REGISTERED NUMBER: 05471244 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2026

for

G R Carr (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J Riley

D J Riley

A McCarthy

R A D Shaw

SECRETARY:

D J Riley

REGISTERED OFFICE:

Archers Fields

Burnt Mills Industrial Estate

Basildon

Essex

SS13 1DN

REGISTERED NUMBER:

05471244 (England and Wales)

AUDITORS:

Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

BANKERS:

Barclays Bank Plc

75 High Street

Brentwood

Essex

CM14 4RP

The directors present their strategic report of the company and the group for the year ended 31 March 2026.

REVIEW OF BUSINESS

The group has continued to further diversify its activities into the nuclear sector. The extensive amount of time and capital investment invested into developing the group's processes, procedures and infrastructure in order to be able to progress further within this industry, is now seeing a return. The group has and will continue to develop its own unique methods and procedures to facilitate growth in the field of nuclear technology. The group is continuing to enhance our abilities to carry out work in ever developing areas within this sector such as the small modular reactor technologies and the development of future new build sites such as Sizewell C. We continue to train our personnel, adapt our processes and working procedures to rise to every new challenge each individual contract may bring.

The group, which has undergone significant restructuring in the recent past, has continued to grow and build an even stronger and healthier corporate position in the year. During the year the shares in the holding company were transferred into an Employee Ownership Trust.

Some administrative appointments have enhanced the group's development into the nuclear sector work whilst still maintaining good progress in the more historic oil, gas and petrochemical sectors. Success with some longer-term contracts and continually building upon new and existing relationships has positioned the group well for security over a longer term.

Our well-established workforce continues to deliver on the industry's required KPI's of safety, quality, and productivity and are constantly evolving to satisfy the new and challenging developments within the group's sphere of operation.

We are keen to further develop our facilities and therefore the group's capacity and capability to expand on the ongoing successes with our current client base and to capitalise on future opportunities.

Sound business practices, a progressive approach and sensible control of reserves and cash flow have allowed the group to weather fluctuations in the UK economy and continue to move it forward.

Key performance indicators

Turnover is an important metric as it reflects the core underlying activities of the group.

Operating profit is an important metric as it is an indirect measure of efficiency. The higher the operating profit, the more profitable the company's core business is.

Earnings before interest, tax, depreciation and amortisation ("EBITDA") is considered, by management, to be informative as it reflects operating profit adjusted for non-cash charges.

The figures for these 3 key performance measures are stated below:

2026

2025

Turnover

£12,164,657

£12,115,625

Operating profit/(loss)

£1,684,047

£1,365,951

EBITDA

£2,046,457

£1,750,488

All metrics improved in the year and the directors expect the group to remain profitable in the 2027 financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial and liquidity risks

The group operates in the UK and is exposed to both general economic conditions and specific conditions in the pharmaceutical, oil, petrochemical and gas industry, particularly regarding oil prices which indirectly affect our customers budgets on capital projects. As a result of this, the group has diversified into other technologies such as the nuclear sector for which it has developed new processes, procedures, policies and practices. Retraining and retention of staff has been particularly difficult with some markets cooling however there are good signs that other developing sectors will benefit the skill set that the group and its personnel possess. Good opportunities lie ahead.

Operational risks

Health and safety - all staff are provided with comprehensive training to ensure they are fully compliant with the relevant legislation and guidelines, are all aware of the risks they are undertaking and how they can help to mitigate them.

OUR STAKEHOLDERS

We are proud that the group is controlled by an Employee Ownership Trust ("EOT"), resident and administered within the jurisdiction of England and Wales, which owns 100% of the holding company shares, giving all employees an indirect stake in the business in perpetuity. The sole beneficiaries of the Trust are the employees and officeholders of GR Carr (Holdings) Limited and its subsidiary, GR Carr (Essex) Limited, and any distribution from the Trust must be made to all beneficiaries under the same terms, thereby complying with the equality requirements set out within Employee Ownership Trust legislation. The Trident Trust Company (UK) Limited Board of Directors entrust the management of the business to the Board of Directors of GR Carr (Holdings) Limited, who consult with the EOT Trustees on a regular basis about the performance and running of the business and other important operational changes to the business.

ON BEHALF OF THE BOARD:

D J Riley - Director

23 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of fabrication, installation, testing and coating of industrial pipework and structural steelwork together with ancillary equipment within oil refining, petrochemical and gas storage facilities and process plants, pharmaceutical and chemical industries, power plants, nuclear power stations, waste environments and other such similar establishments.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2026.

