Cathodic Protection Co Limited Company accounts

COMPANY REGISTRATION NUMBER: 00478098

CATHODIC PROTECTION CO LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 March 2026

CATHODIC PROTECTION CO LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2026

CONTENTS	PAGE

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the member	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	12

CATHODIC PROTECTION CO LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	C P Martin
	S I Martin
	D K Marshall

Registered office	Venture Way
	Grantham
	Lincolnshire
	NG31 7XS

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Windsor House
	A1 Business Park at
	Long Bennington
	Notts
	NG23 5JR

CATHODIC PROTECTION CO LIMITED

STRATEGIC REPORT

YEAR ENDED 31 MARCH 2026

We aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Principal activity and business review

During the year the company continued to provide complete cathodic protection and marine anti-fouling solutions.

Cathodic Protection Co. Ltd saw in an increase in turnover compared with the previous year, and profit is expected to be in line with forecast projections. The company faces a number of risks, and the directors continue to mitigate against these as far as possible.

A summary of the key risks are as follows:-

Political & Economic Risks: As for many businesses of our size, the business environment in which we operate continues to be challenging. A key risk during this period includes the political instability in the Middle East, impacting key shipping lanes and creating a potential to affect orders to key customers in the region.

The directors mitigate against this through the implementation and detailed management of key contracts, maintaining consistent dialogue with customers. Thus far, this has not resulted in significant issues or impacts to the business. The directors will continue to monitor this, and other political risks in overseas territories, acknowledging that, some unforeseen future events are outside of our control.

In the last 24 months the company has seen impacts of the increase in energy prices and rising inflation. The directors mitigate this through a consistent review of prices and associated costs. Project performance is also reviewed on a timely basis to assess performance and identify areas of concern.

The company has seen increased wage costs in certain key job roles, alongside the additional impact of the National Minimum Wage and National Insurance increases. The directors mitigate this by monitoring workflow and managing costs appropriately, whilst generating flexibility within existing job roles. This is underpinned by a strong orderbook.

Foreign Currency risk: Fluctuations in core trading currencies has stabilised somewhat. The company continue to seek to mitigate against this through forward planning, utilising core and trusted suppliers, whilst also receiving support from UK Export Finance.

Market risk: The price of Iridium & Magnesium is subject to volatility. To mitigate this the company regularly monitors market conditions so that the sales team can respond as far as practicable to changes in market prices. This is also mitigated by utilising a strong and trusted supply chain.

Credit risk: Credit issues that arise continue to be dealt with in a timely manner. The company works with established customers.

Environmental risk: The company's activities are in an environmentally sensitive sector, the group ensures that strict operational procedures are followed, and that equipment is maintained to a high standard, whilst also taking proactive steps to reduce its carbon footprint.

Competitor risk: The company has a strong track record with many repeat customers. Maintaining quality and keeping up with ever changing technological developments is crucial to the development of the company's growth. To mitigate this risk, the company maintains a focus on building lasting relationships with both suppliers & customers.

KEY PERFORMANCE INDICATORS

The directors monitor a range of financial and operational key performance indicators ("KPIs") to assess the performance of the business and its ability to generate sustainable growth whilst maintaining a strong financial position.

Turnover increased by 1.2% to £9.58 million (2025: £9.47 million), reflecting continued demand for the Company's specialist cathodic protection and marine anti-fouling solutions and the successful delivery of projects in both domestic and overseas markets. Gross profit increased by 12.1% to £3.48 million (2025: £3.11 million), with the gross profit margin improving from 32.8% to 36.3%. This improvement reflects the benefits of favourable project mix, effective contract management and careful control of of direct costs.

Operating profit decreased to £372,000 (2025: £447,000), resulting in an operating profit margin of 3.9% (2025: 4.7%). The reduction principally reflects increased employment costs, recruitment expenditure, marketing activity, bad debt provisions and continued investment in research and development to support future growth. Profit before taxation decreased to £344,000 (2025: £443,000).

The Company maintained a strong financial position during the year. Net assets increased by 14.7% to £1.85 million (2025: £1.61 million), whilst cash balances increased to £1.00 million (2025: £0.63 million). The current ratio remained robust at 1.34:1 (2025: 1.36:1), demonstrating the Company's continued ability to meet its short-term financial obligations as they fall due.

