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

The company’s operating profit for the year ended 2025 was £798,584, compared to £1,066,447 in 2024. Despite this decline in operating profit, profit before tax increased significantly to £2,098,482 in 2025, up from £1,397,659 in the prior year as a result of increases in interest received. This improvement reflects a combination of operational efficiencies and strategic financial management.

We continue to experience rising operational costs and are actively implementing measures to manage and reduce these pressures.

In January 2025, we successfully integrated another group company, Red Diamond Distribution (RDD), into our operations. As part of the integration, all assets, and liabilities of RDD have been fully absorbed and are now reflected on our balance sheet. Additionally, trade activities conducted by RDD between January and March 2025 have been incorporated into our profit and loss results for the year. This acquisition is expected to enhance our operational capabilities and support the future growth trajectory of the business.

Overall, the company is experiencing positive trends across all areas of operation. We have also expanded into the UK’s Automated Guided Vehicle (AGV) sector, marking a strategic step in our diversification and innovation efforts.

The company is exposed to several financial risks as part of its normal operations. These include exchange rate risk, price risk, credit risk, and interest rate risk. Our approach to managing these risks is outlined below:

Exchange rate risk

The foreign currency exposure associated with new truck product purchases from our parent company is currently hedged by the parent. However, this hedging only delays the impact of currency fluctuations, which will eventually be reflected in the pricing structure.

Price risk

The marketplace remains highly competitive, particularly in end-user pricing. We are observing an increased presence of Chinese-manufactured products, which adds further pricing pressure. Additionally, many of our competitors source goods from the Eurozone, meaning they are similarly affected by currency volatility. Material cost fluctuations—particularly in steel and lead—continue to present challenges.

Credit risk

Given the current economic climate, we anticipate a potential increase in bad debts. However, we mitigate this risk through robust credit control procedures, which we believe sufficiently manage our exposure.

Interest rate

Due to the company's strong cash position, any changes in interest rates are not expected to have a material effect on financial results. The impact is likely to be limited to a modest reduction in interest income.

The Directors of Logisnext UK Limited present this Section 172 statement in accordance with the Companies Act 2006 (as amended). Throughout the financial year ended 31 March 2025, the Directors have acted in a way they consider most likely to promote the success of the Company for the benefit of its members, while having due regard to key stakeholder interests and long-term sustainability.

Decision-making is guided by regular engagement between the Board, senior management, and the wider Mitsubishi Logisnext Europe group. Operational matters are discussed weekly, with strategic matters reviewed monthly. Local decisions are aligned with the group’s strategic direction and are supported by robust governance, regular performance reporting, and quarterly financial audits to ensure transparency and accountability.

The Company maintains a strong focus on employee health, safety, and engagement, promoting an open and supportive workplace culture. Regular employee surveys help identify areas for improvement and development.

We continue to build long-term relationships with customers and suppliers, delivering bespoke, flexible materials handling solutions tailored to evolving customer needs. Our product offering increasingly focuses on electrification and reduced environmental impact, aligning with market and regulatory expectations.

External Stakeholders and the Environment

The Company places a high degree of emphasis on the importance of developing and fostering positive relationships with our external stakeholders, including customers and suppliers. A substantial proportion of our supply chain is within the Mitsubishi Logisnext Europe group, where we work closely with our group colleagues to develop effective processes to ensure good communication of product requirements and lead times to meet the requirements of our customers. We implement, and consistently review internal processes for improvement, to ensure supplier invoicing is reviewed and authorised efficiently and payments are made within agreed external supplier terms.

Our products are bespoke and made to order for each customer. Our sales teams work closely with their customers, developing close working relationships and a deep understanding of our customers’ business operations and requirements. This ensures that the correct materials handling products are identified, and specifications meet both the current and long-term needs of the customer. We aim to work in as flexible a manner as possible with customers, to ensure that the equipment and service we provide can adapt in line with the long-term development of their business needs.

The business, and the materials handling market as a whole, are increasingly moving towards the electrification of materials handling equipment and forklift trucks, in particular the use of lithium-ion batteries, with decreasing use of internal combustion engines as a power source. The business has historically focused on the electric vehicle market and has a focus on increasing use of developing technology that results in a lower environmental impact. Stricter government criteria and guidance is in place relating to emissions levels of equipment.

