REGISTERED NUMBER: 04732254 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2025

for

EagleBurgmann Industries UK Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Statement of Directors' Responsibilities

9

Report of the Independent Auditors

10

Income Statement

14

Other Comprehensive Income

15

Balance Sheet

16

Statement of Changes in Equity

17

Notes to the Financial Statements

18

DIRECTORS:

D R Tromans-Woolley

H M Puetz

SECRETARY:

M Ashworth

REGISTERED OFFICE:

Unit 3

Wilton Drive

Warwick

CV34 6RG

REGISTERED NUMBER:

04732254 (England and Wales)

AUDITORS:

Rödl & Partner Ltd

170 Edmund Street

Birmingham

B3 2HB

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

The principal activity of the business is the sale and service of mechanical seals and ancillary equipment for pumps, compressors, agitators & expansion joints. As a subsidiary of EagleBurgmann Germany Gmbh & Co.KG, the company's products are applied to the UK market either in direct form or adapted to local requirements. There are engineering and design resources within the UK operation to fulfil these needs. Three regional service/production centres are strategically sited within the main industrial areas of the country. Each unit has succeeded in attracting orders, some standard off-the-shelf business and retrofit work and have shown long-term growth in our end-user business. EagleBurgmann Industries UK Limited continues to push for growth and market share within end-user customers as well as maintain project activity amongst OEMs into 2026 and beyond.

REVIEW OF BUSINESS

General business review

The company's key performance indicators during the year were as follows:

2025

2024

Change

£

£

%

Turnover

15,651,169

14,214,451

10%

Operating profit

1,560,208

1,947,990

-20%

Total shareholder's funds

9,113,582

8,141,601

12%

PRINCIPAL RISKS AND UNCERTAINTIES

The general business in which EagleBurgmann Industries UK Limited is involved exposes it to a variety of risks, including competition, commodity price, market sector volatility, foreign exchange and liquidity risks.

As a group there are clear risk management policies aimed at controlling all such risks within the appetite of ordinary business. Such activities include the use of derivative financial instruments in order to hedge certain risk exposures and to control liquidity there are aggressive working capital policies in place with a sensible earnings distribution policy.

Business risks

Further improvement in enquiry levels during 2025 demonstrates signs that the dip in key OEM activity during the pandemic is seeing a resurgence in end-user confidence and investment appears to be resuming.

Commercial risks

Market

The oil & gas market has continued to recover with more projects coming in, although not to the levels seen pre-2015.

EagleBurgmann Industries UK Limited remains highly committed to its plans for the coming year with a long-term perspective in mind, whilst continuing to diversify into other markets and maintaining active, scalable cost controls.

Competition

Competition remains strong from the three main competitors. To grow market share EagleBurgmann Industries UK Limited focuses on "quality of product", "value adding solutions" and the "best engineered solutions" for all application requirements.

Legislative risks

Laws and regulations are controlled by specific recognised bodies within the industry, as well as ISO standards. The company ensures that it is compliant with all of these by a combination of training, research and management discussion procedures.

Financial risks

The company has established a risk and financial management framework, the primary objectives of which are to protect the company from events that hinder the achievement of its performance objectives. A more detailed discussion of the main elements of this is as follows:

Price risk is the risk of detrimental movements in working capital values being held by the company. The company's main price risk is on inventory purchases; however, the company aims to minimise risk through effective management of inventory levels, monitoring stock turn and reviewing prices regularly.

Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. Policies are aimed at minimising such losses and require that material deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company's debtors are shown in note 12 to the financial statements. The company limits individual trade debtor exposures and these limits are reviewed on a continual basis. A focused credit control team ensures compliance with sales invoice terms.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation of its operations and applying cash collection targets. The company is focused on reducing debtor and inventory days. The company also manages liquidity risk via short-term credit facilities where applicable. Regular management meetings, together with quarterly re-forecasts taking into account unpredicted changes in the economy, enable the company to meet all obligations as they fall due.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability, such as future interest payments on a variable rate debt. The company manages this risk, where significant, by forecasting plus detailed budget procedures which are discussed at group level. Short-term fixed rate borrowings are entered into where necessary but on the whole the company aims to minimise the reliance on external borrowings.

