REGISTERED NUMBER: 02514415 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2026

for

Pentre Group Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

R Johnstone

Mrs J Meal

K M Diskin

D Grosvenor

SECRETARY:

Mrs J Meal

REGISTERED OFFICE:

Unit 2, Penfield Road

Leigh

Lancashire

WN7 3PG

REGISTERED NUMBER:

02514415 (England and Wales)

AUDITORS:

Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

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

REVIEW OF BUSINESS

The principal activity of the company is the manufacture of cable reels and drums and other specialised equipment for the wire and cable industry. The company produces a diverse range of reels, drums and spools providing process and packaging solutions for linear wound products, together with bespoke solutions delivered through its in-house manufacturing capability.

The company's turnover for the year amounted to £16,636,625 (2025: £18,997,927), a reduction of 12.4%, reflecting softer demand across certain of the company's geographic markets and the cyclical nature of customer ordering patterns in the wire and cable sector. Notwithstanding the lower volume, gross profit was broadly maintained at £6,568,216 (2025: £6,715,688) and the gross margin improved to 39.5% (2025: 35.3%), reflecting a favourable sales mix and continued discipline over input costs and factory efficiency.

Operating profit for the year was £1,882,494 (2025: £2,160,439). After dividend income from group undertakings of £439,110 and deposit interest of £111,315, profit before taxation was £2,429,742 (2025: £3,382,215) and profit after taxation was £1,909,865 (2025: £2,790,774). At the year end the company had shareholders' funds of £18,352,597 (2025: £16,442,732).

The company continued to serve its international customer base, with turnover by market comprising the United Kingdom £9,835,863, Europe £5,022,068 and the Rest of the World £1,778,694. The company invested £127,857 in new plant and machinery during the year to maintain modern, competitive manufacturing capability.

During the year the ownership of the group changed following the management buy-out completed in November 2025, because of which the company became a subsidiary within the new Pentre 2025 Limited group. No dividend was paid in the year (2025: £1,865,000).

The directors monitor progress against the key performance indicators set out below. Gross profit as a percentage of turnover improved to 39.5% (2025: 35.3%) and the liquidity ratio strengthened to 293.4% (2025: 272.1%). Average debtor days increased to 96 days (2025: 79 days); the directors are focused on returning collection performance to historic levels through tighter credit control and closer management of the larger customer accounts.

Key Performance Indicators

The directors monitor progress with reference to the following key performance indicators:

2026

2025

Definition and method of calculation

Gross Profit as a % of turnover

39.5%

35.3%

Profit before administration and exceptional costs.

Liquidity ratio

293.4%

272.1%

Current assets divided by current liabilities.

Average Debtor Days

96 Days

79 Days

Average time taken for debtor payments

The underlying performance of the business was satisfactory. The company continued to invest in its products, plant and systems to remain competitive, and to develop bespoke solutions for customers as their requirements evolve.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to risks which could have an adverse effect on its financial condition:

- Economic and market conditions - net sales, profitability and growth depend largely on the economic strength of the geographic markets in which the company operates. Weakness in those markets, or in customer end-markets, could reduce sales and margins.

- Raw material and commodity price volatility - the company is exposed to movements in the price of steel, timber, plywood and plastics. Sustained increases, or an inability to recover cost increases through pricing, could adversely affect performance.

- Trade policy and tariffs - changes in the international trade environment, including the UK steel import quota and safeguard/tariff regime taking effect from 1 July 2026, may affect input costs and the competitive position of UK-based downstream manufacturers. The directors continue to monitor developments and to keep sourcing arrangements under review.

- Foreign exchange - the company transacts in currencies other than sterling and is exposed to movements in exchange rates on both sales and purchases. Balances are retranslated at each reporting date, with gains and losses taken to the income statement.

- Competition and pricing pressure - the markets for the company's products are highly competitive and the company continually faces pricing pressure which could adversely affect financial performance.

- Customer projects and concentration - failure to execute large customer projects effectively may affect the company's ability to secure similar contracts in the future.

- Credit and liquidity risk - the company's principal financial risks relate to the recoverability of trade receivables and to maintaining sufficient liquidity. These are managed through active credit control and by operating within agreed banking facilities.

The directors believe the company is in a sound financial position and that the identified risks are being appropriately managed. They will continue to assess market conditions and product development carefully and are confident of maintaining good levels of profitability while remaining mindful of the cyclical nature of the market.

