REGISTERED NUMBER: NI063590 (Northern Ireland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

TEEMORE ENGINEERING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr V Wilson

Mr C Wilson

SECRETARY:

Mr C Wilson

REGISTERED OFFICE:

Knockaraven

Teemore

Enniskillen

Co. Fermanagh

BT92 9BL

REGISTERED NUMBER:

NI063590 (Northern Ireland)

SENIOR STATUTORY AUDITOR:

Thomas Samuel Patton

AUDITORS:

Patton Rainey Stenson Limited

Chartered Accountants and Statutory Auditors

6 East Bridge Street

Enniskillen

Co. Fermanagh

BT74 7BT

BANKERS:

Ulster Bank Limited

186 Main Street

Lisnaskea

Co. Fermanagh

BT92 OJF

SOLICITORS:

Edwards Solicitors

3rd Floor

61-67 Donegall Street

Belfast

BT1 2QH

The directors present their strategic report for the year ended 31 October 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review was that of the manufacture and supply of quality livestock equipment.

REVIEW OF BUSINESS

The directors consider the results for the year and the position of the company at the year end to be good and in line with expectations.

The profit before taxation for the year is £2,266,211 (2024: £2,063,278). This was achieved on a turnover of £22,692,121 (2024: £26,485,400). Net assets have increased to £11,676,844 (2024: £10,092,010). The directors are pleased with the companies performance over the year and its financial position at the year end,

The company's prospects for 2025/2026 remains solid and the directors view the outlook for the company to be good.

The company's key performance indicators are as follows:

2025

2024

£

£

Turnover

£22,692

£26,485

Gross Profit Margin

21.92%

20.35%

Operating Profit Margin

10.31%

7.9.%

Shareholders' Equity

£11,677

£10,092

SECTION 172(1) STATEMENT

The directors recognise their responsibility under Section 172(1) of the Companies Act 2006 to promote the success of the company for the benefit of the members as a whole and in doing so have regard to:

a. The likely consequence of any decisions in the long term;

b. The interest of the Company's employees;

c. The need to foster the Company's business relationships with suppliers, customers and others;

d. The impact of the Company's operations on the community and the environment;

e. The desirability of the Company maintaining a reputation for high standards of business conduct;

f. The need to act fairly between members of the Company.

The key points relating to these factors are considered below in the decision making process.

(a) The likely consequence of any decision in the long term

The directors are focused on a strategic plan which promotes the long-term viability of the company. This

strategy considers the various risks facing the business and concentrates on the long term sustainability of the

company.

(b) The interest of the Company's Employees

The company regards that a skilled and experienced workforce is one of its most important resources. The

health, safety and wellbeing of the company's employees remains a priority. The company is committed to

achieving the highest possible standards in health and safety management and strives to make all

sites and offices safe environments for employees and customers alike. Retention of key staff is critical

and there is relatively low turnover of personnel. Their knowledge and experience are vital in the company's

ability to serve customer requirements and to meet contractual obligations.

(c) The need to foster the Company's business relationship with suppliers, customers and others

The directors regularly review how the company maintains positive relationships with all of its stakeholders including suppliers, customers and others. Our continued successes have been founded on building strong

relationships with customers, working collaboratively with them, anticipating issues they face, providing

problem-solving solutions and using our expert capabilities to deliver satisfactory solutions. The company has an

extensive and valued supply chain who supply our business with the highest quality of product. Suppliers are

treated in a fair and consistent manner which includes prompt payment.

(d) The impact of the Company's operations on the community and the environment

The company recognises its corporate responsibility to carry out its operations whilst minimising environmental

impacts. The directors continually aim to comply with all applicable environmental legislation, prevent pollution

and reduce waste where possible. The aim of the company is to continue to reduce its carbon footprint and help make a contributions to the government's carbon reduction targets.

(e) The desirability of the Company maintaining a reputation for high standards of business conduct

The directors continue to take the responsibility of ensuring the company remains a good corporate citizen

seriously and consider that maintaining its strong reputation for the highest standards of business conduct to be

an important priority. Operating in well invested factories and having skilled employees are key to maintaining

the highest standards of product development.

(f) The need to act fairly between members of the Company

The company is a family owned business with a goal to ensure the continued success of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

Strong and effective risk management is a central strategy in the manner which the directors run the business.

The directors consider the principal risks and uncertainties faced by the company which are in the areas of safety, contract management, resourcing, finance and regulations.

The directors of the company manage these risks by a process of regular strategic reviews to assess competitor activity, market share allocation and design developments.

Internally the directors further manage these risks by close attention to health and safety, customer service levels, supplier contractual arrangements and steel sector standards.

In the directors opinion the risks and uncertainties facing the company are adequately addressed and managed.

FINANCIAL RISK MANAGEMENT

The company's operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk, price risk and currency risk. Given the size of the company the financial risk management is not delegated and is controlled by the directors.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The company reassesses credit risk on an ongoing basis.

