developing, particularly in the drone and UAV markets. Given the clear market advantage these new products give Sarginsons, their guaranteed distribution directly to every major OEM, and the massive new markets that will be opened, it is felt the strategic repositioning is going to generate exponential growth whilst establishing Sarginsons in a strong, long term strategic position.

FINANCIAL REVIEW

Turnover for the period ended 31 January 2026 was £8,828,526. Gross profit margin was 21.6% compared to 23.4% in the prior year. The reduction in margin reflects the continued investment of technical resource in the PIVOT programme during the year, which temporarily reduced output from the higher-margin technology division, together with start-up costs associated with new contracts won in the latter part of the year.

The Director expects margins to recover as PIVOT programme deliverables are completed, new contracts reach full production run rates, and the benefits of investment in advanced equipment including the acquisition of a Voxeljet 3D sand casting printer are realised.

Capital expenditure during the year and in the period immediately following the year end reflects the company's continued commitment to investing in advanced manufacturing capability to support its long term growth strategy.

PERFORMANCE AND KEY PERFORMANCE INDICATORS

The Director monitors the following key performance indicators to assess the financial health and operational performance of the business. These measures have been selected because they provide a clear view of profitability, capital efficiency and cash generation relative to revenue, and allow year on year comparison of underlying business performance.

Gross profit margin measures the proportion of revenue retained after direct production costs. This is the primary indicator of manufacturing efficiency and pricing effectiveness. The reduction from 23.4% to 21.6% reflects the factors described in the financial review above and is expected to recover in the coming year as new contracts mature and PIVOT programme costs unwind.

Return on capital employed measures the return generated from the capital invested in the business. This indicator reflects the efficiency with which the company deploys its asset base to generate operating profit. The prior year figure of 22.3% provides the baseline against which the current year will be measured.

EBITDA as a percentage of sales measures underlying cash earnings relative to revenue, stripping out the effect of depreciation, amortisation and financing costs. This indicator is particularly relevant given the company's investment in capital equipment and provides a view of the underlying trading performance of the business. The prior year figure of 8.3% provides the baseline for comparison.

PRINCIPAL RISKS AND UNCERTAINTIES

The Director has identified the following principal risks and uncertainties facing the business and the steps being taken to manage them.

Customer concentration. The company's revenue is concentrated among a small number of premium automotive customers. The Director manages this risk through the development of new customer relationships and by securing long-term supply agreements with existing customers. Key supply programmes are confirmed for the lifetime of the relevant vehicle builds, providing strong forward revenue visibility and reducing the risk of sudden revenue loss.

Market conditions. The company monitors developments in the automotive sector including the evolution of the electric vehicle market, competitive pressures in aerospace and the potential impact of international trade tariffs. The company is already working with a number of electric vehicle manufacturers and considers its exposure to import competition to be limited. Current sales volumes across existing programmes remain stable.

Technology and investment. The successful delivery of the PIVOT programme and the commissioning of new specialist equipment are key operational priorities for the coming year. The Director is satisfied that the programme is progressing in line with expectations and that the planned investment in production capability will be delivered within the going concern period.

People and capacity. The company's performance is dependent on retaining skilled technical staff and maintaining production capacity to meet customer demand. The Director monitors staffing levels and production capacity closely and is satisfied that the company has the resources required to meet its current and anticipated commitments.

ACHIEVEMENTS OF KEY PERFORMANCE INDICATORS

2026

2025

Gross profit margin

21.6%

23.4%

Return on Capital Employed

11.5%

22.3%

EBITDA / Sales

8.2%

8.3%

The 2026 figures above relate to the ten month period ended 31 January 2026 following the change of accounting reference date, and are not directly comparable to the twelve month figures shown for 2025.

ON BEHALF OF THE DIRECTOR:

T M Nunan - Director

8 September 2026

The director presents his report with the financial statements of the company for the period 1 April 2025 to 31 January 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of aluminium diecaster, specialising in low pressure, sand and gravity diecasting and related design and simulation services.