ON BEHALF OF THE BOARD:

Mrs J Meal - Secretary

3 September 2026

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

PRINCIPAL ACTIVITY

The principle activity of the company continues to be that of the manufacture of cable reels and drums.

DIVIDENDS

In the year an interim dividend of 0.00p (2025 6.37p) per share was paid to the parent company, Pentre Holdings Limited and the total amount distributed in the year amounted to £Nil (2025 £1,865,000).

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive and they believe that the company is in a good financial position and that the risks that have been identified are being well managed. The directors will continue carefully assessing the state of the market and development of the products on offer to customers. The directors are confident in the company maintaining good levels of profitability but are conscious of the cyclical nature of the market and will take necessary measures.

DIRECTORS

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

R Johnstone

Mrs J Meal

Other changes in directors holding office are as follows:

M F Seymour - resigned 20 November 2025

K M Diskin and D Grosvenor were appointed as directors after 31 March 2026 but prior to the date of this report.

FINANCIAL RISK MANAGEMENT

Credit risk

The company's principal assets are bank balances, trade and other receivables, stock and tangible fixed assets. The credit risk is principally attributable to the trade receivables, these are reviewed and chased on a regular basis to ensure they are collected. The amounts presented in the balance sheet are net of allowances for doubtful receivables which are estimated based on previous experience and current knowledge pertaining to the receivable. The company has not entered into any hedging arrangements in respect of risks relating to trade debtors or trade creditors.

Liquidity risk

The company continues to operate within it's agreed facilities from the bank and has continued to maintain its liquidity and sufficient working capital for ongoing operations.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Voisey & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs J Meal - Secretary

3 September 2026

Opinion

We have audited the financial statements of Pentre Group Limited (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 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 pages four and five, 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:

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

1 - We enquired of management and those charged with governance about actual and potential litigation and claims, including review of relevant nominal ledger accounts.

2 - We obtained an understanding of laws, regulations and guidance that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, health and safety legislation and employment legislation.

3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations.

4 - We reviewed the Company's financial statement disclosures and agreed to supporting documentation to assess compliance with the applicable laws and regulations discussed above.

5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period.

6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

8 - We also challenge management assumptions with regard to accounting estimates.

Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery 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.

Philip Urmston (Senior Statutory Auditor)

for and on behalf of Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

17 September 2026

TURNOVER

3

16,636,625

18,997,927

Cost of sales

(10,068,409

)

(12,282,239

)

GROSS PROFIT

6,568,216

6,715,688

Administrative expenses

(4,685,722

)

(4,555,249

)

OPERATING PROFIT

5

1,882,494

2,160,439

Income from shares in group undertakings

439,110

1,059,238

Interest receivable and similar income

6

111,315

167,749

2,432,919

3,387,426

Interest payable and similar expenses

7

(3,177

)

(5,211

)

PROFIT BEFORE TAXATION

2,429,742

3,382,215

Tax on profit

8

(519,877

)

(591,441

)

PROFIT FOR THE FINANCIAL YEAR

1,909,865

2,790,774

PROFIT FOR THE YEAR

1,909,865

2,790,774

OTHER COMPREHENSIVE INCOME

Revaluation of tangible fixed assets

-

647,962

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

647,962

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,909,865

3,438,736

FIXED ASSETS

Tangible assets

10

5,328,142

5,750,515

Investments

11

1,262,429

1,262,429

6,590,571

7,012,944

CURRENT ASSETS

Stocks

12

2,066,060

2,331,264

Debtors

13

15,433,642

6,556,670

Cash at bank and in hand

1,498,038

7,120,714

18,997,740

16,008,648

CREDITORS

Amounts falling due within one year

14

6,619,640

5,883,144

NET CURRENT ASSETS

12,378,100

10,125,504

TOTAL ASSETS LESS CURRENT LIABILITIES

18,968,671

17,138,448

PROVISIONS FOR LIABILITIES

16

616,074

695,716

NET ASSETS

18,352,597

16,442,732

CAPITAL AND RESERVES

Called up share capital

17

2,926,581

2,926,581

Share premium

18

1,212,190

1,212,190

Revaluation reserve

18

1,465,115

1,502,118

Retained earnings

18

12,748,711

10,801,843

SHAREHOLDERS' FUNDS

18,352,597

16,442,732

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2026 and were signed on its behalf by:

