SMITH'S ENVIRONMENTAL PRODUCTS LIMITED - Period Ending 2025-12-31

Registration number: 02607831

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2025

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Contents

Company Information	1
Directors' Report	2
Statement of Directors' Responsibilities	3
Independent Auditor's Report	4 to 6
Consolidated Income Statement	7
Income Statement	8
Consolidated Statement of Comprehensive Income	9
Consolidated Statement of Financial Position	10 to 11
Statement of Financial Position	12 to 13
Consolidated Statement of Changes in Equity	14
Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16
Statement of Cash Flows	17
Notes to the Financial Statements	18 to 41

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Company Information

Directors

T J Swan Esq

K T Swan Esq

Company secretary

D Rolston Esq

Registered office

Units 1 & 2
Blackall Industrial Estate
South Woodham Ferrers
Chelmsford
Essex
CM3 5UW

Bankers

Barclays Bank Plc
183 High Street
Epping
Essex
CM19 4BH

Auditors

Pearlman Rose
Chartered Accountants & Statutory AuditorsSuite 1, First Floor
Jack Dash House
2 Lawn House Close
London
E14 9YQ

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Directors' Report for the Year Ended 31 December 2025

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

Directors' of the group

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

T J Swan Esq

K T Swan Esq

Principal activity

The principal activity of the company is the design, manufacture and sale of fan assisted heating systems.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors Pearlman Rose are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the board on 14 May 2026 and signed on its behalf by:

.........................................
D Rolston Esq
Company secretary

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 UK adopted International Financial Reporting Standards (IFRSs). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether applicable UK adopted International Financial Reporting Standards (IFRSs) have been followed, subject to any material departures disclosed and explained in the financial statements; 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Opinion

We have audited the financial statements of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 UK adopted International Financial Reporting Standards (IFRSs).

In our opinion the financial statements:

•	give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's profit for the year then ended;
•	have been properly prepared in accordance with UK adopted IFRSs; 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or parent company’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 3], 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

•	enquiry of management about the Group’s policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;
•	examining supporting documents for all material balances, transactions and disclosures;
•	review of the board meeting minutes;
•	enquiry of management and review and inspection of relevant correspondence;
•	evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions;
•	analytical procedures to identify any unusual or unexpected relationships;
•	testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

•	review of accounting estimates for biases.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Mohammad Jilani (Senior Statutory Auditor)
For and on behalf of Pearlman Rose, Statutory Auditor
Suite 1, First Floor
Jack Dash House
2 Lawn House Close
London
E14 9YQ

14 May 2026

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Consolidated Income Statement for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Revenue	3	8,815,744	8,604,772
Cost of sales		(4,960,385)	(4,910,752)
Gross profit		3,855,359	3,694,020
Distribution costs		(825,096)	(864,585)
Administrative expenses		(1,742,281)	(1,471,344)
Other operating income	4	7,059	-
Other gains	5	21,142	-
Operating profit	6	1,316,183	1,358,091
Finance income		18,925	21,871
Finance costs		(11,684)	(12,197)
Net finance income	7	7,241	9,674
Profit before tax		1,323,424	1,367,765
Income tax expense	11	(115,248)	(347,151)
Profit for the year		1,208,176	1,020,614
Profit/(loss) attributable to:
Owners of the company		1,208,176	1,020,614

The above results were derived from continuing operations.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Income Statement for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Revenue	3	8,712,278	8,604,772
Cost of sales		(4,960,385)	(4,910,752)
Gross profit		3,751,893	3,694,020
Distribution costs		(825,096)	(864,585)
Administrative expenses		(1,773,024)	(1,471,245)
Other operating income	4	7,059	-
Other gains	5	3,047	-
Operating profit	6	1,163,879	1,358,190
Finance income		18,925	21,871
Finance costs		(15,272)	(12,197)
Net finance income	7	3,653	9,674
Profit before tax		1,167,532	1,367,864
Income tax expense	11	(79,173)	(347,151)
Profit for the year		1,088,359	1,020,713