DIVIDENDS

No dividends will be distributed for the period ended 31 January 2026.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTOR

T M Nunan held office during the whole of the period from 1 April 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Accura Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE DIRECTOR:

T M Nunan - Director

8 September 2026

Opinion

We have audited the financial statements of Sarginsons Industries Limited (the 'company') for the period ended 31 January 2026 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 2026 and of its profit for the period 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Fraud - Identifying and responding to risks of material misstatement due to fraud

Fraud risk assessment

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could

indicate an incentive or pressure by management to commit, or provide an opportunity to commit, fraud. Our risk

assessment procedures included;

- enquiries of management and internal accounting staff, concerning the company's policies and procedures relating to:

- detecting and responding to the risks of fraud; and

- internal controls established to mitigate risks related to fraud;

- enquiries of management and internal accounting staff as to whether they had knowledge of any actual, suspected or alleged fraud;

- discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes the audit partner and manager who have commercial knowledge and experience of such an entity, and this experience was relevant to the discussion about where fraud risks may arise.

Risk communications

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

Fraud risks

As required by auditing standards we addressed the risk of management override of controls and the risk of fraudulent revenue recognition. In particular we considered the risk that revenue is recorded in the wrong period and the risk that the management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgments.

Procedures to address fraud risks

Our audit procedures included evaluating the design and implementation, and operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures including;

- Comparing journal entries to supporting documentation and review for any unusual journal descriptions;

- Assessing significant accounting estimates and judgements for bias;

- Obtaining third party confirmations for all bank balances and material debtors and creditors balances; and

- Testing journal entries to identify unusual transactions.

Laws and regulations

- Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations.

Risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered included the following;

- discussion with the management (as required by auditing standards);

- inspection of regulatory and legal correspondence; and

- discussions with the management about the policies and procedures regarding compliance with laws and regulations.

Risk communication

Our communication of laws and regulations risks was made throughout our team and we remained alert to any

indications of non-compliance throughout the audit.

Direct laws context and link to audit

The potential effect of laws and regulations on the financial statements varies considerably. The company is subject to United Kingdom laws and regulations, such as the Companies Act 2006. Other relevant rules and regulations include the following:

- Financial reporting legislation (including related UK companies' legislation).

- Taxation legislation (direct and indirect) in the countries of operation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Most significant indirect law/ regulation areas

The company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or harm to the company's ability to operate.

We identified the following areas as those most likely to have such an effect:

- Health, safety, welfare and fire safety.

- Anti-bribery fraud and corruption.

- Anti-money laundering regulations.

- European Union and United Kingdom employment law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to

enquiry of the management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of law or regulations is not disclosed to us or evident from relevant correspondence, our audit will not detect that breach.

We considered the extent to which the audit was considered capable of detecting irregularities: There are inherent limitations in the audit procedures described above 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Brian Melville Leighton (Senior Statutory Auditor)

for and on behalf of Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

8 September 2026

TURNOVER

3

8,828,526

13,191,001

Cost of sales

(6,921,360

)

(10,087,497

)

GROSS PROFIT

1,907,166

3,103,504

Distribution costs

(300,247

)

(650,203

)

Administrative expenses

(2,400,263

)

(2,876,586

)

(793,344

)

(423,285

)

Other operating income

4

1,143,018

1,066,925

OPERATING PROFIT

6

349,674

643,640

Interest receivable and similar income

1,112

-

350,786

643,640

Interest payable and similar expenses

8

(361,166

)

(313,604

)

(LOSS)/PROFIT BEFORE TAXATION

(10,380

)

330,036

Tax on (loss)/profit

9

11,156

(42,098

)

PROFIT FOR THE FINANCIAL PERIOD

776

287,938

PROFIT FOR THE PERIOD

776

287,938

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

776

287,938

FIXED ASSETS

Intangible assets

11

23

15,863

Tangible assets

12

1,829,093

1,861,502

Investments

13

150,000

-

1,979,116

1,877,365

CURRENT ASSETS

Stocks

14

2,096,675

2,037,178

Debtors

15

3,283,830

3,740,380

Cash at bank and in hand

172,617

364,328

5,553,122

6,141,886

CREDITORS

Amounts falling due within one year

16

4,508,384

5,139,201

NET CURRENT ASSETS

1,044,738

1,002,685

TOTAL ASSETS LESS CURRENT LIABILITIES

3,023,854

2,880,050

CREDITORS

Amounts falling due after more than one year

17

(584,848

)

(430,664

)

PROVISIONS FOR LIABILITIES

21

(429,936

)

(441,092

)

NET ASSETS

2,009,070

2,008,294

CAPITAL AND RESERVES

Called up share capital

22

750

750

Retained earnings

23

2,008,320

2,007,544

SHAREHOLDERS' FUNDS

2,009,070

2,008,294

The financial statements were approved by the director and authorised for issue on 8 September 2026 and were signed by:

T M Nunan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

750

1,997,806

1,998,556

Changes in equity

Dividends

-

(278,200

)

(278,200

)

Total comprehensive income

-

287,938

287,938

Balance at 31 March 2025

750

2,007,544

2,008,294

Changes in equity

Total comprehensive income

-

776

776

Balance at 31 January 2026

750

2,008,320

2,009,070

1.	STATUTORY INFORMATION

Sarginsons Industries 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.