As part of Mitsubishi Heavy Industry’s global ESG strategy, we are actively supporting the group’s Mission Net Zero objective, which targets carbon neutrality by 2040. This includes a focus on low-emission technologies, responsible sourcing, and sustainable business practices across all areas of operation.

Ethics & Compliance

As part of the larger Mitsubishi Heavy Industry group, the Board place great importance on the culture and ethical behaviour sponsored by the group, our ultimate parent company and their ultimate shareholders. Throughout an ongoing process of integration within the Mitsubishi Logisnext Europe group we have supported the integration of group policies, such as the Code of Conduct, and ensured that local policies and the employee handbook are regularly reviewed and updated to align with these. Training is provided to all employees around these topics, to ensure awareness and understanding of these topics, as well as knowledge of where to access further information. Corporate governance and internal control systems are regularly reviewed and developed, with this process underpinned by the group Internal Audit function. As a subsidiary of the Mitsubishi Heavy Industry group, Logisnext UK Limited undertakes annual reporting under JSOX requirements and through a process of continuous review and improvement ensures our policies and procedures remain compliance with the JSOX regulations.

On behalf of the board

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

Future developments and financial risk management objectives and policies are considered in the strategic report.

The principal activity of the company during the year has continued to be the sale, rental and maintenance of fork-lift trucks and supply of spares.

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors recommend payment of a final dividend amounting to £8,000,000.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Ellacotts Audit Services Limited will continue in office as auditor since the company has elected to dispense with the annual reappointment of auditor as permitted by Sections 485-488 of the Companies Act 2006.

Within the period 01 April 2024 to 31 March 2025, the company has calculated its carbon emissions to be 951 tonnes CO2 equivalent to 3,391,526 kWh. This figure is made up of electricity and gas purchased for use in the premises, along with fuel emissions relating to transport of service engineer vans and cars (owned or leased by the business or business use of employee owned cars). Gas and electricity figures are based on actual quantities purchased. Fuel emissions are calculated using mileage during the period and the vehicle emissions rates. All conversions have been calculated in line with the Government conversions tables for the relevant period. This equates to 17,043 kWh per employee (199 employees).

The business, and the materials handling market as a whole, are increasingly moving towards the electrification of materials handling equipment and forklift trucks, in particular the use of lithium-ion batteries, with decreasing use of internal combustion engines as a power source. The business has historically focused on the electric vehicle market. Stricter government criteria and guidance is in place relating to emissions levels of equipment.

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 company’s auditor 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 company’s auditor is aware of that information.

The company’s business activities, together with the factors likely to affect its future development and position, are set out in the Strategic Report.

The company is expected to continue to generate positive cash flows on its own account for the foreseeable future, due to the long-term nature of maintenance contracts associated with the significant number of units in operation. The company participates in the group’s centralised treasury arrangements and so shares banking arrangements with its parent and fellow subsidiaries.

The directors, having assessed the responses of the directors of the company’s parent Mitsubishi Logisnext Europe BV (as from 01 April 2023) to their enquiries have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of Logisnext UK Limited to continue as a going concern or its ability to continue with the current banking arrangements. The Directors of Mitsubishi Logisnext Europe BV have provided a letter of support to reinforce that assertion.

On the basis of their assessment of the company’s financial position and of the enquiries made of the directors of Mitsubishi Logisnext Europe BV, the company’s directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

There have been no significant events since the balance sheet date.

The directors are responsible for preparing the strategic report, 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;

• 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 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.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of Logisnext UK Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the 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 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 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, 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.

As explained more fully in the directors' responsibilities statement set out on page 6, 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 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.

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.

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

As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:

• Enquiry of management and those charged with governance around actual and potential litigation and claims.

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

• Reviewing minutes of meetings of those charged with governance.

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

• Auditing the risk of management override of controls, including thorough testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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 company's member 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 member those matters we are required to state to the member 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The results above have been prepared on the basis that all operations are continuing operations.

