REGISTERED NUMBER: 01026114 (England and Wales)

CENTRAL WIRE INDUSTRIES UK LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JULY 2026

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

9

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

to

23

DIRECTORS:

C D Charron

P C From

A I Prichard

J H Wright

REGISTERED OFFICE:

1 Primrose Park

Greasbrough Road

Rotherham

S60 1RH

REGISTERED NUMBER:

01026114 (England and Wales)

AUDITORS:

Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

The directors present their strategic report for the year ended 31st July 2026.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

Central Wire Industries UK Ltd (CWI UK) specialises in the manufacture of high-quality stainless steel and nickel alloy round and profile wires, produced to individual customer specifications and requirements. The Group works closely with its customers to develop and manufacture products tailored to specific technical and performance requirements, serving a range of specialist applications and end markets. CWI UK operates within a specialist and technically demanding sector of the UK metals industry. Its manufacturing capability, technical expertise and established customer relationships underpin the Group's continued development. CWI UK's strategy remains focused on maintaining high standards of product quality, delivering a responsive and reliable service to customers, developing long-term customer relationships and achieving sustainable, profitable growth.

CWI UK delivered a resilient financial performance during the year despite continued volatility within the wider metals market and challenging economic environment. Turnover for the year has increased slightly to £16.1m compared with £16.0m in the prior year. The relatively stable level of turnover reflects continued underlying demand for the Group's specialist products and the strength of its established customer relationships. The Group continues to focus on securing repeat business while identifying opportunities to develop new customer relationships and applications. Gross profit increased by 1.6% during the year, rising from £6.41m in the prior year to £6.52m As expected production output fell by 11.6% from 2025 - this further reflects the strategic move to lower volume/higher value product.

The order book remains robust, underpinned by strong order intake throughout the year, with forward order coverage extending approximately 4 to 5 months, providing a good level of visibility over future trading activity.

The Group has continued to maintain a coordinated approach across all areas of the business in response to the challenging trading environment. Despite the significant pressures experienced during the year, the Group remained profitable, generating an operating profit of £171,030.

CWI UK remains in a strong financial position, with net assets of £13,389,288 (2025: £13,233,958). The primary shift in the balance sheet is an increase in cash reserves. This reflects a greater focus on supplier location, with the company increasingly sourcing from UK-based suppliers. This approach enables the business to place smaller, more frequent orders, reducing inventory commitment. Cash reserves have increased to £3,463,158 (2025: £1,419,072). This is offset by stock value having fallen to £4,674,327 (2025: £6,405,082).

Certain markets are showing signs of recovery, including the oil and gas well intervention sector. The company expects this sector to remain strong through 2027, supported by continued demand across key product areas. This outlook is further supported by several large contracts already secured going into 2027.

CWI UK Directors and Management Team remain focused on improving the group's profitability and strengthening its financial and operational position. The group expects current levels of business activity to remain broadly stable, while continuing to increase its focus on higher-value markets and opportunities

The Group has continued to make significant investment in the business, reflecting management's commitment to improving the Company's long-term operational and financial performance. During the financial year, a further £459,804 of capital investment was completed, with a further £1.0 million of capital expenditure committed for FY27. The investment is focused primarily on plant and equipment across the business and is intended to improve manufacturing efficiency, reduce operating costs and enhance the Group's operational capabilities. In addition, a number of the investments are expected to improve energy efficiency and contribute to a reduction in the Group's carbon footprint. Management considers this continued investment to be an important part of the Group's strategy for improving productivity, strengthening profitability and supporting the long-term development of the business.

MATTERS OF STRATEGIC IMPORTANCE

CWI UK has remained profitable despite the challenging global economic and trading environment experienced during the year. The Group's performance continues to be supported by its established customer base and its proven range of high-quality stainless steel and nickel alloy round and profile wires. Looking ahead, the market remains subject to a degree of uncertainty, particularly in relation to raw material prices, energy costs, global supply chain conditions and new quota restrictions on imported materials. Management remains focused on strengthening the Group's market position through continued product development, the identification of new market opportunities and maintaining the high levels of quality and customer service. The Group will continue to focus on developing its specialist manufacturing capabilities and increasing its presence in higher-value markets, while maintaining close relationships with existing customers. These priorities are expected to support sustainable growth, strengthen the Group's competitive position and underpin future financial performance.

PRINCIPAL RISKS

The Directors regularly review the principal risks and uncertainties facing the Group and take appropriate measures to manage and mitigate these risks. The key risks considered relevant to the Group are set out below.

Raw Material and Commodity Price Volatility

The Group is exposed to fluctuations in the price and availability of raw materials used within the manufacturing process. Movements in commodity prices can affect product margins and working capital requirements. In addition, the availability of certain raw materials may be affected by quota restrictions, which could result in supply constraints and increased procurement costs.

Energy Costs

The Group is exposed to fluctuations in energy costs, which can impact manufacturing costs and product margins given the energy-intensive nature of steel wire production. This risk is partly mitigated through fixed energy cost arrangements, providing greater cost certainty.

