REGISTERED NUMBER: 01114577 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

GUHRING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

C Weston

O A Guhring

B Schwanz

SECRETARY:

C Weston

REGISTERED OFFICE:

Estone Drive

Aston Hall Road

Aston

Birmingham

B6 6BQ

REGISTERED NUMBER:

01114577 (England and Wales)

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

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

REVIEW OF BUSINESS

Guhring Limited is a wholly owned subsidiary of Guehring KG, and its primary objective is to support and supply engineering companies located in the British Isles. Standard cutting tools are manufactured in Europe, warehoused, and distributed from a large modern purpose-built factory in Aston, Birmingham, where Guhring Limited also design, manufacture and service standard and special engineering cutting tools.

Guhring Limited has been established in the UK for over 50 years, offers a wide range of high-quality products and is well known throughout the industry.

PRINCIPAL RISKS AND UNCERTAINTIES

The continuing cost increases being seen for Tungsten Carbide, will drive price increases throughout the tooling sector and in other related markets.

The instability felt throughout the world is expected to remain during 2026 and beyond.

The increase in imported EV's will see the number of large automotive suppliers downsizing and the requirement for Guhring's automotive tooling range reduce.

The lack of confidence in a market having increasing costs and tax burden has seen the industry in the UK stagnate, with Europe seeing a faster downturn the UK may even decline during 2026.

DEVELOPMENT AND PERFORMANCE

Attaining new ISO and Cyber Essentials certifications in 2025 will give a competitive edge moving forward into 2026 and beyond.

Planned investment to replace old machinery with modern, upgraded software and a warehouse management system will increase Guhring Limited's efficiency.

The Directors confirm that they are satisfied that the Company remains well placed to grow, with sales and market share expected to increase in 2026. The continually expanding range of cutting tools, retention of highly skilled workforce and ongoing training will assist in reaching this target.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company has performed well in the current climate, reporting a marginal reduction of sales in 2025 with overall sales finishing at 95% year on year with net profit of 7.8% due to the increased cost controls, returning a healthy profit before tax of £1.7M.

ON BEHALF OF THE BOARD:

O A Guhring - Director

23 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture and distribution of engineering cutting tools and allied products.

DIVIDENDS

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

DIRECTORS

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

C Weston

O A Guhring

B Schwanz

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 auditors, Prime, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

O A Guhring - Director

23 September 2026

Opinion

We have audited the financial statements of Guhring Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion 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 and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

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 industry 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;

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; and

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

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 accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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 correspondence with HMRC and other relevant parties.

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

Use of our report

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

Vivian Shadbolt BSc FCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

23 September 2026

TURNOVER

4

21,245,582

22,438,049

Cost of sales

14,226,771

14,964,989

GROSS PROFIT

7,018,811

7,473,060

Distribution costs

536,711

532,206

Administrative expenses

4,759,119

4,679,481

5,295,830

5,211,687

OPERATING PROFIT

6

1,722,981

2,261,373

Interest receivable and similar income

25,360

10,433

1,748,341

2,271,806

Interest payable and similar expenses

7

76,670

121,943

PROFIT BEFORE TAXATION

1,671,671

2,149,863

Tax on profit

8

473,199

592,323

PROFIT FOR THE FINANCIAL YEAR

1,198,472

1,557,540

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,198,472

1,557,540

FIXED ASSETS

Intangible assets

9

99,628

84,371

Tangible assets

10

6,110,652

5,986,084

6,210,280

6,070,455

CURRENT ASSETS

Stocks

11

4,110,770

4,555,448

Debtors

12

3,709,254

4,338,441

Cash at bank and in hand

2,282,778

994,240

10,102,802

9,888,129

CREDITORS

Amounts falling due within one year

13

1,350,123

2,002,562

NET CURRENT ASSETS

8,752,679

7,885,567

TOTAL ASSETS LESS CURRENT LIABILITIES

14,962,959

13,956,022

CREDITORS

Amounts falling due after more than one year

14

(1,644,733

)

(1,918,699

)

PROVISIONS FOR LIABILITIES

19

(82,431

)

-

NET ASSETS

13,235,795

12,037,323

CAPITAL AND RESERVES

Called up share capital

20

100,000

100,000

Retained earnings

21

13,135,795

11,937,323

SHAREHOLDERS' FUNDS

13,235,795

12,037,323

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

O A Guhring - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100,000

10,379,783

10,479,783

Changes in equity

Total comprehensive income

-

1,557,540

1,557,540

Balance at 31 December 2024

100,000

11,937,323

12,037,323

Changes in equity

Total comprehensive income

-

1,198,472

1,198,472

Balance at 31 December 2025

100,000

13,135,795

13,235,795

Cash flows from operating activities

Cash generated from operations

1

3,185,831

3,240,382

Interest paid

(76,670

)

