REGISTERED NUMBER: 09352164 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

ORTHO SOLUTIONS UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

R Hosking

E F Clare

C Fisher

SECRETARY:

E F Clare

REGISTERED OFFICE:

West Station Business Park

Spital Road

Maldon

Essex

CM9 6FF

REGISTERED NUMBER:

09352164 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Beckwith Barn

Warren Estate

Lordship Road

Writtle

Essex

CM1 3WT

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

REVIEW OF BUSINESS

Ortho Solutions UK Limited continued to build on the strong growth achieved in recent years. Turnover increased to £14.5m, reflecting continued demand for the company's specialist foot and ankle product portfolio. Gross profit remained strong at £8.2m, representing a gross margin of approximately 56%.

The company maintained its focus on both elective and trauma products. The Volition™ Plating System continued to perform strongly in these sectors, supported by its innovation, evidence-based design and focus on improving patient outcomes. During the year, the company received US regulatory approval and launched the Succession™ Nail system, a new TTC nail system designed to provide surgeons with greater control and support customised treatment based on patient need.

A significant strategic milestone during the year was the development of the medical device additive manufacturing division (3D printing of Custom patient specific implants), following ten years of distributing. This further strengthens the company's ability to respond to surgeon-specific requirements. During the year, significant challenges were faced especially around design, manufacturing process and significant improvements into QARA process. The Ortho Solutions team pulled together to overcome these hurdles and we are now in a much stronger position to further penetrate this fast growing market segment.

The company continued to invest in people, new product development, additive manufacturing and compliance. These investments increased the cost base during the year and impacted short-term profitability. The Directors consider these investments strategically important to support future growth, product innovation, regulatory compliance and the continued development of the company's specialist foot and ankle portfolio.

A significant regulatory milestone was achieved, when the company's Quality Management System was awarded its certificate in accordance with the new Medical Device Regulation. This certification also included the addition of Class 1R microbiology activities, further strengthening the company's regulatory capabilities.

New product development remains a core pillar of the company's strategy. Development work continued in collaboration with surgeon experts to meet the needs of patients and clinicians, supporting the company's purpose of "Advancing Foot and Ankle Care". The Company also continued to deliver professional education programmes for surgeons and healthcare professionals, with a focus on evidence-based practice and high-quality clinical teaching.

Development projects with surgeons continued throughout the year, focusing on incremental product improvement and innovation. This R&D investment also enabled the company to claim R&D tax credits from HMRC for 2025.

The company's reported operating result reflects the impact of intragroup activity and investment made to support wider Group growth initiatives. On consolidation, the effect of intragroup transactions is eliminated, resulting in a materially different Group operating result.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors continue to monitor risks relating to foreign exchange, stock management, regulatory compliance, liquidity, debtor recoverability and the integration of additive manufacturing into the company's quality system. The Directors believe that the company's specialist product portfolio, overseas market opportunities and continued product development help reduce the risk of reliance on a single market. The company is also well placed to respond to market demand as UK elective waiting lists are addressed.

ON BEHALF OF THE BOARD:

C Fisher - Director

13 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of orthopaedic products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

R Hosking

E F Clare

C Fisher

CASHFLOW RISK

The Company has continued to manage its cash flows in the year. In order to maintain liquidity to ensure that sufficient funds are available, the Company regularly reviews any present obligations and prepares cash flow forecasts to consider any changes in operations.

CREDIT RISK

The Company's principal financial assets are tangible fixed assets, stock, cash and trade debtors. The directors consider there to be little or no risk in respect of balances with any third parties that would impact the availability of credit for the Company.

DISCLOSURE IN THE STRATEGIC REPORT

Items required under Sch. 7 to be disclosed in the directors’ report are set out in the strategic report in accordance with s.414C(11) CA 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

C Fisher - Director

13 August 2026

Opinion

We have audited the financial statements of Ortho Solutions UK Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 December 2025 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit, in respect to irregularities, including fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; to respond appropriately to fraud or suspected fraud identified during the audit, to obtain audit evidence regarding compliance with provisions of applicable laws and regulations, and to respond appropriately to any non-compliance identified. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations our approach was to consider the following:

- the nature of the industry or sector, control environment and business performance;

- the results of enquiries of management about their own identification and assessment of the risks of irregularities;

- matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, tax legislation and health and safety.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

We assessed the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: recognition of income, foreign currency translation and value of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation;

- enquiring of management concerning actual and potential litigation and claims;

- reviewing material legal costs in the period;

- performing analytical procedures to identify unusual or unexpected relationships;

- reviewing correspondence with HMRC;

- testing the appropriateness of judgements made in making accounting estimates, journal entries and other adjustments made by management for indications of potential bias; and

- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

- completed focused testing on a sample of amounts recoverable on contracts to assess the performance in line with management's forecasts.