Functional and presentation currency

The company's functional and presentation currency is £ sterling. Monetary amounts in these financial statements are rounded to the nearest £.

Comparative information

The company changed its accounting reference date during the year. As a result, these financial statements cover a period of 10 months from 1 April 2025 to 31 January 2026. The comparative figures relate to the 12-month period ended 31 March 2025. Accordingly, the comparative information is not entirely comparable.

Going concern

The financial statements have been prepared on a going concern basis. In forming this view, the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The company has received financial support from its principal customer by way of a loan as at 31 January 2026, which is repayable on demand. Notably, the principal customer has continued to provide financial support after the balance sheet date and the Director is satisfied, having regard to the nature of the commercial relationship and the principal customer's operational dependency on the company's continued supply across all of its current vehicle programmes, that this support will continue for the foreseeable future.

In addition, the company operates invoice finance facilities which remain in place and provide sufficient liquidity to support day to day operations. The Director has also considered the timing of an R&D tax credit claim of approximately £860,000 in respect of the period ended 31 January 2026. However, this claim has not yet been submitted to HMRC and cannot be submitted until these financial statements are approved. Receipt is expected approximately six weeks after submission, and the proceeds are expected to be applied against the company's outstanding VAT liability of £586,669. Accordingly, the Director considers this a timing risk rather than a solvency risk, noting that headroom of £246,672 is separately available under the company's invoice finance facility to bridge the period pending receipt.

Furthermore, the Director has reviewed detailed cash flow forecasts for the period to January 2027. The forecasts show the company managing its cash position carefully during the period July to December 2026. In this regard, the Director has had regard to the potential impact of adverse trading conditions on the forecast cash position and has identified mitigating actions available and within the Director's control should trading be below the base case assumptions.

In particular, the Director has had particular regard to the on-demand nature of the loan from the principal customer, for which no formal repayment plan is currently in place, notwithstanding the extension of the repayment date disclosed in note 27. Nonetheless, the company is the sole supplier of critical casting components used across all of the principal customer's current vehicle programmes, with lead times of approximately 68 weeks to qualify an alternative source of supply. Moreover, the principal customer has continued to advance further funds under this facility after scheduled repayment dates have passed, which the Director considers evidences an active and ongoing supportive lending relationship. Additionally, the Director has also reviewed sensitivity analysis over the base case forecast, which shows limited headroom under adverse trading scenarios, and has identified mitigating actions within his control, including deferral of capital expenditure and use of available invoice finance headroom, which he is satisfied would be sufficient to manage the position should trading fall below base case assumptions.

Finally, the Director has also considered the timing dependency between the finalisation of these financial statements, the submission of the R&D tax credit claim and the clearance of the outstanding VAT liability and is satisfied that this sequence can be completed in an orderly manner within the going concern period.

Accordingly, the Director is satisfied that there are no material uncertainties that may cast significant doubt on the company's ability to continue as a going concern.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

The Company is a wholly owned subsidiary of Nudation Limited and is included in the consolidated financial statements of that company. Advantage has been taken of the exemption available under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the basis that the Company is included by full consolidation in the publicly available consolidated financial statements of its parent, Nudation Limited, which are prepared in accordance with the requirements of the Companies Act 2006 applicable to those undertakings.

The Company has prepared its accounts on a going concern basis, and the director is satisfied that omitting the cash-flow statement in accordance with this exemption does not affect the true and fair view of the Company’s financial position and performance.

The Company’s financial statements are consolidated into the financial statements of Nudation Limited, which are publicly available from its registered office at Torrington Avenue, Coventry, England, CV4 9AG.

Significant judgements and estimates

In applying the company’s accounting policies, the director is required to make judgements and estimates that affect the amounts recognised in the financial statements.

•Judgements involve decisions made when applying accounting policies in situations where the outcome is uncertain. The uncertainty is about how the accounting policy should be applied, rather than the numerical amount to report.

•Estimates involve assumptions about future events or conditions that are inherently uncertain. The uncertainty is about quantifying an amount in the financial statements.

