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

Girbau UK Limited is a wholly owned subsidiary of Girbau S.A. The Company supplies, installs and services commercial and industrial laundry equipment throughout the United Kingdom. It operates through Commercial Sales and Services and Industrial Sales and Services, supported by central operational and administrative functions.

The year ended 31 December 2025 was the first full year of Project Sunrise, the Board-approved recovery and growth plan launched in October 2024. The plan followed the disruption caused by the introduction of Salesforce and SAP in 2023 and the work undertaken during 2024 to restore operational stability. Project Sunrise is organised around four areas: People, Process, Systems and Culture. Its purpose is to improve service reliability, rebuild customer confidence and establish a sustainable platform for growth.

During 2025, the Company strengthened its teams through targeted recruitment and restructuring, improved onboarding and training, reviewed the customer journey and redesigned a number of operating processes. It also continued to embed the new business systems and improve the quality of management information. These actions supported a substantial recovery in sales and gross profit, with particularly encouraging progress in the Industrial business. The average monthly number of employees increased to 71 from 64 in 2024 as capability was rebuilt.

The recovery was not complete at the year end. The Company continued to incur additional costs while rebuilding internal capability and protecting customer service, including the use of subcontract labour where necessary. Management therefore remained focused on converting the improvement in revenue and gross margin into consistent operating profitability and stronger cash generation.

In line with its core values of Excellence, Integrity, Collaboration, People Care, Passion and Commitment, the Company continued to hold regular staff briefings during 2025. These briefings kept employees informed about performance, priorities and operational challenges, and provided opportunities to recognise employees for their contribution and long service.

Turnover increased by £3.17 million to £14.68 million, an increase of 27.5% compared with 2024. Gross profit increased by £1.96 million to £4.67 million and the gross margin improved from 23.6% to 31.8%. The operating loss reduced by £1.18 million to £0.25 million. After finance costs and taxation, the loss for the year was £0.27 million compared with £1.52 million in 2024.

Administrative expenses increased to £4.93 million from £4.15 million, reflecting the cost of rebuilding capability and maintaining service coverage during the recovery. At 31 December 2025, the Company held £0.64 million of cash, had net current assets of £0.30 million and reported net liabilities of £0.18 million. The Directors continue to monitor working capital and liquidity closely.

Principal risks and uncertainties

The Directors review the risks that could prevent the Company from delivering its plans. The principal risks and the measures used to manage them are set out below.

Operational systems and processes

The Company remains dependent on reliable integration and disciplined use of Salesforce, SAP and associated operating processes. Weaknesses could affect order fulfilment, stock control, invoicing, service scheduling and management information. Management monitors system performance, process adherence and data quality, and prioritises corrective work where issues are identified.

Customer service and reputation

The service disruption experienced after the systems implementation affected customer confidence. Recovery depends on dependable response times, effective installations and repairs, and clear communication. The Company monitors service performance, staffing capacity and customer feedback and continues to strengthen operational accountability.

Supply chain and product performance

The timely availability of machines and spare parts, together with product reliability, directly affects revenue, service performance, cost and customer confidence. The Company works with Girbau Group and other suppliers to manage availability, escalate quality issues and maintain appropriate stock while controlling working capital.

Market and commercial performance

Demand for capital equipment can be affected by customer investment cycles, financing conditions and competitive pressure. Large Industrial projects can also create volatility in revenue and margin between periods. The Company manages this risk through pipeline review, margin control, a balanced mix of commercial, industrial and service revenues, and focused development of priority sectors and key accounts.

People and capability

The recovery plan depends on retaining and developing employees with appropriate commercial, technical and operational skills. Recruitment delays, turnover or over-reliance on temporary resources could constrain growth and increase cost. The Company reviews organisation capacity, recruitment, training, succession and employee engagement.

Foreign currency

The Company has limited exposure to foreign currency risk because the majority of sales and purchases are conducted in pounds sterling. Any remaining exposure is monitored and managed as appropriate.

Credit

The Company is exposed to the risk that customers may default on amounts due. Creditworthiness is assessed, credit limits and payment terms are controlled, and advance or staged payments are required where appropriate. Overdue balances are reviewed regularly.

Liquidity

The Company must maintain sufficient cash and borrowing facilities while funding working capital and completing its recovery. The Directors monitor forecast and actual cash flows, customer collections, inventory, supplier payments and facility headroom. They also take account of the financial support confirmed by the parent company for at least twelve months from the date on which the financial statements are signed.

Future developments

During 2026, the Company progressed the next stage of its recovery and growth plan, referred to internally as Project Everest. The priorities are to rebuild commercial sales capability, restore market confidence, strengthen service delivery, improve parts availability and product reliability, and align the cost base with the level and mix of revenue.

