REGISTERED NUMBER: 00981453 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

BOWMILL ENGINEERING LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

16

DIRECTORS:

D A Boucher

M Donnan

M Leyshon

SECRETARY:

D A Boucher

REGISTERED OFFICE:

18-30 Morris Road

Nuffield

Poole

Dorset

BH17 0GG

REGISTERED NUMBER:

00981453 (England and Wales)

AUDITORS:

Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

There continued to be pressure on operating costs through 2025, particularly energy, materials and labour. However, revised pricing took effect on multi-year contracts held with three major customers, significantly contributing to improved financial performance in the Engineering business, compared to other post-covid years when margins were particularly stretched. Favourable pricing, productivity improvement, and high demand for its treatment services were the factors that drove exceptional results from the Metal Treatments business.

Group turnover for the year was £23,629,157 (2024: £18,524,377), an increase of 26%. Gross profit was £8,793,036 (2024: £4,538,648), an increase of 94%. Profit before tax was £4,471,899 (2024: £1,032,749), an increase of 333%. Profit after tax was £3,341,019 (2024: £825,592), an increase of 305%.

DEVELOPMENT AND PERFORMANCE

The directors anticipate that 2026 will be a year of consolidation; one in which the solid foundations of 2025 will be built upon. The company continues to be positioned well to benefit from buoyancy in the aerospace markets it serves.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's and the group's customers predominantly operate within the aerospace industry, in a global market. In addition to the pressures of a competitive market, the group is subject to market forces that are outside its control as it is affected by factors relating to the aerospace industry worldwide. Such factors include changes in government regulations and policies; political changes that could lead to changes in the business environment in which the group operates; economic downturns and public confidence in and attitudes towards flying in the light of issues such as terrorism and global warming.

The group addresses these risks and uncertainties by actively seeking to expand its customer base and platforms for its products. It maintains its existing customer base by continually striving to provide a fully integrated service based on a commitment to quality and on-time delivery. In this way, it aims to minimise the effect of any industry downturn.

SECTION 172(1) STATEMENT

Stakeholder engagement is an important area of focus for the Group. We ensure that we have open communication with our various stakeholder groups, creating a mutually beneficial relationship, and we use information gained through these relationships to make informed judgements when making key decisions.

The Directors recognise that the Group is run for the benefit of shareholders as a whole, but that the long term success of a business is dependent on maintaining relationships with stakeholders and considering the external impact of the Group's activities. Further to the above, the Directors understand that while they have a duty to promote the success of the Group, they must act in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so they must have regard (amongst other matters) to:

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the Group's business relationships with shareholders and others,

(d) the impact of the Group's operations on the community and the environment,

(e) the desirability of the Group maintaining a reputation for high standards of business conduct, and

(f) the need to act fairly as between members of the Group.

When making decisions, the Directors and senior management have had regard to the need to foster the Group's business relationships with key stakeholders such as shareholders, service providers and employees.

ON BEHALF OF THE BOARD:

D A Boucher - Director

19 October 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The company's principal activities continued to be those of precision engineering and provision of metal treatment processes to the aerospace industry. Its highly engineered products include landing gear kits and assemblies, hydraulic actuation equipment, and engine and oxygen components. The company's subsidiary, Bowmill Metal Treatments Ltd, specialises in a diverse range of metal treatments including non-destructive testing, anodising, cadmium plating and spray surface treatments.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £ 515,843 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

D A Boucher

M Leyshon

Other changes in directors holding office are as follows:

M Donnan - appointed 1 January 2025

GOING CONCERN

The Directors believe the Group and the Company will remain a going concern for a period not less than 12 months from the date of accounts approval and will have sufficient liquidity and resources to meet their liabilities and obligations as they fall due. Further details explaining the assessment are provided in the Note 3.1 of the Financial Statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Carter & Coley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D A Boucher - Director

19 October 2026

Opinion

We have audited the financial statements of Bowmill Engineering Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identification and assessment of potential risks

In identifying and assessing potential risks related to irregularities, including fraud and non-compliance with laws and regulations, we conducted:

- Meetings throughout the year with those charged with governance;

- Enquiries of management, including obtaining and reviewing supporting documentation, concerning material policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance relating to the detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

- Our reviews of the groups remuneration policies;

- Our assessment of any material transactions with related parties and key individuals; and

- Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes the Audit Partner and staff who have extensive experience of working in a similar industry, and this experience was relevant to the discussion about where fraud risks may arise.