There is no comprehensive income or expense other than the profit for the financial year and the preceding financial year.

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

Using the information available at the balance sheet date, the directors make judgements based on experience regarding the level of provision required to account for potentially uncollectable receivables.

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.

Estimations are made based on historic contract data as to the proportion of maintenance income that should be deferred to later years of the contract, this assumes that future contract costs will follow the historic trends/patterns and cannot take account of the intensity of each fleet operation or the environment in which the trucks operate both of which could have an effect on the estimations used in this calculation.

Warranty provision is based on the average historic truck, utilisation across all truck models with regard to the length of time the warranty from the factory will be applicable, this estimation is therefore subject to the variations driven by truck type and specific fleet utilisation of the customers which may alter from time to time.

Logisnext UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Jane Morbey Road, Thame, Oxfordshire, OX9 3RR.

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, and in accordance with Financial Reporting Standard 102 (FRS102) issued by the Financial Reporting Council. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;

• Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Mitsubishi Logisnext Europe BV. These consolidated financial statements are available from its registered office, Mitsubishi Logisnext Europe BV, Hefbrugweg 77, 1332 AM Almere, Netherlands.

Logisnext UK Limited is exempt under section 401 of the Companies Act 2006 from preparing consolidated accounts as it is included within the consolidated accounts of Mitsubishi Logisnext Europe BV. As such these accounts present the results of Logisnext UK Limited as a separate company.

The company is expected to continue to generate positive cash flows on its own account for the foreseeabletrue

future, due to the long-term nature of maintenance contracts associated with the significant number of units in

operation. The company participates in the group's centralised treasury arrangements and so shares banking

arrangements with its parent and fellow subsidiaries.

The directors, having assessed the responses of the directors of the company's parent Mitsubishi Logisnext

Europe BV to their enquiries, have no reason to believe that a material uncertainty exists that may cast

significant doubt about the ability of Logisnext UK Limited to continue as a going concern or its ability to

continue with the current banking arrangements. The Directors of Mitsubishi Logisnext Europe BV have

provided a letter of support to reinforce that assertion.

On the basis of their assessment of the company's financial position and of the enquiries made of the directors of Mitsubishi Logisnext Europe BV 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 represents amounts (excluding value added tax) charged for the provision of goods and services to customers. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

Rentals receivable under operating leases are accounted for on the straight-line basis over the period of the lease and are classified as turnover.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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 credited or charged to profit or loss.

Investments are stated at cost less any provision for impairment. They are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

Stocks are stated at the lower of cost and net realisable value, and include all costs incurred in bringing each product to its product location and condition.

For work in progress, cost is taken as production cost which includes an appropriate portion of attributable overheads.

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 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 other than where taking exemptions from disclosure as detailed in note 1.1.

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement 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.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions of being 'basic' financial instruments as defined in paragraph 11.9 of FRS102 are subsequently measured at amortised cost using the effective interest method.

Debt instruments that have no stated interest rate (and do not constitute financing transactions) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Commitments to make and receive loans which meet the considerations mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to cash flows from the financial asset expire or are settled b) the Group transfers to another party substantially all of the risk and rewards of ownership of the financial asset, or c) the Group, despite having retained some,but not all, significant risk and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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

Current tax including UK corporation tax, is provided as the amounts expected to be paid using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date based on the profit for the year.

Deferred tax is recognised, without discounting, in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tac in the future have occurred at the balance sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

Warranties for products

Provision is made for the estimated cost of any claims which may arise in respect of equipment sold under warranty and charged against profits at the point of sale. The provision is reduced to the extent that amounts are recoverable from warranties given by the company's suppliers.

Early termination costs

Provision is made for the expected cost of any claims from its wholly owned subsidiary, Logisnext Leasing UK Limited, in respect of lease agreements where an early break clause is expected to be exercised and is charged against profits. The company has underwritten any such costs, The provision is calculated by taking into account the number of contracts at risk, prior experience of the number of contracts having the clause applied and the variance between the written down value and the market value of all contracts that have exercised this option in the past.

Dilapidation costs

Provision for the estimated cost of meeting the company's obligations which may arise upon surrender of its leased premises are charged against profits.

