REGISTERED NUMBER: 05276638 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

BETRONICS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Consolidated Income Statement

12

Consolidated Other Comprehensive Income

13

Consolidated Balance Sheet

14

Company Balance Sheet

15

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Cash Flow Statement

19

Notes to the Consolidated Financial Statements

20

DIRECTORS:

C G Lewis

B C Lewis

REGISTERED OFFICE:

Unit 3, Gateway

1 Opus Close

Carrington

Manchester

M31 4RQ

REGISTERED NUMBER:

05276638 (England and Wales)

AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

The Directors present the Strategic Report for the company and group together with the audited financial statements for the year ended 31 December 2025.

Principal activity and business review

The principal activities of the Group during the year remained that of the manufacture of protective packaging solutions for corrosion prevention and dried-product protection.

REVIEW OF BUSINESS

Financial Performance

Fiscal 2025 saw the Group's sales revenue and gross margin exceed Budget by 0.1% and 1.6% respectively. Year-on-year, sales revenue increased by 5.5% to £15m. The associated gross profit increased by 8% to £9.55m. This financial performance ensured that cash flow remained very strong throughout the year

Geographical Performance

The Group's geographic performance saw domestic sales account for a reduced 48.7% of revenue with export activity contributing an increased 51.3%. Export sales were recorded with 44 overseas territories, up from 2024's 43, which serves to provide continued evidence that the Group's global reach is as strong as ever, supported by a programme of direct sales, sales through strategic distribution channels and an ever-growing on-line presence. In all markets, the company achieved improved gross margin levels as the Group continued to exploit its considerable business differentiators in all areas, manufacturing the highest quality packaging, supplied in a timely fashion whilst ensuring adherence to its business ethics. The Group continues to win new business in all markets and to consolidate its position as the UK's leading supplier of climatic packaging solutions and a major force in Europe and further afield.

Operational Highlights

The Group continued to enhance its manufacturing techniques and material and product format mix to support the objective of sales growth in industry sectors, specific applications and geographical regions that met the sales strategies of the business. The Group continued to maximise the sales opportunities and associated margin levels for the unique elements of its product range. In every area of the business, the Group was stronger and more capable than ever due to the continuing success and further development of, the Buddy System linked to a more strategic recruitment policy with particular focus here on the commercial department and the deployment of the relevant personnel. The Group continued to benefit from its continued investment in automated manufacturing capability. The Group dramatically boosted its development programme of new laminate structures to meet the technical and environmental demands of its global markets.

Market Conditions

The Group continued to adapt in-line with economic factors, legislation, competitor activity and evolving customer preferences by working in close partnership with its strategic supply base and taking a strong approach to key material cost control and understanding and deploying global market intelligence.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties that the Group faces continue to relate mainly to working within the credit worthiness of our customers, both domestic and overseas. In mitigation, our relationship with our credit limit underwriters is crucial, as we will only extend credit payment terms to companies that we can obtain an insured credit limit with. Immediate payment against pro-forma invoices is the only option when we are doing business with uninsured customers which reduces our risk of bad debts. The Group is exposed to fluctuating cost prices for its key raw materials and to currency exchange rates but these are constantly monitored using industry specific tools to ensure the information we have is up to date. To ensure the Group is best placed to deal with the marketplace we are currently investing in a new ERP and CRM system which will ensure we are perfectly placed to best deal with our customers' needs now and in the future. Regulations on the packaging industry are constantly changing but by aligning ourselves with the correct partners and subscribing to industry specific updates we can ensure that any changes are implemented well in advance of them becoming a legal requirement.

Other potential risks include:

Price risk: Economical, political and market conditions in supplier countries can affect the price we pay for raw materials. This can adversely affect our business but can also benefit the business.

Credit risk: All our domestic and overseas debt is insured or based on advance payment, to minimise any bad debt exposure within the business.

Liquidity risk: Due to our financial results during these financial years and our strict credit, we are diligent in managing our cash flows.

