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

Winbro Group Technologies Ltd ('the company') specialises in the design, manufacture and support of advanced machining systems, components and services for high-value industries, notably aerospace and clean power generation.

In 2024, the Company celebrated 50 years of UK manufacturing and was recognised by His Majesty The King with a King’s Award for Enterprise in Innovation, following three previous Queen’s Awards for Enterprise in the fields of Technology and International Trade.

Strategic position

Core Strengths: Winbro has established itself as a global leader in high-precision, advanced manufacturing, with a strong reputation for innovation and engineering expertise. Its integrated offering — comprising machine tools, contract manufacturing and after-sales services — positions the company well to develop long-term strategic partnerships with OEM customers. Winbro’s expertise includes non-conventional machining technologies such as ultra-short pulse laser machining and very high-speed EDM drilling, which are increasingly important in the manufacture and processing of advanced materials and components.

Market Context: Aerospace remains a key driver of Winbro’s business. The sector has recovered from the pandemic-related downturn but continues to face supply chain challenges, elevated energy and input costs, and increasing regulatory and sustainability requirements. Demand for more fuel-efficient engines, alongside broader sustainability objectives, continues to drive the requirement for advanced materials and associated manufacturing technologies.

Winbro Reimagined: Through its “Winbro Reimagined” strategy, the company has developed new technology platforms and capabilities to diversify beyond its traditional aerospace and industrial gas turbine markets and address emerging opportunities within solid oxide fuel cell (SOFC), hydrogen, advanced semiconductor and other high-technology industries.

During 2025, the company reported turnover of £21,200,269, representing a decrease of 27.5% compared with £29,241,073 in 2024. Profit after tax reduced to £173,243, compared with £2,558,401 in the prior year, a decrease of 93.2%.

The reduction in revenue was principally driven by challenging market conditions across the UK and Europe, including reduced levels of long-term capital investment, changes in customer demand and the timing and mix of major customer programmes. The impact of lower revenues was compounded by continued cost pressures, particularly increased utility and labour costs in the UK, resulting in a significant reduction in profitability.

In response to these market conditions, management has undertaken a comprehensive review of the company’s cost base and implemented a targeted cost-reduction programme. These actions are intended to align the company’s overhead structure with anticipated levels of activity, improve operational efficiency and strengthen the business’s resilience and profitability going forward.

The company continues to operate within a challenging global supply chain environment, where the availability and cost of materials require ongoing focus and effective management. The company continues to mitigate these pressures through active supply chain management, cost control, waste reduction and improvements in operational efficiency, together with the strategic localisation of manufacturing and engineering capabilities closer to its key customer markets.

Alongside these activities, the deployment of the company’s advanced manufacturing technologies continues to support the development of new business by helping customers address their own cost, productivity and time-to-market challenges.

Further information on the principal risks and uncertainties facing the company is included within the Directors’ Report.

Research and development remains central to the company’s strategy and long-term growth. Our R&D activities continue to drive innovation through the application of ultra-fast laser technology, advanced optics, AI-enabled software and automation and control technologies.

This continued investment enables Winbro to develop advanced manufacturing systems capable of drilling thousands of holes per second, producing hole diameters down to approximately 10 microns, and processing advanced materials including glass, silicon, composites and ceramics.

These capabilities are increasingly relevant to emerging and high-value applications within the semiconductor, hydrogen, medical and other advanced technology sectors. Continued investment in R&D is intended to strengthen the company’s technology leadership, diversify its addressable markets and support sustainable long-term growth.

The directors consider turnover and profitability to be the principal financial key performance indicators used to assess the performance of the company.

Management also monitors a broader range of operational and non-financial performance indicators, including employee health and safety, technology leadership, customer satisfaction and operational efficiency. These measures continue to be developed and refined to support management decision-making and the delivery of sustainable financial performance.

The directors remain positive about the company’s long-term prospects, supported by a strong order backlog from our historic customer bases, together with a growing pipeline of orders and opportunities within new, high-technology and sustainable markets.

The company’s future development priorities include:

• expanding its presence in the Asia-Pacific region, particularly within the aerospace and clean-energy markets;

• developing advanced machining solutions that support customers in reducing energy consumption, manufacturing costs and material waste;

• establishing and developing partnerships with new OEM customers in next-generation propulsion, clean energy, including electric and hydrogen-based technologies, and advanced medical and electronic applications; and

• continuing to invest in advanced manufacturing technologies that broaden the company’s addressable markets, increasing the contribution from new and adjacent high-technology markets

• These initiatives form part of the Company’s strategy to diversify its customer and market base, strengthen its technology leadership and create sustainable opportunities for long-term growth.