R Johnstone - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

2,926,581

9,876,069

1,212,190

854,156

14,868,996

Changes in equity

Profit for the year

-

2,790,774

-

-

2,790,774

Other comprehensive income

-

-

-

647,962

647,962

Total comprehensive income

-

2,790,774

-

647,962

3,438,736

Dividends

-

(1,865,000

)

-

-

(1,865,000

)

Total transactions with owners, recognised directly in equity

-

(1,865,000

)

-

-

(1,865,000

)

Balance at 31 March 2025

2,926,581

10,801,843

1,212,190

1,502,118

16,442,732

Changes in equity

Profit for the year

-

1,909,865

-

-

1,909,865

Other comprehensive income

-

37,003

-

(37,003

)

-

Total comprehensive income

-

1,946,868

-

(37,003

)

1,909,865

Total transactions with owners, recognised directly in equity

-

-

-

-

-

Balance at 31 March 2026

2,926,581

12,748,711

1,212,190

1,465,115

18,352,597

1.	STATUTORY INFORMATION

Pentre Group 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 as modified by the revaluation of certain assets.

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 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

- 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' - Carrying amounts, 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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Pentre Group Limited is a wholly owned subsidiary of Pentre Holdings Limited, which is in turn a wholly owned subsidiary of Pentre Group Holdings Limited, which is in turn a wholly owned subsidiary of Pentre 2020 Limited, which is in turn a wholly owned subsidiary of Pentre 2025 Limited. The results of Pentre Group Limited are included in the consolidated financial statements of Pentre Holdings Limited and Pentre 2025 Limited, which are available from the Company Secretary, Unit 2, Penfield Road, Leigh, Lancashire, WN7 3PG.

Significant judgements and key sources of estimation uncertainty

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 assumption 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 key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

Critical judgements

Property valuation - management have made the judgement to use third party experts on a regular cycle to arrive at valuations of freehold and leasehold properties. The valuations are arrived at including the expert's estimates which are based on a number of factors including sale transactions of similar properties, the condition of the property and the expert's experience of the property market.

Stock valuation - management use stock costing records to arrive at valuation of stock, work in progress and finished goods and estimates relating to the level of stock provision. The estimates are based on a number of factors including the ageing profile of stock, product type and management's market experience.

Going concern

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

Turnover

Turnover 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Impairment of fixed assets

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

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

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdraft are shown within borrowings in current liabilities.

Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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

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.

Foreign exchange

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 income statement for the period.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

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 statement of financial position 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

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

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

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, 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 a ta 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives ar 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 though 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.

Derecognition of financial liabilities

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

Equity instruments

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.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. 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.

Retirement benefits

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

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.3.26

31.3.25

£

£

United Kingdom

9,835,863

11,163,174

Europe

5,022,068

4,747,229

Rest of the World

1,778,694

3,087,524

16,636,625

18,997,927

4.	EMPLOYEES AND DIRECTORS

31.3.26

31.3.25

£

£

Wages and salaries

3,524,511

3,512,250

Social security costs

450,848

340,829

Other pension costs

124,023

122,507

4,099,382

3,975,586

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

31.3.26

31.3.25

Manual

66

74

Clerical and technical

33

32

99

106

31.3.26

31.3.25

£

£

Directors' remuneration

207,050

205,476

Directors' pension contributions to money purchase schemes

17,839

17,839

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

31.3.26

31.3.25

£

£

Emoluments etc

97,875

97,770

Pension contributions to money purchase schemes

7,839

7,839

5.	OPERATING PROFIT

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

31.3.26

31.3.25

£

£

Hire of plant and machinery

15,285

15,105

Other operating leases

248,641

219,584

Depreciation - owned assets

543,573

522,513

(Profit)/loss on disposal of fixed assets

(2,269

)

5,418

Auditors' remuneration

35,500

35,000

Auditors' remuneration for non audit work

19,700

10,450

Foreign exchange differences

(19,116

)

(24,178

)

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.3.26

31.3.25

£

£

Deposit account interest

111,315

165,233

Corporation tax interest

-

2,516

111,315

167,749

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.26

31.3.25

£

£

Group interest payable

3,177

5,211

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

599,519

584,565

Deferred tax

(79,642

)

6,876

Tax on profit

519,877

591,441

UK corporation tax was charged at 25%) in 2025.