Liquidity risk

The company has significant cash resources and uses a policy of advance payments on major contracts to finance working capital commitments. Liquidity risk is adequately addressed and managed sufficiently.

Price risk

The company is exposed to commodity price risk as a result of its operations. However given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Currency risk

The company is exposed to some currency risk and thus considers this on a regular basis.

The company remains committed to strong financial controls, cash management and prudent accounting policies.

GOING CONCERN

The company's activities, together with factors likely to affect its future development, performance and position are continuously reviewed by the directors. Review of cash flow, liquidity position and borrowing facilities leads the directors to believe that the company is well place to manage its business risks successfully despite any current economic uncertainties.

The company meets its day to day working capital requirements through its current cash levels. The directors are confident that the company has adequate resources to meet its normal business requirements for the foreseeable future, a period of at least 12 months from the date of signing the financial statements and therefore have continued to adopt the going concern basis when preparing the financial statements.

ON BEHALF OF THE BOARD:

Mr C Wilson - Director

11 September 2026

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

DIVIDENDS

The total dividends paid for the year ended 31 October 2025 will be £200,000 (2024: £120,000).

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 November 2024 to the date of this report.

The directors shown below were in office at 31 October 2025 but did not hold any interest in the Ordinary shares of £1 each at 1 November 2024 or 31 October 2025.

Mr V Wilson

Mr C Wilson

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). 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;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

AUDITORS

The auditors, Patton Rainey Stenson Limited, have indicated their willingness to continue in office and a resolution will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C Wilson - Director

11 September 2026

Opinion

We have audited the financial statements of Teemore Engineering Limited (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 October 2025 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 directors are responsible for the other information. The other information comprises the information in the 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 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 five, 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.

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

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.

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

We obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

We obtain an understanding of the company, the industry it operates in and the legal and regulatory framework that the company operates within. We focus on the provisions of these laws and regulations that have a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Pension, Tax and Health and Safety Legislation, together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty.

We tailored our response to these identified risks to include enquiry of management and external legal advisors concerning actual and potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate the risk of material misstatement due to fraud or other irregularities. Further we reviewed the correspondence with HMRC and other regulatory bodies.

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias. Further we evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Thomas Samuel Patton (Senior Statutory Auditor)

for and on behalf of Patton Rainey Stenson Limited

Chartered Accountants and Statutory Auditors

6 East Bridge Street

Enniskillen

Co. Fermanagh

BT74 7BT

11 September 2026

TURNOVER

3

22,692,121

26,485,400

Cost of sales

17,718,657

21,094,882

GROSS PROFIT

4,973,464

5,390,518

Administrative expenses

2,634,080

3,334,195

2,339,384

2,056,323

Other operating income

460

33,978

OPERATING PROFIT

5

2,339,844

2,090,301

Interest receivable and similar income

33,033

36,908

2,372,877

2,127,209

Interest payable and similar expenses

6

106,666

63,931

PROFIT BEFORE TAXATION

2,266,211

2,063,278

Tax on profit

7

481,377

460,252

PROFIT FOR THE FINANCIAL YEAR

1,784,834

1,603,026

PROFIT FOR THE YEAR

1,784,834

1,603,026

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,784,834

1,603,026

FIXED ASSETS

Intangible assets

9

19,825

13,530

Tangible assets

10

2,162,168

1,819,232

2,181,993

1,832,762

CURRENT ASSETS

Stocks

11

4,433,356

3,692,848

Debtors

12

8,558,364

5,217,110

Cash at bank

1,950,169

2,949,096

14,941,889

11,859,054

CREDITORS

Amounts falling due within one year

13

4,920,066

3,276,096

NET CURRENT ASSETS

10,021,823

8,582,958

TOTAL ASSETS LESS CURRENT LIABILITIES

12,203,816

10,415,720

CREDITORS

Amounts falling due after more than one year

14

(271,963

)

(135,939

)

PROVISIONS FOR LIABILITIES

18

(255,009

)

(187,771

)

NET ASSETS

11,676,844

10,092,010

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

11,676,744

10,091,910

SHAREHOLDERS' FUNDS

11,676,844

10,092,010

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2026 and were signed on its behalf by:

Mr C Wilson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2023

100

8,608,884

8,608,984

Changes in equity

Dividends

-

(120,000

)

(120,000

)

Total comprehensive income

-

1,603,026

1,603,026

Balance at 31 October 2024

100

10,091,910

10,092,010

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

1,784,834

1,784,834

Balance at 31 October 2025

100

11,676,744

11,676,844

1.	STATUTORY INFORMATION

Teemore Engineering Limited is a private company, limited by shares , registered in Northern Ireland. 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.

Going Concern

The company's activities, together with factors likely to affect its future development, performance and position are continuously reviewed by the directors. Review of cash flow, liquidity position and borrowing facilities leads the directors to to believe that the company is well placed to manage its business risks successfully despite any current economic uncertainties.

The company meets its day to day working capital requirements through its current cash levels. The directors are confident that the company has adequate resources to meet its normal business requirements for the foreseeable future and therefore they continue to adopt the going concern basis when preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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.

