P.E. Systems Limited

	Page
Strategic Report	1—2
Directors' Report	3—4
Independent Auditor's Report	5—8
Profit and Loss Account	9
Statement of Comprehensive Income	10
Balance Sheet	11—12
Statement of Changes in Equity	13
Notes to the Financial Statements	14—26

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

Review of the Business

PE Systems Limited is a UK-based engineering manufacturer specialising in AC and DC uninterruptible power systems for electricity transmission, distribution and industrial infrastructure sectors. We design, manufacture, install, commission and maintain these systems.

Established over 35 years ago, PE Systems is a key player in the UK Utility uninterrupted power supplies (UPS) market. In late 2019, the business underwent a management buyout (MBO), with four members of the management team acquiring business ownership from the previous directors. The Post-MBO strategy has focused on modernising legacy product platforms, improving quality and safety governance, implementing Microsoft Dynamics ERP, investing in facilities and strengthening supply chain partnerships.

Founded on a legacy of research and development in the traction and battery industries, we have evolved into a trusted production partner, focused on engineering excellence, product rationalisation, and continuous technological advancement.

We pride ourselves on being big enough to cope with the demands of complex, large-scale projects, yet small enough to care about every detail, every client, and every outcome. Our mission is to provide intelligent, robust, and future-ready power systems, built on quality, integrity, and a deep understanding of our customers’ operational needs.

Strategy and Objectives

Key priorities include: measurable revenue growth of 10–15%, 20% lead time reduction, expansion of subcontract manufacturing capacity, correction of site margin erosion, ERP stabilisation, workforce upskilling and successful preparation for 2026 framework re-tenders.

In 2025, revenue was £15.3m, which is an increase of 45% on the previous year. Operating profit was £1.94m, from £1.02m in 2024, showing the company’s strong performance in 2025. Although the gross profit margin remained similar for 2025/24 at 29% , the operating profit margin improved from 9.7% in 2024 to 12.7% in 2025. These improvements were down to successful scaling of production and commercial activity, the margins through controlled overhead growth.

2026 continues to be strong year for PE Systems, with targets set at 10/15% growth. Margin improvement driven by labour utilisation controls and supply chain discipline. Our cash position will strengthen from October 2026, when the final MBO payment has been made.

The financial KPI’s have been calculated as follows:

Sales growth is calculated by dividing the increase in sales between 2024 and 2025 and dividing by 2024 sales, expressed as a percentage.

Gross profit margin is calculated by expressing the gross profit as a percentage of sales

Operating profit margin is calculated by expressing the operating profit as a percentage of sales

Page 1

Page 2

P.E. Systems Limited

Strategic Report (continued)

For The Year Ended 31 December 2025

Principal Risks and Uncertainties

Framework Retender Risk – Mitigation: Early engineering allocation and compliance mapping.

Capacity Constraint – Mitigation: Subcontract manufacturing expansion.

Site Margin Loss – Mitigation: Commercial governance controls and pricing model revision.

Supply Chain Risk – Mitigation: Approved supplier diversification and buffer planning.

On behalf of the board

Nicola Jones

Director

08/09/2026

Page 2

Page 3

P.E. Systems Limited

Company No. 02117413

Directors' Report For The Year Ended 31 December 2025

Directors' Report

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

Principal Activity

The company's principal activity continues to be that of original equipment manufacturer.

Directors

The directors who held office during the year were as follows:

Anouska Gee

Nicola Jones

Julie Nuttall

Mark Wilson

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 3

Page 4

P.E. Systems Limited

Directors' Report (continued)

For The Year Ended 31 December 2025

Independent Auditors

The auditors, Bishops Audit Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Nicola Jones

Director

08/09/2026

Page 4

Page 5

Independent Auditor's Report

to the Members of

P.E. Systems Limited

Independent Auditor's Report

Qualified opinion

We have audited the financial statements of P.E. Systems Limited for the year ended 31 December 2025 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 United Kingdom Generally Accepted Accounting Practice; and
Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Qualified Opinion

We were not appointed as auditor of the company until after 31 December 2024 and thus did not observe the counting of physical inventories at the end of the comparative year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2024, which are included in the balance sheet at £1,422,840 and in the opening stock in the income statement, by using other audit procedures. Consequently, we were unable to determine whether any adjustments are required to these amounts.

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 qualified 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 entity's ability to continue as a going concern for a period of at least 12 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.

Key Audit Matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Page 5

Page 6

Independent Auditor's Report (continued)

to the Members of

P.E. Systems Limited

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

The prior period financial statements were not audited.

Opinions on Other Matters Prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report 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 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 or returns; or
certain disclosures of directors' remuneration specified by law are not made.

