Consolidated Financial Statements
For the year ended 31 December 2025
Registered number: 01294120
Company Information
Contents
Group strategic report
For the year ended 31 December 2025
The principal activity of the Group during the year was the design, manufacture and installation of packaged plant room and integrated energy centres, the supply of pumps, pumping equipment, accessories and expansion tanks to the HVAC, Fire, OEM and end user market.
The Group has earned a profit for the year after taxation amounting to £5,794,743 (2024 - profit £482,137). The directors do not recommend payment of a dividend (2024 - £NIL).
During 2025, the Group continued to invest in its operations, supporting the achievement of its strategic objectives for the year. These investments contributed to sustained business growth, with overall performance reflecting the benefits of the Group's focused strategy. Market conditions across both UK sectors and key export markets showed notable improvement compared to 2024, which in turn drove a 57% increase in Group revenue.
During 2025, the Group continued to invest in its operations, supporting the achievement of its strategic objectives for the year. These investments contributed to sustained business growth, with overall performance reflecting the benefits of the Group's focused strategy. Market conditions across both UK sectors and key export markets showed notable improvement compared to 2024, which in turn drove a 57% increase in Group revenue.
The Group continues to make strategic investments in targeted sectors to drive sustainable growth and closed 2025 with a strong order book, providing a solid foundation for 2026.
The UK business compliments the activities of the rest of the Armstrong group, which operates out of eight countries across five continents.
Key performance indicators used by the Group are as follows:
The Group uses multiple non-financial KPls which include customer net promoter scores, the number of bill of material discrepancies, the amount of non-conformance notices raised and closed as well as labour efficiency and effectivity percentages. Due to the commercial sensitivities around these non-financial KPIs, the actual performance against target has not been disclosed.
The main business risks are managed by operating to ISO standards for Quality, Environmental and Health and Safety. The Group operates with a global supply chain providing a geographically and technologically diverse supplier base. The Group customer base is also spread across the UK, European and Middle East & African territories which diversifies the risk both economically and politically.
As part of a global group employee numbers, skills and knowledge can be utilised to meet local business needs.
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Group strategic report (continued)
For the year ended 31 December 2025
Principal risks and uncertainties (continued)
Financial instruments
The Group uses various financial instruments. These include group loans, cash and other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
The existence of these instruments exposes the Group to a number of financial risks, which are described in more detail below.
The main risks arising from the Group's financial instruments are market risk, cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.
Market risk
Market risk encompasses three types of risk, being currency risk, interest rate risk and price risk. The Group's policies for managing interest rate risk are considered along with those for managing cash flow interest rate risk and are set out in the subsection entitles “interest rate risk" below.
Currency risk
The Group is exposed to translation and transaction foreign exchange risk. In relation to translation risk, as far as possible the assets held in foreign currency are matched to an appropriate level of borrowings in the same currency. Most non-UK sales are in Euros and where possible these are offset with procurement in the same currency.
Price risk
The Group sells its products in a competitive marketplace. Its competitors generally are exposed to the same risks with respect to increasing costs of inputs such as raw materials and wages. To the extent the price of their inputs increase, the Group and its competitors raise prices to cover increased costs.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
The Group policy throughout the year has been to ensure continuity of funding through borrowings from its ultimate parent company, S A Armstrong Limited.
Interest rate risk
The Group finances its operations through a mixture of non-interest bearing borrowings from its ultimate parent undertaking. The Group exposure to interest rate fluctuations on its borrowings is managed using both fixed and floating interest rate facilities. The Group regularly reviews interest rates, along with economic trends and indicators to manage the fixed and floating interest rate facilities.
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Group strategic report (continued)
For the year ended 31 December 2025
Principal risks and uncertainties (continued)
Interest rate risk (continued)
The interest rate exposure of the financial assets and liabilities of the Company as at 31 December 2025 is shown in the table below. The table includes trade debtors and creditors as these do not attract interest and are therefore subject to fair value interest rate risk.
