REGISTERED NUMBER: 14380655 (England and Wales)

Econ Engineering Group Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st March 2026

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

J R Lupton

Mrs B J Shepherd

T Ward

T Lupton

T Cross

SECRETARY:

Mrs B J Shepherd

REGISTERED OFFICE:

Econ Engineering

Boroughbridge Road

Ripon

North Yorkshire

HG4 1UE

REGISTERED NUMBER:

14380655 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

The directors present their strategic report of the company and the group for the year ended 31st March 2026.

REVIEW OF BUSINESS

The directors present their strategic report for the year ended 31st March 2026

REVIEW OF THE BUSINESS

The Group's trading subsidiary Econ Engineering Ltd, has delivered another successful year, driven by increased operational efficiency, investment in technology, and expanded production capacity at Ripon. A patent was secured for a new distributor product, strengthening Econ's product offering, while ongoing investment in research and development continues to support innovation and meet evolving customer requirements.

The Sowerby Service Centre continued to operate at full capacity, supporting both the hire fleet and the strong second-hand vehicle market. Servicing capacity was also increased at the Alloa, Cardiff, and Halesworth depots, enabling further growth of the hire fleet and continued high levels of customer service.

Investment in infrastructure remained a priority during the year, including the successful operation of solar panels at Ripon and Sowerby, site improvement works, and the acquisition of new equipment. A new laser cutting machine is due to be commissioned in the next financial year.

Econ also continued to invest in its IT infrastructure, with the implementation of a new ERP system nearing completion and all service engineers and depots now operating on the Econ's bespoke fleet management system. These investments are expected to support future growth and operational efficiency.

RESEARCH AND DEVELOPMENT

The technical development team at Econ have been working hard developing our next generation of electric vehicles and work is still ongoing to ensure we develop our product range further. Electrification of commercial vehicles are important with the environmental targets set by the government, and we are committed to be able to offer electric winter maintenance vehicles to our customers. Econ continues to research the use of other environmentally friendly vehicle solutions in conjunction with our current electric range.

Continuous development of navigational aids to assist drivers and the routes to be gritted are of upmost importance to our customers and Econ are developing control systems which are driver friendly whilst increasing the performance and accuracy of the gritter bodies.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group faces a number of risks and uncertainties that could affect its performance, including increases in material, labour and energy costs, supply chain disruption, the availability of components and skilled employees, and wider economic and geopolitical factors.

The Directors regularly review the performance of the business, including sales, operations, financial results, health and safety, and market conditions, to identify and manage potential risks.

The Group has established systems and controls to help minimise the impact of these risks. As an ISO 9001:2015 accredited business, we maintain a strong focus on quality, continuous improvement and operational efficiency.

The Group also monitors changes in legislation and industry regulations to ensure compliance, particularly in relation to product liability, health and safety, and environmental matters.

KPI's

The Group monitors a range of key performance indicators ("KPIs") to assess operational performance and support continuous improvement. The principal KPIs include hire fleet utilisation, market share within the winter maintenance sector, warranty costs as a percentage of turnover, production rework levels, and on-time delivery performance.

During the year, the Group achieved its targeted KPI measures, including maintaining hire fleet utilisation in excess of 90%, retaining a leading market position, keeping warranty costs below 2% of turnover, limiting production rework to less than 1% of production hours, and delivering more than 80% of works orders on schedule.

The Group also continues to review manufacturing processes to improve efficiency and productivity. The implementation of the new ERP system is expected to enhance management reporting and provide additional performance measures in future years.

SECTION 172(1) STATEMENT

The Directors have considered the matters set out in s172 part (1) (a) to (f) when performing their duty to promote the success of the company and actively consider the strategy most likely to promote success for its investors for the long term. This strategy has regard to the interests of the Group's employees and other stakeholders, including the impact of its activities on our community, the environment and the company's reputation when making key decisions.

We recognise that our employees are an invaluable asset to the Group and make every effort to regularly cascade relevant information to them and give an opportunity to them to provide feedback. As a responsible employer, we consider the implications of decisions on our colleagues and strive to provide a safe and rewarding working environment for all employed by the Group. We actively encourage participation in Health & Safety training and ensure all colleagues receive training appropriate to their role and responsibilities. This training is available throughout the organisation to enable the Groups's employees to continue to develop their skill set.