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

We have not obtained all the information and explanations that we considered necessary for the purpose of the audit.

Page 6

Page 7

Independent Auditor's Report (continued)

to the Members of

P.E. Systems Limited

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, 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.

Auditor's 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 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.

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

As a result of our procedures we did not identify any key audit matters related to the potential risk of 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.

Our procedures to respond to risks identified included the following:

Enquiry of management and those charged with governance around actual and potential litigation and claims.
Reviewing minutes of meetings of those charged with governance.

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of 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 for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Page 7

Page 8

Independent Auditor's Report (continued)

to the Members of

P.E. Systems Limited

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 that 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.

David Evans BA FCA (Senior Statutory Auditor)

for and on behalf of Bishops Audit Limited , Statutory Auditor

08/09/2026

Bishops Audit Limited

1 Croft Court, Plumpton Close

Whitehills Business Park

Blackpool

Lancashire

FY4 5PR

Page 8

Page 9

P.E. Systems Limited

Profit and Loss Account

For The Year Ended 31 December 2025

Profit and Loss Account

		2025	2024
	Notes	£	£
TURNOVER	3	15,294,195	10,524,057
Cost of sales		(10,816,223 )	(7,375,941 )

GROSS PROFIT		4,477,972	3,148,116

Distribution costs		(349,939 )	(257,612 )
Administrative expenses		(2,258,365 )	(1,962,829 )
Other operating income		68,855	78,355
Fair value gains on investment properties		-	10,000

OPERATING PROFIT	5	1,938,523	1,016,030
Profit on disposal of fixed assets		495	4,000
Other interest receivable and similar income	10	7,028	2,548
Interest payable and similar charges	11	(13,145 )	(1,422 )

PROFIT BEFORE TAXATION		1,932,901	1,021,156
Tax on Profit	12	(484,698 )	(242,835 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		1,448,203	778,321

The notes on pages 14 to 26 form part of these financial statements.

Page 9

Page 10

P.E. Systems Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2025

Statement of Comprehensive Income

	2025	2024
	£	£
PROFIT FOR THE FINANCIAL YEAR	1,448,203	778,321
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	1,448,203	778,321

Page 10

Page 11

P.E. Systems Limited

Balance Sheet

As At 31 December 2025

Balance Sheet

Registered number: 02117413

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	13		369,669		406,169
Tangible Assets	14		281,532		298,226
Investment Properties	15		510,000		520,000
Investments	16		25,000		25,000

			1,186,201		1,249,395
CURRENT ASSETS
Stocks	17	1,928,845		1,422,840
Debtors	18	2,400,711		1,908,524
Cash at bank and in hand		397,834		247,567

		4,727,390		3,578,931
Creditors: Amounts Falling Due Within One Year	19	(3,724,803 )		(3,263,287 )

NET CURRENT ASSETS (LIABILITIES)			1,002,587		315,644

TOTAL ASSETS LESS CURRENT LIABILITIES			2,188,788		1,565,039

Creditors: Amounts Falling Due After More Than One Year	20		(114,769 )		(109,995 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	22		(65,706 )		(71,609 )

NET ASSETS			2,008,313		1,383,435

CAPITAL AND RESERVES
Called up share capital	24		1,000		1,000
Fair value reserve			330,320		340,320
Profit and Loss Account			1,676,993		1,042,115

SHAREHOLDERS' FUNDS			2,008,313		1,383,435

Page 11

Page 12

P.E. Systems Limited

Balance Sheet (continued)

As At 31 December 2025

On behalf of the board

Nicola Jones

Director

08/09/2026

The notes on pages 14 to 26 form part of these financial statements.

Page 12

Page 13

P.E. Systems Limited

Statement of Changes in Equity

For The Year Ended 31 December 2025

Statement of Changes in Equity

	Share Capital	Fair value reserve	Profit and Loss Account	Total
	£	£	£	£
As at 1 January 2024	1,000	330,320	821,009	1,152,329
Profit for the year and total comprehensive income	-	-	778,321	778,321

Dividends paid	-	-	(547,215)	(547,215)
Movements in fair value reserve	-	10,000	-	10,000
Transfer to/from Other Reserves	-	-	(10,000)	(10,000)

As at 31 December 2024 and 1 January 2025	1,000	340,320	1,042,115	1,383,435


Profit for the year and total comprehensive income	-	-	1,448,203	1,448,203

Dividends paid	-	-	(823,325)	(823,325)
Movements in fair value reserve	-	(10,000)	-	(10,000)
Transfer to/from Other Reserves	-	-	10,000	10,000

