Registered number: 00294532
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2026
The Directors present their strategic report on the Group for the year to 31st January 2026.
Turnover increased by 9.9% to £52,970,403 (2025: £48,214,277), with profit before taxation increasing to £7,724,684 (2025: £4,333,989), reflecting another year of strong trading performance. Gross profit margin improved to 67.8% (2025: 65.8%), supported by easing cost pressures and continued operational efficiencies, while all subsidiaries reported increased sales during the year.
At 31 January 2026, the Group had net assets of £84,825,404 (2025: £73,002,455). The increase primarily reflected the Group's strong trading performance together with growth in the defined benefit pension surplus, partially offset by foreign exchange translation movements. The Group also maintained a highly liquid balance sheet, with cash balances (excluding bank deposits held as guarantees) of £23,206,973 and low levels of external borrowings, resulting in a strong net cash position and low gearing. This provides the Group with significant financial flexibility to support ongoing investment and future growth.
The Group continued to monitor supply chain risks throughout the year. Although inflationary pressures eased, disruption to shipping routes through the Red Sea continued to present logistical challenges. Changes to US tariff policy also created uncertainty; however, the Group continued to achieve growth in sales within the region. The year concluded with a higher order book than the previous year, providing a positive platform for continued growth.
The Board has continued to progress its long-term strategic growth plan, supported by the Group's strong financial position and sustained trading performance. During the year, investment continued across the business to strengthen operational capability, improve efficiency and support future growth.
Manufacturing capacity has been enhanced through continued investment in production facilities and equipment to support increasing customer demand. The Group has also continued to invest in its IT infrastructure to improve systems integration, operational efficiency and the quality of management information. Marketing activities have been further developed through increased investment in digital and web-based initiatives to strengthen the Group's global presence and generate new business opportunities.
The Board remains confident that the Group is well positioned for continued growth. Supported by its strong balance sheet, highly liquid financial position and healthy order book, the Group will continue to invest in its people, technology and manufacturing capabilities to deliver its long-term strategic objectives.
The principal risks and uncertainties facing the Group remain largely unchanged and relate to:
∙Inflationary pressures from global uncertainty;
∙Competition selling similar clones and copies of products at lower prices where they have no R&D costs;
∙Ensuring the group’s UK based manufacturing costs are globally competitive;
∙Impact of geopolitical uncertainty leading to closure of transport links affecting supply chains
∙Impact of USA tariff policy
∙Retention of key staff and management;
∙Maintaining margin in the face of exchange rate volatility, material price increases and labour costs of manufacturing in the UK; and
∙The Group looks to reduce the risk by implementing a common report & transaction platform across the group, instilling a continuous improvement culture and managing foreign exchange risk by currency hedging.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
The Board monitors a number of financial and operational key performance indicators ("KPIs") to assess the Group's performance against its strategic objectives. Turnover growth is a key indicator of financial performance and is monitored against budget throughout the year. The Group also monitors its order book, which provides visibility over future confirmed customer demand and is compared with the prior year as an indicator of future trading activity.
The Group's business activities, together with the principal risks and uncertainties likely to affect its future development, performance and position, are set out in this Strategic Report. Details of the Group's future developments and strategic objectives are also outlined above.
The Group continues to maintain a strong financial position, with significant cash resources, low levels of external borrowings and a diverse customer and supplier base across a range of geographic markets and industries. These factors provide resilience and support the Group's ability to manage the principal risks facing the business
Having considered the Group's current trading performance, forecasts and available financial resources, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
There are continuous customer surveys indicating where the Group needs to improve and, also, engagement with suppliers, not only to ensure they adhere to the Group’s code of conduct and that they comply with the company’s policy of anti-bribery, anti-corruption and Modern Slavery policies. There is an emphasis to ensure subsidiaries comply with the Group’s Health & Safety and quality policy.
The Group has a strategy for the environment where there is an emphasis to engage with Green policies. The two main factories are powered by Solar generation for much of their electrical requirements. All metal waste is recycled and paper waste has been reduced with a push to go paperless.
At all the Group’s sites there is a push for community involvement with engagement with local charities and projects to improve the local environment.
Group's policy on payment of Creditors
It is the Group's policy that payments to suppliers are made in accordance with those terms and conditions agreed with its suppliers, provided that all trading terms and conditions have been complied with.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
Employees
Russell Finex Group’s workforce is key to its success. We work to attract, develop and retain talent, equipped with the right skills for the future. Our workforce have a crucial role in delivering against our strategy and creating value. A way to reinforce this is a profit share scheme where all staff directly benefit from the success of their part of the group.
The Group’s policy is to consult with employees at staff meetings and quarterly briefings. These seek to create an understanding of Group performance and areas of improvement. This is reinforced with the quarterly publication of the group magazine, Forward Together.