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Credit risk
The Group’s principal financial assets are trade debtors. The principal credit risk arises therefore from its trade debtors.
In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the Group on a regular basis in conjunction with debt aging and collection history. The Group also maintains credit insurance over its trade debtors to mitigate credit risk.
There are concentrations of credit risk with exposure being spread over a large number of customers.
Geopolitical and market risk exposure
The Company maintains established sales operations across the Middle East and, as a result, has a degree of exposure to geopolitical developments within the region. In addition, the Company’s global logistics model, which relies on international shipping, creates indirect sensitivity to fluctuations in oil prices, particularly where these influence freight and distribution costs. Recent developments in the region have the potential to introduce volatility in both market conditions and input costs.
At the present time, trading performance in the Middle East has remained resilient, and the Company has not experienced any material disruption to customer demand or order fulfilment. While oil price movements may impact transportation costs, the Company continues to manage these exposures through a combination of operational flexibility and, where appropriate, commercial adjustments.
The situation is being closely monitored by management, with regular assessments of both market demand and supply chain dynamics. Based on current information, the Directors do not foresee a material impact on sales revenue in the region. However, given the inherent uncertainty associated with geopolitical events, the Company will continue to evaluate developments as they arise and will respond accordingly to protect its operational and financial position.
At the present time, trading performance in the Middle East has remained resilient, and the Company has not experienced any material disruption to customer demand or order fulfilment. While oil price movements may impact transportation costs, the Company continues to manage these exposures through a combination of operational flexibility and, where appropriate, commercial adjustments.
The situation is being closely monitored by management, with regular assessments of both market demand and supply chain dynamics. Based on current information, the Directors do not foresee a material impact on sales revenue in the region. However, given the inherent uncertainty associated with geopolitical events, the Company will continue to evaluate developments as they arise and will respond accordingly to protect its operational and financial position.
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Group strategic report (continued)
For the year ended 31 December 2025
In accordance with section 172 of the Companies Act 2006, the Directors, collectively and individually, confirm that during the year ended 31 December 2025, they acted in good faith and have upheld their duty to promote the success of the Group to the benefit of its members as a whole.
The Directors look to operate the business according to the founding principles that are distilled into three Core Values:
1.Community
2.Service
3.Learning and Innovation
The Core Values are embraced by the directors when undertaking their duties and they actively promote these to employees throughout the Armstrong Group.
Employees
The Group considers the growth and development of its employees to be very important. A dedicated Learning and Development team promote this through the Armstrong Learning Academy, where employees are encouraged to access training courses and materials to promote their learning and development.
The strength of the Group is built on the dedication of its people. The Group considers the interests of all employees when making decisions with the aim to provide stable employment and opportunities for the employees to reach their potential.
The Group regards employee engagement and welfare to be key and the directors actively aim to improve their understanding of employees views and interests alongside the employees understanding of the Group's performance.
Community and Environment
The Group continues to focus on environment and community activity. During the year, the Group continued to support local schools and charities, as well as providing labour and materials to help a local community centre sustainably refurbish their premises.
Armstrong’s commitment to sustainability is articulated in our Planet Proposition charter. This is a global document that encompasses the energy efficient solutions we provide our customers, the energy efficiency of our own plants and our interaction with the communities in which we operate.
In the UK, monitoring our electricity, gas and water consumption on a monthly basis and implementing measures such as LED lighting, adjusting heating and cooling set points and facilitating behavioural change, we’ve reduced our GHG emissions in 2025. We have also generated 198,935 kWh of electricity through our 250kWp solar PV system.
We are ISO 14001 certified at all of our locations and continue to develop innovative energy solutions, as well as producing case studies and white papers to help our customers reduce their environmental impact.
The Armstrong Group continues to invest in Product development, particularly focusing on reducing the lifetime cost of operation through innovative design that reduces energy usage.
