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

The principal activity of the company and group continued to be the production, finishing, and where appropriate the coating of aluminium extrusions to high quality specifications.

Kaye Aluminium Holdings Limited is a Company incorporated and domiciled in England and Wales and has it registered office at its UK manufacturing facility, based at Ogden Road, Wheatley Hills, Doncaster, South Yorkshire.

The Kaye Aluminium Holdings Limited Group trades as Exlabesa, a brand owned by the Group.

The directors remain satisfied with the Group wide performance, despite difficult trading conditions for raw materials and energy.

The Group delivered turnover of £239.0 million (2024: £196.2 million), a 20% increase, driven by higher material prices, stabilised production, stronger international performance and full-​year contributions from international subsidiaries.

Key developments during the year included:

.

• The US subsidiary experienced an increase in turnover due to special market conditions during Trump goverment.

• Continued integration and corporate development of the Group with all companies showing a good performance throughout the year.

• Expansion of production capacity in Morocco, with a focus on increasing productivity and strengthening market share.

• Further development of innovative and higher-value aluminium solutions for the architectural and industrial markets.

• Continued focus on sustainability, energy efficiency and the use of recycled aluminium in the Group’s product portfolio.

The Group faced ongoing inflationary pressures, particularly in materials and labour, though energy costs stabilised. EBITDA increased to £19.9 million (2024: £18.0 million).

Overall, the Group remains in a strong financial and operational position, with Net Assets increasing to £111.6 million (2024: £97.9 million).

Sales and Profit Growth Risk: The Group operates in a highly competitive and evolving marketplace and remains exposed to changes in global economic conditions and adverse movements in foreign exchange rates. Uncertainty in market conditions may impact sales volumes, profitability and the achievement of the Group’s strategic objectives. The Group continues to monitor market developments closely and take appropriate actions to support sustainable growth and protect profitability.

Cost of Materials Price Fluctuations Risk: The Group is exposed to fluctuations in the prices of raw materials, particularly aluminium, which may have an impact on operating costs and profitability. The Group continues to closely monitor commodity prices and manage this exposure through cost control measures, purchasing strategies and, where appropriate, pricing actions.

Credit Risk: The Group is exposed to credit risk arising from the possibility that customers or other counterparties may fail to meet their contractual obligations. To mitigate this risk, the Group applies established credit control procedures and assesses the creditworthiness and payment history of customers before granting credit terms. In addition, the Group maintains trade credit insurance over certain customer balances to provide protection against potential losses arising from customer default. The Group continues to monitor outstanding receivables closely to minimise potential losses. Further information on the Group’s debtors is provided in Note 20 to the financial statements.

Liquidity/ cashflow

Our Directors and Senior Management team diligently monitor the group's cash flow on a regular basis, ensuring that we maintain a robust liquidity position. As of 31 December 2025, the Group held cash balances of £11.4 million (2024: £22.1 million). The reduction reflects ongoing capital investment in infrastructure and expansion activities.

These reserves enable us to meet our short-​term obligations promptly, provide for working capital needs, and capitalise on strategic opportunities as they arise. In addition to closely monitoring our cash position, we continue to assess and refine our liquidity risk management strategies to align with the evolving financial landscape.

Our proactive approach to liquidity risk management ensures that we are well-​prepared to navigate potential financial uncertainties, safeguarding the stability and continuity of our business operations. As part of our commitment to sound financial stewardship, we remain vigilant in monitoring, assessing, and adapting our liquidity management practices to uphold the financial health and resilience of the Group.

This Section 172 Statement has been prepared by the Board of Directors of Kaye Aluminium (Holdings) Limited, a leading aluminium extrusion business with operations in the United Kingdom, Poland, Morocco, France, Belgium, and the United States. As a responsible and sustainable corporate entity, we recognise the importance of the Companies Act 2006, which requires directors to have regard to various factors when promoting the success of the Group. This statement outlines how we have considered these factors in the course of our decision-​making and operations during the financial year ending 31 December 2025.

