REGISTERED NUMBER: 01425972 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2026

for

Kempston Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mr R Thornton

Mr L E Northover

Mr S Reynolds

Mrs T Thornton

SECRETARY:

Mr R Thornton

REGISTERED OFFICE:

Suite B

Blackdown House

Blackbrook Park Avenue

Taunton

Somerset

TA1 2PX

REGISTERED NUMBER:

01425972 (England and Wales)

The directors present their strategic report for the year ended 31 March 2026.

REVIEW OF BUSINESS

The company's aim is to increase shareholder value and the directors have continued with the company's strategy of achieving sustainable growth. Significant investment in its production facilities has improved the company's production capacity and underlying growth as a result.

Key performance Indicators

The company made an operating profit before interest and tax of £986,276 for the year (2025: £1,035.270).

2026

2025

Gross Profit (%)

47.48%

51.67%

Gross profit / Turnover

Interest cover

36.52

25.56

Operating profit/Interest

The directors are of the opinion that, given the straightforward nature of the business, further analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are in relation to the company as a whole and include the following:

1) The impact of current economic conditions: the company's principal risk is the level of demand for its products from customers. The directors are responsible for monitoring financial risk. Appropriate policies have been developed and maintained to identify, evaluate and manage the key risks.

2) Credit risk: the company maintains strong relationships with its key customers and has established credit control parameters. Appropriate credit terms are agreed with key customers and these are closely monitored.

3) Liquidity risk: the company maintains facilities that are designed to ensure the company has sufficient funds for its operations and planned commitments.

4) Interest rate and cash flow risk: the company has interest bearing liabilities and minimises risk by regular monitoring of its cash flow requirements.

The financial statements have been prepared on a going concern basis, as explained in note 2 to the financial statements.

ON BEHALF OF THE BOARD:

Mr R Thornton - Secretary

23 September 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and sale of sheet metal components and fabrications.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2026 (2025: Nil).

FUTURE DEVELOPMENTS

The company aims to continue its growth of turnover and profitability while maintaining strong relationships with its customers and suppliers.

DIRECTORS

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

Mr R Thornton

Mr L E Northover

Mr S Reynolds

Mrs T Thornton

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mr R Thornton - Secretary

23 September 2026

Qualified Opinion

We have audited the financial statements of Kempston Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effect 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 March 2026 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

In the previous year, we were not appointed as auditor of the company until after 31 March 2025 and thus did not observe the counting of physical stock and work in progress at the start of this year. We were unable to satisfy ourselves by alternative means concerning the stock and work in progress quantities held at 31 March 2025 which were included in the balance sheet by using other audit procedures. We were also unable to satisfy ourselves in respect of the valuations at that date of £865,149 thereof due to certain records not being retained. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the stock and work in progress balances to be required, the strategic report would also need to be amended.Since opening inventory enters into the determination of the results of operations and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year recorded in the profit and loss account.

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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

-	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.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in significant accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

-

Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

-

Reviewing the Company's legal costs to check for non-compliance with laws and regulations and fraud;

-

Review of tax compliance with the involvement of our tax specialists in the audit;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;

-

Testing transactions entered into outside of the normal course of the Company's business;

-

Challenging assumptions and judgements made by management for significant accounting estimates; and

-

Identifying and testing journal entries, in particular any journal entries with fraud characteristics.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Fiona Westwood FCA DChA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

