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

The trading performance of the company was very good in 2025 with all divisions performing well against prior year and the Company overall increasing it’s turnover in the year by £1.184m taking it over £20m for the first time and finishing the year at £20.782m

In the Metal Industries Division the key sectors of Aerospace and Medical continued to experience good growth and the Automotive sector continued to be steady. The trade sector performed very strongly during the year and the introduction of new products have helped to generate new turnover in new markets.

The Construction Division finished the year strongly after a weak start to 2025 due to economic conditions and cheap imports and came in above prior year by the end of 2025 boosted by the sale of a number of large machine sales.

Review of the Statement of financial position

The Company is reporting Operating Profit of £1.057m compared with £81k in the prior year. This was mainly explained by improving product portfolio resulting in the sale of more profitable items. As a result there was a profit before taxation in the year of £796k compared to the previous year loss of £274k.

The company’s inventory levels have decreased from £3.911m to £3.286m over the year as a result of the Company’s effort to improve its Working Capital position. Efforts to reduce this further over the next financial year will continue with a Company focus on stock and warehouse management. Trade receivables have increased to £5.483m up from £4.923m in 2024 but this reflects the sale of a large machine in the Construction Division that straddled the Year End. This also helps to explain the increase in Trade Payables at the Year End which increased from £2.873m to £3.544m.

The start to 2026 has been steady with above budget results in Qtr 1 for the Precision and Construction divisions. This reflects the overall positive outlook for UK Manufacturing industry in 2026. Our Construction division will be looking to further expand it’s turnover throughout 2026 by continuing to expand the Floor Grinding market whilst the introduction of new products and a focus on key sectors in 2026 will continue to drive the Precision and Trade business within our Metal Industries division.

The Directors of Tyrolit Limited manage the company's operations on a divisional basis. For this reason, the company's Directors believe that analysis using key performance indicators for the company is not necessary or appropriate for an understanding of the development, performance or position of the business of Tyrolit Limited.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of the sale and distribution of grinding abrasives and cutting tools.

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the reporting date.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to 49 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Burgis & Bullock were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the 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 auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

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.

We have audited the financial statements of Tyrolit Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and the related notes 1 to 24, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

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 profit for the year then ended;

• have been properly prepared in accordance with IFRSs as adopted by the European Union; and

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

Basis for opinion

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

Emphasis of matter

We draw attention to Note 22 which describes the effects of the estimation uncertainties within the underlying calculation of the valuation of company’s defined benefit retirement scheme surplus amounting to £2,674k at the balance sheet date. As noted by the company’s external advisor the calculations leading to this surplus were based on financial conditions and underlying assumptions existing on the balance sheet date. The assumptions used are found to be within the median to optimistic range of observed market practice on pension accounting assumptions. Any changes to these financial conditions and assumptions can create significant variances and hence there is inherent volatility within the calculation of the surplus. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report set out on pages 1 to 4, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Based on our understanding of the company and industry we identified that the principal risk of non-compliance with laws and regulations related to breaches of Companies Act 2006, UK Tax Legislation and UK Employment Law. We also evaluated management incentive and opportunities for fraudulent manipulations of the financial statements.

Audit procedures performed included:

• Making enquiries of management as to any instances of non-compliance with laws and regulations;

• Reviewing returns made to Companies House and the relevant tax authorities;

• Identifying and assessing the design effectiveness of controls management have in place to prevent and detect fraud;

• Challenging assumptions and judgments made by management in their significant accounting estimates, particularly estimates relating to provisions against inventory and valuations of defined benefit pension schemes, and assessing if these indicate evidence of management bias;

• Reviewing the accounting records for large and unusual transactions and testing any identified and in particular the rationale for any transactions outside the company’s normal course of business; and

• Testing a sample of debit entries in the profit and loss account to check they are bona-fide costs of the business.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The income statement has been prepared on the basis that all operations are continuing operations.

Total comprehensive income for the period is attributable to the owners of the company as there is no non-controlling interest.

Tyrolit Limited is a private company limited by shares incorporated in England. The registered office is Eldon Close, Crick, Northants, NN6 7UD.

The company's principal activity is the sale and distribution of grinding abrasives and cutting tools.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention, as modified by the recognition of the defined benefit pension scheme measured at fair value. The principal accounting policies adopted are set out below.

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

Revenue which excludes value added tax and trade discounts, represents the value of goods and services supplied, recognised when control of the goods has transferred to the customer.

