REGISTERED NUMBER: 02489937 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 AUGUST 2024 TO 31 DECEMBER 2025

FOR

SUMMIT SYSTEMS LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Statement of Income and Retained Earnings

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

M C Jordan

I Lowe

M Ross

D Cavill

SECRETARY:

I Lowe

REGISTERED OFFICE:

Unit F Tame Park

Vanguard Wilnecote

Tamworth

Staffordshire

B77 5DY

REGISTERED NUMBER:

02489937 (England and Wales)

AUDITORS:

Magma Audit LLP (part of the Dains Group)

First Floor, Lakeside House

4 Smith Way

Grove Park

Leicester

Leicestershire

LE19 1SX

The directors present their strategic report for the period 1 August 2024 to 31 December 2025.

REVIEW OF BUSINESS

The 17-month period from 1 August 2024 to 31 December 2025 was a period of significant change for Summit Systems. Trading conditions remained challenging across parts of UK manufacturing and the wider industrial market. During the period Summit Systems took steps to reshape the business, simplify its structure and cost base and strengthen its approach to the market. The focus remained on key customers, technical capability, improved accountability and tighter operational and financial control. These changes are intended to position Summit Systems for improved profitability and sustainable growth.

Turnover for the 17-month period was £22.12 million. Summit Systems recorded a loss before tax of £1,372,740 and a loss after tax of £1,207,103. As the reporting period covers 17 months compared with 12 months in the previous year, the financial results are not directly comparable with the prior period. Summit Systems extended its accounting period to 31 December to align the financial year more closely with the reporting cycles of key suppliers.

Market conditions were affected by continued economic uncertainty, inflationary pressures and domestic and international political instability, which impacted customer confidence and investment decisions. Summit Systems experienced material increases in the cost of operating the business, including higher property rents, increased employment costs following changes to employer National Insurance from April 2025, and continued pressure on labour and freight. Conflict involving Iran and wider tensions in the Middle East also contributed to higher fuel prices and significant volatility in energy costs, increasing pressure across both Summit Systems and its customer base. Volatility in plastics and other input prices continued to affect the wider markets served by Summit Systems.

Management and organisational changes were made during the period as part of a wider restructuring of Summit Systems. The changes were focused on simplifying the organisation, reducing the fixed cost base and improving accountability, project delivery and financial control. While the changes created some short-term disruption, the management team believe they were necessary to strengthen the business and provide a more appropriate cost base going forward.

Summit Systems continued to develop its core activities across plastics automation, process cooling and the wider engineering solutions offered through Summit Dynamic Solutions. Dynamic Solutions continued to develop its position in a wider range of industries, building on Summit Systems' customer focus and technical expertise. Summit Systems continues to focus on strengthening relationships with key customers, improving project delivery and technical support, and investing in engineering and service capability.

The directors continue to monitor the principal risks and uncertainties which could have a material impact on Summit Systems' performance. Economic uncertainty and domestic and international political instability can affect customer confidence, investment decisions and future demand. Foreign currency exposure arises from trade with customers and suppliers abroad and is managed through appropriate purchasing and hedging decisions. Inflation and increases in labour, energy, freight and other material costs can place pressure on project margins and customer investment. Recruitment and retention of skilled employees remains important due to the specialist engineering and technical capability required by Summit Systems. Cyber security remains an operational risk and Summit Systems continues to invest in systems, controls and employee awareness. Customer concentration and credit exposure are monitored through ongoing commercial and financial review, while health and safety remains a key priority across engineering, fabrication, installation and service activities.

The focus for the period ahead is to return Summit Systems to sustainable profitability through improved margin control, project delivery and cost management. Summit Systems will continue to invest in engineering and service capability and to strengthen relationships with key customers. The management team remain confident that Summit Systems' technical expertise, established customer base and long-standing supplier relationships provide a strong platform for future development.

PRINCIPAL RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties which could have a material impact on the group's performance. The directors view the principal risks to be foreign currency, credit, supply chain disruption and economic uncertainty.

Foreign currency risk

Foreign currency exposure resulting from trade with customers and suppliers abroad is mitigated by a hedging policy adopted by the company.

Credit risk

Managing cashflow and credit risk is a priority of the company. All customers are subject to continuous credit checks to reduce exposure to bad debts and to maintain cashflow to support the working capital required for the operations within the business. Due to the volatility of the market we have added credit insurance across the business.

Supply chain disruption risk

The ability to deliver to our customers in a timely manner is a key priority for the business. We are working with our suppliers to give greater visibility to our requirements whilst reviewing the level of stock holding.

KEY PERFORMANCE INDICATORS

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and operating profit.

