REGISTERED NUMBER: 08300227 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 January 2026

for

SHEET PILING (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

Directors:

A J Cotton

I Patel

J O Hull

M A Lord

A D Ball

Secretary:

A J Cotton

Registered office:

Unit C Library Road

Clayton-Le-Woods

Chorley

Lancashire

PR6 7EN

Registered number:

08300227 (England and Wales)

Independent auditors:

S&W Audit

Pall Mall

1 Pollen Square

59 King Street

Manchester

M2 4PD

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

Principal activity

Sheet Piling (UK) Limited are one of the United Kingdom's leading sheet piling contractors with our head office in Chorley.

We specialise in all forms of driven or hydraulically pressed steel sheet piling works including permanent basements and retaining walls; along with all aspects of temporary works including steelwork bracing.

Our expertise covers a wide range of sectors including industrial, commercial and residential, road and rail infrastructure, ports and harbours and utilities.

Review of business

The results for the company show an operating profit of £5,025,832 (2025 - £4,442,627) for the year ended 31 January 2026 from a turnover of £37,938,213 (2025 - £39,477,093).

The decrease in turnover within the year was expected as a result of lack of government infrastructure investment and price inflation generally impacting on new project commencements.

The operating profit margin has improved to 13.2% (2025 - 11.3%) which demonstrates the company is able to implement consistency with both contract risk and cost controls given the reduced turnover during the period.

Cash at bank at the year end was £4,000,048 (2025: £7,679,356). The reduction reflects advance payments to steel mills for stock, amounts recoverable on contracts at the year end for vested materials and the purchase of own shares during the year.

The directors are satisfied with the performance of the company during the financial year.

Principal risks and uncertainties

The company is exposed to the usual credit risk and cash flow risk associated with selling on credit, and manages this through appropriate credit control procedures. The company is exposed to market risk as it predominantly supplies the construction industry.

The company is exposed to foreign exchange risk when purchasing assets and materials in foreign currencies. The company reduces this risk by continuously monitoring exchange rates, arranging forward purchases of forward currency and retaining high stock levels. Other than these forward purchases, the company does not use financial instruments as part of its financial risk management.

The company continues to experience inflationary pressure on steel, fuel, energy and labour costs. Continuing conflict and instability in the Middle East has added to volatility in energy and commodity prices, shipping costs and lead times. The company manages this through forward purchasing, holding stock and careful review of tender pricing and contract terms.

Changes to UK steel trade measures have increased cost and administration on imported steel, with reduced tariff-free quotas and a 50% duty above quota from 1 July 2026, and the UK Carbon Border Adjustment Mechanism (CBAM) applying from January 2027. The company reflects these in its sourcing and pricing.

Given the currency economic and political uncertainty in the UK, and in the construction sector in particular, the directors expect turnover to remain at or around current levels in the short term, as these factors continue to affect project starts.

Financial key performance indicators

The directors consider increasing operating margins and maintaining a manageable and sustainable turnover to be the key performance indicators, together with generating profits. Movements in these indicators are set out in the review of business above.

Future developments

Future developments include:

- Further reduction in the embodied carbon of steel products supplied, and improved carbon efficiency of all operations;

- Utilisation of existing stocks to maintain a competitive and stable pricing for clients, removing price uncertainty;

- Completion of the consolidation of pile storage and plant facilities;

- Modernisation and upgrading of plant, machinery and vehicles; and

- General improvements in the overall efficiency of the company.

Research and development

The company remains committed to innovation within the market sector of steel sheet piling, and continues to claim research and development and patent box relief.

Environment and embodied carbon

The company recognises the importance of reducing both the embodied carbon of the steel it supplies and the emissions from its own operations.

The company has supply arrangements in place with steel mills for the supply of low embodied carbon steel sheet piles produced via electric arc furnace route using a high proportion of recycled steel, supported by Environmental Product Declarations. This allows the company to offer clients a lower carbon option for both permanent and temporary works.

Since the year end, the company has switched its site vans to a hybrid fleet, reducing fuel use and emissions from site operations.

On behalf of the board:

A J Cotton - Director

26 October 2026

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

Principal activity

The principal activity of the company in the year under review was that of sheet piling contractors.

Dividends

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

Directors

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

A J Cotton

I Patel

J O Hull

Other changes in directors holding office are as follows:

A J Foy - resigned 31 March 2025

M A Lord - appointed 23 June 2025

A D Ball - appointed 5 January 2026

Purchase of own shares

During the year the Company repurchased and cancelled 3,001 ordinary £1 shares for total consideration of £2,970,000. Following the transaction, the issued share capital reduced from 15,003 shares to 12,002 shares.

Statement of directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

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

On behalf of the board:

A J Cotton - Director

26 October 2026

Opinion

We have audited the financial statements of Sheet Piling (UK) Limited (the 'company') for the year ended 31 January 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 January 2026 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through outsourcing accounts preparation and tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements; and

- UK taxation law.

