REGISTERED NUMBER: 07193695 (England and Wales)

WELLAND POWER LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

to

7

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

to

20

DIRECTOR:

C L Farrow

REGISTERED OFFICE:

Unit 2

Welland Business Park

Clay Lake

Spalding

Lincolnshire

PE12 6BL

REGISTERED NUMBER:

07193695 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The director presents his strategic report for the year ended 31 March 2026.

REVIEW OF BUSINESS

The balance sheet remains robust, and the company continued to invest in facilities, employees, equipment and IT projects during the period to support productivity and margins.

Strong cash reserves have continued to provide the company with flexibility to respond to movements in material prices and to manage purchasing requirements.

During 2026/27, the company will continue to focus on protecting net margins in a challenging environment, with emphasis on employee productivity, material cost management and control of overheads.

PRINCIPAL RISKS AND UNCERTAINTIES

The company remains exposed to financial market movements, particularly foreign exchange volatility and the risk that a strengthening pound could affect export competitiveness. Volatility in material and energy costs, supply-chain disruption and the availability of skilled employees also remain key operational risks.

The company manages these risks through active monitoring of currency and input costs, disciplined purchasing and overhead control, and continued investment in its management and operational capabilities. The company remains well capitalised, with low net borrowing, and the medium-term outlook remains positive.

ON BEHALF OF THE BOARD:

C L Farrow - Director

6 October 2026

The director presents his report with the financial statements of the company for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of machinery manufacturers and dealers.

DIVIDENDS

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

DIRECTOR

C L Farrow held office during the whole of the period from 1 April 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

ON BEHALF OF THE BOARD:

C L Farrow - Director

6 October 2026

Opinion

We have audited the financial statements of Welland Power Limited (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 31 March 2026 and of its loss 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements.

We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, employment laws and quality management system.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included confirmation of valid ISO:9001 accreditation, a review of the company's employment and health and safety controls, to ensure no areas of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

7 October 2026

TURNOVER

3

11,356,817

14,868,106

Cost of sales

10,000,165

13,340,988

GROSS PROFIT

1,356,652

1,527,118

Distribution costs

13,597

22,063

Administrative expenses

1,345,589

1,462,370

1,359,186

1,484,433

(2,534

)

42,685

Other operating income

-

25,000

OPERATING (LOSS)/PROFIT

5

(2,534

)

67,685

Loan balance written off

6

98,400

78,560

(100,934

)

(10,875

)

Interest receivable and similar income

100,126

102,035

(808

)

91,160

Interest payable and similar expenses

7

67,234

77,839

(LOSS)/PROFIT BEFORE TAXATION

(68,042

)

13,321

Tax on (loss)/profit

8

(11,080

)

(7,895

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(56,962

)

21,216

(LOSS)/PROFIT FOR THE YEAR

(56,962

)

21,216

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(56,962

)

21,216

FIXED ASSETS

Tangible assets

9

536,212

695,853

CURRENT ASSETS

Stocks

10

3,355,909

4,186,027

Debtors

11

1,587,688

1,715,912

Cash at bank and in hand

25,850

813,044

4,969,447

6,714,983

CREDITORS

Amounts falling due within one year

12

1,770,087

3,508,052

NET CURRENT ASSETS

3,199,360

3,206,931

TOTAL ASSETS LESS CURRENT LIABILITIES

3,735,572

3,902,784

CREDITORS

Amounts falling due after more than one year

13

(114,840

)

(191,400

)

PROVISIONS FOR LIABILITIES

17

(114,327

)

(148,017

)

NET ASSETS

3,506,405

3,563,367

CAPITAL AND RESERVES

Called up share capital

18

1,200,001

1,200,001

Revaluation reserve

19

142,507

142,507

Retained earnings

19

2,163,897

2,220,859

SHAREHOLDERS' FUNDS

3,506,405

3,563,367

The financial statements were approved by the director and authorised for issue on 6 October 2026 and were signed by:

C L Farrow - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2024

1,200,001

2,199,643

142,507

3,542,151

Changes in equity

Total comprehensive income

-

21,216

-

21,216

Balance at 31 March 2025

1,200,001

2,220,859

142,507

3,563,367

Changes in equity

Total comprehensive income

-

(56,962

)

-

(56,962

)

Balance at 31 March 2026

1,200,001

2,163,897

142,507

3,506,405

1.	STATUTORY INFORMATION

Welland Power 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 as modified by the revaluation of certain assets.

The directors have assessed the company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements and have concluded that there are no material uncertainties that may cast significant doubt on the company’s ability to continue as a going concern.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of the exemption provided by 33.1A of FRS 102 not to disclose transactions entered into between members of a group, provided that any subsidiary which is party to the transaction is wholly owned by the parent entity.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised based on the terms of the sale, either on despatch from the company or on delivery and acceptance by the customer.