This report was approved by the board signed on its behalf by.

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

The principal activity of the company is set out in the Strategic Report.

The results for the year are set out on page 8.

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

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

The company uses financial instruments, other than derivatives, comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.

The company finances its operations through a mixture of retained profits, inter-company accounts and bank borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed on a group basis by the use of both fixed and floating rate facilities.

The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitably. Primarily this is achieved through bank borrowings, intercompany accounts or through loans arranged at group level.

The company is exposed to transaction foreign exchange risk. Transaction exposures are hedged when known, mainly using the forward hedge market. There were no such contracts in place at the reporting date.

Alliotts LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.

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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Winbro Group Technologies Limited (the 'company') for the year ended 31 December 2025 which comprise 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

• understanding the design of the company’s remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

To address the risk of fraud through revenue recognition, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• reviewed a sample of sales around the year-end to ensure appropriate cut-off was applied; and

• verified and recalculated accrued and deferred revenue items.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing legal expenditure.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 notes on pages 11 to 26 form part of these financial statements.

The notes on pages 11 to 26 form part of these financial statements.

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

The notes on pages 11 to 26 form part of these financial statements.

Winbro Group Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Illuma House, Unit 1, Gelders Hall Road, Shepshed, LE12 9NH. . The principal activity of the company is disclosed in the Strategic Report.

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. 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, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The financial statements of the company are consolidated in the financial statements of Quaser Machine Tools Inc. These consolidated financial statements are available to the public from the registered office disclosed in note 25.

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. The parent company has also demonstrated its willingness to provide support where needed, to enable the company to meet its obligations when they fall due, for a period of at least 12 months from the date the financial statements are signed. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised by the company where it has met substantially all of its contractual obligations.

In the case of spares and service sales and sub-contract machining, turnover is recognised at the point at which goods or services are despatched or provided and all risks and rewards have been transferred.

In the case of machine sales, turnover is recognised at the point of shipment of machines, unless there is evidence that on-site acceptance will not be forthcoming. On-site acceptance typically involves some element of commissioning cost. Such costs are provided in full in cost of sales at the point of revenue recognition. The key element of commissioning costs is in relation to testing.

When the company enters into a bill and hold arrangement with the customer, revenue is recognised when the company has transferred significant risks and rewards relating to the machines. The bill and hold basis is agreed in writing with the customer in advance of the revenue being recognised. In advance of revenue being recognised on a bill and hold basis, the following criteria need to be met:

• The machine is ready for physical transfer to the customer and it is probable the delivery will be made;

• The machine can be identified separately as belonging to the customer;

• The customer acknowledges the deferred delivery instructions;

• The usual payment terms apply.

Where payments on accounts are received from customers in advance of the point at which revenue is recognised, such payments on account are recognised as deferred income.

Research and development expenditure is ordinarily written off in the year in which it is incurred. However, where such expenditure relates to specific commercial products where there is a probable future revenue stream, such costs are capitalised and amortised over the expected period of the revenue stream up to a maximum period of five years.

The company capitalises certain costs for the development, configuration and implementation of its internal software as intangible assets. These costs are recognised as an intangible fixed asset when:

• the company controls the software;

• the project is technically and commercially feasible;

• management intends and has sufficient resources to complete the system and use it;

• it is probable that the system will generate future economic benefits, including operational efficiencies or cost savings; and

• the expenditure attributable to the system can be measured reliably.

An intangible asset is recognised only where future economic benefits are probable and its cost can be measured reliably. Intangible assets are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the profit or loss during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

The estimated useful lives range as follows:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the statement of comprehensive income.

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 are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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. Reversals of impairment losses are also recognised 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, 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 and loans from fellow group companies, 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.

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

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

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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

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.