The above results were derived from continuing operations.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2025

	2025 £	2024 £
Profit for the year	1,208,176	1,020,614
Total comprehensive income for the year	1,208,176	1,020,614
Total comprehensive income attributable to:
Owners of the company	1,208,176	1,020,614

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

(Registration number: 02607831)
Consolidated Statement of Financial Position as at 31 December 2025

	Note	31 December 2025 £	31 December 2024 £
Assets
Non-current assets
Property, plant and equipment	12	4,836,459	109,873
Right of use assets	13	-	219,373
Intangible assets	14	10,202	10,961
		4,846,661	340,207
Current assets
Inventories	17	1,526,767	1,340,664
Trade and other receivables	18	1,146,875	1,181,327
Cash and cash equivalents	19	1,294,556	1,522,602
		3,968,198	4,044,593
Total assets		8,814,859	4,384,800
Equity and liabilities
Equity
Share capital	20	(1,000)	(1,000)
Share premium		(59,400)	(59,400)
Retained earnings		(3,184,671)	(2,641,978)
Equity attributable to owners of the company		(3,245,071)	(2,702,378)
Non-current liabilities
Long term lease liabilities		-	(121,407)
Loans and borrowings	21	(93,575)	(57,479)
Trade and other payables	23	(3,889,441)	-
Deferred tax liabilities	11	(43,614)	(29,806)
		(4,026,630)	(208,692)
Current liabilities
Current portion of long term lease liabilities		-	(117,823)
Trade and other payables	23	(1,158,224)	(1,014,196)
Loans and borrowings	21	(39,391)	(20,625)
Income tax liability		(310,778)	(321,086)
Deferred income		(34,765)	-
		(1,543,158)	(1,473,730)
Total liabilities		(5,569,788)	(1,682,422)
Total equity and liabilities		(8,814,859)	(4,384,800)

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

(Registration number: 02607831)
Consolidated Statement of Financial Position as at 31 December 2025

Approved by the board on 14 May 2026 and signed on its behalf by:

.........................................
T J Swan Esq
Director

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

(Registration number: 02607831)
Statement of Financial Position as at 31 December 2025

	Note	31 December 2025 £	31 December 2024 £
Assets
Non-current assets
Property, plant and equipment	12	174,251	109,872
Right of use assets	13	109,685	219,373
Intangible assets	14	10,201	10,960
Investments in subsidiaries, joint ventures and associates	15	1,002	2
Trade and other receivables	18	4,668,712	-
		4,963,851	340,207
Current assets
Inventories	17	1,526,767	1,340,664
Trade and other receivables	18	1,032,472	1,184,323
Cash and cash equivalents	19	1,176,533	1,522,574
		3,735,772	4,047,561
Total assets		8,699,623	4,387,768
Equity and liabilities
Equity
Share capital	20	(1,000)	(1,000)
Share premium		(59,400)	(59,400)
Retained earnings		(3,067,822)	(2,644,946)
Total equity		(3,128,222)	(2,705,346)
Non-current liabilities
Long term lease liabilities		-	(121,407)
Loans and borrowings	21	(93,575)	(57,479)
Trade and other payables	23	(3,889,441)	-
Deferred tax liabilities	11	(43,614)	(29,806)
		(4,026,630)	(208,692)
Current liabilities
Current portion of long term lease liabilities		(121,407)	(117,823)
Trade and other payables	23	(1,109,270)	(1,014,196)
Loans and borrowings	21	(39,391)	(20,625)
Income tax liability		(274,703)	(321,086)
		(1,544,771)	(1,473,730)
Total liabilities		(5,571,401)	(1,682,422)
Total equity and liabilities		(8,699,623)	(4,387,768)

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

(Registration number: 02607831)
Statement of Financial Position as at 31 December 2025

Approved by the board on 14 May 2026 and signed on its behalf by:

.........................................
T J Swan Esq
Director

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025

	Share capital £	Share premium £	Retained earnings £	Total £	Total equity £
At 1 January 2025	1,000	59,400	2,641,978	2,702,378	2,702,378
Profit for the year	-	-	1,208,176	1,208,176	1,208,176
Total comprehensive income	-	-	1,208,176	1,208,176	1,208,176
Dividends	-	-	(665,483)	(665,483)	(665,483)
At 31 December 2025	1,000	59,400	3,184,671	3,245,071	3,245,071

	Share capital £	Share premium £	Retained earnings £	Total £	Total equity £
At 1 January 2024	1,000	59,400	2,318,535	2,378,935	2,378,935
Profit for the year	-	-	1,020,614	1,020,614	1,020,614
Total comprehensive income	-	-	1,020,614	1,020,614	1,020,614
Dividends	-	-	(697,171)	(697,171)	(697,171)
At 31 December 2024	1,000	59,400	2,641,978	2,702,378	2,702,378

The notes on pages 18 to 41 form an integral part of these financial statements.

Page 14

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Statement of Changes in Equity for the Year Ended 31 December 2025

	Share capital £	Share premium £	Retained earnings £	Total £
At 1 January 2025	1,000	59,400	2,644,946	2,705,346
Profit for the year	-	-	1,088,359	1,088,359
Total comprehensive income	-	-	1,088,359	1,088,359
Dividends	-	-	(665,483)	(665,483)
At 31 December 2025	1,000	59,400	3,067,822	3,128,222

	Share capital £	Share premium £	Retained earnings £	Total £
At 1 January 2024	1,000	59,400	2,321,404	2,381,804
Profit for the year	-	-	1,020,713	1,020,713
Total comprehensive income	-	-	1,020,713	1,020,713
Dividends	-	-	(697,171)	(697,171)
At 31 December 2024	1,000	59,400	2,644,946	2,705,346

The notes on pages 18 to 41 form an integral part of these financial statements.

Page 15

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Consolidated Statement of Cash Flows for the Year Ended 31 December 2025

	Note	2025 £
Cash flows from operating activities
Profit for the year		1,208,176
Adjustments to cash flows from non-cash items
Depreciation and amortisation	6	30,869
Depreciation on right of use assets		57,116
Profit on disposal of property plant and equipment	5	(21,142)
Finance income	7	(18,925)
Finance costs	7	11,684
Income tax expense	11	115,248
		1,383,026
Working capital adjustments
Increase in inventories	17	(186,103)
Decrease in trade and other receivables	18	34,452
Increase in trade and other payables	23	144,028
Increase in deferred income, including government grants		34,765
Cash generated from operations		1,410,168
Income taxes paid	11	(111,748)
Net cash flow from operating activities		1,298,420
Cash flows from investing activities
Interest received	7	18,925
Acquisitions of property plant and equipment		(4,757,259)
Proceeds from sale of property plant and equipment		24,246
Acquisition of intangible assets	14	(2,541)
Payments made on leased assets during the year		(22,111)
Net cash flows from investing activities		(4,738,740)
Cash flows from financing activities
Interest expense on leases		(3,589)
Interest paid	7	(8,095)
Proceeds from other borrowing draw downs		3,889,441
Dividends paid	25	(665,483)
Net cash flows from financing activities		3,212,274
Net decrease in cash and cash equivalents		(228,046)
Cash and cash equivalents at 1 January		1,522,602
Cash and cash equivalents at 31 December		1,294,556