Capital management: The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

ON BEHALF OF THE BOARD:

D R Tromans-Woolley - Director

22 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

FUTURE DEVELOPMENTS

The directors have considered the impact of the current economic environment, when preparing their 2026 forecasts.

The Company's statutory financial statements for the year 2025 have been prepared on a going concern basis, which the directors believe to be appropriate.

The company has access to considerable financial resources together with long-standing relationships with a number of key customers and suppliers across different geographic areas and industries.

The Company participates within a group cash pool arrangement, and credit lines are available should they be required, as they are open to every cash pool participant.

The company's financial forecasts, taking into consideration the current environment, show that the company is expected to remain profitable and generate positive cash flows giving the company the ability to continue to operate on a going concern basis for the foreseeable future.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

D R Tromans-Woolley

H M Puetz

INDEMNITY PROVISION

Throughout the year and at year end, a director and officers indemnity liability insurance policy was effective.

BRANCHES

In addition to the head office/registered office on page 1, the company has 3 active branches located in Cumbernauld & Crewe in the UK, and Cork in Ireland.

EagleBurgmann Industries UK Ltd

EagleBurgmann Industries UK Ltd

EagleBurgmann Industries UK Ltd

37 Deerdykes View

Unit 3b Apollo Park

Unit 13 Euro Business Park

Westfield Industrial Estate

University Way

Little Island

Cumbernauld

Crewe

Co. Cork

G68 9HN

CW1 6HX

T45 EE09

United Kingdom

United Kingdom

Ireland

ENVIRONMENTAL

EagleBurgmann Industries UK Limited has a responsibility to comply with the highest ethical and legal standards while protecting the environment and benefiting society as a whole.

The company is committed to responsible carbon management and will practise energy efficiency throughout the organisation, wherever it is cost effective. The company recognises that climate change is one of the most serious environmental challenges currently threatening the global community and understands they have a role to play in reducing greenhouse gas emissions.

SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members, having regard of its stakeholders. In doing this, s172 requires a director to have regard, among other matters, to the following:

- likely consequences of any decisions in the long term;

- interests of the company's employees;

- need to foster the Company's business relationships with suppliers, customers and others;

- impact of the Company's operations on the community and environment;

- desirability of the Company maintaining a reputation for high standards of business conduct;

- need to act responsibly and fairly.

Corporate Citizenship within Freudenberg extends beyond the value chain. One of the Company's goals is to be a good corporate citizen and good neighbour in all countries, states and communities we call home. Responsibility is an integral component of the Freudenberg spirit, and is reflected in both the Company's quest for greater sustainability and in aid projects.

The Company's s172 statement intends to set out how our Board of Directors both individually and collectively, has had regard to the above factors when undertaking their duties during year.

In discharging their s172 duties, the Directors have regard to the factors set out previously, although sometimes some factors may be more relevant than others. Appropriate regard was also given to other factors considered relevant to the decision being made. It is acknowledged that every decision made by directors will not necessarily result in a positive outcome for all of our stakeholders. However, by giving consideration to key stakeholder groups and aligning our activities with our strategic plan, as well as the Company's culture and values, we aim to act fairly, transparently and in the best interests of the Company over the long term.

As is the case when making decisions and choices, and in setting policies and strategies, the Company's directors also consider associated risks when discharging their duties. The Company ensures that open lines of communication are maintained with stakeholder groups and consideration is given on ways how engagement and relationships with stakeholders can be improved.

The company identifies its key stakeholders as shareholders, our people and colleagues, customers, communities and suppliers. We consider the environment to be strongly associated to communities and they are often considered together. The Company considers principal decisions to be those decisions taken by the Directors and those decisions which may have a potential material impact on the Company's strategy, a stakeholder group or the long-term value creation of the Company.

The Company's reputation is paramount to the success of the Company's business, as we rely on the satisfaction of our customers. The Company recognises that its culture plays an important role underpinning its sustainable long-term success. The Company has a comprehensive set of policies and procedures in place to ensure high standards of professional conduct.