FUTURE DEVELOPMENTS

The directors do not anticipate significant changes in the structure of the group 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 April 2025 to the date of this report.

J Riley

D J Riley

Other changes in directors holding office are as follows:

A McCarthy - appointed 19 January 2026

R A D Shaw - appointed 19 January 2026

J Gilliland ceased to be a director after 31 March 2026 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Cartwrights, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D J Riley - Director

23 September 2026

Opinion

We have audited the financial statements of G R Carr (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2026 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, and that they remained alert to instances of non-compliance throughout the audit.

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:

- based on our understanding of the company and industry, and through discussions with directors and key management, we identified any 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; and

- we assessed the extent of compliance with these laws and regulations 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, particularly focused around the year-end, to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates in the notes to the financial statements 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;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

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

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

Use of our report

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

Andrew Hill FCA (Senior Statutory Auditor)

for and on behalf of Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

24 September 2026

TURNOVER

4

12,164,657

12,115,625

Cost of sales

(8,471,986

)

(8,498,557

)

GROSS PROFIT

3,692,671

3,617,068

Administrative expenses

(2,032,441

)

(2,344,557

)

1,660,230

1,272,511

Other operating income

5

23,817

93,439

OPERATING PROFIT

7

1,684,047

1,365,950

Interest receivable and similar income

158,520

139,495

PROFIT BEFORE TAXATION

1,842,567

1,505,445

Tax on profit

8

(578,152

)

(381,896

)

PROFIT FOR THE FINANCIAL YEAR

1,264,415

1,123,549

OTHER COMPREHENSIVE INCOME

EOT distribution

(4,000,000

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(4,000,000

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,735,585

)

1,123,549

Profit attributable to:

Owners of the parent

1,264,415

1,123,549

Total comprehensive income attributable to:

Owners of the parent

(2,735,585

)

1,123,549

FIXED ASSETS

Tangible assets

10

6,337,252

6,445,872

Investments

11

-

-

6,337,252

6,445,872

CURRENT ASSETS

Debtors

12

2,402,630

1,641,473

Cash at bank and in hand

2,459,808

4,885,477

4,862,438

6,526,950

CREDITORS

Amounts falling due within one year

13

2,179,982

1,191,452

NET CURRENT ASSETS

2,682,456

5,335,498

TOTAL ASSETS LESS CURRENT LIABILITIES

9,019,708

11,781,370

PROVISIONS FOR LIABILITIES

15

1,421,097

1,447,174

NET ASSETS

7,598,611

10,334,196

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Revaluation reserve

17

3,680,485

3,680,485

Retained earnings

17

3,917,126

6,652,711

SHAREHOLDERS' FUNDS

7,598,611

10,334,196

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:

J Riley - Director

D J Riley - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

1,000

1,000

1,000

1,000

TOTAL ASSETS LESS CURRENT LIABILITIES

1,000

1,000

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

SHAREHOLDERS' FUNDS

1,000

1,000

Company's profit for the financial year

4,000,000

-

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:

J Riley - Director

D J Riley - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2024

1,000

5,529,162

3,680,485

9,210,647

Changes in equity

Total comprehensive income

-

1,123,549

-

1,123,549

Balance at 31 March 2025

1,000

6,652,711

3,680,485

10,334,196

Changes in equity

Total comprehensive income

-

(2,735,585

)

-

(2,735,585

)

Balance at 31 March 2026

1,000

3,917,126

3,680,485

7,598,611

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

1,000

-

1,000

Changes in equity

Balance at 31 March 2025

1,000

-

1,000

Changes in equity

Balance at 31 March 2026

1,000

-

1,000

Cash flows from operating activities

Cash generated from operations

1

1,839,331

2,914,358

Interest paid

-

1

Tax paid

(325,952

)

(250,989

)

Net cash from operating activities

1,513,379

2,663,370

Cash flows from investing activities

Purchase of tangible fixed assets

(108,956

)

(480,533

)

Sale of tangible fixed assets

11,388

51,228

Interest received

158,520

139,495

Net cash from investing activities

60,952

(289,810

)

Cash flows from financing activities

EOT Distribution

(4,000,000

)

-

Net cash from financing activities

(4,000,000

)

-

(Decrease)/increase in cash and cash equivalents

(2,425,669

)