The company sells grinding abrasives and cutting tools. Revenue from new product sales are recognised at a point in time. Sales are recognised when the performance obligation is satisfied and control of the products has transferred, being when the product has been delivered to the customer or, for consignment stock, at the time of drawdown by the customer from a secure stock location. The product is often sold to customers with volume or price discounts and the revenue is recognised based on the price specified in the contract, net of the estimated discount.

No element of financing is deemed present as the sales are generally made with a credit term of 30-90 days, which is consistent with market practice. The company's obligation to repair or replace faulty products are under standard warranty items.

A receivable is recognised when the control of goods have passed to the customer as this is the point in time that the consideration is unconditional because only passage of time is required before payment is due.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

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

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

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

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

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

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Pillar Two

In June 2023 the UK government substantially enacted the Pillar Two income taxes legislation effective from 1 January 2024 which is designed to ensure large enterprises pay a minimum level of tax on income arising in each jurisdiction in which they operate. The rules and guidance in relation to Pillar Two continue to evolve and the company is aware that, as a result of this changing landscape, there is a possibility that top-up taxes may arise at some point in the future.

The company has applied the exemptions within IAS 12 'Income Taxes' related to the recognition and disclosure of deferred tax assets and liabilities arising from the implementation of Pillar Two.

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

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

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

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

Retirement benefits (continued)

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

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

Financial risk management

The company's operations expose it to a variety of financial risks that include credit risk and foreign exchange exposure. The company has in place risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring expenses. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the directors are implemented by the company's finance department.

Foreign exchange risk

The company is exposed to foreign exchange risks with respect to the Euro, US dollars and Swiss Francs. The company does not use forward exchange contracts to manage exposure to foreign exchange movements. However given the size of its operations the cost of managing exposure to commodity price risk exceeds any potential benefit. The majority of purchases are intergroup which is considered to provide some protection from the foreign exchange risk.

Credit risk

The company has no significant concentrations of credit risk and has implemented policies that require appropriate credit checks on potential customers before sales are made. The company does not use formal credit limits, but does obtain credit insurance on individual balances. Management does not expect any losses from non-performance by these counterparties.

Liquidity risk

The company maintains sufficient short term facilities to ensure it has sufficient funds for operations and planned expansion.

Interest rate risk

The company has both interest bearing assets and interest bearing liabilities. The company does not use interest rate swaps. The company analyses its interest rate exposure on a dynamic basis.

Price risk

The company is exposed to commodity price risk as a result of its operations. However given the size of its operations the cost of managing exposure to commodity price risk exceeds any potential benefit. The directors will revisit the appropriateness of the policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk.

Capital risk management

The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The company monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'current and non-current borrowings' as shown in the balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the balance sheet plus net debt.

During the year ended 31 December 2025 various amendments have been made to IFRS which apply to the company that do not have a material impact on the company's financial statements. Further amendments to IFRS will apply from 1 January 2026 which are not anticipated to have a material impact on the company's financial statements.

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Management reviews inventory balance for net realisable value and possible obsolescence. Provision is created based on the different risk levels assigned to the inventory classes based on the established policies and historical results. The value of the provision for obsolescence at 31st December 2025 is £226k (2024 - £259k).

Accounting for pensions and other post-retirement benefits involves judgement about uncertain events, including estimated retirement dates, salary levels at retirement, mortality rates, rates of return on plan assets and determination of discount rates for measuring plan obligations. These assumptions are based on the most up-to-date information at the time. Determination of the projected benefit obligations for the company's defined benefit pensions and other post-retirement plans is important to the recorded amounts for such obligations on the balance sheet and to the amount of benefit expense in the income statement. The assumptions used may vary from year to year, which will affect future results of operations. Pension and other post-retirement benefit assumptions are discussed and agreed with the independent actuaries in December each year. These assumptions are used to determine the projected benefit obligation at the year-end and hence the surpluses and deficits recorded on the company's balance sheet, and pension and other post-retirement benefit expense for the following year. The directors have reviewed the pension surplus calculated by the scheme's actuary. The directors have judged it appropriate to recognise the full calculated surplus, believing this to be equal to the asset ceiling. At 31st December 2025 the pension is a surplus of £2,674k (2024 - surplus £3,378k)

The company derives revenue from the transfer of goods and services at a point in time in the product lines of new product and other (being repairs and royalty sales). The disaggregation of revenue from contracts with customers is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

Property, plant and equipment includes right-of-use assets, as follows:

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

As of 31 December 2025 trade receivables of £5,425k (2024 - £4,767k) were fully performing.