Exchange risk: The uncertainty associated to currency exchange rates is largely obviated by the Group's natural hedge mechanism.

Financial/Cash flow risk: The Group finances its operations through a mixture of cash flows and invoice financing. Daily cash positions are sent to the board for review. The management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.

FUTURE OUTLOOK

Market Conditions and External Factors

During the 2026 financial year, the Group will continue to respond to technological developments, regulatory change and environmental pressures through ongoing commercial, technical and product development activity.

Market conditions are expected to remain challenging, with continued uncertainty affecting customer demand, purchasing decisions and the timing of new business opportunities. The Group will maintain a disciplined commercial approach, focusing on the retention and development of existing business while pursuing appropriate opportunities for growth.

The Group also expects continued volatility across global supply chains, particularly in relation to polymer-based raw materials, with geopolitical events having the potential to increase material, freight and other operating costs. It will continue to manage these risks through supplier engagement, purchasing discipline, stock management and, where appropriate, the recovery of unavoidable cost increases through pricing.

The Group will continue to benefit from the natural hedge created by its Euro-denominated sales and purchases and will take appropriate steps to mitigate, where practicable, the impact of foreign exchange movements, global import and export tariffs, energy costs and increases in taxation and other government-imposed charges.

Strategic Focus

The Group will adopt a more focussed approach to the cross-fertilisation of existing industry activity, customer locations, applications and product-formats. Given the current geopolitical climate, the Group will respond to the inevitable increase in global defence expenditure. The commercial function of the business and the associated material and product formats will align to exploit the arising business opportunities. The Group will continue to use its market intelligence to keep the suppliers of key materials in check with regard to pricing, respond to customer preferences and displace competition.

Operational Plans

The Group will continue to advance the recyclability of its production-generated waste and seek to commercially exploit further enhancements arising from its ISO 14001:2015 Environmental Management System.

The Group will finalise the development and implementation of its new ERP system and associated add-ons, together with the development and implementation of a new CRM system designed to operate in conjunction with the ERP platform and strengthen the management of customer, commercial and operational information.

The Group will also continue to develop new materials and conversion capabilities that complement and expand its existing product portfolio, broaden the range of applications it can serve and support future commercial growth.

POST BALANCE SHEET EVENTS

Continuing to monitor changes in packaging regulations and ensure we are complying with updates to Plastic Packaging Tax, EPR and PPWR.

Staying up to date with global changes such as the implementation of the 'Trump Tariffs' and global conflicts.

As part of the review of our business impact on the environment we have once again partnered with a company to off-set our carbon emissions to become carbon neutral for another year. We have continued to work on items contained in our Environmental Management System (EMS) to identify and implement changes to reduce our impact.

We have continued to work on the replacement of our current operating system with a new modern ERP/CRM system.

Post year end the company acquired a controlling interest in 3D Barrier Bags Inc, a company incorporated in the United States of America, as explained in the notes to these financial statements.

GOING CONCERN

In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Group will continue in business. In satisfaction of this responsibility, the Directors have considered the Group's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Group continues to manufacture at its production facility with no plans to stop production. To date, the Group has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Group has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2027. This indicates that for a period of 16 months from the date of signing these accounts, the Group continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

FINANCIAL KEY PERFORMANCE INDICATORS

Financially we have exercised excellent controls with regard to stock and cash flow with stock turn, debtor days and creditor days all at appropriate levels which are reported to the board for review on a weekly basis. All expense lines remain under control. Our sales visits and issued samples and quotes were all in line with our targets and our customer survey clearly indicates that we are considered an excellent supplier. Quality complaints are in line with our objectives but continue to be reviewed and improvements implemented to ensure these are kept to an absolute minimum.

