The directors present the strategic report for the year ended 31 March 2026.

Pelican has continued to strengthen its position within the UK bus and coach market, becoming one of the largest suppliers nationally. By the end of March 2026, more than 2,600 Yutong buses and coaches were operating across the UK and Ireland, with several hundred additional vehicles on forward order. Alongside securing business from new customers, Pelican continues to receive repeat orders from a wide range of operators throughout England, Scotland and Wales.

The truck dealerships remain a significant contributor to the company’s profitability and delivered another strong performance in the year to March 2026, supported in part by reduced local competition. The truck aftersales sector continues to demonstrate resilience in the current economy and provides the business with a degree of protection against fluctuations in new vehicle sales. The local vehicle parc has grown steadily with Pelican gaining new customers throughout the year. Parts and labour revenues reached record levels, exceeding those achieved in any previous year.

The EV Automotive training business has seen a strong 59% year-on-year increase in the number of individuals completing training courses, while AE Auto introduced the World’s first battery electric tipper grab system into the UK market. This was alongside the sale of hundreds of individual charging units.

During the year, the site housing the EV training business underwent extensive refurbishment, resulting in the creation of two additional training rooms, a dedicated reception area, and an enhanced vehicle training facility. To support the continued growth of the bus and coach parts operation, the company has also leased additional premises pending the development of a new warehouse and distribution centre.

The company generates most of its revenue through the three franchise agreements it holds with DAF, MAN and Yutong. The loss of any one of these agreements would have a material impact on the business; however, the directors are not aware of any circumstances that would place these relationships at immediate risk. The current distribution agreement with Yutong extends until the end of the decade.

Maintaining multiple franchise relationships helps diversify risk and reduces the potential impact associated with the loss of any single franchise.

The company operates in a highly competitive market and must respond effectively to changes in competitor pricing and market offerings. To mitigate this risk, ongoing market research is undertaken to gather and evaluate competitor intelligence, enabling the business to remain competitive.

Operations are financed through a combination of retained earnings, asset finance facilities and bank borrowings. A blend of fixed and variable-rate funding arrangements limits the downside exposure to potential increases in interest rates.

The company is exposed to foreign exchange risk arising from international commercial transactions. This risk is actively managed through the use of forward foreign exchange contracts.

Customer credit risk is managed through the application of credit limits for account customers, determined by payment history, trade references and publicly available financial information. These limits are reviewed regularly alongside aged debt reports and collection performance. Credit facilities are restricted to parts and service customers, while all new vehicle sales require full payment prior to delivery.

Liquidity risk is controlled through the weekly monitoring of cash balances and forecasting. The directors maintain a policy of ensuring that sufficient cash resources are available at all times to meet the company’s financial obligations.

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

The company’s success depends upon the engagement and support of its stakeholders. The directors are committed to maintaining a strong corporate culture that recognises and considers the interests of all stakeholder groups.

Shareholders

The Board is committed to keeping shareholders appropriately informed of the company’s objectives, strategy and performance through the provision of relevant financial and operational information.

Employees

The directors are committed to fostering an environment that encourages employee engagement through clear communication, comprehensive employment practices, welfare monitoring, and ongoing training and development opportunities. These commitments are supported by full compliance with the company’s statutory responsibilities as an employer.

The company has a strong track record of reinvesting profits into its facilities, providing employees with modern, safe workplaces equipped with the latest tooling, training resources and welfare facilities.

Policies are in place to ensure equal opportunities for all employees and prospective employees regardless of race, nationality, religion, age, disability, gender or sexual orientation.

Community

The company has established policies covering company vehicles, energy consumption, waste management and recycling. It also supports local communities through charitable donations, contributions to food banks, sponsorship of junior sports teams, and support for community events throughout the year.

Suppliers

Strong relationships with key suppliers, including MAN, DAF and Yutong, are fundamental to the company’s success. The directors and senior management maintain long-standing relationships and regular engagement with senior representatives of these organisations.

Customers

The Pelican mission statement is “The Customer Comes First”. This philosophy is embedded throughout the organisation and is supported by investment in staff training, industry-leading equipment and tooling, and holding extensive parts inventories across its depots. This enables the company to provide a genuine one-stop solution for customer requirements.

The directors maintain regular contact with customers to understand their evolving needs, gather feedback and identify opportunities to enhance our offer and service.

Regulators

The company actively engages with regulators and industry bodies, including the Driver and Vehicle Standards Agency (DVSA), the LowCVP, the Confederation of Passenger Transport (CPT) and the Road Haulage Association (RHA). Legal and regulatory developments are carefully considered when evaluating future strategic decisions.

Future Outlook

The company’s future performance remains closely aligned with the strategies and success of the manufacturers, and the vehicles and equipment they develop.

DAF has maintained its position as the UK market leader for more than 30 years, and the local DAF vehicle parc continues to expand.

MAN is owned by VW group and the management team at MAN UK Ltd has a clear and credible plan to grow their UK market share.

As trucks become increasingly sophisticated, dealerships continue to retain a greater proportion of aftersales work, reducing reliance on independent repair providers. The geographic location of Pelican places the business in a particularly strong position to benefit from this trend.

Yutong is well positioned to capitalise on the continued transition towards zero-emission transport. It is anticipated that the majority of the UK bus fleet will be replaced with zero-emission vehicles by 2035. As the world’s largest manufacturer of electric buses, Yutong offers a technologically advanced product range that continues to gain market acceptance among UK bus operators.

The company continuously reviews the Yutong product portfolio available to the UK and Irish market. The GT14 three-axle diesel introduced in November 2025 has been selling very well. The TC9 diesel coach has been replaced with an updated version, and there has been growing interest in airport transit buses and in the TE7 electric truck. Demand for Yutong parts continues to grow steadily.

