Consolidated statement of cash flows

For the year ended 31 December 2025

Note

2025
£’000

2024
£’000

Cash flows from operating activities

Profit before tax

19,963

153

Adjustments for:


Depreciation and amortisation

11,12,13

8,890

8,983

Loss on disposal of assets

5

20

28

Finance costs

7

1,708

2,873

Share of profit from joint venture

10

(46)

(74)

Net exchange differences


22

524

Equity-settled share-based payments

25

1,674

1,077

Non-cash cost of closure of business

946

15,178

Operating profit before changes in working capital and provisions

33,177

28,742

(Increase)/decrease in trade and other receivables

(1,586)

1,539

Decrease in inventories

4,536

1,948

Increase/(decrease) in trade and other payables

4,466

(997)

Employee defined benefit contributions

24

(859)

(859)

Cash generated from operations

39,734

30,373

Interest paid

(1,561)

(2,515)

Income taxes paid, net of refunds

(3,024)

(2,857)

Net cash flows generated from operating activities

35,149

25,001

Cash flows from investing activities

Interest received

7

350

274

Purchases of intangibles

13

(262)

(3,306)

Purchases of property, plant and equipment

11

(13,963)

(10,342)

Proceeds from disposal of property, plant and equipment

11

700

39

Acquisition of subsidiary, net of cash acquired

4

(23,406)

–

Net cash used in investing activities

(36,581)

(13,335)

Cash flows from financing activities

Proceeds from exercise of share options

25

72

Repayment of borrowings

19

(14,584)

(8,357)

Proceeds from borrowings

19

25,931

6,750

Payment of principal portion of lease liabilities

12

(2,736)

(2,335)

Dividends paid to equity holders of the Company

9

(3,713)

(3,542)

Net cash from/(used in) financing activities

4,923

(7,412)

Net increase in cash and cash equivalents

3,491

4,254

Cash and cash equivalents at 1 January

10,534

6,294

Exchange losses on cash and cash equivalents

(43)

(14)

Cash and cash equivalents at 31 December

17

13,982

10,534

Cash and cash equivalents comprise cash at bank and short-term highly liquid investments with a maturity date of less than three months, per the breakdown in note 22.

The net exchange differences of £22k within operating activities relate to the foreign exchange movement on borrowings and open forward contracts in the income statement (2024: £524k).

Refer to note 19 for a reconciliation of liabilities arising from financing activities.

The notes to the accounts form an integral part of these financial statements.