The Directors, and all employees, value our customers, and the provision of high-quality service is at the forefront of our decision making. Our relationship with our suppliers is also highly important to both our strategic goals and our ways of working. We aim to develop long term working relationships with both customers and suppliers by trading with them fairly and transparently, and promoting our mutual success.

STREAMLINED ENERGY AND CARBON REPORTING

This report has been prepared in accordance with the UK Streamlined Energy and Carbon Reporting (SECR) framework and in compliance with The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. It sets out Econ Engineering Ltd's greenhouse gas (GHG) emissions, intensity metrics, and carbon reduction actions for the calendar years 2023, 2024 and 2025. Data is derived from supplier invoices, meter readings, and fuel purchase records. Emissions are calculated using UK Government GHG Conversion Factors (2023).

Calendar year 2023 has been established as the company's baseline year against which future performance will be measured.

Greenhouse Gas Emissions (tCO2e)

2023

2024

2025

Scope 1 (Gas)

336

420

351

Scope 2 (Electricity)

315

321

242

Total

8,926

8,776

8,346

Year on Year Changes

Gas (Scope 1) decreased by 69 tCO2e due to reduced natural gas consumption across operations compared with 2024, resulting in lower direct combustion emissions.

Electricity (Scope 2) decreased by 79 tCO2e primarily because of the install of a further 1403 PV panels to the main factory.

Scope 3 emissions (raw materials and liquid fuels) decreased by 282 tCO2e due to lower consumption of raw steel, paint, diesel fuel and waste generation when compared with 2024 from streamlining product manufacturing and design.

Reporting methodology

Emissions have been calculated using the UK Government GHG Conversion Factors for Company Reporting (2023). Data sources include energy supplier invoices, meter readings, and fuel purchase records.

The organisational boundary for reporting is based on the operational control approach, meaning Econ Engineering Ltd reports on all emissions from operations where it has full control over policies and practices.

Scopes covered are:

- Scope 1: Direct gas combustion.

- Scope 2: Purchased electricity.

- Scope 3: Transport fuels, heating fuels, and other raw materials.

These represent the main contributors to CO2 emissions within the company and are the most quantifiable in relation to our processes, ensuring accuracy and consistency in reporting.

Electricity figures reported are location-based (grid average) and cover all Econ Engineering production and service sites.

This methodology, and the disclosures in this report, comply with the requirements of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Completed Carbon Reduction Initiatives

- Continued optimisation of the service depot spray booth and associated energy-efficient controls, contributing to reduced gas consumption compared with 2024.

- Ongoing waste minimisation programmes across facilities, resulting in a reduction in mixed municipal waste generated during 2025.

- Continued transition to lower-emission company vehicles and improved fleet management, reducing diesel consumption and associated emissions.

- Reduction in electricity consumption across operations through improved energy management and efficiency measures.

- Continued implementation of digital systems, reducing paper use and improving operational efficiency.

- Continued investment in greenspace and biodiversity projects across company sites.

- Workforce engagement and energy awareness initiatives to encourage efficient use of energy and resources throughout the business.

- Reduced consumption of raw materials and production consumables, including steel and paint, contributing to a reduction in Scope 3 emissions.

Future Carbon Reduction Initiatives

- Transition to battery powered hand tools from pneumatic reducing energy consumption

- Investigation of a Building Management System (BMS) at the Ripon manufacturing facility to optimise the operation of heating, ventilation, air conditioning and lighting systems, reducing energy consumption and associated carbon emissions.

- Continued development of on-site renewable energy generation through photovoltaic (PV) installations and associated energy-management infrastructure, building on renewable energy projects already completed across the business.

- Ongoing energy management and monitoring initiatives to identify, measure and implement further energy-efficiency opportunities across company operations.

- Continued assessment of fleet decarbonisation opportunities, including the future adoption of lower-emission and electric vehicle technologies.

- Continued evaluation of manufacturing energy-efficiency projects, including lighting optimisation, improved plant controls and process-efficiency improvements.

- Ongoing review of procurement and supply-chain practices to reduce the embodied carbon associated with purchased raw materials and production consumables.

Intensity Metrics (250 employees)

2025: 33.38 tCO2e per employee (based on 250 employees)

The intensity metric has been calculated on a per-employee basis, as this provides the most consistent and meaningful measure for Econ Engineering. Given the wide variation in the scale and type of products manufactured each year, production-based metrics would not provide a reliable benchmark. Employee numbers, by contrast, give a stable and comparable basis for tracking changes in carbon performance over time.