Chartered Accountants

Suite B, Blackdown House

Blackbrook Park Avenue

Taunton

Somerset

TA1 2PX

23 September 2026

TURNOVER

8,816,890

7,700,059

Cost of sales

4,630,752

3,720,898

GROSS PROFIT

4,186,138

3,979,161

Distribution costs

108,636

64,339

Administrative expenses

3,136,609

2,929,353

3,245,245

2,993,692

940,893

985,469

Other operating income

45,383

49,801

OPERATING PROFIT

4

986,276

1,035,270

Interest payable and similar expenses

5

27,189

40,501

PROFIT BEFORE TAXATION

959,087

994,769

Tax on profit

6

220,733

256,117

PROFIT FOR THE FINANCIAL YEAR

738,354

738,652

Retained earnings at beginning of year

4,039,727

3,268,828

RETAINED EARNINGS AT END OF YEAR

4,778,081

4,007,480

FIXED ASSETS

Tangible assets

7

5,234,071

3,764,376

CURRENT ASSETS

Stocks

8

1,049,356

865,149

Debtors

9

2,744,614

2,004,686

Cash at bank

-

1,558,653

3,793,970

4,428,488

CREDITORS

Amounts falling due within one year

10

1,865,845

1,913,612

NET CURRENT ASSETS

1,928,125

2,514,876

TOTAL ASSETS LESS CURRENT LIABILITIES

7,162,196

6,279,252

CREDITORS

Amounts falling due after more than one year

11

(435,371

)

(274,304

)

PROVISIONS FOR LIABILITIES

15

(539,482

)

(555,959

)

NET ASSETS

6,187,343

5,448,989

CAPITAL AND RESERVES

Called up share capital

16

100

100

Revaluation reserve

17

1,376,915

1,409,162

Retained earnings

17

4,810,328

4,039,727

SHAREHOLDERS' FUNDS

6,187,343

5,448,989

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

Mr R Thornton - Director

Cash flows from operating activities

Cash generated from operations

1

507,921

1,490,863

Interest paid

(27,189

)

(40,501

)

Tax paid

(314,510

)

1

Net cash from operating activities

166,222

1,450,363

Cash flows from investing activities

Purchase of tangible fixed assets

(1,793,659

)

(135,926

)

Net cash from investing activities

(1,793,659

)

(135,926

)

Cash flows from financing activities

New loans in year

545,199

-

Loan repayments in year

(397,297

)

(173,754

)

Capital repayments in year

(11,774

)

(11,774

)

Amount introduced by directors

448,228

392,438

Amount withdrawn by directors

(542,831

)

(388,954

)

Net cash from financing activities

41,525

(182,044

)

(Decrease)/increase in cash and cash equivalents

(1,585,912

)

1,132,393

Cash and cash equivalents at beginning of year

2

1,558,653

426,260

Cash and cash equivalents at end of year

2

(27,259

)

1,558,653

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

Profit before taxation

959,087

994,769

Depreciation charges

323,964

342,095

Finance costs

27,189

40,501

1,310,240

1,377,365

Increase in stocks

(184,207

)

(159,018

)

Increase in trade and other debtors

(740,010

)

(16,064

)

Increase in trade and other creditors

121,898

288,580

Cash generated from operations

507,921

1,490,863

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

-

1,558,653

Bank overdrafts

(27,259

)

-

(27,259

)

1,558,653

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,558,653

426,260

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank

1,558,653

(1,558,653

)

-

Bank overdrafts

-

(27,259

)

(27,259

)

1,558,653

(1,585,912

)

(27,259

)

Debt

Finance leases

(13,736

)

11,774

(1,962

)

Debts falling due within 1 year

(183,400

)

15,127

(168,273

)

Debts falling due after 1 year

(272,342

)

(163,029

)

(435,371

)

(469,478

)

(136,128

)

(605,606

)

Total

1,089,175

(1,722,040

)

(632,865

)

1.	STATUTORY INFORMATION

Kempston Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The company's place of business is Brunel Road, Barkers Lane, Bedford MK41 9TG.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

The company is trading profitably and has significant net current assets. After reviewing the company's projections and long term plans, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future encompassing at least 12 months from the date of signing of the financial statements. Therefore, the financial statements have been prepared on a going concern basis.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Valuation of work in progress:

The company reviews the valuation of work in progress at the balance sheet date. This process involves estimating the stage of completion of manufacture of ongoing orders, attributing direct design, labour and material inputs, and absorbing production overheads based on normal operating capacity.