RESEARCH AND DEVELOPMENT

The Group will continue to develop new materials, manufacturing techniques and packaging product formats to allow entry into new geographical markets, areas of application and industry sectors and continue to provide specialist product and equipment manufacturers with the climatic packaging solutions that they require. We will endeavour wherever possible to utilise smart features on our packaging to exploit the opportunities for intelligent packaging. The Group will build upon its growing reputation as a developer of the most appropriate packaging solutions to meet the specific demands of the customer's needs and that of their products and routes to market. The Group will continue to link its excellent technical acumen with that of its key material supply base to achieve this objective.

ON BEHALF OF THE BOARD:

B C Lewis - Director

11 September 2026

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

PRINCIPAL ACTIVITY

The principal activities of the group during the year remained that of the manufacture of protective packaging solutions for corrosion prevention and dried-product protection.

DIVIDENDS

Profit for the year after tax £1,887,505 (2024: £1,135,238).

The total distribution of dividends for the year ended 31 December 2025 is £875,000 (2024: £1,075,000).

POST BALANCE SHEET EVENTS

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

DIRECTORS

C G Lewis has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

B C Lewis was appointed as a director after 31 December 2025 but prior to the date of this report.

J H Law and S Jolly ceased to be directors after 31 December 2025 but prior to the date of this report.

CHARITABLE DONATIONS

During the year the company made charitable donations of £1,708 (2024: £6,500). These donations were to registered UK charities, as follows: Manchester Christmas Relief £1,389, Ovarian cancer £117, Charity boxing match £202.

The company did not make any political donations during the year or the prior year.

DIRECTORS INDEMNITIES

The company has currently made qualifying third party indemnity provisions for the benefit of its directors, which remain in force at the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The business review, financial risk assessment, assessment of principal risk and uncertainties, research and development, post balance sheet events and future developments are included within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B C Lewis - Director

11 September 2026

Opinion

We have audited the financial statements of Betronics Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 pages six and seven, 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 group's and the parent 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 group or the parent 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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

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.

Karen Dent (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

11 September 2026

TURNOVER

3

15,033,537

14,245,927

Cost of sales

5,482,075

5,422,173

GROSS PROFIT

9,551,462

8,823,754

Administrative expenses

7,044,921

7,244,341

OPERATING PROFIT

5

2,506,541

1,579,413

Interest payable and similar expenses

7

13,334

21,895

PROFIT BEFORE TAXATION

2,493,207

1,557,518

Tax on profit

8

605,702

422,280

PROFIT FOR THE FINANCIAL YEAR

1,887,505

1,135,238

Profit attributable to:

Owners of the parent

1,887,505

1,135,238

PROFIT FOR THE YEAR

1,887,505

1,135,238

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,887,505

1,135,238

Total comprehensive income attributable to:

Owners of the parent

1,887,505

1,135,238

FIXED ASSETS

Intangible assets

11

135,258

104,611

Tangible assets

12

1,569,724

1,700,937

Investments

13

-

-

1,704,982

1,805,548

CURRENT ASSETS

Stocks

14

933,122

802,879

Debtors

15

3,613,819

3,482,281

Cash at bank and in hand

1,541,389

1,058,006

6,088,330

5,343,166

CREDITORS

Amounts falling due within one year

16

4,009,966

4,375,471

NET CURRENT ASSETS

2,078,364

967,695

TOTAL ASSETS LESS CURRENT LIABILITIES

3,783,346

2,773,243

PROVISIONS FOR LIABILITIES

20

555,197

557,599

NET ASSETS

3,228,149

2,215,644

CAPITAL AND RESERVES

Called up share capital

21

808

808

Capital redemption reserve

22

111

111

Retained earnings

22

3,227,230

2,214,725

SHAREHOLDERS' FUNDS

3,228,149

2,215,644

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2026 and were signed on its behalf by:

B C Lewis - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

1,984,486

1,984,486

1,984,486

1,984,486

CURRENT ASSETS

Debtors

15

744

744

CREDITORS

Amounts falling due within one year

16

2,787,305

2,787,305

NET CURRENT LIABILITIES

(2,786,561

)

(2,786,561

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(802,075

)

(802,075

)