Working capital management remains a key focus for the directors. Trade debtor days reduced from 118.1 days to 94.5 days during the year, reflecting continued emphasis on credit control and collection procedures. This improvement has contributed positively to cash generation and liquidity and supports the Company's ability to fund future investment and growth.

The directors remain satisfied with the overall performance and financial position of the Company. The strong order book, established customer relationships, specialist market expertise and healthy cash reserves provide a solid platform for future growth despite ongoing economic, geopolitical and market uncertainties.

This report was approved by the board of directors on 29 September 2026 and signed on behalf of the board by:

C P Martin

Director

Registered office:

Venture Way

Grantham

Lincolnshire

NG31 7XS

CATHODIC PROTECTION CO LIMITED

DIRECTORS' REPORT

YEAR ENDED 31 MARCH 2026

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

DIRECTORS

The directors who served the company during the year were as follows:

C P Martin
S I Martin
D K Marshall

DIVIDENDS

The directors do not recommend the payment of a dividend.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments 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.

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 29 September 2026 and signed on behalf of the board by:

C P Martin

Director

Registered office:

Venture Way

Grantham

Lincolnshire

NG31 7XS

CATHODIC PROTECTION CO LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF CATHODIC PROTECTION CO LIMITED

YEAR ENDED 31 MARCH 2026

OPINION

We have audited the financial statements of Cathodic Protection Co Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of income and retained earnings, statement of financial position 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 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. 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 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 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 strategic report and the directors' report 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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.

AUDITOR'S 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 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 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was that we identified the material laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience of the company and the sector in which it operates. We then assessed the extent of compliance with these laws and regulations through making enquiries of of management. We then assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and we investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing financial statement disclosures to underlying supporting documentation, reading the minutes of meetings of those charged with governance and reviewing correspondence with HMRC. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. USE OF OUR REPORT

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

MARK BRADSHAW

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Windsor House

A1 Business Park at

Long Bennington

Notts

NG23 5JR

8 October 2026

CATHODIC PROTECTION CO LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

YEAR ENDED 31 MARCH 2026

		2026	2025
Note		£	£
TURNOVER	4	9,582,794	9,468,958

Cost of sales	( 6,102,434)	( 6,363,204)
	-------------	-------------
GROSS PROFIT	3,480,360	3,105,754

Administrative expenses		( 3,110,320)	( 2,658,376)
Other operating income	5	27,295	–
		-------------	-------------
OPERATING PROFIT	6	397,335	447,378

Other interest receivable and similar income	10	4,815	36,609
Interest payable and similar expenses	11	( 32,797)	( 41,368)
		-------------	-------------
PROFIT BEFORE TAXATION		369,353	442,619

Tax on profit	12	( 112,625)	52,879
		----------	----------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME		256,728	495,498
		----------	----------

RETAINED EARNINGS AT THE START OF THE YEAR	1,288,475	792,977
	-------------	-------------
RETAINED EARNINGS AT THE END OF THE YEAR	1,545,203	1,288,475
	-------------	-------------

All the activities of the company are from continuing operations.

CATHODIC PROTECTION CO LIMITED

STATEMENT OF FINANCIAL POSITION

31 March 2026

	2026		2025
Note	£	£	£

FIXED ASSETS

Tangible assets	13		498,508	311,595

CURRENT ASSETS

Stocks	15	1,719,207	1,292,753
Debtors	16	3,010,344	3,410,167
Cash at bank and in hand		1,003,057	631,032
		-------------	-------------
		5,732,608	5,333,952

CREDITORS: amounts falling due within one year	17	( 4,252,533)		( 3,935,717)
		-------------		-------------
NET CURRENT ASSETS			1,480,075	1,398,235
			-------------	-------------
TOTAL ASSETS LESS CURRENT LIABILITIES			1,978,583	1,709,830

CREDITORS: amounts falling due after more than one year	18		( 36,233)	( 97,290)