The Board's primary duty is to promote the success of the Group for the benefit of its shareholders, while also considering the interests of other stakeholders. To achieve this, we have taken into account various factors as stipulated in Section 172 of the Companies Act 2006.

Interests of Shareholders:

Our first responsibility is to our shareholders. We have consistently worked towards maximising shareholder value through prudent financial management, strategic investments, and efforts to increase profitability. Our financial performance in a difficult trading environment demonstrates our commitment to this duty.

Interests of Employees:

The Group employs a dedicated and skilled workforce of 420 staff across its locations in the UK, Poland, Morocco, the US, France and Belgium. We recognise the importance of our employees in the success of our business and have strived to create a safe, inclusive, and supportive work environment. We have invested in employee training, health and safety programs, and initiatives to enhance job satisfaction.

Interests of Customers:

Our business relies on maintaining strong relationships with our customers. We are committed to delivering high-​quality aluminium extrusion products and providing excellent customer service. We actively seek feedback from our customers to continuously improve our offerings and meet their evolving needs.

Interests of Suppliers:

We value our relationships with suppliers and understand that their reliability and quality directly impact our operations. We work closely with our suppliers to maintain mutually beneficial partnerships, fostering innovation, and ensuring supply chain resilience.

Impact on the Community and the Environment:

The Group is committed to operating responsibly and minimising our environmental footprint. We have implemented sustainability initiatives to reduce energy consumption, waste generation, and emissions.

Compliance with Legal and Ethical Standards:

We have maintained rigorous compliance with all relevant legal and ethical standards in all our operating regions. This includes adhering to local employment laws, environmental regulations, and international trade agreements. We are committed to conducting our business with integrity and transparency.

Long-term Success:

Our focus extends beyond short-​term financial gains. We have a clear long-​term strategy that encompasses sustainable growth, innovation, and adapting to changing market dynamics. We consider the long-​term interests of our stakeholders when making strategic decisions.

Conclusion

In conclusion, Kaye Aluminium Holdings Limited and Group recognises and embraces its responsibilities under Section 172 of the Companies Act 2006. We are committed to promoting the success of the while Company and Group considering the interests of our shareholders, employees, customers, suppliers, communities, and the environment. Our operations in the UK, Poland, Morocco France, Belgium, and the US reflect our dedication to responsible corporate governance and sustainable business practices. We will continue to review and adapt our approach to ensure we meet the evolving needs of our stakeholders while driving long-​term success.

Employees

The group continues to seek to recruit good quality staff and adopt progressive policies of internal and external training so as to maximise their performance.

Future Developments

The Board anticipates building upon the impressive historical growth and profitability achieved by the Group. We remain dedicated to seeking new investment opportunities that will further enhance the strength and resilience of our business. We are focused on upgrading the infrastructure of our businesses to align the Group's operational standards and to maximise synergies.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £877,287. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Maria Dolores Marino Gonzales acted as non-executive director throughout the year.

The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can adequately fulfilled by the handicapped or disabled person.

Where existing employees become disabled, it is the Company's policy wherever practicable to provide continuing employment under normal terms and conditions, and to provide training and career development and promotion to disabled employees wherever appropriate.

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

The Directors have had regard to the need to foster the Company's business relationships with customers, suppliers and other stakeholders when making principal decisions during the year. Further details of how the Directors have fulfilled their duties under section 172 of the Companies Act 2006, including the impact of stakeholder considerations on key decisions, are set out in the Strategic Report.

Subsequent to the year end, the directors approved a plan to transfer Exlabesa Building Systems trading operations to Spain, with the transfer expected to be completed during the year ending 31 December 2026.

Following the transfer, the Company will continue to receive income from royalty arrangements relating to intellectual property owned by the Company and will operate on a reduced scale to manage its ongoing activities.

As the decision to transfer the trade was made after the balance sheet date, the event does not provide evidence of conditions that existed at 31 December 2025 and accordingly no adjustment has been made to the amounts recognised in these financial statements.

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Whilst the overall group has consumed more than 40,000 kWh of energy in this reporting period, none of the individual UK subsidiaries are large as defined by the Companies Act. In preparing this group Director’s Report, we have taken advantage of the option to exclude any energy and carbon information relating to those subsidiaries.