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement including how fraud might occur. The areas identified in this discussion were:

- Manipulation of financial statements, especially revenue, amounts recoverable on contracts and asset and stock valuations, via fraudulent entries.

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

- Performing detailed substantive testing over material account balances, classes of transactions and disclosures that have a significant impact on profit and loss, including corroboration of supporting documentation and substantive analytical procedures;

- Assessing the appropriateness and reasonableness of management's key judgements and estimates relating to contract work and revenue recognition, and agreeing assumptions to supporting evidence;

- Conducting physical verification procedures of fixed assets to confirm their existence and completeness, together with undertaking asset valuation procedures to assess whether carrying values were reasonable;

- Conducting physical verification procedures over stocks held at the year end, together with stock valuation methodologies to ensure stock was stated at the lower of cost and net realisable value; and

- Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times through the use of data analytic software.

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.

Antony Sassen (Senior Statutory Auditor)

for and on behalf of S&W Audit

Pall Mall

1 Pollen Square

59 King Street

Manchester

M2 4PD

26 October 2026

Turnover

4

37,938,213

39,477,093

Cost of sales

(31,608,811

)

(33,560,934

)

Gross profit

6,329,402

5,916,159

Administrative expenses

(1,303,570

)

(1,473,532

)

Operating profit

7

5,025,832

4,442,627

Interest receivable and similar income

84,129

200,062

5,109,961

4,642,689

Interest payable and similar expenses

8

(88,376

)

(153,072

)

Profit before taxation

5,021,585

4,489,617

Tax on profit

9

(465,680

)

(210,460

)

Profit for the financial year

4,555,905

4,279,157

Other comprehensive income

-

-

Total comprehensive income for the year

4,555,905

4,279,157

Fixed assets

Intangible assets

10

18,758

13,742

Tangible assets

11

10,093,542

11,063,444

10,112,300

11,077,186

Current assets

Stocks

12

8,612,494

8,491,716

Debtors

13

8,496,183

4,282,209

Cash at bank

4,000,048

7,679,356

21,108,725

20,453,281

Creditors

Amounts falling due within one year

14

7,792,073

9,304,479

Net current assets

13,316,652

11,148,802

Total assets less current liabilities

23,428,952

22,225,988

Creditors

Amounts falling due after more than one year

15

(489,285

)

(1,281,590

)

Provisions for liabilities

18

(1,929,570

)

(1,520,206

)

Net assets

21,010,097

19,424,192

Capital and reserves

Called up share capital

19

12,002

15,003

Share premium

20

80,673

80,673

Capital redemption reserve

20

4,001

1,000

Retained earnings

20

20,913,421

19,327,516

Shareholders' funds

21,010,097

19,424,192

The financial statements were approved by the Board of Directors and authorised for issue on 26 October 2026 and were signed on its behalf by:

A J Cotton - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 February 2024

15,003

15,048,359

80,673

1,000

15,145,035

Changes in equity

Total comprehensive income

-

4,279,157

-

-

4,279,157

Balance at 31 January 2025

15,003

19,327,516

80,673

1,000

19,424,192

Changes in equity

Purchase of own shares

(3,001

)

(2,970,000

)

-

3,001

(2,970,000

)

Total comprehensive income

-

4,555,905

-

-

4,555,905

Balance at 31 January 2026

12,002

20,913,421

80,673

4,001

21,010,097

Cash flows from operating activities

Cash generated from operations

1

591,157

5,567,549

Interest element of hire purchase payments paid

(88,376

)

(153,072

)

Net cash from operating activities

502,781

5,414,477

Cash flows from investing activities

Purchase of intangible fixed assets

(5,016

)

(2,726

)

Purchase of tangible fixed assets

(2,683,126

)

(3,602,367

)

Sale of tangible fixed assets

2,385,827

1,608,437

Sale of current asset investment

-

2,168,854

Interest received

84,129

114,208

Net cash from investing activities

(218,186

)

286,406

Cash flows from financing activities

Capital repayments in year

(1,236,298

)

(1,197,919

)

Amount introduced by directors

242,395

-

Amount repaid to directors

-

(873,000

)

Share buyback

(2,970,000

)

-

Net cash from financing activities

(3,963,903

)

(2,070,919

)

(Decrease)/increase in cash and cash equivalents

(3,679,308

)

3,629,964

Cash and cash equivalents at beginning of year

2

7,679,356

4,049,392

Cash and cash equivalents at end of year

2

4,000,048

7,679,356

1.	Reconciliation of profit before taxation to cash generated from operations

2026

2025

£

£

Profit before taxation

5,021,585

4,489,617

Depreciation charges

1,368,721

1,478,517

Profit on disposal of fixed assets

(101,521

)

(11,938

)

Finance costs

88,376

153,072

Finance income

(84,129

)

(200,062

)