PROVISIONS	20	( 73,082)	–
		-------------	-------------
NET ASSETS		1,869,268	1,612,540
		-------------	-------------

CAPITAL AND RESERVES

Called up share capital	24	309,065	309,065
Share premium account	25	15,000	15,000
Profit and loss account	25	1,545,203	1,288,475
		-------------	-------------
SHAREHOLDER FUNDS		1,869,268	1,612,540
		-------------	-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 29 September 2026 , and are signed on behalf of the board by:

C P Martin

Director

Company registration number: 00478098

CATHODIC PROTECTION CO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2026

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Venture Way, Grantham, Lincolnshire, NG31 7XS.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

During the period, the directors have had to deal with various challenges. Globally, the impact of the war between the USA and Iran has had a knock-on effects to the shipment of goods. The directors continually assess risks and develop mitigating actions to minimise the impact on the business. Employee retention remains strong within the company, at an average of 8½ years. Given the niche sector in which the company operates, the job market remains competitive. The company continues to develop its corporate and social responsibility policy to further support the needs of the business and its people. The orderbook remains strong and the directors have a reasonable expectation that the company has resources to continue in operational existence for the foreseeable future. The Directors have therefore continued to adopt the going concern basis in preparing these financial statements.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Hostombe Group Limited which can be obtained from Fullwood Hall, Harrison Lane, Sheffield, South Yorkshire, S10 4PA. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under the law of an EEA State.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. - Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: We do not consider there to be any significant judgements within the financial statements for disclosure. - Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When making their assessment, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. (ii) Long term contracts The company's manufacturing process can be significant and so management are required to recognise profit as the job progresses. In order to do this management review the expected revenue and costs on a job by job basis and, once a cash inflow becomes probable, recognise the relevant profits on the basis of the stage of completion. Where a job is expected to make a loss then the full loss is immediately recognised in the profit and loss account.

Revenue recognition

Turnover comprises the value of sales of goods and services in the normal course of business after deducting trade discounts, value added tax and other taxes based on turnover. Turnover is inclusive of accrued income. Services provided during the year, which at the balance sheet date have not been billed to clients, have been recognised as turnover in accordance with FRS 102 long term contracts and is included in the balance sheet as accrued income. Turnover recognised in this manner is based upon an assessment of the fair value of the services provided at the balance sheet date as a proportion of the total value of the engagement.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold improvements	-	7.5% straight line
Plant and machinery	-	7.5% straight line
Fixtures and fittings	-	7.5 - 33% straight line
Motor vehicles	-	20% straight line

Investments

Investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are valued at the lower of cost and net realisable value on a FIFO basis, after making due allowance for obsolete and slow moving items.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

The company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at face value. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Pension plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. The company is also associated with the Hostombe Group Limited Group defined benefit pension scheme. It has several employees who are accruing benefits under the scheme however there is no contractual agreement or stated policy in place for determining the contribution paid by this entity to the sponsoring employer. The pension contribution for the year was £63,500 (2025 - £72,000).

4. TURNOVER

Turnover arises from:

	2026	2025
	£	£
Construction contracts	9,582,794	9,468,958
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2026	2025
	£	£
United Kingdom	2,776,514	2,996,556
Overseas	6,806,280	6,472,402
	-------------	-------------
	9,582,794	9,468,958
	-------------	-------------

5. OTHER OPERATING INCOME

	2026	2025
	£	£
Government grant income	27,295	–
	---------	----

6. OPERATING PROFIT

Operating profit or loss is stated after charging/crediting:

	2026	2025
	£	£
Depreciation of tangible assets	99,225	93,720
Loss on disposal of tangible assets	–	2,970
Impairment of trade debtors	54,816	(22,996)
Research and development expenditure written off	36,862	12,592
Foreign exchange differences	( 4,010)	( 1,862)
	---------	---------

7. AUDITOR'S REMUNERATION

	2026	2025
	£	£
Fees payable for the audit of the financial statements	18,000	14,600
	---------	---------

8. STAFF COSTS

The average number of persons employed by the company during the year, including the directors, amounted to:

	2026	2025
	No.	No.
Production staff	38	38
Administrative staff	17	16
Management staff	3	3
	----	----
	58	57
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2026	2025
	£	£
Wages and salaries	2,395,853	2,122,520
Social security costs	285,870	199,988
Other pension costs	179,691	174,683
	-------------	-------------
	2,861,414	2,497,191
	-------------	-------------