Key areas of estimation uncertainty include the allocation of raw material costs to active jobs-taking into account the efficient use of sheet metal and the recovery of fixed machine overheads during periods of fluctuating capacity. Management reviews active production schedules and customer order books to estimate the remaining costs to complete and ensure work in progress is not carried at an amount exceeding its net realisable value.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

2% on straight line basis

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on straight line basis

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

The freehold property is carried at revalued amount, being its fair value at the date of revaluation less subsequent depreciation and impairment. Land is not depreciated.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for absolute and slow moving items.

Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Financial instruments

Financial Instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

3.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

3,216,259

3,036,125

Social security costs

428,066

334,860

Other pension costs

65,566

62,116

3,709,891

3,433,101

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

2026

2025

Production

51

49

Administration

15

15

66

64

2026

2025

£

£

Directors' remuneration

959,203

919,806

Directors' pension contributions to money purchase schemes

2,857

2,847

Information regarding the highest paid director is as follows:

2026

2025

£

£

Emoluments etc

522,000

522,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2026

2025

£

£

Other operating leases

72,676

80,000

Depreciation - owned assets

323,964

342,095

Auditors' remuneration

15,000

15,000

Non-audit remuneration

9,166

11,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Bank loan interest

26,805

40,501

Other interest payable

384

-

27,189

40,501

6.

TAXATION

Analysis of the tax charge

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

2026

2025

£

£

Current tax:

UK corporation tax

237,210

270,033

Deferred tax

(16,477

)

(13,916

)

Tax on profit

220,733

256,117

UK corporation tax has been charged at 25% (2025 - 25%).

Reconciliation of total tax charge included in profit and loss

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

2026

2025

£

£

Profit before tax

959,087

994,769

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

239,772

248,692

Effects of:

Expenses not deductible for tax purposes

(39,964

)

(3,466

)

Capital allowances in excess of depreciation

(7,075

)

-

Depreciation in excess of capital allowances

-

46,337

Utilisation of tax losses

-

(21,530

)

Adjustments to tax charge in respect of previous periods

44,477

-

Deferred taxation

(16,477

)

(13,916

)

Total tax charge

220,733

256,117

7.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST OR VALUATION

At 1 April 2025

2,601,000

3,212,502

371,399

Additions

1,461,154

23,558

303,079

At 31 March 2026

4,062,154

3,236,060

674,478

DEPRECIATION

At 1 April 2025

49,122

2,171,829

240,141

Charge for year

52,611

218,801

41,102

At 31 March 2026

101,733

2,390,630

281,243

NET BOOK VALUE

At 31 March 2026

3,960,421

845,430

393,235

At 31 March 2025

2,551,878

1,040,673

131,258

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 April 2025

66,906

64,387

6,316,194

Additions

-

5,868

1,793,659

At 31 March 2026

66,906

70,255

8,109,853

DEPRECIATION

At 1 April 2025

27,669

63,057

2,551,818

Charge for year

9,809

1,641

323,964

At 31 March 2026

37,478

64,698

2,875,782

NET BOOK VALUE

At 31 March 2026

29,428

5,557

5,234,071

At 31 March 2025

39,237

1,330

3,764,376

Included in cost or valuation of land and buildings is freehold land of £ 144,896 (2025 - £ 144,896 ) which is not depreciated.

Cost or valuation at 31 March 2026 is represented by:

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

Valuation in 2024

647,459

-

-

Valuation in 2022

698,427

-

-

Valuation in 2016

266,457

-

-

Cost

2,449,811

3,236,060

674,478

4,062,154

3,236,060

674,478

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2024

-

-

647,459

Valuation in 2022

-

-

698,427

Valuation in 2016

-

-

266,457

Cost

66,906

70,255

6,497,510

66,906

70,255

8,109,853