Battery provision

Provision for the costs that may be incurred to repair/replace batteries where the lease term exceeds the useful life of the battery.

Residual value provision

Provision is made for leases entered into with Logisnext Leasing UK Limited where the residual value ('RV') either exceeds the group policy or currently available data indicates that there could be a potential shortfall in realising the RV at the end of the contract term.

Maintenance contracts

Maintenance contracts are accounted for in accordance with the requirements of Section 23 of FRS102. An amount of revenue and profit appropriate to the value of work completed is recognised in the period in order to match the maintenance income to the related costs.

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

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.

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

Operating lease rentals are charged to the profit and loss account on a straight-line basis over the period of the lease.

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account.

Dividends

Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised and are no longer at the discretion of the company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

No directors exercised any share options in the year (2024: nil).

The remuneration of other directors of the Company were borne by other companies within the Group.

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:

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

The carrying value of stocks approximate their replacement cost.

The company holds a £100,000 Trade Finance Bond with HMRC to cover import VAT and duty guaranteed by the bank - BNP Paribas.

The amounts owed to group undertakings is repayable on demand, interest free and settled net monthly.

The amounts owed by group undertakings is repayable on demand, interest free and settled net monthly.

Maintenance Provision - Costs to be incurred due to maintenance packages included as part of rental agreement on trucks.

Dilapidation provision - Costs incurred in connection with the remedy of lease units at the expiry of the lease term.

Battery provision - Costs to be incurred to replace batteries beyond their standard life of 5 years.

Other Provisions

Warranty provision - Net costs to be incurred during the eligible remaining warranty term of 2 years for units operating in the field.

Early termination provision - Finance leases that contain a clause enabling the customer to terminate the lease before the normal expiry date represent a risk underwritten by the company on behalf of Logisnext Leasing UK Limited. The provision is calculated by taking into account the number of contracts at risk, prior experience of the number of contracts having the clause applied and the variance between the written down value and market value of all contracts that have exercised this option in the past. These are in relation to contracts where the average term is 5 years 6 months.

Residual value provision - Provision is for the risk that residual values of leases are higher than the recoverable amount, a risk underwritten by the company on behalf of Logisnext Leasing UK Limited. These are in relation to contracts where the average term is 5 years 6 months.

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

Deferred tax assets are only recognised to the extent that the directors consider it more than likely than not that there will be suitable taxable profits from which the underlying timing differences can be deducted.

Logisnext UK Limited has an obligation for the unguaranteed residual values of assets leased under finance leases within Logisnext Leasing UK Limited at the reporting end date. The value of these are estimated at £5,835,000 (2024: £7,707,000).

The company operates a defined contribution pension scheme. The pension charge for the year represents contributions payable by the company to the scheme. Outstanding contributions at the end of the year amounted to £nil (2024: £nil).

The capital redemption reserve of £500,000 (2024: £500,000) represents an historic repurchase of 500,000 shares valued at £500,000 from Atlet AB - the purchase was a cash transaction financed from prior year profits.

Under section 33.1A of FRS102, the company is exempt from disclosing transactions with its fellow group companies as the consolidated financial statements of the ultimate parent company are available to the public (see Ultimate controlling party note.)

The company is a subsidiary undertaking of Mitsubishi Logisnext Europe BV, a company incorporated in The Netherlands. The parent of the smallest group which prepares consolidated accounts in which the results of the company are included is Mitsubishi Logisnext Europe BV, a company incorporated in The Netherlands. The consolidated accounts of Mitsubishi Logisnext Europe BV may be obtained from their registered office Mitsubishi Logisnext Europe BV, Hefbrugweg 77, 1332 AM Almere, Netherlands.

The ultimate parent company and controlling parent is Mitsubishi Heavy Industries Ltd, a company incorporated in Japan, this is the parent of the largest group in which the results of the company are consolidated. The consolidated accounts of Mitsubishi Heavy Industries Ltd may be obtained from their registered office 16-5, Konan 2-chrome, Minato-ku, Tokyo 108-8215, Japan, or available on the company's website at www.mhi.com.