The company's turnover increased to £22,120,824 from £16,959,218, however the current reporting period covers 17 months compared with 12 months in the prior year. Operating loss (2024 - profit) has decreased to (£1,361,284) from £852,254 and a loss before tax (2024 - profit) has been made of (£1,372,740) (2024 - £842,730).

POST BALANCE SHEET POSITION AND SUBSEQUENT EVENTS

The year started positively with trading results in the year to date exceeding the budget set by directors.

The directors have assessed the financial position of the company as well as the uncertainty surrounding the current economic turmoil as part of its considerations surrounding the company's reviewing adoption of the going concern basis of accounting. Following this review the directors are confident that the company has adequate resources and ample working capital within the business to continue operating for the foreseeable future.

ON BEHALF OF THE BOARD:

M C Jordan - Director

3 November 2026

The directors present their report with the financial statements of the company for the period 1 August 2024 to 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the distribution of handling equipment for the plastics industry and the fabrication of associated components. Based on it's experience in the plastics industry the company also distributes ranges of recycling and cooling equipment.

DIVIDENDS

Interim dividends were paid amounting to £70,350 (2024 - £333,208). The directors recommend that no final dividend be paid.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2024 to the date of this report.

M C Jordan

I Lowe

M Ross

D Cavill

Other changes in directors holding office are as follows:

R J Last - resigned 30 August 2025

P A Perry - appointed 2 December 2024 - resigned 12 June 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M C Jordan - Director

3 November 2026

Opinion

We have audited the financial statements of Summit Systems Limited (the 'company') for the period ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2025 and of its loss for the period 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 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.

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 Directors' Report.

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 the industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements such as Companies Act 2006, health and safety regulations and employment law. We evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

-

discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

challenging assumptions made by management in their significant accounting estimates and judgements formed, in particular relating to stock provisions and useful economic lives of tangible assets; and

-

identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. The more 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 forgery or intentional misrepresentation, for example, 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 Auditors' Report.

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 an Auditors' 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Orton FCA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP (part of the Dains Group)

First Floor, Lakeside House

4 Smith Way

Grove Park

Leicester

Leicestershire

LE19 1SX

3 November 2026

TURNOVER

4

22,120,824

16,959,218

Cost of sales

(17,738,900

)

(12,546,070

)

GROSS PROFIT

4,381,924

4,413,148

Administrative expenses

(5,849,761

)

(3,618,418

)

(1,467,837

)

794,730

Other operating income

5

106,553

57,524

OPERATING (LOSS)/PROFIT

7

(1,361,284

)

852,254

Income from shares in group undertakings

5,164

-

Interest receivable and similar income

8

6,888

13,393

(1,349,232

)

865,647

Interest payable and similar expenses

9

(23,508

)

(22,917

)

(LOSS)/PROFIT BEFORE TAXATION

(1,372,740

)

842,730

Tax on (loss)/profit

10

165,637

(164,712

)

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(1,207,103

)

678,018

Retained earnings at beginning of period

3,533,786

3,188,976

Dividends

11

(70,350

)

(333,208

)

RETAINED EARNINGS AT END OF PERIOD

2,256,333

3,533,786

FIXED ASSETS

Tangible assets

12

601,391

397,280

Investments

13

150

150

601,541

397,430

CURRENT ASSETS

Stocks

14

1,991,181

2,275,333

Debtors

15

4,611,223

4,239,377

Cash in hand

945,769

1,675,818

7,548,173

8,190,528

CREDITORS

Amounts falling due within one year

16

(5,503,910

)

(4,688,095

)

NET CURRENT ASSETS

2,044,263

3,502,433

TOTAL ASSETS LESS CURRENT LIABILITIES

2,645,804

3,899,863

CREDITORS

Amounts falling due after more than one year

17

(19,660

)

(55,235

)

PROVISIONS FOR LIABILITIES

20

(348,756

)

(289,787

)

NET ASSETS

2,277,388

3,554,841

CAPITAL AND RESERVES

Called up share capital

21

21,055

21,055

Retained earnings

22

2,256,333

3,533,786

2,277,388

3,554,841

The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2026 and were signed on its behalf by:

M C Jordan - Director

Cash flows from operating activities

Cash generated from operations

1

(169,807

)

1,508,500

Interest paid

(15,717

)

(16,820

)

Interest element of hire purchase and finance lease rental payments paid

(7,791

)

(6,097

)

Tax paid/repaid

58,139

(471,909

)

Net cash from operating activities

(135,176

)

1,013,674

Cash flows from investing activities

Purchase of tangible fixed assets

(448,936

)