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Statement of Cash Flows for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Cash flows from operating activities
Profit for the year		1,088,359	1,020,713
Adjustments to cash flows from non-cash items
Depreciation and amortisation	6	30,869	14,216
Depreciation on right of use assets		109,688	109,688
Profit on disposal of property plant and equipment	5	(3,047)	-
Finance income	7	(18,925)	(21,871)
Finance costs	7	15,272	12,197
Income tax expense	11	79,173	347,151
		1,301,389	1,482,094
Working capital adjustments
(Increase)/decrease in inventories	17	(186,103)	241,243
Increase in trade and other receivables	18	(4,516,861)	(157,124)
Increase/(decrease) in trade and other payables	23	95,074	(735,511)
Cash generated from operations		(3,306,501)	830,702
Income taxes paid	11	(111,748)	(232,885)
Net cash flow from operating activities		(3,418,249)	597,817
Cash flows from investing activities
Interest received	7	18,925	21,871
Acquisition of subsidiaries	15	(1,000)	-
Acquisitions of property plant and equipment		(95,052)	(97,000)
Proceeds from sale of property plant and equipment		6,151	-
Acquisition of intangible assets	14	(2,541)	-
Cost of new property plant and equipment acquired under finance leases		99,250	99,200
Net cash flows from investing activities		25,733	24,071
Cash flows from financing activities
Interest expense on leases		(7,177)	(10,609)
Interest paid	7	(8,095)	(1,588)
Proceeds from other borrowing draw downs		3,889,441	-
Payments to finance lease creditors		(162,211)	(135,487)
Dividends paid	25	(665,483)	(697,171)
Net cash flows from financing activities		3,046,475	(844,855)
Net decrease in cash and cash equivalents		(346,041)	(222,967)
Cash and cash equivalents at 1 January		1,522,574	1,745,541
Cash and cash equivalents at 31 December		1,176,533	1,522,574

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

1	General information

The company is a private company limited by share capital, incorporated and domiciled in England.

The address of its registered office is:
Units 1 & 2
Blackall Industrial Estate
South Woodham Ferrers
Chelmsford
Essex
CM3 5UW

These financial statements were authorised for issue by the board on 14 May 2026.

2	Accounting policies

Statement of compliance

The group financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("UK adopted IFRSs").

Summary of material accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies.

Basis of consolidation

The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in accounting policy

None of the standards, interpretations and amendments effective for the first time from 1 January 2025 have had a material effect on the financial statements.

None of the standards, interpretations and amendments which are effective for periods beginning after 1 January 2025 and which have not been adopted early, are expected to have a material effect on the financial statements.

Revenue recognition

Recognition

The group earns revenue from the manufacture and sale of heating and cooling products for domestic and commercial applications. This revenue is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers.

The principles in IFRS are applied to revenue recognition criteria using the following 5 step model:

1. Identify the contracts with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract
5. Recognise revenue when or as the entity satisfies its performance obligations

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Government grants

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs is recognised in income in the period in which it becomes receivable.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Property, plant and equipment

Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	10% - 20% Straight Line
Fixtures, fittings and equipment	10% - 33% Straight Line
Motor Vehicle	25% Straight Line
Right of use of assets	Over the lease term

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life.

Asset class	Amortisation method and rate
Patents	Straight line over expected useful life

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Investments

Investments in securities are classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment.

Unrealised holding gains and losses other than impairments are recognised in other comprehensive income. On maturity or disposal, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Borrowings

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Leases

Initial recognition and measurement

The company initially recognises a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term.
The lease liability is measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments, purchase options at exercise price (where payment is reasonably certain), expected amount of residual value guarantees, termination option penalties (where payment is considered reasonably certain) and variable lease payments that depend on an index or rate.
The right-of-use asset is initially measured at the amount of the lease liability, adjusted for lease prepayments, lease incentives received, the company’s initial direct costs (e.g., commissions) and an estimate of restoration, removal and dismantling costs.