As the parent entity has no trading activity, there is no energy and carbon information to be reported in respect of the parent entity.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• state whether applicable UK 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 group and company will continue in business.

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

Key risks and uncertainties, and future developments have been included in the separate Strategic Report in accordance with Section 414c (11) of the Companies Act 2006.true

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The Company and Group has considerable financial resources, as consequence the Directors believe that the Group is well placed to manage its business risks successfully.

We have audited the financial statements of Kaye Aluminium (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

Based on our understanding of the Company and Group, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

• Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

• Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

• Evaluation of management's controls designed to prevent and detect irregularities;

• Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

• Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 misrepresentation, or through collusion.

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

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £9,590,475 (2024 - £256,348 profit).

Kaye Aluminium (Holdings) Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office can be found on the General Information page.

The group consists of Kaye Aluminium (Holdings) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of the parent company Kaye Aluminium (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. The consolidation is based on uniform accounting policies across all group companies in all material aspects, and elimination of intra-group transactions.

Any goodwill arising on consolidation is written off on a straight line basis over the useful economic life of the asset, which is 10 years. A provision is made for any impairment.

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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. 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.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

The Financial Statements have been prepared on a going concern basis which the directors consider to be appropriate. The Company and Group has considerable financial resources, as a consequence the directors believe that the Group is well placed to manage its business risks successfully.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Where payments are received from customers in advance of goods provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

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

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Amortisation of intangible fixed assets is charged to administration expenses in the Consolidated Income Statement.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Assets under construction are stated at cost and comprise expenditure directly attributable to the construction or acquisition of the asset. Assets under construction are not depreciated as they are not yet available for use. Depreciation commences when the asset is complete and brought into the location and condition necessary for it to be capable of operating in the manner intended by management. At that point, the asset is transferred to the appropriate category of asset and depreciated over its estimated useful economic life.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

All of the Group's financial instruments are cash or basis debt instruments, comprising trade receivables and payables, other receivables and payables and a related party loan.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Subsidiaries within the group operate defined contribution plans.

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are charged to the profit or loss in the period during which services are rendered by employees.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

(a) Functional and presentation currency

Items included in the financial statements of each of the group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Pounds Sterling ("£" or "Sterling"), which is the group's presentation currency and rounded to the nearest £1.

(b) Transactions and balances

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.

(c) Group companies

The results and financial position of all the group entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the year end;

• income and expenses for each income statement are translated at average exchange rates; and

• all resulting exchange differences are recognised in other operating income.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In the Company’s individual accounts, investments in subsidiaries are measured at cost less provision for permanent diminution in value.

The carrying value of investments are reviewed annually for impairment. Impairment losses provided for any diminution in value are recognised in the Income Statement.

Any investment impairment is dependent upon assumptions which could change in the next financial year and could have a material effect on the carrying value of assets and liabilities at the Balance Sheet date.

The directors assess depreciation rates based on their collective experience and the manufacturer specifications of the assets. The directors take into consideration the historical performance of similar assets, both within the company and industry standards. Historical data is used to determine the expected patterns of asset usage and wear and tear.

It is important to note that estimating the useful economic life of assets inherently involves a degree of uncertainty due to the variables mentioned above. While every effort is made to make informed and reasonable estimates, future events and circumstances may differ from these estimates.

The valuation of closing finished goods stocks is a critical accounting estimate as it directly impacts the Company's/Group's reported assets, cost of goods sold, and ultimately, its profitability. The directors assess the valuation of closing finished goods stocks based on their standard cost price. This estimate is performed annually and incorporates the following key components material price, labour costs and overheads.

It is important to note that the valuation of closing finished goods stocks involves a degree of uncertainty. Fluctuations in input costs, production efficiency, and other factors may lead to deviations from the standard cost estimates.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

There were 6 (2024: 5) directors receiving remuneration, of which 2 (2024: 1) had recruitment benefits accruing under money purchase schemes.

