FOR THE YEAR ENDED 31 DECEMBER 2025
CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
COMPANY INFORMATION
CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
CONTENTS
CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Trading Group delivered a record performance in FY2025, achieving the highest turnover and order intake in the Group’s history. We enter FY2026 with our largest ever order book, 21% higher on a like-for-like basis than the opening position for FY2025, providing strong revenue visibility and underpinning confidence in continued growth.
The Group includes Condition Monitoring Technology Group Holdings Limited, Condition Monitoring Technology Group Limited, Helitune Limited, Beran Instruments Limited, Prosig Limited, DJB Instruments (UK) Limited & its overseas subsidiaries as set out in note 15.
EBITDA increased both in absolute terms and as a percentage of revenue, demonstrating the operating leverage within the business model. Margin expansion was driven not only by revenue growth but also by disciplined cost management and the continued execution of Group-wide synergy initiatives. These improvements reflect structural enhancements to our cost base rather than short-term efficiencies, strengthening the platform for sustainable profitability.
During the year, we invested selectively in senior operational, supply chain, and commercial leadership across the UK and North America. These appointments enhance execution capability, support our cost optimisation programme, and position the Group to accelerate organic growth across our core markets.
The Company and the Group rely on its existing bank facilities to meet their day-to-day working capital requirements, and these facilities were renewed at favourable terms for the Group during 2026.
FUTURE DEVELOPMENTS
We will continue to invest in maintaining a technological edge across our core aerospace, defence, and energy production markets, where barriers to entry, certification requirements, and long-term customer relationships provide structural competitive advantages.
At the same time, we are intensifying our focus on:
The Group includes Condition Monitoring Technology Group Holdings Limited, Condition Monitoring Technology Group Limited, Helitune Limited, Beran Instruments Limited, Prosig Limited, DJB Instruments (UK) Limited & its overseas subsidiaries as set out in note 15.
EBITDA increased both in absolute terms and as a percentage of revenue, demonstrating the operating leverage within the business model. Margin expansion was driven not only by revenue growth but also by disciplined cost management and the continued execution of Group-wide synergy initiatives. These improvements reflect structural enhancements to our cost base rather than short-term efficiencies, strengthening the platform for sustainable profitability.
During the year, we invested selectively in senior operational, supply chain, and commercial leadership across the UK and North America. These appointments enhance execution capability, support our cost optimisation programme, and position the Group to accelerate organic growth across our core markets.
The Company and the Group rely on its existing bank facilities to meet their day-to-day working capital requirements, and these facilities were renewed at favourable terms for the Group during 2026.
FUTURE DEVELOPMENTS
We will continue to invest in maintaining a technological edge across our core aerospace, defence, and energy production markets, where barriers to entry, certification requirements, and long-term customer relationships provide structural competitive advantages.
At the same time, we are intensifying our focus on:
∙Further margin expansion through cost base optimisation and manufacturing efficiency
∙Supply chain resilience and scalability to support growth
∙Enhanced commercial and marketing capabilities to increase international penetration of our existing portfolio
∙Leveraging Group synergies to maximise returns on invested capital
We believe that sustained emphasis in these areas over the next two to three years will deliver further step-change improvements in EBITDA performance and long-term value creation.
The board sets the policy for managing risk within the Group and recognises the importance of identifying, mitigating and managing both the financial and non-financial risks facing the Group.
The Group operates in international, highly regulated end markets and is therefore exposed to a range of external and operational risks. The principal risks and uncertainties that could impact future performance include:
The Group operates in international, highly regulated end markets and is therefore exposed to a range of external and operational risks. The principal risks and uncertainties that could impact future performance include:
∙Global trading environment - Exposure to foreign exchange volatility, export controls, and regulatory restrictions inherent in operating across multiple jurisdictions.
∙Macroeconomic pressures - Inflationary cost pressures, supply chain disruption, and the potential emergence of global trade barriers that may affect margins and market access.
∙Geopolitical developments - Shifts in geopolitical conditions which may influence defence spending, energy investment cycles, supply routes, and customer demand dynamics, both positively and negatively.
∙Talent and capability risk - The potential loss of key personnel or failure to attract and retain critical technical and commercial expertise required to execute the Group’s strategy.
∙Order timing volatility - Deferral or delay in new order intake, particularly in long-cycle aerospace, defence,
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
and energy markets, which may affect short-term revenue phasing.
∙Operational and supply chain disruption - Significant business interruption at a manufacturing site or within the supply chain that could impact production continuity and customer delivery.