Examples of how Directors have had regard to the matters set out in s172(1) (a)-(f) when discharging their s172 duty and the effect of that on certain decisions taken by them during the year include holding regular business review meetings where the Company's Board meets to discuss its operational performance and alignment to strategic objectives. Employee Town Hall events also take place throughout the year, supported by quarterly employee consultation meetings.

ENGAGEMENT WITH EMPLOYEES

The company places considerable value in the involvement of its employees and continues to keep them informed on matters affecting the performance of the company. This is achieved through formal and informal meetings and a group magazine. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditor, Rödl & Partner Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D R Tromans-Woolley - Director

22 September 2026

The directors are responsible for preparing the Report and Financial Statements and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law).

Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- state whether applicable United Kingdom Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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 safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also 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.

In the case of each director in office at the date the directors' report is approved:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and

- they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information

Opinion

We have audited the financial statements of EagleBurgmann Industries UK Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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, 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.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

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

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit

Use of our report

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

Imran Farooq (Senior Statutory Auditor)

for and on behalf of Rödl & Partner Ltd

170 Edmund Street

Birmingham

B3 2HB

22 September 2026

TURNOVER

3

15,651,169

14,214,451

Cost of sales

(7,042,644

)

(6,134,632

)

GROSS PROFIT

8,608,525

8,079,819

Distribution costs

(63,479

)

(73,550

)

Administrative expenses

(7,765,640

)

(6,739,736

)

779,406

1,266,533

Other operating income

780,802

681,457

OPERATING PROFIT

1,560,208

1,947,990

Interest payable and similar expenses

5

(249,894

)

(335,190

)

PROFIT BEFORE TAXATION

6

1,310,314

1,612,800

Tax on profit

7

(338,333

)

(400,034

)

PROFIT FOR THE FINANCIAL YEAR

971,981

1,212,766

PROFIT FOR THE YEAR

971,981

1,212,766

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

971,981

1,212,766

FIXED ASSETS

Owned

Intangible assets

8

9,694,990

9,694,990

Tangible assets

9

150,811

170,644

Right-of-use

Tangible assets

9, 16

839,683

1,053,517

Investments

10

-

-

10,685,484

10,919,151

CURRENT ASSETS

Stocks

11

1,201,941

685,488

Debtors

12

5,090,694

2,786,464

6,292,635

3,471,952

CREDITORS

Amounts falling due within one year

13

7,423,711

2,538,995

NET CURRENT (LIABILITIES)/ASSETS

(1,131,076

)

932,957

TOTAL ASSETS LESS CURRENT LIABILITIES

9,554,408

11,852,108

CREDITORS

Amounts falling due after more than one year

14

440,826

3,710,507

NET ASSETS

9,113,582

8,141,601

CAPITAL AND RESERVES

Called up share capital

17

6,000,001

6,000,001

Retained earnings

3,113,581

2,141,600

SHAREHOLDERS' FUNDS

9,113,582

8,141,601

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2026 and were signed on its behalf by:

D R Tromans-Woolley - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Balance brought forward

6,000,001

928,834

6,928,835

Total comprehensive income

-

1,212,766

1,212,766

Balance at 31 December 2024

6,000,001

2,141,600

8,141,601

Changes in equity

Total comprehensive income

-

971,981

971,981

Balance at 31 December 2025

6,000,001

3,113,581

9,113,582

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;

•

the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;

•

the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and Discontinued Operations;

•

the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral Resources;

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;

the requirements of paragraph 58 of IFRS 16;

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraphs 53(a), (h) and (j) of IFRS 16;

-

paragraph 79(a)(iv) of IAS 1;

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

-

paragraph 118(e) of IAS 38 Intangible Assets;

-

paragraphs 76 and 79(d) of IAS 40 Investment Property; and

-

paragraph 50 of IAS 41 Agriculture;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

•

the requirements of

-

paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

-

paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes;

•

the requirements of paragraph 74(b) of IAS 16;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

•

the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.