Tangible fixed assets

Assets are recognised using the revaluation model. Assets are recognised at revaluation value less subsequent accumulated depreciation to ensure that its carrying value does not differ materially from its fair value at the reporting date. This provides more reliable and relevant information about the financial position of the company.

Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.

Fair values are determined from market based evidence. The last revaluation was undertaken at 31 March 2018.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the profit or loss.

Revalued assets are subsequently being depreciated at rates varying from 12.5 % to 20% on revalued amount in order to write down assets to residual values over their remaining useful economic life.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, and after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Critical accounting judgements and estimation uncertainty

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

3.

TURNOVER

The turnover and loss (2025 - 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

3,197,649

3,706,301

Europe

97,523

(45,639

)

Rest of World

8,061,645

11,207,444

11,356,817

14,868,106

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

761,459

979,024

Social security costs

85,912

95,090

Other pension costs

5,051

27,171

852,422

1,101,285

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

2026

2025

Direct labour

16

24

Administration

10

9

26

33

2026

2025

£

£

Director's remuneration

10,060

10,060

Director's pension contributions to money purchase schemes

302

402

5.	OPERATING (LOSS)/PROFIT

The operating loss (2025 - operating profit) is stated after charging:

2026

2025

£

£

Hire of plant and machinery

13,597

22,063

Other operating leases

179,011

173,797

Depreciation - owned assets

162,391

159,575

Auditors' remuneration

13,950

13,300

Auditors' remuneration for non audit work

5,169

4,641

Foreign exchange differences

7,116

18,365

6.	EXCEPTIONAL ITEMS

The company wrote off an element of a non-trading loan outstanding to one of its customers on the basis that there were some doubts surrounding the full recoverability of the loan.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Bank loan interest

5,388

24,213

HMRC Interest

-

53

Other interest

53,758

42,826

Hire purchase interest

8,088

10,747

67,234

77,839

8.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2026

2025

£

£

Current tax:

UK corporation tax

22,610

8,366

Prior year adjustment

-

16,267

Total current tax

22,610

24,633

Deferred tax

(33,690

)

(32,528

)

Tax on (loss)/profit

(11,080

)

(7,895

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2026

2025

£

£

(Loss)/profit before tax

(68,042

)

13,321

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

(17,011

)

3,330

Effects of:

Expenses not deductible for tax purposes

62

-

Income not taxable for tax purposes

-

(5,856

)

Utilisation of tax losses

-

(21,402

)

Adjustments to tax charge in respect of previous periods

5,869

16,267

Change in tax rate

-

(234

)

Total tax credit

(11,080

)

(7,895

)

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST OR VALUATION

At 1 April 2025

1,422,579

151,716

1,574,295

Additions

2,750

-

2,750

At 31 March 2026

1,425,329

151,716

1,577,045

DEPRECIATION

At 1 April 2025

774,945

103,497

878,442

Charge for year

152,351

10,040

162,391

At 31 March 2026

927,296

113,537

1,040,833

NET BOOK VALUE

At 31 March 2026

498,033

38,179

536,212

At 31 March 2025

647,634

48,219

695,853

Cost or valuation at 31 March 2026 is represented by:

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

Valuation in 2017

88,903

4,950

93,853

Cost

1,336,426

146,766

1,483,192

1,425,329

151,716

1,577,045

If all tangible fixed assets had not been revalued they would have been included at the following historical cost:

2026

2025

£

£

Cost

620,631

620,631

Aggregate depreciation

443,844

443,844

Tangible fixed assets were valued on an open market basis on 31 March 2018 by relevant distributors of the products .

10.

STOCKS

2026

2025

£

£

Valuation

3,355,909

4,186,027

The difference between purchase price or production cost of stocks and their replacement cost is not material.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade debtors

1,528,534

1,570,709

Amounts owed by group undertakings

-

886

Other debtors

4,265

-

Directors' current accounts

19

1,671

VAT

-

14,330

Prepayments and accrued income

54,870

128,316

1,587,688

1,715,912

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts (see note 14)

329,258

557,997

Hire purchase contracts (see note 15)

76,560

76,560

Trade creditors

651,735

2,011,995

Amounts owed to group undertakings

544,646

790,888

Taxation

22,796

8,366

Other taxes and social security

21,364

23,426

VAT

1,151

-

Other creditors

4,919

7,100

Accruals and deferred income

117,658

31,720

1,770,087

3,508,052

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Hire purchase contracts (see note 15)

114,840

191,400

14.

LOANS

An analysis of the maturity of loans is given below:

2026

2025

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

329,258

5,079

Bank loans

-

552,918

329,258

557,997

15.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2026

2025

£

£

Net obligations repayable:

Within one year

76,560

76,560

Between one and five years

114,840

191,400

191,400

267,960