Subsequent measurement

After the commencement date, the group measures the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments or on the occurrence of other specific events.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. Interest charges are [presented separately as non-operating /included in finance cost] in the income statement, unless the costs are included in the carrying amount of another asset applying other applicable standards. The difference between lease payments due and those received are included in operating expenses in the period in which the payments are received.
The related right-of-use asset is accounted for using the Cost model in IAS 16 and depreciated and charged in accordance with the depreciation requirements of IAS 16 Property, Plant and Equipment as disclosed in the accounting policy for Property, plant and equipment. Adjustments are made to the carrying value of the right of use asset where the lease liability is re-measured in accordance with the above. Right of use assets are tested for impairment in accordance with IAS 36 Impairment of assets as disclosed in the accounting policy in impairment.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Lease modifications

If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification will result in either a separate lease or a change in the accounting for the existing lease.
The modification is accounted for as a separate lease if both:
(a) The modification increases the scope of the lease by adding the right to use one or more underlying assets; and
(b) The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
If both of these conditions are met, the lease modification results in two separate leases, the unmodified original lease and a separate lease. The group then accounts for these in line with the accounting policy for new leases.
If either of the conditions are not met, the modified lease is not accounted for as a separate lease and the consideration is allocated to the contract and the lease liability is re-measured using the lease term of the modified lease and the discount rate as determined at the effective date of the modification.
For a modification that fully or partially decreases the scope of the lease (e.g., reduces the square footage of leased space), IFRS 16 requires a lessee to decrease the carrying amount of the right-of-use asset to reflect partial or full termination of the lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification.
For all other lease modifications which are not accounted for as a separate lease, IFRS 16 requires the lessee to recognise the amount of the re-measurement of the lease liability as an adjustment to the corresponding right-of-use asset without affecting profit or loss.

Short term and low value leases

The group has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).
The group has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line bases over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the income statement.

Sub leases

If an underlying asset is re-leased by the group to a third party and the group retains the primary obligation under the original lease, the transaction is deemed to be a sublease. The group continues to account for the original lease (the head lease) as a lessee and accounts for the sublease as a lessor (intermediate lessor). When the head lease is a short term lease, the sublease is classified as an operating lease. Otherwise, the sublease is classified using the classification criteria applicable to Lessor Accounting in IFRS 16 by reference to the right-of-use asset in the head lease (and not the underlying asset of the head lease).
After classification lessor accounting is applied to the sublease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

Financial instruments

Initial recognition

Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.

The group recognises financial assets and financial liabilities in the statement of financial position when, and only when, the group becomes party to the contractual provisions of the financial instrument.

Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.

All regular way purchases and sales of financial assets and financial liabilities classified as fair value through profit or loss (“FVTPL”) are recognised on the trade date, i.e. the date on which the group commits to purchase or sell the financial assets or financial liabilities. All regular way purchases and sales of other financial assets and financial liabilities are recognised on the settlement date, i.e. the date on which the asset or liability is received from or delivered to the counterparty. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the time frame generally established by regulation or convention in the market place.

Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.

Revenue

The analysis of the group's revenue for the year from continuing operations is as follows:

	2025 £	2024 £
Sale of goods	8,712,278	8,604,772
Rental income from investment property	103,466	-
	8,815,744	8,604,772

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

4	Other operating income

The analysis of the group's other operating income for the year is as follows:

	2025 £	2024 £
Miscellaneous other operating income	7,059	-

5	Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

	2025 £	2024 £
Gain or loss on disposal of property, plant and equipment	21,142	-

6	Operating profit

Arrived at after charging/(crediting)

	2025 £	2024 £
Depreciation expense	27,569	11,527
Depreciation on right of use assets - property	57,116	109,688
Amortisation expense	3,300	2,689
Profit on disposal of property, plant and equipment	(21,142)	-

7	Finance income and costs

	2025 £	2024 £
Finance income
Interest income on bank deposits	18,925	21,871
Finance costs
Interest on obligations under finance leases and hire purchase contracts	(8,095)	(1,588)
Interest expense on leases - Property	(3,589)	(10,609)
Total finance costs	(11,684)	(12,197)
Net finance income	7,241	9,674

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2025 £	2024 £
Wages and salaries	2,382,420	2,208,575
Pension costs, defined contribution scheme	45,254	42,548
	2,427,674	2,251,123

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

	2025 No.	2024 No.
Production	27	29
Administration and support	8	5
Research and development	3	4
Sales, marketing and distribution	6	6
	44	44