Revenue recognition

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes.

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, usually on dispatch of the goods, the amounts of revenue can be measured reliably, it is probable that future economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of four years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of twenty years.

Tangible fixed assets

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

(i) Depreciation and residual values

Depreciation is calculated, using the stated method, to allocate the depreciable amount to their residual values over the expected useful economic lives of the assets concerned. The principal annual rates used are as follows:

Leasehold Improvements

- 10% Straight line

Plant and machinery

- 20% on reducing balance

Fixtures and fittings

- 25% on reducing balance

Motor vehicles

- 25% on reducing balance

Computer equipment

- 20% on reducing balance

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

(ii) Subsequent additions and major components

Subsequent costs, including major inspections, are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the group and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Repairs, maintenance and minor inspection costs are expensed as incurred.

(iii) Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the income statement and included in cost of sales.

Stocks

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

Cost means purchase price including all costs in bringing the goods to their present condition and location.

Net realisable value is based on estimated selling price less any further costs expected to be incurred in the sale and distribution.

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 balance sheet date.

Deferred taxation

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.

Research and development

Expenditure on research and development is written off to the income statement in the year in which it is incurred.

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 company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in independently administered funds. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Cash and cash equivalents

Cash consists of cash on hand and demand deposits with banks. There are no cash equivalents included in the financial statements.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the directors.

Government grants

Grants that relate to specific capital expenditure are treated as deferred income which is then credited to the profit and loss account over the related assets' useful life. Other grants are credited to the profit and loss account when received.

Foreign currencies

Transactions denominated in foreign currencies are translated at the exchange rate at the date of the transactions. All assets and liabilities denominated in foreign currencies are translated at the rate ruling at the balance sheet date or the exchange rate of a related foreign exchange contract where appropriate. The resulting gain or loss is dealt with in the income statement.

Judgements in applying accounting policies and key sources of estimation uncertainty

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgements in applying the accounting policies of the company that have the most significant effect on the financial statements.

Valuation of stocks

As described previously stocks are valued at the lower of cost and net realisable value after making allowance for obsolete and slow moving items on an item by item basis. This valuation exercise was completed by the directors. Costs was based on the purchases price including all costs in bringing the goods to their present location and condition. Net realisable value is based on the directors' judgements of the future selling price less any further costs expected to be incurred in completion of the finished product and in the sale and distribution of the product. The directors will use their knowledge of the products, the market place and costs of conversion, sale and distribution to make an informed judgement as to the net realisable value of each product.

Allowance for impairment of trade debtors.

The company estimates the allowance for doubtful trade debtors based on assessment of specific accounts where the company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgement used was based on the best available facts and circumstances including but not limited to, the length of relationship.

Useful lives of depreciable assets

The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on the individual changes in assets and the classes of assets impacted.

Provision for liabilities

Provisions are recognised when the company has a present legal or constructive obligation as 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.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Contingent Liabilities

Contingent liabilities arise as a result of past events when (i) 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 (ii) when the existence will be confirmed by the occurance or non-occurance 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 not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefit is probable.

Related party transactions

The company discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the group financial statements.

3.

TURNOVER

The turnover relates to the company's principal activities which are carried on in the United Kingdom and Republic of Ireland.

4.	EMPLOYEES AND DIRECTORS

Period

1.5.23

Year Ended

to

31.10.25

31.10.24

£

£

Wages and salaries

1,960,043

2,514,238

Social security costs

215,457

244,320

Other pension costs

137,976

178,194

2,313,476

2,936,752

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

Period

1.5.23

Year Ended

to

31.10.25

31.10.24

Sales

12

10

Administration

10

11

Transport and construction

24

23

Production

22

17

68

61

Directors' remuneration

31.10.25

31.10.24

£

£

Directors' emoluments

84,861

99,556

Company contributions to defined contribution pension scheme

100,000

128,500

184,861

228,056

During the year retirement benefits were accruing to two directors (2024 - 2) in respect of a defined contribution pension scheme.

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.5.23

Year Ended

to

31.10.25

31.10.24

£

£

Hire of plant and machinery

15,736

-

Other operating leases

70,719

92,337

Depreciation - owned assets

226,511

275,250

Depreciation - assets on hire purchase contracts

72,560

125,067

Auditors' remuneration

7,000

5,000

Auditors' remuneration for non audit work

8,760

6,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.5.23

Year Ended

to

31.10.25

31.10.24

£

£

Bank interest and charges

55,074

41,612

Bank loan interest

22,383

19,520

Other Interest

21,704

-

Hire purchase interest

7,505

2,799

106,666

63,931

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

1.5.23

Year Ended

to

31.10.25

31.10.24

£

£

Current tax:

UK corporation tax

499,499

539,952

Corporation tax refund

(85,360

)

(70,534

)

Total current tax

414,139

469,418

Deferred tax

67,238

(9,166

)

Tax on profit

481,377

460,252

UK corporation tax has been charged at 25% (2024 - 25%).