The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Timothy Harbour BSc FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Beckwith Barn

Warren Estate

Lordship Road

Writtle

Essex

CM1 3WT

13 August 2026

TURNOVER

14,500,359

14,031,066

Cost of sales

6,335,090

5,309,823

GROSS PROFIT

8,165,269

8,721,243

Administrative expenses

9,770,566

7,750,117

(1,605,297

)

971,126

Other operating income

4

-

23,513

OPERATING (LOSS)/PROFIT

(1,605,297

)

994,639

Interest receivable and similar income

825

314

(1,604,472

)

994,953

Interest payable and similar expenses

7

455,043

506,700

(LOSS)/PROFIT BEFORE TAXATION

8

(2,059,515

)

488,253

Tax on (loss)/profit

10

(41,555

)

(190,714

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(2,017,960

)

678,967

(LOSS)/PROFIT FOR THE YEAR

(2,017,960

)

678,967

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(2,017,960

)

678,967

FIXED ASSETS

Tangible assets

11

495,688

655,362

CURRENT ASSETS

Stocks

12

4,139,026

4,822,083

Debtors

13

4,738,512

5,352,105

Cash at bank and in hand

14

968,452

990,081

9,845,990

11,164,269

CREDITORS

Amounts falling due within one year

15

5,702,969

5,099,326

NET CURRENT ASSETS

4,143,021

6,064,943

TOTAL ASSETS LESS CURRENT LIABILITIES

4,638,709

6,720,305

CREDITORS

Amounts falling due after more than one year

16

4,380,000

4,443,636

NET ASSETS

258,709

2,276,669

CAPITAL AND RESERVES

Called up share capital

20

4

4

Retained earnings

21

258,705

2,276,665

SHAREHOLDERS' FUNDS

258,709

2,276,669

The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2026 and were signed on its behalf by:

C Fisher - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

4

1,597,698

1,597,702

Changes in equity

Total comprehensive income

-

678,967

678,967

Balance at 31 December 2024

4

2,276,665

2,276,669

Changes in equity

Total comprehensive loss

-

(2,017,960

)

(2,017,960

)

Balance at 31 December 2025

4

258,705

258,709

1.	STATUTORY INFORMATION

Ortho Solutions UK 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.

The company's functional and presentation currency is the Pound Sterling (£).

Amounts in these financial statements are rounded to the nearest Pound Sterling (£).

The financial statements contain information about Ortho Solutions UK Limited as an individual Company. Ortho Solutions UK Limited is a subsidiary of Ortho Solutions Holdings Limited, a Company registered in England and Wales.

The Parent company is registered at the same address as Ortho Solutions UK Limited and the Group financial statements can be viewed on the Companies House website.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

These financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the Company.

The company has prepared forecasts for the next twelve months, which consider changes in trading conditions. The directors have considered the cashflow requirements of the Company for a period of twelve months from the date of approval of these financial statements and are satisfied that sufficient financial resources will continue to be made available.

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.

A consolidated cash flow statement is presented within the group financial statements of the Parent, Ortho Solutions Holdings Limited.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements. estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively.

Stock provision

At each reporting date, stocks are assessed for impairment as a result of slow moving or obsolete stock.This assessment is prepared by reference to the last 12 months sales data and involves analysing stock items based on the expected sales value and quantity achieved in the period under assessment. From this analysis, impairments are calculated at the following rates:

- 100% provision for items with no sales in the period assessed

- 25% provision for items which quantity held exceeds sales data multiplied by 2

- 85% provision for items which quantity held exceeds sales data multiplied by 3

The above rates were agreed by the directors based on their experience of the industry and the nature of the company stock holdings in which some stock items can become obsolete.

The carrying amount of the above provision included against the value of stock at the balance sheet date is £2,639,475 (2024: £2,563,559).

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied and services rendered, net of returns, discounts and valued added taxes.

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met.

The company supplies implants and instruments for surgical procedures. The sale of these goods is recognised under the following methods:

Direct orders

The sale of goods are recognised when the goods are physically delivered to the customer.

Goods on consignment

Due to the nature of the implants and instruments (systems) needed, the company distribute kits of systems to customers for use in surgical procedures on a consignment basis.

Under the consignment agreement, the customer must restock the system implants and instruments held on consignment. The company will invoice the customer to replenish the kits which is recognised within revenue when the goods are physically delivered to the customer.