Global Supply Chain

The Group relies on a number of suppliers for raw materials and other goods and services required to support its manufacturing operations. Disruption to global supply chains, including changes in availability, lead times, transportation costs or international trade conditions, could affect production and customer delivery times.

Customer Demand and Market Conditions

Demand for the Group's products is influenced by economic conditions and activity levels within the end markets served by its customers. A reduction in customer demand or a significant deterioration in economic conditions could adversely affect order intake and revenue.

Customer/Product Concentration

As a specialist manufacturer, the Group may have exposure to individual customers, product lines or sectors accounting for a significant proportion of sales. A reduction in demand for a key product, loss of a significant customer, or downturn in a particular sector could adversely impact on the Group's financial performance.

Pricing and Margin Pressure

The steel wire market is competitive, and the Group may experience pressure on selling prices and margins from competitors, changes in raw material costs and wider market conditions.

Skilled Workforce

The Group relies on employees with specialist manufacturing, technical and engineering skills. The loss of key personnel or difficulties in recruiting and retaining appropriately skilled employees could affect the Group's ability to maintain production capacity and service customer requirements.

Regulatory and Environmental Requirements

The Group operates within a regulated manufacturing environment and is subject to applicable health and safety, environmental, employment and other regulatory requirements. Changes in legislation or increased regulatory requirements may result in additional costs or changes to operating practice.

KEY PERFORMANCE INDICATORS

The Directors monitor a range of financial and operational key performance indicators ("KPIs") to assess the performance of the business and support ongoing operational and strategic decision-making.

The KPIs monitored by the Directors include:

-On-time delivery performance - measuring the Group's ability to meet agreed customer delivery requirements.

- Yield - monitoring the efficiency of the manufacturing process and the effective utilisation of raw materials.

- Internal reject rate - monitoring product quality and identifying opportunities to reduce manufacturing waste and rework.

- Customer complaint rate - assessing product quality and customer satisfaction.

- Productivity - monitoring manufacturing efficiency and output relative to available resources.

- Gross profit per unit - assessing the profitability of individual products and orders.

- Cost per unit - monitoring manufacturing costs and identifying opportunities for improved efficiency.

- Capital employed - monitoring the effective utilisation of the Group's capital and investment in the business.

- Forward contracts and order coverage - providing visibility of future production requirements and revenue.

- Recordable injuries - monitoring health and safety performance and maintaining a safe working environment.

These measures, together with the Group's financial performance, order book and cash flow position, provide the Directors with a balanced view of the Group's operational and financial performance.

Management reviews these KPIs regularly and uses the results to identify areas for improvement, manage operational risks and support the Group's objectives of maintaining product quality, improving efficiency and delivering sustainable financial performance.

We are pleased to report that customer complaints continued to be within target, however productivity and yield fell short of target

Internal reject levels increased marginally during the period, while external rejects continued to fall, demonstrating our continuous improvement in quality control and process management.

Delivery performance was below target during the period, impacted by a combination of raw material availability, freight disruption and equipment-related issues.

Looking ahead to 2027, the installation of new equipment and improved raw material availability are expected to address key operational constraints and provide greater capacity and reliability. These improvements are expected to support a significant improvement in productivity, yield and on-time delivery performance.

CWI Directors would like to express their appreciation to all employees for their continued commitment, effort and contribution throughout what has been a challenging year for the Group.

ON BEHALF OF THE BOARD:

C D Charron - Director

22nd September 2026

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

PRINCIPAL ACTIVITY

The company is a stockist and processor of specialist metals to a wide range of trade users.

DIVIDENDS

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

DIRECTORS

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

C D Charron

D Crane

P C From

T Hanewald

A I Prichard

J H Wright

Other changes in directors holding office are as follows:

D Crane and T Hanewald ceased to be directors after 31st July 2026 but prior to the date of this report.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

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

AUDITORS

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

ON BEHALF OF THE BOARD:

C D Charron - Director

22nd September 2026

Opinion

We have audited the financial statements of Central Wire Industries UK Limited (the 'company') for the year ended 31st July 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31st July 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 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 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.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indication of non-compliance through the audit.

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiries of management and examination of documents, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

At the completion stage of the audit, the engagement partner's review included ensuring the audit team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

The primary responsibility for the prevention and detection of fraud rests with those charged with governance and management, and we cannot be expected to detect non-compliance with all laws and regulations. There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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.

Thomas Bond ACA (Senior Statutory Auditor)