As at 31 December 2025	1,000	330,320	1,676,993	2,008,313

Page 13

Page 14

P.E. Systems Limited

Notes to the Financial Statements

For The Year Ended 31 December 2025

Notes to the Financial Statements

1. General Information

P.E. Systems Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02117413 . The registered office is Unit 2 Hindley Green Business Park, Leigh Road, Hindley Green, Wigan, WN2 4TN.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

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

2.2. 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 and Section 3 Financial Statement Presentation paragraph 3.17 (d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48 (a) (iii), 11.48 (a) (iv), 11.48 (b) and 11.48 (c);
the requirements of Section 12 Other Financial Instruments Issues paragraphs 12.27, 12.29 (a), 12.29 (b), 12.29A and 12.30;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

2.3. Exemption From Preparing Consolidated Financial Statements

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The financial statements of the company are consolidated in the financial staements of P.E. Systems Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff CF14 3UZ.

2.4. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

Page 14

Page 15

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.5. Significant judgements and estimations

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key accounting estimates relate to the useful economic lives of fixed assets and the valuation of the investment property.

2.6. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.7. Intangible Fixed Assets and Amortisation - Other Intangible

Software costs which are considered to be of lasting value to the business are capitalised at cost and amortised over their expected useful life of 20 years.

Development exepnditure is normally written off in the year of expenditure, however expenditure incurred on specific projects is capitalised when recoverability can be foreseen with reasonable certainity and is amortised in realtion to sales from such projects.

2.8. Research and Development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their expected useful economic lives, which range from 10 to 20 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.

Page 15

Page 16

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.9. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	Straight line 10/25%
Motor Vehicles	Straight line 25%
Fixtures & Fittings	Straight line 25%
Computer Equipment	Straight line 25%

2.10. Investment Properties

All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.

2.11. Investments

Fixed asset investments are shown at cost less amounts written off.

Provisions are made for permanent fluctuations in value.

2.12. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.13. Stocks and Work in Progress

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

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Page 16

Page 17

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.14. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.15. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic Financial Assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other Financial Assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of Financial Assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of Financial Assets

...CONTINUED

Page 17

Page 18

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.15. Financial Instruments - continued

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of Financial Liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic Finacial Liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other Financial Liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of Financial Liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.16. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Page 18

Page 19

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.17. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing 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. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.18. Employee Benefits

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 stock of fixed 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.

2.19. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Turnover

Analysis of turnover by geographical market is as follows:

	2025	2024
	£	£
United Kingdom	15,294,195	10,524,057

	15,294,195	10,524,057

Page 19

Page 20

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

4. Other Operating Income

	2025	2024
	£	£
Other operating income	68,855	78,355

	68,855	78,355

5. Operating Profit

The operating profit is stated after charging:

	2025	2024
	£	£
Bad debts	18,261	4,306
Depreciation of tangible fixed assets	102,260	75,549
Amortisation of intangible fixed assets	56,743	59,766

6. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2025	2024
	£	£
Audit Services
Audit of the company's financial statements	16,000	-

7. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2025	2024
	£	£
Wages and salaries	2,207,854	1,772,021
Social security costs	229,778	160,798
Other pension costs	102,924	70,560

	2,540,556	2,003,379

8. Average Number of Employees

Average number of employees, including directors, during the year was: 64 (2024: 54)

Page 20

Page 21

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

9. Directors' remuneration

	2025	2024
	£	£
Emoluments	54,123	57,910
Company contributions to money purchase pension schemes	30,567	17,921

	84,690	75,831

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

	2025		2024
Money purchase pension schemes	4		4

10. Interest Receivable and Similar Income

	2025	2024
	£	£
Other interest receivable	7,028	2,548

11. Interest Payable and Similar Charges

	2025	2024
	£	£
Bank loans and overdrafts	-	190
Finance charges payable under finance leases and hire purchase contracts	1,895	1,232
Other finance charges	11,250	-

	13,145	1,422

12. Tax on Profit

The tax charge on the profit for the year was as follows:

	Tax Rate		2025	2024
	2025	2024	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	490,601	212,222
Prior period adjustment			-	(1,043 )

			490,601	211,179
Deferred Tax
Deferred taxation			(5,903 )	31,656


Total tax charge for the period			484,698	242,835

Page 21

Page 22

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:

	2025	2024
	£	£
Profit before tax	1,932,901	1,021,156

Tax on profit at 25% (UK standard rate)	483,226	255,289
Goodwill/depreciation not allowed for tax	6,840	5,262
Expenses not deductible for tax purposes	2,609	2,179
Short term timing differences	(7,977 )	(2,986 )
Research and Development tax credit	-	(15,734 )
Deferred tax from unrecognised timing difference from a prior period	-	(1,175 )