In addition, when a consignment kit is returned the system items are reviewed. Anything found to be missing or non compliant is invoiced to the customer on receipt of the returned kit.

Goods on loan arrangements

Similar to goods on consignment the company also provide system kits under a loan agreement. When the kit is returned to the company, any items used are billed to the customer on receipt of the returned kit.

Tangible fixed assets

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

Improvements to property

-

25% on cost

Plant and machinery

-

33% on cost and 25% on reducing balance

Kits

-

33% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation of a tangible fixed assets begins when it is in the location and condition necessary available for the use intended.

Tangible fixed asset depreciation is included in administrative expenses in the Income Statement.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is applied on a standard costing basis which is determined by the purchase price paid for the stock, net of value added tax. Net realisable value represents estimated selling price less costs to complete and sell. Provisions are made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Some batch stock items have an expiry date applicable, the Company policy is to provide for the write off at the date of expiry and no separate provision is included at the balance sheet date.

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the Income Statement.

Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the Income Statement.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in the Income Statement.

Borrowing costs

All borrowing costs are recognised in the Income Statement in the period in which they are incurred.

4.	OTHER OPERATING INCOME

2025

2024

£

£

Grant income

-

23,513

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,692,084

2,941,869

Social security costs

429,272

371,431

Other pension costs

275,770

282,433

4,397,126

3,595,733

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

2025

2024

Directors

3

3

Employees

59

48

62

51

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

315,134

313,199

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

123,750

123,750

Company contributionsmade in the year toward a money purchase scheme retirement benefit for the highest paid director were £60,000 (2024: £60,000).

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

10,043

21,700

Other loan interest

445,000

485,000

455,043

506,700

8.	(LOSS)/PROFIT BEFORE TAXATION

The loss (2024 - profit) is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

348,889

259,115

Foreign exchange differences

690,653

(49,297

)

9.	AUDITORS' REMUNERATION

2025

2024

£

£

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

32,000

29,700

Auditors' remuneration for non audit work

4,363

6,665

10.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

£

£

Current tax:

Prior year tax

(41,555

)

(190,714

)

Tax on (loss)/profit

(41,555

)

(190,714

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(2,059,515

)

488,253

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(514,879

)

122,063

Effects of:

Expenses not deductible for tax purposes

2,944

2,324

Utilisation of tax losses

-

(77,540

)

Research and development enhanced deductions prior year

(41,555

)

(190,714

)

Losses carried forward

473,263

-

Unprovided deferred tax

38,672

(46,847

)

Total tax credit

(41,555

)

(190,714

)

11.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Computer

property

machinery

Kits

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

216,357

250,071

1,032,596

275,191

1,774,215

Additions

-

70,545

118,670

-

189,215

At 31 December 2025

216,357

320,616

1,151,266

275,191

1,963,430

DEPRECIATION

At 1 January 2025

216,357

152,403

485,815

264,278

1,118,853

Charge for year

-

70,924

270,550

7,415

348,889

At 31 December 2025

216,357

223,327

756,365

271,693

1,467,742

NET BOOK VALUE

At 31 December 2025

-

97,289

394,901

3,498

495,688

At 31 December 2024

-

97,668

546,781

10,913

655,362

The Company has a floating charge over the Group's assets, including tangible fixed assets, as security for the debenture agreed.

12.

STOCKS

2025

2024

£

£

Stocks

4,139,026

4,822,083

The Company has a floating charge over the Group's assets, including stocks, as security for the debenture agreed.

Stock is considered for impairment in the form of a slow moving and an obsolete provision. Details of this assessment are included within note 3 under significant judgements and estimates. The carrying amount of the provision included against the value of stock at the balance sheet date is £2,639,475 (2024: £2,563,559).

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,684,666

1,455,275

Amounts owed by group undertakings

2,749,269

3,373,805

Other debtors

59,614

115,101

Tax

9,093

200,121

Prepayments

235,870

207,803

4,738,512

5,352,105

The Company has a floating charge over the Group's assets, including debtors, as security for the debenture agreed.

14.	CASH AT BANK AND IN HAND

2025

2024

£

£

Current account

836,286

987,906

Dollar account

123,495

56

Euro account

8,030

1,478

Cash in hand

641

641

968,452

990,081

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 17)

63,636

127,273

Trade creditors

541,713

475,648

Amounts owed to group undertakings

1,612,776

1,612,776

Social security and other taxes

117,248

86,370

Pension

30,077

45,388

VAT

438,179

422,056

Other creditors

165,580

29,553

Wages control account

3,255

6,817

Accruals and deferred income

2,730,505

2,293,445

5,702,969

5,099,326