Pelican has established itself as a UK leader in supporting large electric vehicles in operation and is well placed to benefit as increasing numbers of electric trucks enter service.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

Information relating to fair review of the business and principal risks and uncertainties is included in the strategic report.

The company is the UK and Ireland sole importer and distributor for the Yutong range of electric buses and diesel and electric coaches, responsible for all aspects of sales and aftersales throughout the UK and Ireland.

The company also operates truck dealerships for DAF and MAN providing a full range of services for truck operators in West Yorkshire. In addition the company offers IMI accredited training focused on large electric commercial vehicles under the brand EV Automotive Training and imports and distributes a wide range of EV chargers and battery storage equipment under the Pelican AE AUTO brand.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £2,499,000. The directors do not recommend payment of a final dividend.

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

Objectives and policies

The company utilises financial instruments in order to finance its trading operations.

Price risk, credit risk, liquidity risk and cash flow risk

The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors, loans to/from the company and lease purchase agreements. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding through the use of overdrafts and inter group borrowings.

Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The directors have continued to ensure that the company is efficiently resourced, and are confident that the company is ideally placed to benefit from future upturns in the economy.

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

Emissions are calculated using the UK Government Conversion Factors for Company reporting 2024.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

All Pelican businesses maintain ISO 14001 Environmental Management accreditation.

Pelican will shortly adopt their own Carbon Reduction Plan, a series of initiatives that will steer the company towards the achievement of its Net Zero emission target. Many of these initiatives are already embedded in policies and practices, including fleet electrification, renewable energy procurement, and energy efficiency improvements within the infrastructure of the company’s properties.

The Plan also focuses on improving data collection, the ability to more accurately report on waste, business travel, and procurement practices. Under the scope of the Plan, the company would actively engage suppliers on emissions data and seek to make low-carbon procurement choices with regards to goods and services.

Long-distance business travel remains under continual review. Where practical, rail travel is preferred to road transport for longer journeys. In addition, online meetings and remote training programmes continue to replace face-to-face activities wherever feasible.

The 376 electric vehicles supplied during the year are estimated to reduce tailpipe carbon emissions by approximately 18.1 million tonnes annually when compared with the latest ultra-low-emission diesel buses, while also delivering significant improvements in air quality. As these vehicles often replace older, higher-emission models, the actual environmental benefits are likely to be substantially greater.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

We have audited the financial statements of Pelican Engineering Company (Sales), Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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 management,     and from our commercial knowledge and experience of the 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 Companies Act 2006, taxation     legislation, data protection, anti-bribery, employment, environments and health and safety legislation;

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

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

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

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

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Pelican Engineering Company (Sales), Limited is a private company limited by shares incorporated in England and Wales. The registered office is Altofts Lane, Wakefield Europort, Castleford, West Yorkshire, WF10 5UB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

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

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

The financial statements of the company are consolidated in the financial statements of Pelican Engineering Co Limited. These consolidated financial statements are available from its registered office, Altofts Lane, Wakefield Europort, Castleford, England, WF10 5UB.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The directors have prepared cashflows and forecasts, which cover a period of no less than 12 months from the date of signing the accounts, which demonstrate the company can meet its debt repayments as they fall due during the period.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the point of delivery of goods or completion of services provided. It is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

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

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Research and development

Research and development expenditure is written off as incurred.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

The company considers the recoverability of the cost of stock and associated provisioning required. When calculating the stock provision, management considers the ageing, nature and condition of the stock, as well as applying assumptions around its anticipated saleability and usability.

Warranty is given to customers as part of the sales process. Management will calculate a year end provision of costs to be incurred on sales in the period.

The company's turnover arises from its principal activity, undertaken entirely in the UK.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under money purchase pension schemes amounted to 2 (2025 - 3).

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

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 March 2026, the outstanding contracts all mature within 7 months of the year end. The company is committed to buy RMB172,368,500 and pay a fixed sterling £18,663,121.

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the current and forward exchange rates for GBP:RMB.

Amounts due from subsidiary undertakings are interest free and repayable on demand.

Security has been given on the bank loans and overdrafts of £40,590,713 (2025 - £31,071,340) and the obligations under finance leases of £125,780 (2025 - £173,264).

Amounts due to parent undertaking are interest free and repayable on demand.

Security has been given on the bank loans and overdrafts of £98,736 (2025 - £1,323,904) and the obligations under finance leases of £76,796 (2025 - £202,576).

The bank loans and overdrafts are secured by a mortgage over the company's freehold property, a fixed and floating charge over the assets of the company and an unlimited multilateral guarantee given by the holding company and fellow subsidiary company.

Interest is charged on the loans at between 1.85% and 2.75% above BoE base rate.

The obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Of the deferred tax liability set out above, £199,000 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature in the same period.

The company operates a defined contribution pension scheme for all qualifying employees.

Each ordinary share is entitled to one vote in any circumstances.

The company is party to a trade finance agreement with the bank in relation to letters of credit. As at 31 March 2026 the companies maximum exposure under outstanding letter of credits was £44,218,389 (2025 - £41,823,091).

During the year the company entered into the following transactions with related parties:

During the current year, the Pelican Engineering Company (Sales) Limited identified amounts totaling of £2,133,887 relating to deposits received by customers prior to transferring goods and services which were included in debtors for the year ended 30 June 2025. The Company has therefore determined that an adjustment was required to correctly reflect the deposits within other creditors. There is no impact to the Profit and Loss account or statement of changes in equity.