Proceeds totalling £nil (2024: £1,236,548) relate to losses incurred by Exlabesa Extrusions (Doncaster) Limited in the prior year due to unscheduled downtime.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The directors have not obtained an independent valuation of the investment property during the year. Having considered the recent acquisition cost, current rental yields, local market conditions and the absence of significant changes in the property or market since acquisition, the directors consider the carrying value of £643,420 to be a reasonable estimate of fair value at the reporting date and is not impaired as at the reporting date.

Included in unlisted investments is £105,208 in respect of a 13% share holding in Exlabesa Extrusions Coimbra, a Company registered in Portugal.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Within the year the investment in Alu Stock S.A.R.L was disposed of.

The directors believe there to be no material difference between the replacement cost and the carrying value of the stock.

Security has been offered over balances included in the group accounts, by the following subsidiary companies:

Flandrialys BV & Flandria Aluminium

The loan facility in the French and Belgium subsidiary undertakings totalling £1,284,971 (2024: £1,735,802) are secured over the assets of the entities. The total security offered by the Flandrialys BV group of companies was £19,844,919 (2024: £20,162,483).

Exlabesa Extrusions Tifton

The Company had a line-of-credit available of $5,000,000 which is at a variable rate at 31 December 2025, on which $1,000,000 was drawn, translated at the year end rate at £726,466. The line is secured by equipment and fixtures, accounts receivables, and inventory.

Retirement benefits

A provision has been made for post retirement benefits in Poland. Polish law requires the employer to provide a further one month's salary to retiring employees. The calculation is at the present value at the Balance Sheet date totalling £112,855 (2024: £104,185 ).

Other provisions

Flandria Aluminium SAS recognised provisions for litigation and other risks totalling £248,028 (2024: £172,739).

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

UK subsidiaries have recognised deferred tax liabilities totaling £526,021 (2024: £667,820) has been recognised in respect of accelerated capital allowances at 25% the substantively enacted rate at the date of approval.

US subsidiaries have recognised deferred tax assets totaling £3,308,225 relating to net operating losses for federal income taxes, available for carryforward to future years and tax credit carryforwards for federal and state income taxes. The credits have annual usage limitations and have 5 or 10 year expiration dates depending on the year generates, with portions expiring beginning December 2030. The state carryforward is shown net of a valuation allowance, made due to uncertainty created by expiration dates, (2024: £43,285) in respect of operating losses carried forward, which were expected to be realised in the 2025 accounting period.

The US subsidiary has also recognised deferred tax liabilities totaling £4,443,415 (2024: £971,614) in respect of temporary timing differences.

Deferred tax assets totaling £299,378 (2024: £307,135) arising as a result of enhanced trading losses in Exlabesa Extrusions Opole SP ZOO due to the participation in the EC Special Economic Zone.

Flandria Aluminium SAS recognised deferred tax liabilities totaling £3,340,719 (2024: £2,956,665) in respect of accelerated capital allowances at the substantively enacted tax rate in France at the date of approval.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions payable to the fund at 31 December 2025 amounted to £7,162 (2024: £14,308) and are included in other creditors.

Each share ranks parri passu in respect of rights to vote, receive dividends and distributions upon wind up.

Minority interests represent a 12.92% holding in the issued ordinary share capital of Kaye Aluminium Tanger S.A.R.L.

Amounts contracted for but not provided in the financial statements:

Subsequent to the year end, the directors approved a plan to transfer Exlabesa Building Systems trading operations to Spain, with the transfer expected to be completed during the year ending 31 December 2026.

Following the transfer, the Company will continue to receive income from royalty arrangements relating to intellectual property owned by the Company and will operate on a reduced scale to manage its ongoing activities.

As the decision to transfer the trade was made after the balance sheet date, the event does not provide evidence of conditions that existed at 31 December 2025 and accordingly no adjustment has been made to the amounts recognised in these financial statements.

The remuneration of key management personnel is as follows.

During the year the group entered into the following transactions with related parties:

Companies that are controlled by certain directors and shareholders of Kaye Aluminium (Holdings) Limited.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The ultimate controlling party is the directors, by virtue of holding interest in 60% of the ordinary share capital.