9. DIRECTORS' REMUNERATION

The directors' aggregate remuneration in respect of qualifying services was:

	2026	2025
	£	£
Remuneration	305,942	283,647
Company contributions to defined contribution pension plans	15,297	14,183
	----------	----------
	321,239	297,830
	----------	----------

The number of directors who accrued benefits under company pension plans was as follows:

	2026	2025
	No.	No.
Defined contribution plans	3	3
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	2026	2025
	£	£
Aggregate remuneration	115,123	106,772
Company contributions to defined contribution pension plans	5,756	5,338
	----------	----------
	120,879	112,110
	----------	----------

10. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

	2026	2025
	£	£
Interest on cash and cash equivalents	4,815	36,609
	-------	---------

11. INTEREST PAYABLE AND SIMILAR EXPENSES

	2026	2025
	£	£
Interest on banks loans and overdrafts	6,039	12,569
Interest on obligations under finance leases and hire purchase contracts	7,891	7,358
Other interest payable and similar charges	18,867	21,441
	---------	---------
	32,797	41,368
	---------	---------

12. TAX ON PROFIT

Major components of tax expense/(income)

	2026	2025
	£	£

Current tax:

UK current tax expense	5,186	–
Adjustments in respect of prior periods	–	( 18,522)
	-------	---------
Total current tax	5,186	( 18,522)
	-------	---------

Deferred tax:

Origination and reversal of timing differences	107,439	( 34,357)
	----------	---------
Tax on profit	112,625	( 52,879)
	----------	---------

Reconciliation of tax expense/(income)

The tax assessed on the profit on ordinary activities for the year is higher than (2025: lower than) the standard rate of corporation tax in the UK of 25 % (2025: 25 %).

	2026	2025
	£	£
Profit on ordinary activities before taxation	369,353	442,619
	----------	----------
Profit on ordinary activities by rate of tax	92,338	110,655
Adjustment to tax charge in respect of prior periods	20,389	( 18,522)
Effect of expenses not deductible for tax purposes	651	651
Effect of capital allowances and depreciation	885	367
Effect of different UK tax rates on some earnings	(1,638)	–
Effect of unprovided deferred tax	–	(146,030)
	----------	----------
Tax on profit	112,625	( 52,879)
	----------	----------

13. TANGIBLE ASSETS

	Leasehold improvements	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 April 2025	171,268	159,473	134,324	202,320	667,385
Additions	94,389	69,619	80,300	41,830	286,138
Disposals	–	( 5,200)	( 7,792)	–	( 12,992)
	----------	----------	----------	----------	----------
At 31 March 2026	265,657	223,892	206,832	244,150	940,531
	----------	----------	----------	----------	----------
Depreciation
At 1 April 2025	55,815	130,411	102,017	67,547	355,790
Charge for the year	16,425	9,958	28,892	43,950	99,225
Disposals	–	( 5,200)	( 7,792)	–	( 12,992)
	----------	----------	----------	----------	----------
At 31 March 2026	72,240	135,169	123,117	111,497	442,023
	----------	----------	----------	----------	----------
Carrying amount
At 31 March 2026	193,417	88,723	83,715	132,653	498,508
	----------	----------	----------	----------	----------
At 31 March 2025	115,453	29,062	32,307	134,773	311,595
	----------	----------	----------	----------	----------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31 March 2026	132,654
	----------
At 31 March 2025	134,773
	----------

14. INVESTMENTS

	Other investments other than loans
	£
Cost
At 1 April 2025 and 31 March 2026	108,032
	----------
Impairment
At 1 April 2025 and 31 March 2026	108,032
	----------

Carrying amount
At 31 March 2026	–
	----------
At 31 March 2025	–
	----------

Investments in film scheme partnerships and joint ventures have now been fully impaired.