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Group strategic report (continued)
For the year ended 31 December 2025
Stakeholder engagement (continued)
Customers and suppliers
The Board are committed to developing and maintaining key supplier relationships that includes both our customers and suppliers. The Board always tries to ensure that it has visibility of these relationships at all times so that it is able to these considerations into account when it makes key decisions.
In order to grow the business into new and existing markets, the Group develops and maintains strong client relationships. Customer satisfaction is important to the Group and it actively seeks formal feedback through post project customer questionnaires in order to highlight areas for improvement. Operating a global supply chain means that supplier relationships are critical to meeting our customer needs. We value all of our suppliers and have a number of framework agreements in place with key suppliers to provide transparency and security.
This report was approved by the board and signed on its behalf.
Page 5
Directors' report
For the year ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025 .
The profit for the year, after taxation, amounted to £5,872,168 (2024 - £425,947).
The directors do not recommend payment of a dividend (2024 - £NIL).
The directors who served during the year were:
As at 31 December 2025 the Group is in a net asset position of £6,265,222 (2024 - £470,479).
The Group meets its day to day working capital requirements through a combination of its cash balances and advances from its ultimate parent company, S A Armstrong Limited, a company incorporated in Canada.
The Group meets its day to day working capital requirements through a combination of its cash balances and advances from its ultimate parent company, S A Armstrong Limited, a company incorporated in Canada.
The directors have prepared forecasts for the period to 31 December 2028. The results of the forecasts anticipate that the business remains a going concern based on its forecasted positive activity levels and the continued support from the ultimate parent undertaking S A Armstrong Limited.
Throughout 2026 and into 2027 and 2028, management expects to maintain, and in some cases improve, the current level of profitability. The Group continues to secure contracts with key customers, demonstrating strong market demand and business resilience.
Significant investments have been made in expanding our workforce to enhance operational efficiencies, optimise current practices, and extend our market reach. This strategic focus on growth and continuous improvement positions the Group well to sustain its financial performance and support its long-term viability.
The directors expect that the present level of activity will be sustained for the foreseeable future.
The Group incurred research and development costs during the financial year of £237,364 (2024 - £85,550).
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Directors' report (continued)
For the year ended 31 December 2025
The following SECR disclosures present our carbon footprint within the United Kingdom across Scope 1 and 2 emissions. We have followed the 2019 HM Government Environmental Reporting Guidelines and used the GHG Reporting Protocol – Corporate Standard as well as the 2025 GHG UK Reporting Conversion Factors.
The company has taken the following measures to improve energy efficiency and reduce energy consumption through various UK projects including:
∙Installing of energy efficient LED lighting in office and production areas.
∙We have also generated 198,935 kWh of electricity from our solar system and exported 10% back to the grid.
∙Maintain a sharp focus to reduce our carbon footprint even with our growth through internal initiatives.
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Directors' report (continued)
For the year ended 31 December 2025
The Company maintains established sales operations across the Middle East and, as a result, has a degree of exposure to geopolitical developments within the region. In addition, the Company’s global logistics model, which relies on international shipping, creates indirect sensitivity to fluctuations in oil prices, particularly where these influence freight and distribution costs. Recent developments in the region have the potential to introduce volatility in both market conditions and input costs.
At the present time, trading performance in the Middle East has remained resilient, and the Company has not experienced any material disruption to customer demand or order fulfilment. While oil price movements may impact transportation costs, the Company continues to manage these exposures through a combination of operational flexibility and, where appropriate, commercial adjustments.
The situation is being closely monitored by management, with regular assessments of both market demand and supply chain dynamics. Based on current information, the Directors do not foresee a material impact on sales revenue in the region. However, given the inherent uncertainty associated with geopolitical events, the Company will continue to evaluate developments as they arise and will respond accordingly to protect its operational and financial position.
