REGISTERED NUMBER: 16754996 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Period 1 October 2025 to 31 March 2026

for

Pentre 2025 Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

J P Carr

H W Platt

M F Seymour

REGISTERED OFFICE:

Unit 2 Penfield Road

Leigh

Lancashire

WN7 3PG

REGISTERED NUMBER:

16754996 (England and Wales)

AUDITORS:

Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

The directors present their strategic report of the company and the group for the period 1 October 2025 to 31 March 2026.

REVIEW OF BUSINESS

Pentre 2025 Limited was incorporated on 1 October 2025 as the holding company for the group. On 20 November 2025 the company acquired the entire share capital of Pentre 2020 Limited and its subsidiary undertakings, by way of a management buy-out, for total consideration of £23,167,500 including expenses. The acquisition has been accounted for using the acquisition method, giving rise to consolidation goodwill of £1,474,721, which is being amortised over its estimated useful life of five years.

The principal activity of the group is the manufacture of cable reels and drums and other specialised equipment for the wire and cable industry, carried out through its trading subsidiaries in the United Kingdom (Pentre Group Limited), the Czech Republic (Pentre Kovo CZ spol. s.r.o., steel reel manufacture) and Spain (Pentre Farres S.L., plywood reel manufacture). The company itself acts as the group holding company.

As the group was incorporated on 1 October 2025 and the trading businesses were acquired on 20 November 2025, the consolidated income statement reflects only the results of the trading group from the date of acquisition to 31 March 2026, a period of approximately four and a half months. There are no comparative figures. Consequently, the results for the period are not directly comparable with a full year of trading.

For the period, the group generated turnover of £7,732,962, with turnover by market comprising the United Kingdom £3,180,509, Europe £2,913,239 and the Rest of the World £1,639,214. Gross profit was £3,382,866, a gross margin of 43.7%, and operating profit was £1,030,470 after administrative expenses of £2,352,396 (which include goodwill amortisation of £98,315). Profit before taxation was £1,031,192 and profit for the period was £800,533. After a foreign exchange translation difference of £16,143 on the net investment in overseas subsidiaries, total comprehensive income for the period was £784,390.

The group's financial position at 31 March 2026 was sound, with net assets of £13,031,890 and cash at bank and in hand of £1,534,934. The directors consider the group to be well positioned, with a diversified international customer base and manufacturing capability across three sites, and a clear focus on integrating the acquired businesses and realising the benefits of the enlarged group.

PRINCIPAL RISKS AND UNCERTAINTIES

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

- Economic and market conditions - the group's sales and profitability depend on the economic strength of its geographic markets and the end-markets its customers serve, particularly the wire and cable sector, which is cyclical in nature.

- Raw material and commodity price volatility - the group is exposed to movements in the price of steel, timber, plywood and plastics across its UK, Czech and Spanish operations. Inability to recover cost increases through pricing could adversely affect margins.

- Trade policy and tariffs - developments in international trade policy, including the UK steel import quota and safeguard/tariff regime effective from 1 July 2026, and the wider tariff environment, may affect input costs and competitiveness.

- Foreign currency - the group operates across sterling, Czech koruna and euro and is exposed to transactional and translational foreign exchange risk. Translation differences on the net investment in overseas subsidiaries are recognised in reserves.

- Integration and business combination risk - following the acquisition of the Pentre 2020 group, the group is exposed to the risks of integrating the acquired businesses and to the recoverability of goodwill and investment carrying values, which are reviewed for impairment.

- Financing - the group has agreed deferred consideration in respect of the acquisition and operates within agreed banking facilities. The directors manage the group's cash flows to ensure obligations can be met as they fall due.

- Competition and pricing pressure - the markets for the group's products are highly competitive, with continual pricing pressure.

- Credit and liquidity risk - the group's principal financial risks relate to the recoverability of trade receivables and to maintaining adequate liquidity, managed through active credit control and treasury management.

The directors monitor these risks on an ongoing basis and believe they are being appropriately managed. The group has continued to maintain its liquidity and sufficient working capital for ongoing operations.

ON BEHALF OF THE BOARD:

J P Carr - Director

3 September 2026

The directors present their report with the financial statements of the company and the group for the period 1 October 2025 to 31 March 2026.

INCORPORATION

The group was incorporated on 1 October 2025 .

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of the manufacture of cable reels and drums and other specialised equipment for the wire and cable industry.

The principal activity of the company is that of a holding company of a trading group.

DIVIDENDS

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

DIRECTORS

The directors who have held office during the period from 1 October 2025 to the date of this report are as follows:

A C Page - appointed 1 October 2025 - resigned 20 November 2025

J P Carr - appointed 8 October 2025

H W Platt - appointed 20 November 2025

M F Seymour - appointed 20 November 2025

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

FINANCIAL RISK MANAGEMENT

Credit risk

The Group'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 Group has not entered into any hedging arrangements in respect of risks relating to trade debtors or trade creditors.

Liquidity risk

The Group 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.

DISABLED EMPLOYEES

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 with the group continues and that appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

EMPLOYEE CONSULTATION

The group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on various factors affecting the performance of the group.

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

ON BEHALF OF THE BOARD:

J P Carr - Director

3 September 2026

Opinion

We have audited the financial statements of Pentre 2025 Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2026 which comprise the Consolidated Income Statement, Consolidated Other 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 period 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 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 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.

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 and Group, 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.