for and on behalf of Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

22nd September 2026

TURNOVER

3

16,126,839

15,974,896

Cost of sales

9,611,486

9,568,699

GROSS PROFIT

6,515,353

6,406,197

Distribution costs

590,291

697,955

Administrative expenses

5,754,032

5,550,269

6,344,323

6,248,224

OPERATING PROFIT

5

171,030

157,973

Interest receivable and similar income

6

59,717

60,170

230,747

218,143

Interest payable and similar expenses

7

621

1,971

PROFIT BEFORE TAXATION

230,126

216,172

Tax on profit

8

74,796

63,639

PROFIT FOR THE FINANCIAL YEAR

155,330

152,533

PROFIT FOR THE YEAR

155,330

152,533

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

155,330

152,533

FIXED ASSETS

Intangible assets

9

1,399

1,699

Tangible assets

10

3,154,563

3,023,926

3,155,962

3,025,625

CURRENT ASSETS

Stocks

11

4,674,326

6,405,082

Debtors

12

4,665,146

4,276,662

Cash at bank

3,463,158

1,419,072

12,802,630

12,100,816

CREDITORS

Amounts falling due within one year

13

2,225,194

1,589,122

NET CURRENT ASSETS

10,577,436

10,511,694

TOTAL ASSETS LESS CURRENT LIABILITIES

13,733,398

13,537,319

PROVISIONS FOR LIABILITIES

15

344,110

303,361

NET ASSETS

13,389,288

13,233,958

CAPITAL AND RESERVES

Called up share capital

16

550,000

550,000

Retained earnings

17

12,839,288

12,683,958

SHAREHOLDERS' FUNDS

13,389,288

13,233,958

The financial statements were approved by the Board of Directors and authorised for issue on 22nd September 2026 and were signed on its behalf by:

C D Charron - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st August 2024

550,000

12,531,425

13,081,425

Changes in equity

Total comprehensive income

-

152,533

152,533

Balance at 31st July 2025

550,000

12,683,958

13,233,958

Changes in equity

Total comprehensive income

-

155,330

155,330

Balance at 31st July 2026

550,000

12,839,288

13,389,288

Cash flows from operating activities

Cash generated from operations

1

2,369,898

(1,824,703

)

Interest paid

(621

)

(1,971

)

Tax paid

74,896

157,500

Net cash from operating activities

2,444,173

(1,669,174

)

Cash flows from investing activities

Purchase of tangible fixed assets

(459,804

)

(139,692

)

Sale of tangible fixed assets

-

1,665

Interest received

59,717

60,170

Net cash from investing activities

(400,087

)

(77,857

)

Increase/(decrease) in cash and cash equivalents

2,044,086

(1,747,031

)

Cash and cash equivalents at beginning of year

2

1,419,072

3,166,103

Cash and cash equivalents at end of year

2

3,463,158

1,419,072

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

2026

2025

£

£

Profit before taxation

230,126

216,172

Depreciation charges

329,466

329,562

Loss on disposal of fixed assets

-

2,302

Finance costs

621

1,971

Finance income

(59,717

)

(60,170

)

500,496

489,837

Decrease/(increase) in stocks

1,730,756

(1,631,707

)

Increase in trade and other debtors

(467,893

)

(512,252

)

Increase/(decrease) in trade and other creditors

606,539

(170,581

)

Cash generated from operations

2,369,898

(1,824,703

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31st July 2026

31/7/26

1/8/25

£

£

Cash and cash equivalents

3,463,158

1,419,072

Year ended 31st July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

1,419,072

3,166,103

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/25

Cash flow

At 31/7/26

£

£

£

Net cash

Cash at bank

1,419,072

2,044,086

3,463,158

1,419,072

2,044,086

3,463,158

Total

1,419,072

2,044,086

3,463,158

1.	STATUTORY INFORMATION

Central Wire Industries UK 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.

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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. The directors have considered how the company will meet the challenges presented by the economic climate. They have carried out a detailed review of the company's resources including the adequacy of working capital for the next twelve months from the date of approval of the financial statements. The directors are satisfied that the company has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of these financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with the parent undertaking which holds 100% of the shares in Central Wire Industries UK Limited and any other wholly owned subsidiaries of its parent.

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch 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.

Intangible assets

Intangible assets purchased other than in a business combination are recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are amortised to profit or loss on a straight-line basis over their useful lives, as follows:

Trademarks

10% straight line

Software

10% straight line

Amortisation is revised prospectively for any significant change in useful life or residual value.

On disposal, the difference between the net disposal proceeds and the carrying amount of the intangible asset is recognised in profit or loss.

Tangible fixed assets

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

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life as follows:

Freehold land and buildings

2.5% straight line

Plant and machinery

10% straight line

Fixtures, fittings and equipment

at rates ranging between 10% and 20% straight line

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

Stocks

Stock in trade is valued at the lower of cost and estimated selling price less costs to complete and sell. The basis for establishing cost is on a first in and first out basis.

At each reporting date, the company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock 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.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument, and are offset only when the Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, amounts owed by group undertakings and accrued income 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

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 instruments are classified as liabilities and equity instruments 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 trade creditors, amounts due to group undertakings and accruals, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

Derecognition of financial liabilities

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 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 currencies

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Hire purchase and leasing commitments

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

Pension costs and other post-retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Employee benefits

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

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

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:

2026

2025

£

£

United Kingdom

3,843,260

3,965,672

Europe

5,393,482

6,958,626

Rest of the world

6,890,097

5,050,598

16,126,839

15,974,896

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

2,252,413

2,247,707

Social security costs

281,100

237,078

Other pension costs

173,341

184,301

2,706,854

2,669,086

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

2026

2025

Processing

39

39

Trading and administration

17

16

56

55

2026

2025

£

£

Directors' remuneration

193,639

192,023

Directors' pension contributions to money purchase schemes

37,295

39,163

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

Money purchase schemes

2

2