(121,943

)

Tax paid

(930,784

)

(33,236

)

Net cash from operating activities

2,178,377

3,085,203

Cash flows from investing activities

Purchase of intangible fixed assets

(76,034

)

-

Purchase of tangible fixed assets

(639,977

)

(159,148

)

Sale of intangible fixed assets

58,729

-

Interest received

25,360

10,433

Net cash from investing activities

(631,922

)

(148,715

)

Cash flows from financing activities

Loan repayments in year

(257,917

)

(573,623

)

Net cash from financing activities

(257,917

)

(573,623

)

Increase in cash and cash equivalents

1,288,538

2,362,865

Cash and cash equivalents at beginning of year

2

994,240

(1,368,625

)

Cash and cash equivalents at end of year

2

2,282,778

994,240

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

2025

2024

£

£

Profit before taxation

1,671,671

2,149,863

Depreciation charges

545,923

617,962

Profit on disposal of fixed assets

(28,468

)

-

Finance costs

76,670

121,943

Finance income

(25,360

)

(10,433

)

2,240,436

2,879,335

Decrease/(increase) in stocks

444,678

(193,497

)

Decrease in trade and other debtors

588,420

682,514

Decrease in trade and other creditors

(87,703

)

(127,970

)

Cash generated from operations

3,185,831

3,240,382

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,282,778

994,240

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

994,240

331,428

Bank overdrafts

-

(1,700,053

)

994,240

(1,368,625

)

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

Non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

994,240

1,288,538

-

2,282,778

994,240

1,288,538

-

2,282,778

Debt

Debts falling due

within 1 year

(255,371

)

257,918

(273,966

)

(271,419

)

Debts falling due

after 1 year

(1,918,699

)

-

273,966

(1,644,733

)

(2,174,070

)

257,918

-

(1,916,152

)

Total

(1,179,830

)

1,546,456

-

366,626

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

The company continues to be profitable and the directors have a reasonable expectation that the company will continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore the directors continue to adopt the going concern basis of accounts in reporting the financial statements.

Turnover

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

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided, after taking account of any grants receivable, at the following annual rates, in order to write off each asset over its estimated useful life:

Freehold Property

4% straight line on freehold buildings

Equipment

4% to 20% straight line basis

Motor Vehicles

20% straight line basis

Freehold property consists of land and buildings. Of this amount, £803,030 relates to land and has not been depreciated.

Stocks

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

Cost is calculated using the average cost method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the 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 end of the reporting period, 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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the directors have made the following judgements:

Impairment of fixed assets

The company assess the impairment of fixed assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Factors considered important that could trigger an impairment review include the following:

- Significant underperformance relative to historical or projected future operating results;

- Significant changes in the manner of the use of the acquired assets or the strategy for the overall

business; and

- Significant negative industry or economic trends.

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.

Carrying value of stock

The company follows a group policy to make a provision against its stock. This takes into account slow moving; damaged and obsolete stock, current market conditions and historical sales performance. Various rates are applied depending on the type and age of the stock.

4.

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

17,634,729

18,790,457

Other European markets

3,333,353

3,412,400

Non-European markets

277,500

235,192

21,245,582

22,438,049

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,090,097

3,780,103

Social security costs

485,460

408,174

Other pension costs

155,443

142,184

4,731,000

4,330,461

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

2025

2024

Production

52

49

Sales and administration

44

37

96

86

2025

2024

£

£

Directors' remuneration

137,707

148,004

Directors' pension contributions to money purchase schemes

10,500

10,500

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

27,649

51,349

Depreciation - owned assets

515,409

585,303

Profit on disposal of fixed assets

(28,468

)

-

Computer software amortisation

30,516

32,658

Auditors' remuneration

39,200

37,950

Foreign exchange differences

13,301

24,004

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Short-term interest

-

22,549

Bank loan interest

76,670

99,394

76,670

121,943

8.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

330,586

576,037

Deferred tax

142,613

16,286

Tax on profit

473,199

592,323

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

1,671,671

2,149,863

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

417,918

537,466

Effects of:

Expenses not deductible for tax purposes

8,982

8,622

Capital allowances in excess of depreciation

(96,314

)

-

Depreciation in excess of capital allowances

-

29,949

Deferred tax

142,613

16,286

Total tax charge

473,199

592,323