Applying the company's revenue recognition policy in respect of machine sales (note 1.3) requires a judgement to be made as to whether on-site acceptance of the machine will or will not be forthcoming. In determining this, the directors consider the condition of the machines at the point of delivery, correspondence with the customer, and past experience.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

As explained in the company's accounting policies (notes 1.5 and 1.6), intangible and tangible fixed assets must be recognised at cost less accumulated amortisation/depreciation and impairment. Amortisation/depreciation must be allocated to an asset on a systematic basis over its useful economic life, which represents an accounting estimate. In determining this estimate, the directors consider historical experience and the pattern of consumption of similar assets. After accounting for this:

• intangible fixed assets are held at £1,388,181 (2024: £1,006,148) as disclosed in note 11; and

• tangible fixed assets are held at £1,260,487 (2024: £1,937,087) as disclosed in note 12.

As explained in the company's accounting policy (note 1.8), inventories must be held at the lower of selling price less costs to complete and sell ('net realisable value'), the latter of which constitutes an estimate. In determining this estimate, the directors consider the condition of the stock and past sales prices. After accounting for this, inventories are held at £1,641,439 (2024: £2,656,782) as disclosed in note 13.

The directors have taken the exemption available under SI 2008/410 Sch 1, paragraph 68, with respect to disclosure of turnover by class of business as they believe this would be seriously prejudicial to the interests of the company.

The amortisation of intangible assets is included within administration expenses.

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

The company has unused tax losses of £nil (2024: £nil) at the end of the reporting period. There are no unused tax credits.

The intangible asset relates to a single asset with a remaining amortisation period of 9 years and 3 months.

The provision relates to the estimated cost of repair, reinstatement and restoration works required under the terms of the company’s property leases. The provision has been estimated by reference to the condition of the relevant properties at the reporting date, the obligations contained within the lease agreements and estimates by the directors in light of previous experience.

The timing and amount of the expenditure are uncertain and will depend upon the condition of the properties and the outcome of negotiations with the landlords when the relevant leases expire or are otherwise terminated.

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

The deferred tax liability set out above is expected to reverse within 60 months and primarily relates to accelerated capital allowances that are expected to mature within the same period.

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.

The holders of Ordinary A and Ordinary B shares are both entitled to received dividends as declared from time to time and are entitled to one vote per share at meetings of the company. The right of holders of Ordinary B shares to participate in any other distributions is subject to the proceeds reaching a minimum value.

This includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.

A capital redemption reserve arises in relation to redemption or purchase and cancellation of a company's own shares. For purposes of a capital reduction under CA 2006, this reserve is treated as part of 'capital'.

Profit and loss account

This includes all current and prior period retained profits and losses.

Guarantees and contingent liabilities

The company and its parent company, Winbro Group UK, are party to an omnibus guarantee and set-off agreement with its bankers. Under the terms of the guarantee, any liabilities owed to the bank are secured over substantially all of the assets of the companies. There were £nil such liabilities owed to the bank at the reporting date (2024: £nil).

Contingent assets

The directors have not recognised any corporation tax recoverable in respect of research and development costs in the years ended 31 December 2024 and 31 December 2025 as the potential claim cannot be measured reliably at the date of approval of the financial statements.

The company's operating leases relating to its premises.

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:

All balances with group companies are interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

All balances with group companies are interest free and repayable on demand. Further information relating to balances with key management personnel is described in note 24.

As a wholly owned subsidiary of Quaser Machine Tools Inc., the company is exempt from the requirements of FRS 102 Section 33 to disclose transactions with other wholly owned members of the group on the grounds that the accounts are publicly available.

The loan to a director accrued interest at an annual rate of 2.5% from 1 January 2024 to 31 March 2024, and 1% from 1 April 2024. The loan was repaid in full in the year.

The immediate parent company is Winbro Group UK Limited. Its registered office is Illuma House Unit 1, Gelders Hall Road, Shepshed Leicestershire, LE12 9NH.

The ultimate parent company is Quaser Machine Tools Inc, a company incorporated in Taiwan. The smallest and largest group of undertakings for which group accounts have been drawn up is that headed by Quaser Machine Tools Inc. The registered office of Quaser Machine Tools Inc is No.3, Gongliu Road, Daija District, Taichung City, Taiwan 437.

In the prior year, costs of £1,006,148 relating to the development and implementation of internal software were presented within tangible fixed assets as assets under construction at 31 December 2024. As the expenditure relates to identifiable software controlled by the company, the comparative information has been restated to present the balance within intangible fixed assets. The restatement reduces tangible fixed assets and increased intangible fixed assets at 31 December 2024 by £1,006,148. The restatement gives rise to no effect on total fixed assets, profit for the year, net assets or equity.