Total tax charge for the period	484,698	242,835

13. Intangible Assets

	Software	Development Costs	Total
	£	£	£
Cost
As at 1 January 2025	115,746	782,241	897,987
Transfers	20,243	-	20,243

As at 31 December 2025	135,989	782,241	918,230

Amortisation
As at 1 January 2025	28,477	463,341	491,818
Provided during the period	6,227	50,516	56,743

As at 31 December 2025	34,704	513,857	548,561

Net Book Value
As at 31 December 2025	101,285	268,384	369,669

As at 1 January 2025	87,269	318,900	406,169

Page 22

Page 23

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

14. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost or Valuation
As at 1 January 2025	484,233	172,310	287,262	193,538	1,137,343
Additions	16,570	61,400	-	28,244	106,214
Disposals	(11,000 )	(32,085 )	(1,520 )	(133,270 )	(177,875 )
Transfers	-	-	-	(20,243 )	(20,243 )

As at 31 December 2025	489,803	201,625	285,742	68,269	1,045,439

Depreciation
As at 1 January 2025	338,472	118,187	235,780	146,678	839,117
Provided during the period	22,674	30,799	31,136	17,651	102,260
Disposals	(10,595 )	(32,085 )	(1,520 )	(133,270 )	(177,470 )

As at 31 December 2025	350,551	116,901	265,396	31,059	763,907

Net Book Value
As at 31 December 2025	139,252	84,724	20,346	37,210	281,532

As at 1 January 2025	145,761	54,123	51,482	46,860	298,226

Included within the net book value of £281,532 is £185,474 (2024: £166,338) relating to assets under hire purchase agreements. The depreciation charged to the financial statments in the year in respect of such assets amounts to £40,864 (2024: £31,747).

15. Investment Property

	2025
	£
Fair Value
As at 1 January 2025	520,000
Revaluations	(10,000)

As at 31 December 2025	510,000

If investment property had been accounted for under historical cost accounting rules, the amounts would be:

	2025	2024
	£	£
Cost	343,825	343,825
Accumulated depreciation and impairment	230,849	223,972

Carrying amount	112,976	119,853

Page 23

Page 24

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

The investment property was professionally valued on 31 October 2025 by Lamb & Swift Commercial Property on an open market basis.

16. Investments

	Subsidiaries
	£
Cost or Valuation
As at 1 January 2025	50,002

As at 31 December 2025	50,002

Provision
As at 1 January 2025	25,002

As at 31 December 2025	25,002

Net Book Value
As at 31 December 2025	25,000

As at 1 January 2025	25,000

Subsidiaries

Details of the company's subsidiaries as at 31 December 2025 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Alpha Sheet Metal (North) Limited	Unit 2 Hindley Green Business Park, Leigh Road, Hindley Green, Wigan, England, WN2 4TN	Ordinary	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

	Capital and Reserves	Profit/(loss)
	£	£
Alpha Sheet Metal (North) Limited	(370,722 )	83,103

17. Stocks

	2025	2024
	£	£
Stock	1,491,822	1,132,713
Work in progress	437,023	290,127

	1,928,845	1,422,840

Page 24

Page 25

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

18. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	2,030,046	1,423,294
Prepayments and accrued income	87,710	75,179
Other debtors	16,063	23,077
Amounts owed by group undertakings	266,892	386,974

	2,400,711	1,908,524

19. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	50,957	43,486
Trade creditors	1,673,981	1,528,075
Other creditors	1,103,595	1,144,003
Corporation tax	501,854	212,156
Taxation and social security	190,780	104,552
Accruals and deferred income	203,636	231,015

	3,724,803	3,263,287

20. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	114,769	109,995

21. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	50,957	43,486
Later than one year and not later than five years	114,769	109,995

	165,726	153,481

	165,726	153,481

HP agreements are secured over the assets to which they relate.

Page 25

Page 26

P.E. Systems Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

22. Deferred Taxation

The provision for deferred tax is made up as follows:

	2025	2024
	£	£
Other timing differences	65,706	71,609

23. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 January 2025	71,609	71,609
Deferred taxation	(5,903 )	(5,903 )

Balance at 31 December 2025	65,706	65,706

24. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
1,000 Ordinary Shares of £ 1.00 each	1,000	1,000

25. Pension Commitments

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

During the year the charge to the profit and loss account in respect of defined contribution schemes was £102,924 (2024: £70,560).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

26. Dividends

	2025	2024
	£	£
On equity shares:
Interim dividend paid	823,325	547,215

27. Controlling Parties

The company's ultimate controlling party is PE Systems Holdings Limited by virtue of their interest in the share capital of the company. The consolidated accounts of PE Systems Holdings Limited are available at Companies House.

Page 26