4 - We reviewed the Company and Group'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 FCA (Senior Statutory Auditor)

for and on behalf of Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

17 September 2026

TURNOVER

3

7,732,962

Cost of sales

(4,350,096

)

GROSS PROFIT

3,382,866

Administrative expenses

(2,352,396

)

OPERATING PROFIT

5

1,030,470

Interest receivable and similar income

1,287

1,031,757

Interest payable and similar expenses

6

(565

)

PROFIT BEFORE TAXATION

1,031,192

Tax on profit

7

(230,659

)

PROFIT FOR THE FINANCIAL PERIOD

800,533

Profit attributable to:

Owners of the parent

800,533

PROFIT FOR THE PERIOD

800,533

OTHER COMPREHENSIVE INCOME

Foreign exchange translation

(16,143

)

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

(16,143

)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

784,390

Total comprehensive income attributable to:

Owners of the parent

784,390

FIXED ASSETS

Intangible assets

9

1,376,406

Tangible assets

10

8,513,551

Investments

11

-

9,889,957

CURRENT ASSETS

Stocks

12

2,612,104

Debtors

13

5,749,812

Cash at bank and in hand

1,534,934

9,896,850

CREDITORS

Amounts falling due within one year

14

6,113,402

NET CURRENT ASSETS

3,783,448

TOTAL ASSETS LESS CURRENT LIABILITIES

13,673,405

PROVISIONS FOR LIABILITIES

16

641,515

NET ASSETS

13,031,890

CAPITAL AND RESERVES

Called up share capital

17

12,247,500

Retained earnings

18

784,390

SHAREHOLDERS' FUNDS

13,031,890

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:

J P Carr - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

23,167,500

23,167,500

CURRENT ASSETS

Debtors

13

5,500

CREDITORS

Amounts falling due within one year

14

10,925,500

NET CURRENT LIABILITIES

(10,920,000

)

TOTAL ASSETS LESS CURRENT LIABILITIES

12,247,500

CAPITAL AND RESERVES

Called up share capital

17

12,247,500

SHAREHOLDERS' FUNDS

12,247,500

Company's profit for the financial year

-

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:

J P Carr - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

12,247,500

-

12,247,500

Total comprehensive income

-

784,390

784,390

Balance at 31 March 2026

12,247,500

784,390

13,031,890

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

12,247,500

-

12,247,500

Balance at 31 March 2026

12,247,500

-

12,247,500

Cash flows from operating activities

Cash generated from operations

1

792,701

Interest paid

(565

)

Net cash from operating activities

792,136

Cash flows from investing activities

Purchase of tangible fixed assets

(31,640

)

Acquisition of subsidiary

(10,927,500

)

Cash acquired with subsidiary

8,933,151

Interest received

1,287

Net cash from investing activities

(2,024,702

)

Cash flows from financing activities

Deferred consideration

2,760,000

Share issue

7,500

Net cash from financing activities

2,767,500

Increase in cash and cash equivalents

1,534,934

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

1,534,934

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

£

Profit before taxation

1,031,192

Depreciation charges

320,533

Exchange differences

(17,506

)

Finance costs

565

Finance income

(1,287

)

1,333,497

Decrease in stocks

728,058

Increase in trade and other debtors

(1,033,247

)

Decrease in trade and other creditors

(235,607

)

Cash generated from operations

792,701

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:

Period ended 31 March 2026

31.3.26

1.10.25

£

£

Cash and cash equivalents

1,534,934

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

-

1,534,934

1,534,934

-

1,534,934

1,534,934

Total

-

1,534,934

1,534,934

1.	STATUTORY INFORMATION

Pentre 2025 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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, modified to include the revaluation of freehold and leasehold properties and some investments. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

- 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.

Basis of consolidation

The consolidated financial statements incorporate the results of Pentre 2025 Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 March 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

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.

Significant judgements and estimates

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.

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of five years.

Intangible assets

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

Tangible fixed assets

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

Tangible fixed assets are stated at cost or valuation. Depreciation of tangible fixed assets, other than freehold land, is being charged by equal annual instalments, commencing with the month in which the asset is first available for use, so as to write off each asset's cost or valuation, less any residual value, over its anticipated economic life. The following rates of depreciation have been used:

Freehold property

- 2% on cost

Long leasehold property

- 2% on cost

Short leasehold property

- 2% on cost

Plant and machinery

- 10% to 25% on cost

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 recognised in the income statement.

Investments in Subsidiaries and Associates

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the income statement.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

Cash and cash equivalents

Cash at bank and in hand 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 overdrafts are shown within borrowings in current liabilities.

Foreign currencies and translation of overseas subsidiaries

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

Investments in overseas subsidiaries are re-translated into sterling at the rates of exchange ruling at the balance sheet date. The translation differences arising on the restatement of the net investment in overseas subsidiaries and the difference between the profit and loss account translated at the average rate and the closing rate are taken to the profit and loss account as a movement in reserves.

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.

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 at 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.

Deferred consideration

Deferred consideration comprises the agreed consideration payable to the shareholders of Pentre 2020 Limited upon the management buyout of Pentre 2020 Limited in November 2025. The consideration has initially been recognised at total amount payable with no discounting to net present value as the directors believe this to be appropriate.

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 group.

An analysis of turnover by geographical market is given below:

£

United Kingdom

3,180,509

Europe

2,913,239

Rest of the World

1,639,214

7,732,962

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

2,998,355

Social security costs

477,186

Other pension costs

88,318

3,563,859

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

Manual

104

Clerical and technical

44

148