Risks arising from legal and regulatory frameworks

We are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks in which the group operates, focusing on provisions of those areas that had a direct effect on the determination of material amounts and disclosures in the financial statements.

We did not identify any material audit matters related to the potential risk of fraud or non-compliance with laws and regulations from our work:

- Reviewing management override of controls;

- Testing the appropriateness of journal entries and other accounting adjustments;

- Assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

- Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated our assessment of the relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Edmund Cartwright FCCA FMAAT (Senior Statutory Auditor)

for and on behalf of Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

19 October 2026

TURNOVER

3

23,629,157

18,524,377

Cost of sales

14,836,121

13,985,729

GROSS PROFIT

8,793,036

4,538,648

Administrative expenses

4,170,108

3,078,405

4,622,928

1,460,243

Other operating income

130,646

13,665

OPERATING PROFIT

5

4,753,574

1,473,908

Interest payable and similar expenses

6

281,675

441,159

PROFIT BEFORE TAXATION

4,471,899

1,032,749

Tax on profit

7

1,130,880

207,157

PROFIT FOR THE FINANCIAL YEAR

3,341,019

825,592

Retained earnings at beginning of year

5,167,318

4,774,855

Dividends

9

(515,843

)

(433,129

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

7,992,494

5,167,318

Profit attributable to:

Owners of the parent

3,341,019

825,592

FIXED ASSETS

Tangible assets

10

4,291,157

4,608,868

Investments

11

Interest in associate

3,000

-

Other investments

-

3,000

4,294,157

4,611,868

CURRENT ASSETS

Stocks

12

5,664,014

5,775,954

Debtors

13

4,189,538

3,789,478

Cash at bank and in hand

1,011,015

65,029

10,864,567

9,630,461

CREDITORS

Amounts falling due within one year

14

5,437,274

6,942,879

NET CURRENT ASSETS

5,427,293

2,687,582

TOTAL ASSETS LESS CURRENT LIABILITIES

9,721,450

7,299,450

CREDITORS

Amounts falling due after more than one year

15

(872,751

)

(1,246,482

)

PROVISIONS FOR LIABILITIES

19

(826,205

)

(855,650

)

NET ASSETS

8,022,494

5,197,318

CAPITAL AND RESERVES

Called up share capital

20

30,000

30,000

Retained earnings

21

7,992,494

5,167,318

SHAREHOLDERS' FUNDS

8,022,494

5,197,318

The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2026 and were signed on its behalf by:

D A Boucher - Director

FIXED ASSETS

Tangible assets

10

3,814,540

4,069,171

Investments

11

3,004

3,004

3,817,544

4,072,175

CURRENT ASSETS

Stocks

12

5,557,036

5,670,165

Debtors

13

2,975,319

2,847,627

Cash at bank and in hand

253,895

61,456

8,786,250

8,579,248

CREDITORS

Amounts falling due within one year

14

3,905,980

7,328,126

NET CURRENT ASSETS

4,880,270

1,251,122

TOTAL ASSETS LESS CURRENT LIABILITIES

8,697,814

5,323,297

CREDITORS

Amounts falling due after more than one year

15

(848,646

)

(1,200,118

)

PROVISIONS FOR LIABILITIES

19

(722,174

)

(744,469

)

NET ASSETS

7,126,994

3,378,710

CAPITAL AND RESERVES

Called up share capital

20

30,000

30,000

Retained earnings

21

7,096,994

3,348,710

SHAREHOLDERS' FUNDS

7,126,994

3,378,710

Company's profit for the financial year

4,264,127

541,043

The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2026 and were signed on its behalf by:

D A Boucher - Director

Cash flows from operating activities

Cash generated from operations

1

5,471,250

1,698,387

Interest paid

(211,982

)

(360,139

)

Interest element of hire purchase payments paid

(69,693

)

(81,020

)

Tax paid

(267,774

)