CAPITAL AND RESERVES

Called up share capital

21

808

808

Capital redemption reserve

22

111

111

Retained earnings

22

(802,994

)

(802,994

)

SHAREHOLDERS' FUNDS

(802,075

)

(802,075

)

Company's profit for the financial year

875,000

1,075,000

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2026 and were signed on its behalf by:

B C Lewis - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

808

2,154,487

111

2,155,406

Changes in equity

Dividends

-

(1,075,000

)

-

(1,075,000

)

Total comprehensive income

-

1,135,238

-

1,135,238

Balance at 31 December 2024

808

2,214,725

111

2,215,644

Changes in equity

Dividends

-

(875,000

)

-

(875,000

)

Total comprehensive income

-

1,887,505

-

1,887,505

Balance at 31 December 2025

808

3,227,230

111

3,228,149

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

808

(802,994

)

111

(802,075

)

Changes in equity

Dividends

-

(1,075,000

)

-

(1,075,000

)

Total comprehensive income

-

1,075,000

-

1,075,000

Balance at 31 December 2024

808

(802,994

)

111

(802,075

)

Changes in equity

Dividends

-

(875,000

)

-

(875,000

)

Total comprehensive income

-

875,000

-

875,000

Balance at 31 December 2025

808

(802,994

)

111

(802,075

)

Cash flows from operating activities

Cash generated from operations

1

1,840,093

1,914,066

Finance costs paid

(13,334

)

(21,895

)

Tax paid

(400,000

)

(400,001

)

Net cash from operating activities

1,426,759

1,492,170

Cash flows from investing activities

Purchase of intangible fixed assets

(32,438

)

(30,292

)

Purchase of tangible fixed assets

(35,938

)

(237,052

)

Net cash from investing activities

(68,376

)

(267,344

)

Cash flows from financing activities

Equity dividends paid

(875,000

)

(1,075,000

)

Net cash from financing activities

(875,000

)

(1,075,000

)

Increase in cash and cash equivalents

483,383

149,826

Cash and cash equivalents at beginning of year

2

1,058,006

908,180

Cash and cash equivalents at end of year

2

1,541,389

1,058,006

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

2025

2024

£

£

Profit before taxation

2,493,207

1,557,518

Depreciation charges

168,941

179,250

Increase in provisions

40,000

52,000

Release of provisions

-

(121,204

)

Finance costs

13,334

21,895

2,715,482

1,689,459

(Increase)/decrease in stocks

(130,243

)

99,514

Increase in trade and other debtors

(131,538

)

(752,725

)

(Decrease)/increase in trade and other creditors

(613,608

)

877,818

Cash generated from operations

1,840,093

1,914,066

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 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

1,541,389

1,058,006

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,058,006

908,180

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

1,058,006

483,383

1,541,389

1,058,006

483,383

1,541,389

Total

1,058,006

483,383

1,541,389

1.	STATUTORY INFORMATION

Betronics Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05276638, and registered office is Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ. The nature of the group's operations and its principal activities are set out in the strategic report.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation and functional currency is the Pound Sterling (£), rounded to the nearest £.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies.

The following principal accounting policies have been applied:

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

• no cash flow statement has been presented for the parent company;

• disclosures in respect of the parent company's financial statements have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and

• no disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

Basis of consolidation

The consolidated financial statements present the results of group and its own subsidiaries ("the group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Critical accounting judgements and key sources of estimation uncertainty

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.

The directors have made no material judgements but have made estimates in preparing these financial statements. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued costs

Accrued expenditure is estimated by the directors at each year end, to ensure that all known liabilities are accounted for in the financial statements.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Management estimate and make provision for costs that will be incurred in returning a leased property to the condition that it was in at the inception of the lease. The actual costs of work that needs to be completed could vary from the estimates. The amount recognised is the estimated cost of dilapidations and is reassessed each year in accordance with local conditions and requirements. Changes in the estimated timing of dilapidations or dilapidations cost estimates are dealt with prospectively by recording an adjustment to the provision.