The auditor, Grant Thornton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 8
Directors' responsibilities statement
For the year ended 31 December 2025
On behalf of the board:
Charles Armstrong
Director
Date: 1 October 2026
Page 9
Independent auditor's report to the members of Armstrong Pumps Limited
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from the date 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.
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Independent auditor's report to the members of Armstrong Pumps Limited (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Director's Report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
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Independent auditor's report to the members of Armstrong Pumps Limited (continued)
Page 12
Independent auditor's report to the members of Armstrong Pumps Limited (continued)
We apply professional skepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
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.
for and on behalf of
Chartered Accountants &
Statutory Auditors
13-18 City Quay
Dublin 2
Republic of Ireland
Date:1 October 2026
13-18 City Quay
Republic of Ireland
Date:
Page 13
Consolidated statement of comprehensive income
For the year ended 31 December 2025
Page 14
Consolidated statement of financial position
As at 31 December 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 37 form part of these financial statements.
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Company statement of financial position
As at 31 December 2025
Armstrong Pumps Limited have taken the exemption from presenting the parent Company's Statement of comprehensive income. The profit for the year for Armstrong Pumps Limited was £NIL (2024 - £NIL).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 37 form part of these financial statements.
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Consolidated statement of changes in equity
For the year ended 31 December 2025
Consolidated statement of changes in equity
For the year ended 31 December 2024
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Company statement of changes in equity
For the year ended 31 December 2025
Company statement of changes in equity
For the year ended 31 December 2024
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Consolidated statement of cash flows
For the year ended 31 December 2025
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Consolidated Analysis of Net Cash
For the year ended 31 December 2025
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Notes to the financial statements
For the year ended 31 December 2025
Armstrong Pumps Limited is a private company limited by shares and incorporated in England and Wales. The registered head office is located at 1 Wolverton Street, Manchester, M11 2ET.
The principal activity of the Group during the year was the design, manufacture and installation of packaged plant room and integrated energy centres, the supply of pumps, pumping equipment, accessories and expansion tanks to the HVAC, Fire, OEM and end user market.
The principal activity of the Group during the year was the design, manufacture and installation of packaged plant room and integrated energy centres, the supply of pumps, pumping equipment, accessories and expansion tanks to the HVAC, Fire, OEM and end user market.
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of Cash Flows has been presented for the parent;
∙Disclosures in respect of the parent's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and
∙No disclosures have been given for the aggregate remuneration of the key management personnel of the parent as their remuneration is included in the totals for the Group as a whole.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Sale of Goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point when the goods are dispatched in accordance with the terms and conditions of sale.
Projects
Turnover from major projects is recognised according to the stage of completion of the contract. The turnover and margin is reviewed monthly and is based on the actual costs incurred to date and the stage of contract completion at the reporting date.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Turnover from services is recognised at the point at which the service is delivered.
The Group's functional and presentational currency is Sterling £.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are made, they are charged to the provision carried in the Balance Sheet.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, invoice discounting and other third parties, loans to related parties and investments in ordinary shares.
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Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
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Notes to the financial statements
For the year ended 31 December 2025
3.Judgments in applying accounting policies and key sources of estimation uncertainty policies (continued)
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Notes to the financial statements
For the year ended 31 December 2025
Analysis of turnover by country of destination:
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Notes to the financial statements
For the year ended 31 December 2025
The directors did not receive any remuneration from the Group during the year (2024 - £NIL). All directors remuneration was paid through S A Armstrong Limited.
Page 30
Notes to the financial statements
For the year ended 31 December 2025
There were no factors that may affect future tax charges.
Page 31
Notes to the financial statements
For the year ended 31 December 2025
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Page 32
Notes to the financial statements
For the year ended 31 December 2025
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Page 33
Notes to the financial statements
For the year ended 31 December 2025
Page 34
Notes to the financial statements
For the year ended 31 December 2025
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Page 35
Notes to the financial statements
For the year ended 31 December 2025
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Profit and loss account
Page 36
Notes to the financial statements
For the year ended 31 December 2025
Page 37