-

Net cash from operating activities

4,921,801

1,257,228

Cash flows from investing activities

Purchase of tangible fixed assets

(521,011

)

(649,370

)

Sale of tangible fixed assets

11,501

8,190

Net cash from investing activities

(509,510

)

(641,180

)

Cash flows from financing activities

Bank loan repayments

(739,402

)

(290,020

)

Advances re trade payables

-

46,271

Advances re debt financing

-

1,023,120

Capital repayments in year

(2,176,958

)

-

Amount introduced by directors

-

433,129

Amount withdrawn by directors

(735,508

)

(515,843

)

Hire purchase advances

35,906

352,529

Hire purchase repayments

(58,117

)

(498,235

)

Government grants

-

7,200

Equity dividends paid

-

(433,129

)

Net cash from financing activities

(3,674,079

)

125,022

Increase in cash and cash equivalents

738,212

741,070

Cash and cash equivalents at beginning of year

2

(104,047

)

(845,117

)

Cash and cash equivalents at end of year

2

634,165

(104,047

)

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

2025

2024

£

£

Profit before taxation

4,471,899

1,032,749

Depreciation charges

830,439

666,126

(Profit)/loss on disposal of fixed assets

(3,218

)

6,330

Government grants

(7,200

)

(7,200

)

Finance costs

281,675

441,159

5,573,595

2,139,164

Decrease in stocks

111,940

342,841

Increase in trade and other debtors

(180,395

)

(818,011

)

(Decrease)/increase in trade and other creditors

(33,890

)

34,393

Cash generated from operations

5,471,250

1,698,387

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,011,015

65,029

Bank overdrafts

(376,850

)

(169,076

)

634,165

(104,047

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

65,029

431,994

Bank overdrafts

(169,076

)

(1,277,111

)

(104,047

)

(845,117

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

65,029

945,986

1,011,015

Bank overdrafts

(169,076

)

(207,774

)

(376,850

)

(104,047

)

738,212

634,165

Debt

Finance leases

(1,128,258

)

22,210

(1,106,048

)

Debts falling due within 1 year

(297,522

)

(23,586

)

(321,108

)

Debts falling due after 1 year

(441,882

)

322,609

(119,273

)

(1,867,662

)

321,233

(1,546,429

)

Total

(1,971,709

)

1,059,445

(912,264

)

1.	STATUTORY INFORMATION

Bowmill Engineering Ltd 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The functional and presentation currency of the Group and the Company is £ (GBP).

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of the business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent considerations after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for the final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at at cost less impairment.

Deferred tax is recognised on differences between the value of the assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Bowmill Engineering Ltd and all its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All the financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are as follows:-

- Tangible fixed assets are depreciated over their useful lives taking into account residual values where

appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of

factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

- Stocks and work in progress are reviewed annually for impairment. Such reviews require the exercise of

judgement by management and include the identification of slow moving and obsolete stock, an assessment of current orders and market conditions and the review of stock movements since the end of the reporting period.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Income is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

Straight line over 60 years

Short leasehold

-

in accordance with the term of the lease

Plant and machinery

-

20% on reducing balance, 15% on reducing balance and Straight line over 15 years

Fixtures and fittings

-

25% on reducing balance and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

Fixed assets are initially recognised at cost.

Investments in subsidiaries and associates

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are recognised at

transaction price. At the end of each reporting period financial assets are assessed for objective evidence of

impairment. Any impairment loss is recognised in the profit and loss account.

Basic financial liabilities, including trade and other creditors, bank loans and overdrafts and amounts owed to

other group companies that do not constitute a financing transaction are recognised at transaction price.

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 in one year or less. If not, they are presented as non-current liabilities.

Cash and cash equivalents comprise cash at bank and in hand. In the balance sheet, bank overdrafts are shown within current liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Provisions and contingencies

Provisions are recognised when the group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when it is not

probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date; or when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control.

Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

Going concern

The Directors believe the Group and the Company will remain a going concern for a period not less than 12 months from the date of accounts approval and will have sufficient liquidity and resources to meet their liabilities and obligations as they fall due.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of manufactured goods

18,381,853

14,683,937

Services

5,247,304

3,840,440

23,629,157

18,524,377