9	Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

10	Auditors' remuneration

	2025 £	2024 £
Audit of these financial statements	27,830	24,330

11	Income tax

Tax charged/(credited) in the income statement

	2025 £	2024 £
Current taxation
UK corporation tax	310,779	321,086
UK corporation tax adjustment to prior periods	(209,339)	-
	101,440	321,086
Deferred taxation
Arising from origination and reversal of temporary differences	13,808	26,065
Tax expense in the income statement	115,248	347,151

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

12	Property, plant and equipment

Group

	Land and buildings £	Furniture, fittings and equipment £	Motor vehicles £	Other property, plant and equipment £	Total £
Cost or valuation
At 1 January 2024	-	668,304	13,330	1,436,669	2,118,303
Additions	-	-	-	97,000	97,000
Disposals	-	-	-	(60,445)	(60,445)
At 31 December 2024	-	668,304	13,330	1,473,224	2,154,858
At 1 January 2025	-	668,304	13,330	1,473,224	2,154,858
Additions	4,662,207	1,302	11,250	82,500	4,757,259
Disposals	-	-	(13,330)	-	(13,330)
At 31 December 2025	4,662,207	669,606	11,250	1,555,724	6,898,787
Depreciation
At 1 January 2024	-	651,677	5,557	1,436,669	2,093,903
Charge for year	-	3,821	3,112	4,594	11,527
Eliminated on disposal	-	-	-	(60,445)	(60,445)
At 31 December 2024	-	655,498	8,669	1,380,818	2,044,985
At 1 January 2025	-	655,498	8,669	1,380,818	2,044,985
Charge for the year	-	3,966	2,584	21,019	27,569
Eliminated on disposal	-	-	(10,226)	-	(10,226)
At 31 December 2025	-	659,464	1,027	1,401,837	2,062,328

Page 27

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

	Land and buildings £	Furniture, fittings and equipment £	Motor vehicles £	Other property, plant and equipment £	Total £
Carrying amount
At 31 December 2025	4,662,207	10,142	10,223	153,887	4,836,459
At 31 December 2024	-	12,806	4,661	92,406	109,873
At 1 January 2024	-	16,627	7,773	-	24,400

Page 28

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Company

	Furniture, fittings and equipment £	Motor vehicles £	Other property, plant and equipment £	Total £
Cost or valuation
At 1 January 2024	665,034	13,330	1,436,669	2,115,033
Additions	-	-	97,000	97,000
Disposals	-	-	(60,445)	(60,445)
At 31 December 2024	665,034	13,330	1,473,224	2,151,588
At 1 January 2025	665,034	13,330	1,473,224	2,151,588
Additions	1,302	11,250	82,500	95,052
Disposals	-	(13,330)	-	(13,330)
At 31 December 2025	666,336	11,250	1,555,724	2,233,310
Depreciation
At 1 January 2024	648,408	5,557	1,436,669	2,090,634
Charge for year	3,821	3,112	4,594	11,527
Eliminated on disposal	-	-	(60,445)	(60,445)
At 31 December 2024	652,229	8,669	1,380,818	2,041,716
At 1 January 2025	652,229	8,669	1,380,818	2,041,716
Charge for the year	3,966	2,584	21,019	27,569
Eliminated on disposal	-	(10,226)	-	(10,226)
At 31 December 2025	656,195	1,027	1,401,837	2,059,059
Carrying amount

Page 29

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

	Furniture, fittings and equipment £	Motor vehicles £	Other property, plant and equipment £	Total £
At 31 December 2025	10,141	10,223	153,887	174,251
At 31 December 2024	12,805	4,661	92,406	109,872
At 1 January 2024	16,626	7,773	-	24,399