Critical accounting judgements and key sources of estimation uncertainty

To be able to prepare the financial statements according to FRS 101, management and the board of directors must make estimates and assumptions that affect the amounts recorded for asset and liability items and revenue and expenses in the financial statements as well as other information, such as that provided on contingent liabilities. These estimates are based on historical experience and various other assumptions that management and the board believe are reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Areas comprising critical judgement that may significantly impact earnings and the financial position are the valuation and useful economic lives of tangible assets, the valuation of stocks including work in progress, provisions for inventory obsolescence and bad debts, the estimate of stage of completion of contract work, income taxes and any litigation and contingent liabilities, all of which are discussed in the respective notes where required. The calculation of fair values for assets and liabilities such as tangible assets, as well as the assessment of any impairment to fair values generally, involve estimations of likely future cash flow deriving from or accruing to those assets and liabilities. Judgement is also involved in selecting appropriate discount rates for determining the present value of those future cash flows.

Revenue from contracts with customers

The Company recognises revenue, when or as control over distinct goods or services is transferred to the customer, i.e. when the customer is able to direct the use of the transferred goods or services and obtains substantially all the remaining benefits, provided a contract with enforceable rights and obligations exists and amongst others collectability of consideration is probable taking into account our customers credit worthiness. Revenue is the transaction price the Company expects to be entitled to.

Variable consideration is included in the transaction price if it is highly probable that a significant reversal of revenue will not occur once associated uncertainties are resolved. The amount of variable consideration is calculated by either using the expected value or the most likely amount depending on which is expected to better predict the amount of variable consideration. Consideration is adjusted for the time value of money if the period between the transfer of goods or services and the receipt of payment exceeds twelve months and there is a significant financing benefit either to the customer or the Company. If a contract contains more than one distinct good or service, the transaction price is allocated to each performance obligation based on relative stand-alone selling prices. If stand-alone selling prices are not observable, the Company reasonably estimated those. Revenue is recognised for each performance obligation either at a point in time or over time.

Revenue from design, manufacture and supply of equipment is recognised by the achievement of contractually defined milestones, where products that have no alternative use due to their specifications, IFRS 15 results in the recognition of revenue over time, provided the Company has an enforceable right to payment from the customer in an amount that at least compensates for the performance completed to date plus a reasonable profit margin.

Where revenue contracts pertain to the manufacture and supply of products, revenues are recognised at a point in time when the product is delivered, the legal title has passed, and the customer has accepted ownership.

The company's activities have been described above, and the company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Based on historical information the directors consider that it not material to measure and provide for returns and refunds.

Revenue contracts are characterised by the fact that the customer can demand rectification of defects or new delivery. Assurance is provided that the product will have the function as agreed upon in the contract. The assurance-type warranty provided is not a separate obligation and therefore the estimated costs of fulfilling any warranty are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, where material.

Goodwill

Goodwill is not amortised, but instead tested for impairment annually, as well as whenever there are events or changes in circumstances (triggering events) which suggest that the carrying amount may not be recoverable. Goodwill is carried at cost less accumulated impairment losses.

The goodwill impairment test is performed at the level of a cash generating unit represented by a Division or equivalent, which is the lowest level at which goodwill is monitored for internal management purposes.For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the cash generating unit that is expected to benefit from the synergies of the business combination. If the carrying amount of the cash generating unit, to which the goodwill is allocated, exceeds its recoverable amount, an impairment loss on goodwill allocated to this cash generating unit is recognised. The recoverable amount is the higher of the cash generating unit's fair value less costs to sell and its value in use. If either of these amounts exceeds the carrying amount, it is not always necessary to determine both amounts. The Company determines the recoverable amount of a cash generating unit based on its fair value less costs to sell. These values are generally determined based on discounted cash flow calculations. Impairment losses on goodwill are not reversed in future periods.