∙Regulatory and compliance risk – Failure to comply with applicable laws, export regulations, and industry standards across the jurisdictions in which the Group operates.
∙Cyber security and IT resilience – Exposure to cyber threats or system failures that could disrupt operations, compromise data integrity, or affect customer confidence.
∙Going concern - The risk that trading conditions, delays in financing, or other unforeseen events could negatively affect cash balance.
The Board maintains an active risk management framework to identify, assess, and mitigate these exposures. Risks are subject to regular review, with defined controls, contingency planning, and governance oversight in place to minimise potential impact. While these factors could influence future performance, the Group’s diversified end markets, strengthened leadership capability, and continued investment in operational resilience provide a robust platform to manage risk effectively.
The Group delivered results for the period ended December 2025 ahead of expectations, reflecting strong operational execution and sustained demand across our core markets. Order intake during the year was exceptionally robust, resulting in a record year-end order book. This provides enhanced revenue visibility and underpins our confidence in delivering continued growth in the year ahead.
A summary of the results and key performance indicators for the Group for the year ended 31 December 2025 is presented below:
A summary of the results and key performance indicators for the Group for the year ended 31 December 2025 is presented below:
This report was approved by the board and signed on its behalf.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
Condition Monitoring Technology Group Holdings Limited is the Parent Company of a Trading Group whose principal activities are detailed as follows:
∙Beran Instruments – the manufacture and sale of electronic instrumentation used mainly for Condition Monitoring activities on industrial rotating plant.
∙Prosig – the manufacture and sale of electronic instrumentation and software for noise, vibration and harshness testing for the automotive, aerospace, and power generation industries.
∙DJB Instruments – the manufacture and sale of precision and industrial accelerometers and associated instrumentation and calibration services.
∙SEMIA – the manufacture and sale of electronic instrumentation for Vibration Analysis of gas turbine engines and rotary wing aircraft for both military and civil helicopter applications.
∙SEI – the manufacture and sale of electronic instrumentation used for Structural Analysis within the military aviation market.
The profit for the year, after taxation, amounted to £1,010,223 (2024: £598,281).
The directors who served during the year were:
∙Cash flow risk - comprehensive reviews of business performance and cash flow are conducted regularly to ensure that the Group maximises its working capital position.
∙Foreign exchange risk - movements in foreign currency exchange rates, particularly the US Dollar and the Euro, result in both transaction and translation effects on the results of the Group. The directors use forward hedging contracts, where appropriate, to mitigate the risk of transactional foreign exchange rates.
∙Credit and liquidity risk - trade debtors are managed in respect of both credit and cash flow risk through the regular monitoring of amounts outstanding for both age and credit limit which form part of a robust credit control policy. Trade creditors' liquidity risk is managed through regular monitoring of amounts due and ensuring the appropriate facilities are in place and funds available to meet amounts as they fall due.
Additionally, the Group maintains appropriate insurance cover against material loss or claims against any of the companies within the Group and the level of cover is reviewed regularly to ensure that this remains sufficient.
The Company has included mandatory Directors' Report disclosures within the Strategic Report as they are considered by the Directors to be of strategic importance, as permitted by the Companies Act 2006 (Strategic Report and Directors' Report) Regulation.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 to 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.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
We have audited the financial statements of Condition Monitoring Technology Group Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net Debt and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In 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 or 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.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 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 Directors' report.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
∙the nature of the industry and sector, control environment and the Group and Parent Company's performance;
∙the results of our enquiries of management and the directors about their own identification and assessment of the risk of irregularities;
∙any matters we identified having obtained and reviewed the Group and Parent Company’s documentation of its policies and procedures relating to:
°to identifying, evaluating, and complying with laws and regulations and whether management were aware of any instances of non-compliance;
°detecting and responding to the risk of fraud and whether management had knowledge of actual, suspected, or alleged fraud; and the internal controls established to mitigate the risks of fraud or non- compliance with laws and regulations.
∙the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group and Parent 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 the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation.
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 Group’s ability to operate or to avoid a material penalty. These included food standards regulations, data protection regulations, health and safety regulations, employment legislation and environmental regulations.
Our procedures to respond to risks identified included the following:
∙reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙enquiring of management and the directors concerning actual and potential litigation claims;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud;
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED (CONTINUED)
∙reading minutes of meetings between management and directors and reviewing correspondence with external parties;
∙in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
∙communicating relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
This report is made solely to the Company's directors, 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 directors those matters we are required to state to them in an Auditors' 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Brook House
Winslade Park
Manor Drive
Exeter
EX5 1GD
Date:
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
REGISTERED NUMBER:13663325
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
REGISTERED NUMBER:13663325
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 39 form part of these financial statements.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
REGISTERED NUMBER:13663325
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 39 form part of these financial statements.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Condition Monitoring Technology Group Holdings Limited ("the Company"), registered number 13663325 is a private company, limited by shares incorporated and domiciled in England and Wales. The registered office is Hatchmoor Industrial Estate, Great Torrington, Devon, United Kingdom, EX38 7HP.