The Group is an equal opportunities employer, no one will be disadvantaged by any conditions of employment that cannot be justified as necessary on operational grounds. The company is committed to treating all employees and job applicants equally.
The company is in full compliance of statutory legislation with regard to all of the above.
The year continued as usual meeting growing customer demand, with efforts as always to reduce delivery lead times.
We can confirm that at all times the directors of the company have operated for the benefit of its members as a whole and in line with s172(1) Companies Act 2006. Considering the long term consequences of their decisions, the interest of its employees, fostering good relationships with both customers and suppliers; ensuring that the business has a positive impact on the local community and environment, retaining a reputation for the high standards of business conduct and acting fairly between members.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2026
The directors present their report and the financial statements for the year ended 31 January 2026.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.
The profit for the year, after taxation, amounted to £6,382,251 (2025 - £3,117,334).
The directors have not recommended the payment of a dividend in respect of the year ended 31 January 2026 (2025 - £nil).
The directors who served during the year were:
The Group has overseas branches in Sweden and Spain.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
The energy and carbon information presented below relates to Russell Finex Limited. Energy and carbon information relating to subsidiary undertakings included within the consolidated financial statements has not been included where those subsidiaries would not themselves be required to make such disclosures if reporting on an individual basis, as permitted by the Regulations. In accordance with the requirements of the Companies (Directors’ Report) and Limited Liabilities (Energy and Carbon Report) Regulations 2018, the Directors would like to disclose the following information for the period ended 31 January 2026.
Carbon Emissions plus intensity Ratio (as per Regulations):
Intensity Metrics
Scope 1, 2 & 3 emission / Sales Revenue amounts to £8.16 (2025: £12.66) Tonnes CO2/£m. Total reported emissions decreased by 20.0% year-on-year, reflecting reductions in energy consumption across the business. Scope 1 emissions reduced by 15.3%, primarily due to lower gas and fuel usage, partly offset by increased company vehicle emissions. Scope 2 emissions reduced by 25.9% due to lower purchased electricity consumption and generated green electricity. Scope 3 emissions reduced by 40.4%, mainly due to lower business travel and waste-related emissions, although these remain immaterial to total reported emissions.
Methodologies used within the calculation
The company has used actual consumption data, including kWh data from monthly supplier invoices, as the basis for calculating reported energy use and associated emissions. This data has been converted into tonnes of CO2e using the UK Government’s published greenhouse gas conversion factors for company reporting for the relevant reporting period. The SECR report was prepared using the Telex UK accounting platform, with Telex UK acting as the external specialist in the preparation of the calculations.
Energy efficiency actions taken to date
Russell Finex has undertaken a number of initiatives to reduce energy consumption, improve operational efficiency and lower the Group’s carbon footprint. These include the following:
∙Renewable energy generation: The Group has supported the installation of solar panels on site, enabling renewable electricity generation and reducing reliance on grid-supplied electricity.
∙Biomass boiler: The Group uses a wood burner with pellets to provide energy for parts of the business. Alternative, more environmentally friendly products have also been introduced within chemical and product processes. In addition, the Group has recently moved to more energy-efficient CNC machinery.
∙Lighting and energy awareness: The Group continues to promote energy awareness across the business, including reminders to switch off lights in meeting rooms and other areas when not in use. Sensor lighting has been installed in selected kitchen areas, and factory lighting has been upgraded from fluorescent lighting to LED lighting.
∙Waste reduction and recycling: The Group has implemented a range of waste reduction and recycling measures, including the installation of a baling machine and shredder bins on site. Shredded waste is reused in RF shipping packaging, and scrap metal and electrical waste are recycled. The Group has also reduced landfill waste by removing polystyrene cups from site and providing employees with reusable water bottles and thermo mugs.
∙Fuel reduction: The Group encourages employees to participate in the Cycle to Work scheme. It has also implemented a “4-mile rule” policy, under which employees living within four miles of the site are encouraged to use public transport or alternative methods of travel, with onsite parking restricted for those employees.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
The Group has chosen in accordance with the Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Group's Strategic Report and the Company's Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review, principal risks and uncertainties and future developments sections. Additionally, the Group has explained within the Strategic Report how they maintain business relationships with customers and suppliers, including their policy on payment of creditors, and how they ensure consistent and productive engagement with employees and disabled persons.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RUSSELL FINEX LIMITED
We have audited the financial statements of Russell Finex Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2026, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Analysis of Net Debt, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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 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 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RUSSELL FINEX LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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 Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RUSSELL FINEX LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:
∙The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgements made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Misappropriation of assets; and
°Incorrect revenue recognition.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RUSSELL FINEX LIMITED (CONTINUED)
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 Auditor
Victoria House
50-58 Victoria Road
Hampshire
GU14 7PG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2026
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2026
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2026
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 49 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2026
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COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2026
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 49 form part of these financial statements.
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