Page 30

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

13	Right of use assets

Group

	Property £	Total £
Cost or valuation
At 1 January 2024	877,500	877,500
At 31 December 2024	877,500	877,500
At 1 January 2025	877,500	877,500
Disposals	(877,500)	(877,500)
At 31 December 2025	-	-
Depreciation
At 1 January 2024	548,439	548,439
Charge for year	109,688	109,688
At 31 December 2024	658,127	658,127
At 1 January 2025	658,127	658,127
Charge for the year	57,116	57,116
Eliminated on disposal	(715,243)	(715,243)
At 31 December 2025	-	-
Carrying amount
At 31 December 2025	-	-
At 31 December 2024	219,373	219,373

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Company

	Property £	Total £
Cost or valuation
At 1 January 2024	877,500	877,500
At 31 December 2024	877,500	877,500
At 1 January 2025	877,500	877,500
At 31 December 2025	877,500	877,500
Depreciation
At 1 January 2024	548,439	548,439
Charge for year	109,688	109,688
At 31 December 2024	658,127	658,127
At 1 January 2025	658,127	658,127
Charge for the year	109,688	109,688
At 31 December 2025	767,815	767,815
Carrying amount
At 31 December 2025	109,685	109,685
At 31 December 2024	219,373	219,373

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

14	Intangible assets

Group

	Trademarks, patents and licenses £	Other intangible assets £	Total £
Cost or valuation
At 1 January 2024	159,709	186,389	346,098
At 31 December 2024	159,709	186,389	346,098
At 1 January 2025	159,709	186,389	346,098
Additions	2,541	-	2,541
At 31 December 2025	162,250	186,389	348,639
Amortisation
At 1 January 2024	146,060	186,388	332,448
Amortisation charge	2,689	-	2,689
At 31 December 2024	148,749	186,388	335,137
At 1 January 2025	148,749	186,388	335,137
Amortisation charge	3,300	-	3,300
At 31 December 2025	152,049	186,388	338,437
Carrying amount
At 31 December 2025	10,201	1	10,202
At 31 December 2024	10,960	1	10,961
At 1 January 2024	13,649	1	13,650

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Company

	Trademarks, patents and licenses £	Other intangible assets £	Total £
Cost or valuation
At 1 January 2024	159,709	161,531	321,240
At 31 December 2024	159,709	161,531	321,240
At 1 January 2025	159,709	161,531	321,240
Additions	2,541	-	2,541
At 31 December 2025	162,250	161,531	323,781
Amortisation
At 1 January 2024	146,060	161,531	307,591
Amortisation charge	2,689	-	2,689
At 31 December 2024	148,749	161,531	310,280
At 1 January 2025	148,749	161,531	310,280
Amortisation charge	3,300	-	3,300
At 31 December 2025	152,049	161,531	313,580
Carrying amount
At 31 December 2025	10,201	-	10,201
At 31 December 2024	10,960	-	10,960
At 1 January 2024	13,649	-	13,649

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

15	Investments

Group subsidiaries

Details of the group subsidiaries as at 31 December 2025 are as follows:

Name of subsidiary

Principal activity

Registered office

Proportion of ownership interest and voting rights held
2025

2024

Smiths Environmental Systems Limited

100%

Blackall Property Ltd

100%

Summary of the company investments

	31 December 2025 £	31 December 2024 £
Investments in subsidiaries	1,002	2

Subsidiaries	£
Cost or valuation
At 1 January 2024	2
At 31 December 2024	2
At 1 January 2025	2
Additions	1,000
At 31 December 2025	1,002
Provision
Carrying amount
At 31 December 2025	1,002
At 1 January 2024	2

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

16	Deferred tax assets and liabilities

Company

Deferred tax assets and liabilities

2025	Asset £	Liability £	Net deferred tax £
Provision	-	43,614	43,614
	-	43,614	43,614

2024	Asset £	Liability £	Net deferred tax £
Provision	-	29,806	29,806
	-	29,806	29,806

Deferred tax movement during the year:

	At 1 January 2025 £	Recognised in income £	At 31 December 2025 £
Provision	29,806	13,808	43,614
	29,806	13,808	43,614