The Group consists of Condition Monitoring Technology Group Holdings Limited and all of its subsidiaries. The principal activities of the Company and its subsidiaries are disclosed in the Directors' Report.
The Group consists of Condition Monitoring Technology Group Holdings Limited and all of its subsidiaries. The principal activities of the Company and its subsidiaries are disclosed in the Directors' Report.
2.ACCOUNTING POLICIES
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form 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.
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.
The Group generated an EBITDA of £1,795,285 (2024: £1,300,765) during the year ended 31 December 2025 and, as at that date, the Group had net assets of £5,970,108 (2024: £4,937,733).
The Company and the Group rely on its existing bank facilities to meet their day-to-day working capital requirements, and these facilities were renewed at favourable terms for the Group during 2026. Current financial forecasts, together with the strong performance against budget in H1 2026, indicate that the Company and the Group expects to be able to comfortably operate within these facilities for the whole of the foreseeable future.
Furthermore, the directors have also concluded that there are no material uncertainties related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern.
The directors have reviewed the Group’s current stock holdings, working environment and future trading ability and, as a result, have concluded that the Group’s financial position and trading outlook means the financial statements can be prepared on a going concern basis.
The Company and the Group rely on its existing bank facilities to meet their day-to-day working capital requirements, and these facilities were renewed at favourable terms for the Group during 2026. Current financial forecasts, together with the strong performance against budget in H1 2026, indicate that the Company and the Group expects to be able to comfortably operate within these facilities for the whole of the foreseeable future.
Furthermore, the directors have also concluded that there are no material uncertainties related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern.
The directors have reviewed the Group’s current stock holdings, working environment and future trading ability and, as a result, have concluded that the Group’s financial position and trading outlook means the financial statements can be prepared on a going concern basis.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Functional and presentation currency
Transactions and balances
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.
Negative goodwill is recognised up to the fair value of the non monetary assets acquired in profit and loss in the period in which non-monetary assets are recovered. Any negative goodwill in excess of the fair value of the non-monetary assets acquired is recognised in profit and loss in the periods in which the benefit is expected to be received.
OTHER INTANGIBLE ASSETS
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Research costs are written off as incurred. Development costs are capitalised within intangible assets, where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project, which the directors review on a project-by-project basis to a maximum of five years.
Deferred development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related development is written off to the Consolidated Statement of Comprehensive Income. Where the conditions of Section 18 of FRS 102 are not satisfied, expenditure on development is written off as incurred.
Deferred development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related development is written off to the Consolidated Statement of Comprehensive Income. Where the conditions of Section 18 of FRS 102 are not satisfied, expenditure on development is written off as incurred.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Amortisation and impairment of development costs and goodwill
The Group's products are subject to changing market demand. It is therefore necessary to consider on a periodic basis the rate of amortisation applied to capitalised development costs and goodwill and any impairment that might have arisen. Management assesses impairments by considering the saleability of the related products in the light of technological developments and projected future market conditions.
Useful economic lives of tangible assets
The annual depreciation charge is sensitive to any changes in the estimated useful life and residual values of tangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, physical condition of the asset and future investments.
Impairment of stocks
The Group's products are subject to changing market demand. It is therefore necessary to consider on a periodic basis the recoverability of the cost of stocks and the associated impairment. Management calculates impairments by considering the nature and condition of the stocks and applies assumptions around anticipated saleability of finished goods and future usage of raw materials, overheads and labour.
Carrying value of debtors
On a periodic basis management makes an estimation of the recoverability of debtors. Management makes such estimations based on the credit rating of debtors, the ageing profile, and historical experience.
The recoverability of intercompany debtor balances is a key area of judgment in the preparation of these
financial statements. Management assesses whether intercompany debtor balances are recoverable
based on the financial position, liquidity, and future cash flow projections of the debtor entity, as well as the
nature and terms of the intercompany arrangements.
The assessment of recoverability involves significant estimates and assumptions. Changes in these
estimates, or the emergence of new information, could result in material adjustments to the carrying value
of the intercompany debtor balances.
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 27
CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONDITION MONITORING TECHNOLOGY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.TAXATION (CONTINUED)
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