2,373,560

Cash and cash equivalents at beginning of year

2

4,885,477

2,511,917

Cash and cash equivalents at end of year

2

2,459,808

4,885,477

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

31/3/26

31/3/25

£

£

Profit before taxation

1,842,567

1,505,445

Depreciation charges

203,891

245,043

Loss/(profit) on disposal of fixed assets

2,297

(18,952

)

Finance income

(158,520

)

(139,495

)

1,890,235

1,592,041

(Increase)/decrease in trade and other debtors

(761,157

)

1,341,041

Increase/(decrease) in trade and other creditors

710,253

(18,724

)

Cash generated from operations

1,839,331

2,914,358

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2026

31/3/26

1/4/25

£

£

Cash and cash equivalents

2,459,808

4,885,477

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

4,885,477

2,519,402

Bank overdrafts

-

(7,485

)

4,885,477

2,511,917

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/25

Cash flow

At 31/3/26

£

£

£

Net cash

Cash at bank and in hand

4,885,477

(2,425,669

)

2,459,808

4,885,477

(2,425,669

)

2,459,808

Total

4,885,477

(2,425,669

)

2,459,808

1.	STATUTORY INFORMATION

G R Carr (Holdings) 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 General Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. The validity of this assumption depends on the continuing support of the group's directors and shareholders. If the group were unable to continue in existence for the foreseeable future, adjustments would be necessary to reduce the balance sheet values of assets to their recoverable amounts and to reclassify fixed assets as current assets.

Basis of consolidation

The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to the balance sheet date. The results of subsidiaries sold or acquired are included in the profit and loss accounts up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consideration.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements:

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into accounts residual value, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.

Turnover

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

Revenue recognition - provision of goods and services

Turnover is recognised when the significant ownership of the goods have transferred to the buyer or the provision of services has been completed, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sales of goods are recognised on sale to the customer, which is the point of delivery. Sales of services are recognised on the provision of the service to the customer. All sales are invoiced and on credit.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings freehold - 2.5% straight line (buildings only)

Plant and machinery - 20% reducing balance

Fixture, fittings and equipments - 15% reducing balance

Motor vehicles - 25% reducing balance

Depreciation is not provided on freehold land.

Freehold land and buildings are stated at deemed cost. Other tangible fixed assets are stated at cost less depreciation.

Financial instruments

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.

The group only enters into basic financial instrument transactions.

Basic financial assets

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.

Financial assets are derecognised when:

- the contractual right to cash flows from the asset are settled or expire,

- substantially all the risk and rewards of the ownership of the asset are transferred to another party or

- despite retaining some significant risks and rewards, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset without additional restrictions.

Classification of financial liabilities

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

Basic financial liabilities, including creditors and any bank loans, 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.

Financial liabilities are derecognised when the liability is discharged, cancelled or expires.

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Investments

Investments comprise investments in equity instruments which are measured at fair value in accordance with FRS102 section 11. Changes in fair value are recognised in profit or loss. Fair value is derived from quoted market transactions.

4.

TURNOVER

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

5.	OTHER OPERATING INCOME

31/3/26

31/3/25

£

£

Rents received

-

88,269

Sundry receipts

23,817

5,170

23,817

93,439

6.	EMPLOYEES AND DIRECTORS

31/3/26

31/3/25

£

£

Wages and salaries

3,903,408

4,033,375

Social security costs

518,717

445,886

Other pension costs

97,891

101,407

4,520,016

4,580,668

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

31/3/26

31/3/25

Production staff

51

53

Management staff

12

16

63

69

31/3/26

31/3/25

£

£

Directors' remuneration

680,445

609,234

Information regarding the highest paid director is as follows:

31/3/26

31/3/25

£

£

Emoluments etc

210,659

192,186

Payments in the year included pension payments on behalf of the directors amounting to £36,771 (2025: £35,839)

7.	OPERATING PROFIT

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

31/3/26

31/3/25

£

£

Hire of plant and machinery

101,765

370,662

Depreciation - owned assets

203,891

245,044

Loss/(profit) on disposal of fixed assets

2,297

(18,952

)

Auditors' remuneration

10,000

8,200

Auditors' remuneration for non audit work

5,375

3,965

8.

TAXATION

Analysis of the tax charge

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

31/3/26

31/3/25

£

£

Current tax:

UK corporation tax

604,229

325,952

Deferred tax

(26,077

)

55,944

Tax on profit

578,152

381,896