(152,543

)

Sale of tangible fixed assets

18,125

102,251

Interest received

6,888

13,393

Dividends received

5,164

-

Net cash from investing activities

(418,759

)

(36,899

)

Cash flows from financing activities

Hire purchase repayments in year

(57,464

)

(48,544

)

Amount introduced by directors

-

36,653

Amount withdrawn by directors

(48,300

)

-

Equity dividends paid

(70,350

)

(333,208

)

Net cash from financing activities

(176,114

)

(345,099

)

(Decrease)/increase in cash and cash equivalents

(730,049

)

631,676

Cash and cash equivalents at beginning of period

2

1,675,818

1,044,142

Cash and cash equivalents at end of period

2

945,769

1,675,818

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1/8/24

to

Year Ended

31/12/25

31/7/24

£

£

(Loss)/profit before taxation

(1,372,740

)

842,730

Depreciation charges

218,194

154,390

Loss/(profit) on disposal of fixed assets

8,506

(55,737

)

Finance costs

23,508

22,917

Finance income

(12,052

)

(13,393

)

(1,134,584

)

950,907

Decrease in stocks

284,152

145,646

(Increase)/decrease in trade and other debtors

(187,902

)

53,831

Increase in trade and other creditors

868,527

358,116

Cash generated from operations

(169,807

)

1,508,500

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:

Period ended 31 December 2025

31/12/25

1/8/24

£

£

Cash and cash equivalents

945,769

1,675,818

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

1,675,818

1,044,142

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/24

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

1,675,818

(730,049

)

945,769

1,675,818

(730,049

)

945,769

Debt

Hire purchase and finance leases

(95,797

)

57,464

(38,333

)

(95,797

)

57,464

(38,333

)

Total

1,580,021

(672,585

)

907,436

1.	STATUTORY INFORMATION

Summit Systems Limited is a private limited company, limited by shares, registered in England and Wales. The company's registered number is 02489937 and the registered office address is Unit F Tame Park, Vanguard Wilnecote, Tamworth, Staffordshire, B77 5DY.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statement 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.

In the current period, the year end has been changed from 31 July to 31 December. As a result of the change in accounting reference date, the current period covers 17 months and is therefore not directly comparable with the prior year.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Rendering of services

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

- the amount of revenue can be measured reliably;

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

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Rendering of goods

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 there with and the costs incurred in respect of the transaction can be measured reliably.

Other income

Other operating income comprises rental income receivable, net of VAT. Income is recognised on an accruals basis with adjustments made for accrued or deferred income as necessary to reflect income earned in the accounting period.

Tangible fixed assets

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

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows;

Leasehold property

-

Straight line over 10 years

Plant and computer equipment

-

10% - 33% straight line

Fixtures and fittings

-

10% - 25% straight line

Motor vehicles

-

25% straight line

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 credited or charged to profit or loss.

Investments in subsidiaries

Investment in the subsidiary company is held at cost less accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an average cost basis, comprising of 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.

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.

Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial 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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Cash and cash equivalents

Cash at bank and in hand 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.

Taxation

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

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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.

Research and development

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

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Employee benefits

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.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment, and note 2 for the useful economic lives for each class of assets.

(ii) Stock provisioning

The principal activity of the company is that of distribution of handling equipment for the plastics industry and the fabrication of associated components. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around the anticipated saleability of the stock. See note 14 for the net of provisioning carrying amount of stock.

4.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

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

Period

1/8/24

to

Year Ended

31/12/25

31/7/24

£

£

Product sales

21,748,972

16,590,755

Rentals

371,852

368,463

22,120,824

16,959,218

An analysis of turnover by geographical market is given below:

Period

1/8/24

to

Year Ended

31/12/25

31/7/24

£

£

United Kingdom

21,536,036

16,874,076

Europe

578,981

85,142

Rest of the world

5,807

-

22,120,824

16,959,218

5.	OTHER OPERATING INCOME

Period

1/8/24

to

Year Ended

31/12/25

31/7/24

£

£

Rents received

106,553

57,524

6.	EMPLOYEES AND DIRECTORS

Period

1/8/24

to

Year Ended

31/12/25

31/7/24

£

£

Wages and salaries

5,161,841

3,156,488

Social security costs

534,819

361,189

Other pension costs

594,023

283,155

6,320,683

3,800,832

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

2025

2024

External sales

13

10

Service

23

16

Technical

7

8

Operations

4

7

Administration

8

9

Marketing

2

2

Internal sales

4

5

Fabrications

6

4

Recyclate

-

3

Directors

5

5

Warehouse

5

5

77

74