Trade receivables past due but not impaired shown above relate to a number of independent customers for whom there is no recent history of default.

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

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

The company operates defined benefit pension scheme providing benefits based on final pensionable pay.

This is a funded scheme with the assets held separately from those of the company, being invested with London Life (previously known as Scottish Life).

Formal actuarial valuations of the company's defined benefit pension scheme, based on the projected unit method taking account of benefits accrued to date with an allowance for future salary increases or, where members have deferred benefits, future statutory revaluation, are carried out triennially with periodic actual reviews.

The most recently completed triennial actuarial valuation of the scheme, which was performed by independent qualified actuaries for the trustees of the scheme, was carried out as at 31 March 2022 and has been updated to 31 December 2025 by a qualified independent actuary.

The estimated contributions for the next annual reporting period is £nil.

On 6th June 2025 the trustees of the defined benefit pension scheme agreed that the scheme should be wound up. Initially a pension scheme "buy-in" will be entered into with appropriate insurers.

Assumed life expectations on retirement at age 65:

Amounts recognised in the income statement

Of the total expenses for the year, £nil is included in cost of sales, £nil in distribution costs, £nil in administration expenses, £119k in investment income and £nil in finance costs.

Amounts recognised in other comprehensive income

The amounts included in the statement of financial position arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans funded as follows:

Movements in the fair value of plan assets:

Scheme obligations would have been affected by changes in assumptions as follows:

The fair value of plan assets at the reporting period end was as follows:

The most recently completed triennial actuarial valuation of the Scheme, which was performed by independent qualified actuaries for the trustees of the Scheme, was carried out as at 31 March 2022 and the underlying assumptions used to calculate the asset was carried out at 31 December 2025. The report states that the calculations are based on financial conditions and underlying assumptions existing on a particular date and these are as reported above. These conditions and assumptions are subject to change which can create significant variances in the overall net valuation of the Scheme.

When including the Pension Scheme surplus in the financial statements the Directors have noted the estimation uncertainties created by the current economic climate. However, as the latest triennial scheme funding report stated that reduced contributions are acceptable, the Scheme is in surplus and is solvent, the Directors believe it is appropriate to recognise the calculated surplus of £2,674k as at 31 December 2025 in the financial statements.

During the year, the Trustees of the Scheme entered into an agreement with an insurer to secure the Scheme's liability to meet future member benefits, with the intention of eventually winding up the scheme, and this is reflected above in the fair value of plan assets consisting of an annuity. The company has an ongoing obligation to fund any further costs arising from the Scheme.

The company has granted a guarantee in respect of HM Customs and Excise for £250,000 (2024 - £250,000). No liability is expected to arise in respect of this guarantee.

The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholder and to maintain an optimal capital structure to reduce the cost of capital.

The company monitors capital on the basis of the gearing ratio, this ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'current and non-current borrowings' as shown in the balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the balance sheet plus net debt. The gearing ratio as at 31 December 2025 was 57.72% (2024 - 64.56%).

The company is not subject to any externally imposed capital requirements.

The remuneration of key management personnel, excluding directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

During the year the company entered into the following transactions with related parties:

Inter group interest expenses of £350k (2024 - £411k) were also incurred in the year.

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties include loans £5,700 (2024 - £6,400k) and other balances £1,960k (2024 - £1,749k).

The following amounts were outstanding at the reporting end date:

No guarantees have been given or received.

During the year and up to the 18 June 2026 the immediate parent undertaking was Tysa Holdings SA. On 18 June 2026 Tysa Holdings SA transferred the legal and beneficial title to the entire issued share capital of Tyrolit Limited to Tyrolit AG.

Swarovski Auslandsholding GmbH is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 31 December 2025. The consolidated financial statements of Swarovski Auslandsholding GmbH are available from Swarvoski Auslandsholding GmbH, Swarovskistrasse 30, 61 12, Wattens, Austria.

Newtysa Holding AG is the parent undertaking of the smallest group of undertakings to consolidate these financial statements. The consolidated financial statements of Newtysa Holding AG can be obtained from Newtysa Holding SA, Alte Landstrasse 411 Mannedorf, ZH 8708, Switzerland.