The determination of the recoverable amount of a cash generating unit or a group of cash generating units to which goodwill is allocated involves the use of estimates by management. The outcome predicted by these estimates is influenced by e.g. the successful integration of acquired companies, volatility of capital markets, interest rates developments, foreign exchange fluctuations and the outlook of economic trends. In determining recoverable amounts, discounted cash flow calculation use five-year projections that are based on financial forecasts. Cash flow projections take into account past experience and represent management's best estimate about future developments. Cash flows after the planning period are extrapolated using individual growth rates.

Key assumptions on which management has based its determination of fair value less costs to sell and value in use include estimated growth rates. These estimates, including the methodology used, can have a material impact on the respective values and ultimately the amount of any goodwill impairment. See note 8 for further clarification.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Financial instruments

(a) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when the entity becomes party to the contractual provisions of the instruments.

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Trade receivables are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition.

Subsequent measurement

Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the contractual cash flow characteristics of the asset. The measurement category, applicable to the Company, for classification of debt instruments is amortised cost.

Amortised cost

Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired, and through amortisation process.

De-recognition

A financial asset is de-recognised where the contractual right to receive cash flows from the asset has expired. On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that has been recognised in other comprehensive income for debt instruments is recognised in profit or loss.

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are de-recognised, and through the amortisation process.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. On de-recognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss.

Impairment of financial assets

The Company assesses at each reporting date whether there is any objective evidence that a financial asset is impaired.

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

If in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.

Stocks

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

Taxation

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.

Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements, except that deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carried forward tax credits or tax losses can be utilised.

Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset is realised, or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date. Deferred income tax assets and liabilities are offset, only if a legally enforcement right exists to set off current tax assets against current tax liabilities, the deferred income taxes relate to the same taxation authority and that authority permits the company to make a single net payment.

Income tax is charged or credited to other comprehensive income if it relates to items that are charged or credited to other comprehensive income. Similarly, income tax is charged or credited directly to equity if it relates to items that are credited or charged directly to equity. Otherwise income tax is recognised in the income statement.

Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

As lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities representing the obligations to make lease payments and right-of-use assets representing the right to use the underlying leased assets.

(1) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, and which ranged from:

Buildings / Property - 1 to 16 years

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. The accounting policy for impairment is disclosed in Note 1.

The Company's right-of-use assets are presented within Leasehold Improvements (Note 9).

(2) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

(3) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

Employee benefit costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Business combinations

Business combinations are accounted for under the acquisition method. The Company as the acquirer and the acquiree may have a relationship that existed before they contemplated the business combination, referred to as a pre-existing relationship. If the business combination in effect settles a pre-existing relationship, the Company as the acquirer recognises a gain or loss for the pre-existing relationship. The cost of an acquisition is measured at the fair value of the assets given and liabilities incurred or assumed at the date of exchange. Any contingent consideration to be transferred to the Company as the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability will be recognised either in profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it will not be remeasured; subsequent settlement if accounted for within equity. Acquisition-related costs are expensed in the period incurred. Identifiable assets acquired, and liabilities assumed in a business combination (including contingent liabilities) are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. Non-controlling interests are measured at the proportional fair value of assets acquired and liabilities assumed (partial goodwill method). If there is no loss of control, transactions with non-controlling interests are accounted for as equity transactions not affecting profit and loss. At the date control is lost, any retained equity interests are remeasured to fair value.

Going concern

The financial statements have been prepared under the going concern basis as discussed in the directors' report. For 2026, based on an assessment by the directors, considering the Company's financial position, future performance and liquidity, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least the next 12 months from the date of approval of the financial statements. Thus the Company continues to adopt the going concern basis of preparation for the financial statements. Further narrative is laid out within both the Strategic and Directors' Reports.

Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment assessment for an asset is required, the Company makes an estimate of the asset's recoverable amount.

An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Impairment losses are recognised in profit or loss.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

13,792,619

13,221,135

Europe

1,807,694

954,708

United States of America

4,066

-

South America

-

2,561

Asia

28,880

36,047

Africa

17,910

-

15,651,169

14,214,451

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,073,997

2,917,014

Social security costs

394,380

378,717

Other pension costs

539,314

463,792

4,007,691

3,759,523

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

2025

2024

Production

14

15

Sales and distribution

34

32

Administration

6

6

54

53