6,293,032

5,909,206

(Increase)/decrease in stocks

(120,778

)

3,666,730

Increase in trade and other debtors

(4,466,368

)

(1,418,782

)

Decrease in trade and other creditors

(1,114,729

)

(2,589,605

)

Cash generated from operations

591,157

5,567,549

2.	Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 January 2026

31/1/26

1/2/25

£

£

Cash and cash equivalents

4,000,048

7,679,356

Year ended 31 January 2025

31/1/25

1/2/24

£

£

Cash and cash equivalents

7,679,356

4,049,392

3.	Analysis of changes in net funds

At 1/2/25

Cash flow

At 31/1/26

£

£

£

Net cash

Cash at bank

7,679,356

(3,679,308

)

4,000,048

7,679,356

(3,679,308

)

4,000,048

Debt

Finance leases

(2,503,970

)

1,236,298

(1,267,672

)

(2,503,970

)

1,236,298

(1,267,672

)

Total

5,175,386

(2,443,010

)

2,732,376

1.	Statutory information

Sheet Piling (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The presentational and functional currency is £.

Going concern

The company made a profit during the year ending 31 January 2026. The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the job pipeline and future cashflows in undertaking their going concern review. Based on these assessments, given the current working capital available to the company, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual reports and accounts.

Significant judgements and estimates

In preparing these financial statements, the directors have had to make the following judgements:

- Determine whether leases entered into either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- Determine whether there are indicators of impairment of the tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and, where it is component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty

Amounts recoverable on contracts valuation

The valuation of amounts recoverable on contracts in excess of amounts certified requires management to estimate the value of work performed at the reporting date that has not yet been certified by customers. This includes the consideration of work completed and any amounts subject to ongoing discussion with customers.

Whilst the majority of balances are certified and invoiced shortly after the year end, certain balances are subject to estimation regarding recoverable and the outcome of commercial discussions. Management assess these balance using the latest contractual information and customer correspondence.

Changes in the outcome of these discussions or the recoverability of uncertified amounts could result in material adjustments to the value of contract assets.

Tangible fixed assets

The company owns a significant portfolio of steel piles which are deployed on customer contracts and are generally recovered for reuse on the completion of the works. The determination of the useful economic lives and residual values of these assets requires management judgement and estimation.

Estimates are based on factors including physical condition, anticipated recovery costs and market conditions. In certain circumstances, sheet piles may be sacrificed based on these factors.

Changes in these assumptions could result in material adjustments to the carrying value of tangible fixed assets.

Finished goods

The company holds finished goods comprising steel piling materials for use in future contracts. The valuation of these items requires management to assess their net realisable value, taking account of anticipated selling prices, future contract opportunities and market conditions.

Changes in market demand and steel prices may result in material adjustments to the carrying value of finished goods in future periods.

Turnover

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

a) Sale of goods

Revenue from sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

b) Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with customer certification when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract; and

- the stage of completion of the contract at the end of the reporting periods can be measured reliably.

c) Long-term contracts

Profit on long-term contracts is recognised as the work is carried out and if the final outcome can be assessed with reasonable certainty. The profit is calculated on a prudent basis to reflect the proportion of the work carried out by recording turnover and related costs as contract activity progresses. Turnover is calculated as the revenue certified to date and adjustments for work completed not yet certified. Revenue derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

straight line over the term of the lease

Plant and machinery

-

18% on reducing balance and 5% to 10% straight line

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on reducing balance

The directors consider that the estimated useful economic life of the company's freehold property exceeds 50 years, and that the residual value is not materially different from cost.

Accordingly, no depreciation is charged on the freehold property. Although this accounting policy is in accordance with FRS 102, it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors, compliance with the standard is necessary for the financial statements to give a true and fair view.

The carrying value of the freehold property is reviewed annually to assess whether there is any indication of impairment. If such an indication exists, the recoverable amount of the building is estimated and an impairment loss is recognised where the carrying value exceeds the recoverable amount.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.

Stocks

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

Financial instruments

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

(i) Financial assets

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

Such assets are subsequently carried at amortised cost using the effective interest method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

The current tax charge reflects estimates of available tax reliefs, including research and development relief and Patent Box relief where applicable. Where the finalisation of relief claims results in an over or under-provision of taxation recognised in the previous period, the adjustment is recognised within taxation in the period in which the amount is determined.

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.

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 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.

Current asset investments

Current asset investments are initially measured at cost and are subsequently re-measured at their fair value.

4.

Turnover

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

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

2026

2025

£

£

Sale of goods

4,989,767

5,200,659

Rendering of services

32,948,446

34,276,434

37,938,213

39,477,093

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

37,938,213

39,477,093

37,938,213

39,477,093

5.	Employees and directors

2026

2025

£

£

Wages and salaries

3,237,408

3,085,528

Social security costs

376,923

308,899

Other pension costs

49,028

249,094

3,663,359

3,643,521