The director bases his judgements and estimates on historical experience and other factors he considers reasonable under the circumstances. Actual outcomes may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period of revision if they affect only that period, or in the period of revision and future periods if both are affected.

Judgements

The director has not made any critical judgements in applying the company’s accounting policies that are expected to have a material effect on the financial statements.

Estimates

The key sources of estimation uncertainty that could materially affect the financial statements are:

•Doubtful Debt Provisions

Provisions for doubtful debts are determined based on the director's assessment of the recoverability of individual receivables. This assessment considers the ageing of balances, specific knowledge of customers’ financial circumstances, and historical patterns of default. The director applies a prudent approach in estimating the likelihood of non-recovery.

•Provisions for Obsolete or Slow-moving Stock

Stock is reviewed regularly, and provisions are made where the director considers that the net realisable value of certain stock lines is lower than cost. The estimated net realisable value is determined by reference to actual selling prices achieved post year-end or, where unavailable, to the director's best estimates informed by historical sales trends and current market conditions.

Turnover

Turnover represents revenue arising from the company’s principal activities of aluminium diecasting and related design and simulation services. Revenue is measured at the fair value of the consideration received or receivable, net of value added tax, rebates and discounts.

Revenue is recognised as follows:

•Sale of goods (castings and components): Revenue is recognised when control of the goods passes to the customer, usually on delivery in accordance with the terms of the contract.

•Design, simulation and other services: Revenue from services is recognised upon delivery of the services.

•Tooling and development contracts: Revenue from the design and supply of bespoke tooling is recognised when the significant risks and rewards of ownership transfer to the customer, normally on completion and acceptance of the tooling.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is being amortised evenly over its estimated useful life of twenty years.

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 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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery - 10% on cost

Fixture and fittings - 10% & 33% on cost

Motor vehicle - 33% on cost

Computer equipment - 33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are initially recognised at cost and subsequently measured at cost less any accumulated impairment losses. Investments are reviewed for impairment where events or changes in circumstances indicate that the carrying amount may not be recoverable. Where the carrying amount exceeds the recoverable amount, being the higher of fair value less costs to sell and value in use, an impairment loss is recognised in profit or loss.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, and loans to and from banks and related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

Research expenditure is written off to the profit and loss account in the year in which it is incurred.

Development expenditure is written off in the year in which it is incurred unless it meets the capitalisation criteria under the applicable financial reporting standard, in which case it is capitalised as an intangible asset.

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 balance sheet. 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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Grant income

Research and development and other government grants are recognised as "Other income" in the Income Statement, matched against the related expenditure where applicable, when there is reasonable assurance that the conditions attached to the grants will be met and that the grant will be received.

Finance costs

Finance costs are charged to the income statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

3.

TURNOVER

The turnover and loss (2025 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.4.25

to

Year Ended

31.1.26

31.3.25

£

£

United Kingdom

7,513,912

10,972,536

Europe

1,177,279

1,164,190

Rest of the world

137,335

1,054,275

8,828,526

13,191,001

4.	OTHER OPERATING INCOME

Other income comprises the following:

31.1.26 £

31.3.25 £

Inter-company recharge

66,468

270,607

R&D tax credit accrued

860,000

657,943

Government grants

216,550

138,375

1,143,018

1,066,925

The R&D tax credit of £860,000 for the period had not been submitted to HMRC at the balance sheet date. It has been accrued on the basis that the Director considers recovery probable, being submitted for approval and payment following authorisation of these financial statements.

5.	EMPLOYEES AND DIRECTORS

Period

1.4.25

to

Year Ended

31.1.26

31.3.25

£

£

Wages and salaries

2,680,471

3,639,332

Social security costs

343,256

361,278

Other pension costs

74,396

99,142

3,098,123

4,099,752

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

Period

1.4.25

to

Year Ended

31.1.26

31.3.25

Director

1

1

Management

7

8

Production

66

67

Design and administration

15

15

89

91

Period

1.4.25

to

Year Ended

31.1.26

31.3.25

£

£

Director's remuneration

21,963

24,712

Director's pension contributions to money purchase schemes

659

741

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

Money purchase schemes

1

1

6.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.25

to

Year Ended

31.1.26

31.3.25

£

£

Depreciation - owned assets

106,919

174,765

Depreciation - assets on hire purchase contracts

181,410

178,557

Loss on disposal of fixed assets

-

36,767

Goodwill amortisation

5

5

Computer software amortisation

15,835

31,688

Foreign exchange differences

18,016

44,077