Subsidiaries, associates and other investments

	Class of share	Percentage of shares held
Subsidiary undertakings
Corrocell Ltd (Dormant)	Ordinary	100
Cath-Tech International Ltd (Dormant)	Ordinary	100

15. STOCKS

	2026	2025
	£	£
Raw materials and consumables	1,283,224	993,398
Work in progress	435,983	299,355
	-------------	-------------
	1,719,207	1,292,753
	-------------	-------------

16. DEBTORS

	2026	2025
	£	£
Trade debtors	2,481,963	3,066,103
Deferred tax asset	–	34,357
Prepayments and accrued income	450,563	272,351
Corporation tax repayable	22,109	–
Other debtors	55,709	37,356
	-------------	-------------
	3,010,344	3,410,167
	-------------	-------------

The debtors above include the following amounts falling due after more than one year:

	2026	2025
	£	£
Trade debtors	6,826	439,581
	-------	----------

17. CREDITORS: amounts falling due within one year

	2026	2025
	£	£
Bank loans and overdrafts	439,246	165,166
Trade creditors	1,320,927	842,261
Amounts owed to group undertakings	590,421	642,553
Accruals and deferred income	1,733,666	1,868,283
Corporation tax	–	159,763
Social security and other taxes	48,302	31,661
Obligations under finance leases and hire purchase contracts	50,203	40,420
Other creditors	69,768	185,610
	-------------	-------------
	4,252,533	3,935,717
	-------------	-------------

18. CREDITORS: amounts falling due after more than one year

	2026	2025
	£	£
Corporation tax	–	40,144
Obligations under finance leases and hire purchase contracts	36,233	57,146
	---------	---------
	36,233	97,290
	---------	---------

The corporation tax due over one year was part of a settlement agreement with HM Revenue & Customs on film scheme partnerships. It includes the interest payable on the overdue tax liabilities.

19. FINANCE LEASES AND HIRE PURCHASE CONTRACTS

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2026	2025
	£	£
Not later than 1 year	50,203	40,420
Later than 1 year and not later than 5 years	36,233	57,146
	---------	---------
	86,436	97,566
	---------	---------

20. PROVISIONS

	Deferred tax (note 21)
	£
At 1 April 2025	–
Additions	73,082
	---------
At 31 March 2026	73,082
	---------

21. DEFERRED TAX

The deferred tax included in the statement of financial position is as follows:

	2026	2025
	£	£
Included in debtors (note 16)	–	34,357
Included in provisions (note 20)	( 73,082)	–
	---------	---------
	( 73,082)	34,357
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2026	2025
	£	£
Accelerated capital allowances	76,409	52,302
Unused tax losses	( 839)	( 84,409)
Pension plan obligations	( 2,488)	( 2,250)
	---------	---------
	73,082	(34,357)
	---------	---------

22. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 164,394 (2025: £ 160,500 ).

23. GOVERNMENT GRANTS

The amounts recognised in the financial statements for government grants are as follows:

	2026	2025
	£	£

Recognised in other operating income:

Government grants recognised directly in income	27,295	–
	---------	----

24. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2026		2025
	No.	£	No.	£
Ordinary A shares of £ 1 each	76,000	76,000	76,000	76,000
Ordinary B shares of £ 1 each	24,000	24,000	24,000	24,000
Ordinary Deferred shares of £ 1 each	209,065	209,065	209,065	209,065
	----------	----------	----------	----------
	309,065	309,065	309,065	309,065
	----------	----------	----------	----------

25. RESERVES

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

26. CAPITAL COMMITMENTS

Capital expenditure contracted for but not provided for in the financial statements is as follows:

	2026	2025
	£	£
Tangible assets	–	12,788
	----	---------

27. OPERATING LEASES

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2026	2025
	£	£
Not later than 1 year	189,490	165,323
Later than 1 year and not later than 5 years	321,182	468,446
Later than 5 years	525,000	600,000
	-------------	-------------
	1,035,672	1,233,769
	-------------	-------------

28. OTHER FINANCIAL COMMITMENTS

The company has placed bonds with customers which guarantee tender prices for contracts or performance to specification of finished products. The total outstanding and potentially claimable on the guarantees as at 31 March 2026 was £1,204,832 (2025 - £1,634,082).

29. CONTROLLING PARTY

The immediate parent company is Hostombe Group Limited, a company registered in England and Wales, number 00348068. The consolidated financial statements of Hostombe Group Limited are available from Hostombe Group Limited, Fullwood Hall, Harrison Lane, Sheffield, South Yorkshire, S10 4PA.