ON BEHALF OF THE BOARD:

J R Lupton - Director

22nd October 2026

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2026.

DIVIDENDS

The interim dividends for the period ended 31 March 2026 was £4,462,369.

DIRECTORS

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

J R Lupton

Mrs B J Shepherd

T Ward

T Lupton

Other changes in directors holding office are as follows:

T Cross was appointed as a director after 31st March 2026 but prior to the date of this report.

GOING CONCERN

The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to October 2027. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Smailes Goldie, will be deemed re-appointed under Section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J R Lupton - Director

22nd October 2026

Opinion

We have audited the financial statements of Econ Engineering Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2026 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including United Kingdom Accounting Standards (FRS102), the Companies Act 2006 and tax legislation. We also considered those laws and regulation that may have an indirect material effect in the financial statements including data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Fox FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

23rd October 2026

TURNOVER

3

59,933,922

58,292,535

Cost of sales

41,517,726

39,534,568

GROSS PROFIT

18,416,196

18,757,967

Distribution costs

1,125,489

1,155,674

Administrative expenses

2,424,072

2,299,556

3,549,561

3,455,230

14,866,635

15,302,737

Other operating income

30,032

26,270

OPERATING PROFIT

5

14,896,667

15,329,007

Interest receivable and similar income

1,187,044

1,419,674

16,083,711

16,748,681

Interest payable and similar expenses

6

1,548,550

1,464,133

PROFIT BEFORE TAXATION

14,535,161

15,284,548

Tax on profit

7

2,705,035

4,063,847

PROFIT FOR THE FINANCIAL YEAR

11,830,126

11,220,701

Profit attributable to:

Owners of the parent

11,830,126

11,220,701

PROFIT FOR THE YEAR

11,830,126

11,220,701

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

11,830,126

11,220,701

Total comprehensive income attributable to:

Owners of the parent

11,830,126

11,220,701

FIXED ASSETS

Negative goodwill

10

(600,000

)

(900,000

)

Tangible assets

11

68,525,620

69,718,716

Investments

12

-

-

Investment property

13

2,761,637

74,010

70,687,257

68,892,726

CURRENT ASSETS

Stocks

14

5,253,797

6,210,192

Debtors

15

17,599,843

15,960,490

Cash at bank

35,827,447

28,084,703

58,681,087

50,255,385

CREDITORS

Amounts falling due within one year

16

25,201,848

32,402,284

NET CURRENT ASSETS

33,479,239

17,853,101

TOTAL ASSETS LESS CURRENT LIABILITIES

104,166,496

86,745,827

CREDITORS

Amounts falling due after more than one year

17

(17,528,916

)

(18,563,471

)

PROVISIONS FOR LIABILITIES

20

(13,982,586

)

(2,895,119

)

NET ASSETS

72,654,994

65,287,237

CAPITAL AND RESERVES

Called up share capital

21

40,600,000

40,600,000

Retained earnings

22

32,054,994

24,687,237

SHAREHOLDERS' FUNDS

72,654,994

65,287,237

The financial statements were approved by the Board of Directors and authorised for issue on 22nd October 2026 and were signed on its behalf by:

J R Lupton - Director

FIXED ASSETS

Negative goodwill

10

-

-

Tangible assets

11

-

-

Investments

12

56,323,954

56,323,954

Investment property

13

-

-

56,323,954

56,323,954

CREDITORS

Amounts falling due within one year

16

9,376,818

9,473,821

NET CURRENT LIABILITIES

(9,376,818

)

(9,473,821

)

TOTAL ASSETS LESS CURRENT LIABILITIES

46,947,136

46,850,133

CREDITORS

Amounts falling due after more than one year

17

6,347,136

6,250,133

NET ASSETS

40,600,000

40,600,000

CAPITAL AND RESERVES

Called up share capital

21

40,600,000

40,600,000

SHAREHOLDERS' FUNDS

40,600,000

40,600,000

Company's profit for the financial year

4,462,369

3,011,316

The financial statements were approved by the Board of Directors and authorised for issue on 23rd October 2026 and were signed on its behalf by:

J R Lupton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2024

40,600,000

16,477,852

57,077,852

Changes in equity

Dividends

-

(3,011,316

)

(3,011,316

)

Total comprehensive income

-

11,220,701

11,220,701

Balance at 31st March 2025

40,600,000

24,687,237

65,287,237

Changes in equity

Dividends

-

(4,462,369

)

(4,462,369

)

Total comprehensive income

-

11,830,126

11,830,126

Balance at 31st March 2026

40,600,000

32,054,994

72,654,994

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2024

40,600,000

-

40,600,000

Changes in equity

Dividends

-

(3,011,316

)

(3,011,316

)

Total comprehensive income

-

3,011,316

3,011,316

Balance at 31st March 2025

40,600,000

-

40,600,000

Changes in equity

Dividends

-

(4,462,369

)

(4,462,369

)

Total comprehensive income

-

4,462,369

4,462,369

Balance at 31st March 2026

40,600,000

-

40,600,000

Cash flows from operating activities

Cash generated from operations

1

26,842,620

20,946,161

Interest paid

(337,560

)

(121,234

)

Interest element of hire purchase payments paid

(1,189,990

)

(1,321,899

)

Finance costs paid

(21,000

)

(21,000

)

Tax paid

139,060

3,227,647

Net cash from operating activities

25,433,130

22,709,675

Cash flows from investing activities

Purchase of tangible fixed assets

(6,989,934

)

(10,010,530

)

Purchase of investment property

(67,833

)

(11,220

)

Sale of tangible fixed assets

7,331,201

7,343,293

Interest received

1,187,044

1,419,674

Net cash from investing activities

1,460,478

(1,258,783

)

Cash flows from financing activities

Capital repayments in year

(14,688,495

)

(11,456,153

)

Equity dividends paid

(4,462,369

)

(3,011,316

)

Net cash from financing activities

(19,150,864

)

(14,467,469

)

Increase in cash and cash equivalents

7,742,744

6,983,423

Cash and cash equivalents at beginning of year

2

28,084,703

21,101,280

Cash and cash equivalents at end of year

2

35,827,447

28,084,703

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

2026

2025

£

£

Profit before taxation

14,535,161

15,284,548

Depreciation charges

16,252,244

14,842,465

Profit on disposal of fixed assets

(5,973,404

)

(6,400,355

)

Amortisation of intangible fixed assets

(300,000

)

(300,000

)

Finance costs

1,548,550

1,464,133

Finance income

(1,187,044

)

(1,419,674

)

24,875,507

23,471,117

Decrease/(increase) in stocks

956,395

(339,570

)

Increase in trade and other debtors

(495,162

)

(231,903

)

Increase/(decrease) in trade and other creditors

1,505,880

(1,953,483

)

Cash generated from operations

26,842,620

20,946,161

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31st March 2026

31/3/26

1/4/25

£

£

Cash and cash equivalents

35,827,447

28,084,703

Year ended 31st March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

28,084,703

21,101,280

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/25

Cash flow

At 31/3/26

£

£

£

Net cash

Cash at bank

28,084,703

7,742,744

35,827,447

28,084,703

7,742,744

35,827,447

Debt

Finance leases

(25,083,490

)

2,641,690

(22,441,800

)

Debts falling due after 1 year

(1,400,000

)

-

(1,400,000

)

(26,483,490

)

2,641,690

(23,841,800

)

Total

1,601,213

10,384,434

11,985,647

1.	STATUTORY INFORMATION

Econ Engineering Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to October 2027. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31st March 2026. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated statement of comprehensive income from the date of acquisition or up to the date of disposal.

Turnover

Turnover represents the net invoiced amounts in respect of sale and hire of goods, excluding value added tax.

Goodwill

Goodwill, being the amount in connection with the acquisition of a Econ Engineering Limited in 2023, has been amortised in full in a previous period. The fair value adjustment to assets will be amortised over a useful life of 5 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.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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

Freehold property - 2% to 25% on cost

Leasehold Property - Over the period of the lease

Plant & Machinery - 10% to 50% on cost

Motor Vehicles - 25% on cost

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset , or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

Investment property

Investment properties were subject to valuation by the directors who are not professionally qualified valuers. Any changes in fair value recognised in profit or loss. At the year end, the directors are of the opinion that the fair value of the investment property does not differ substantially from the current carrying value.