Deferred tax movement during the prior year:

	At 1 January 2024 £	Recognised in income £	At 31 December 2024 £
Provision	3,741	26,066	29,806
	3,741	26,066	29,806

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

17	Inventories

	Group		Company
	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Raw materials and consumables	1,210,194	1,040,232	1,210,194	1,040,232
Work in progress	96,711	83,505	96,711	83,505
Finished goods and goods for resale	219,862	216,927	219,862	216,927
	1,526,767	1,340,664	1,526,767	1,340,664

18	Trade and other receivables

	Group		Company
Non-current assets	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Loans to related parties	-	-	4,668,712	-

	Group		Company
Current assets	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Trade receivables	986,669	1,038,396	883,522	1,038,396
Receivables from related parties	-	-	3,096	2,996
Prepayments	122,309	142,931	145,854	142,931
Other receivables	37,897	-	-	-
	1,146,875	1,181,327	1,032,472	1,184,323

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

19	Cash and cash equivalents

	Group		Company
	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Cash on hand	144	180	144	180
Cash at bank	1,294,412	1,522,422	1,176,389	1,522,394
	1,294,556	1,522,602	1,176,533	1,522,574

20	Share capital

Allotted, called up and fully paid shares

	31 December 2025		31 December 2024
	No.	£	No.	£
Ordinary Shares of £1 each	1,000	1,000	1,000	1,000

21	Loans and borrowings

	Group		Company
	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Non-current loans and borrowings
Hire purchase contracts	93,575	57,479	93,575	57,479

	Group		Company
	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Current loans and borrowings
Hire purchase contracts	39,391	20,625	39,391	20,625

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

Leases

Company

Lease liabilities maturity analysis

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:

	31 December 2025 £	31 December 2024 £
Less than one year	121,407	117,823
2 years	-	121,407
Total lease liabilities (undiscounted)	121,407	239,230

Total cash outflows related to leases

Total cash outflows related to leases are presented in the table below:

Payment	31 December 2025 £	31 December 2024 £
Right of use assets	117,823	114,391
Interest	7,177	10,609
Total cash outflow	125,000	125,000

23	Trade and other payables

	Group		Company
Non-current liabilities	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Amounts due to related parties	3,889,441	-	3,889,441	-

	Group		Company
Current liabilities	31 December 2025 £	31 December 2024 £	31 December 2025 £	31 December 2024 £
Trade payables	854,446	709,282	854,446	709,282
Accrued expenses	159,733	184,111	154,816	184,111
Social security and other taxes	139,567	112,974	95,530	112,974
Other payables	4,478	7,829	4,478	7,829
	1,158,224	1,014,196	1,109,270	1,014,196

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

24	Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £45,254 (2024 - £42,548).

Dividends

	31 December 2025	31 December 2024
	£	£
Interim dividend of £665.48 (2024 - £697.17) per ordinary share	665,483	697,171

26	Related party transactions

Income and receivables from related parties

2025	Emmerson Swan Inc. £
Sale of goods	1,066,368
Amounts receivable from related party	(281,051)

2024
Sale of goods	1,361,749
Amounts receivable from related party	47,437

Expenditure with and payables to related parties

2025	Vent-Rite Valve Corp. £
Marketing & promotion	60,500
Amounts payable to related party	3,889,441

2024

Marketing & promotion		86,837
Amounts payable to related party		86,837

SMITH'S ENVIRONMENTAL PRODUCTS LIMITED

Notes to the Financial Statements for the Year Ended 31 December 2025

27	Parent and ultimate parent undertaking

The company's immediate parent is Vent-Rite Valve Corporation.

Relationship between entity and parents

The parent of the largest group in which these financial statements are consolidated is Vent-Rite Valve Corporation, incorporated in Massachusetts, USA.

The address of Vent-Rite Valve Corporation is:
1875 Dewey Ave.
Benton Harbor
MI 49022

Vent Rite Valve Corporation has 100% shareholding in the issued share capital of the company.