Commercial order intake in the first half of 2026 was ahead of budget and the Industrial sales capability and order pipeline were strengthened. However, the recovery in service performance and some areas of commercial sales has taken longer than originally expected. The outlook therefore remains sensitive to order conversion, project margins, supply chain performance, product quality and liquidity.

The Directors will continue to balance selective investment in sales and service capability with tight control of labour, subcontractor and operating costs. The objective is to complete the operational recovery, return the Company to consistent profitability and generate sufficient cash to reduce its reliance on borrowing and parent company support over time.

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 import and sale of commercial and industrial laundry equipment, and the servicing thereof.

The results for the year are set out on page 9.

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

No preference dividends were paid.

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

The Company's financial risk management objective is to maintain sufficient working capital and liquidity for its operations. This is managed through regular monitoring of cash balances and forecasts, active management of customer collections, inventory and supplier payments, and the use of borrowing facilities where necessary. Further information on foreign currency, credit and liquidity risks is included in the Strategic Report.

Information on the Company's future developments and principal risks and uncertainties is included in the Strategic Report.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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.

We have audited the financial statements of Girbau UK Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

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 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. 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.

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.

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, International Financial Reporting Standards as adopted by the UK, and UK taxation legislation.

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required

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 profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Girbau UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Girbau House, Trust Industrial Estate, Wilbury Way, Hitchin, Hertfordshire, SG4 0UZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of 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 £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches.

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Girbau S.A. These consolidated financial statements are available from its registered office, Carretera de Manlleu, KM 1, 08500 Vic, Barcelona, Spain.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources 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.

A letter of support has been provided by the parent company confirming they will provide financial support to Girbau UK from 12 months from the date of signing of these financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of parts and machinery is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Tangible fixed assets 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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

Stocks and work in progress 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 stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

Cash and cash equivalents are basic financial assets and 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.

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 balance sheet when the company becomes party to the contractual provisions of the instrument and offset 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, 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, 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.

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.

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.

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 financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

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.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction 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 profit and loss account 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 company operates a warranty programme to some customers as part of a machine sale on its products for a period of 2 years.

Provision is made for the estimated costs of fulfilling the warranty based on an estimated labour and parts cost of 4% of revenue per year.

There are also extended warranties sold with some machines. Where warranties are sold, revenue is recognised evenly over the period of the warranty and costs are recognised as incurred. Provisions are also made for any expected losses as soon as they are known.

Other provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 or 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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Extended warranties are offered to some customers as part of a machine sale, these warranties are for a period of 2 years.

Provision is made for the estimated costs of fulfilling the warranty based on the company's exposure to parts and labour costs. . Warranties on all machine sales are calculated based on an estimated labour and parts cost of 4% of revenue per year.

There are also extended warranties sold with some machines. Where warranties are sold, revenue is recognised evenly over the period of the warranty and costs are recognised as incurred. A provision is also made for any expected losses as soon as they are known.

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 actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

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

The warranty provision relates to expected warranty claims on goods sold during the last 2 years. It is expected that all the expenditure will be incurred within 2 years of the reporting date.

The dilapidation provision is in respect of the company's obligation under two property leases to return the properties in the condition they were inherited when the leases were entered into. The expenditure will be incurred when the leases expire in 2029.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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.

Ordinary shares

The company's ordinary shares are irredeemable and each carry the right to one vote at general meetings of the company. The holders of the ordinary shares are entitled to the balance of any profit reserves available for distribution in any one year, subject to the satisfaction of the entitlement to dividends of the holders of deferred ordinary shares. On a winding up the ordinary shares rank pari passu with the deferred ordinary shares state that the holders of the ordinary shares are entitled to the entirety of the surplus assets once each deferred ordinary share holder has received its 1/12,521,000 share.

Deferred ordinary shares

The company's deferred ordinary shares are irredeemable and each carry the right to one vote at general meetings of the company. The holders of deferred ordinary shares are entitled to 1/12,521,000 for each share held, of any profit reserves available for distribution in any one year. On a winding up the deferred ordinary shares rank pari passu with the ordinary shares to the extent of the repayments of the capital paid up thereon and, in addition, to a share per ordinary deferred share, of 1/12,521,000 of any surplus assets.

Preference shares

The company's preference shares are irredeemable and confer no voting rights. The holders of preference shares have no right to participate in the profits of the company. On a winding up the holders of preference shares are entitled to repayment of the nominal amount paid up on each share in priority to all other shareholders.

The immediate parent company is Girbau S.A., a company incorporated in Spain. Golder S.L. is the ultimate parent undertaking of the group for which consolidated accounts are prepared including this company. The consolidated financial statements are available from its registered office, Carretera da Manlleu, Km. 1, 08500 Vic, Barcelona, Spain.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: