REG - Chesterfield Special - 2025 Final Results
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RNS Number : 0095M Chesterfield Special Cylinders Hdgs 18 December 2025
18 December 2025
Chesterfield Special Cylinders Holdings plc
("CSC " or the "Company")
2025 Full-Year Results
Chesterfield Special Cylinders Holdings plc (AIM: CSC) is pleased to announce
its audited results for the 52 weeks to 27 September 2025 ("FY25").
The Annual Report and Financial Statements will be published on the Company's
website today.
Financial results
● Revenue increased 12% to £16.6 million (2024: £14.8 million)
● Gross profit up 22% to £6.4 million at 39% margin (2024: £4.9 million at 33%
margin)
● Adjusted EBITDA(1) profit of £0.8 million (2024: Adjusted EBITDA loss of
£0.9 million)
● Adjusted operating profit(2) of £43,000 (2024: Adjusted loss of £1.7
million)
● Reported loss before tax of £0.8 million (2024: loss of £2.7 million)
● Reported basic loss per share of 1.6p (2024: loss per share of 6.1p); Adjusted
basic loss per share(3) of 0.0p (2024: loss per share of 4.7p)
● Cash balance of £2.1 million (2024: £0.1 million)
● Nil borrowings (2024: £1.0 million). Asset finance lease liabilities and
right of use asset lease liabilities of £0.3 million (2024: £0.5 million)
1 Adjusted EBITDA is earnings / loss before interest, tax, depreciation,
amortisation and other exceptional costs
2 Adjusted operating profit / loss is operating profit/loss before
amortisation and other exceptional costs
3 Adjusted basic earnings / loss per share is reported earnings per share
before amortisation and other exceptional costs
Highlights
● Significantly improved full-year revenue of £16.6 million (2024: £14.8
million) reflected strong growth from overseas defence and UK hydrogen
contracts and from lifecycle services
● Adjusted EBITDA of £0.8 million (2024: Adjusted EBITDA loss of £0.9 million)
after central costs of £0.8 million (2024: £1.7 million), well ahead of
market expectations
● Proceeds from the sale of the PMC division in October 2024 strengthened the
Company's balance sheet and supported a significantly improved year-end net
cash position of £2.1 million (2024: £0.1 million)
● Strong order intake during FY25 of £23.4 million (2024: £13.1 million)
underpinned an order book of £16.3 million at the end of the period (2024:
£9.5 million)
● Defence revenue increased by 15% to £12.8 million (2024: £11.1 million),
reflecting strong growth from overseas contracts secured in the first half of
the year and from UK Integrity Management services
● Hydrogen revenue of £2.6 million (2024: £1.7 million) was the highest on
record and reflected in-factory lifecycle services and initial milestones for
the strategically significant bp Aberdeen Hydrogen Hub contract
● Record revenue in Integrity Management services of £4.8 million (2024: £2.4
million) reflected a peak in activity on major UK naval deployments throughout
the year
Strategy
● Good progress made towards 2028 targets with strategically significant
contracts secured in defence and hydrogen markets and record growth in
Integrity Management services
● The defence outlook for FY26 is underpinned by overseas defence contracts
secured in FY24 and FY25 for submarine and surface ship programmes for the
Royal Australian, Royal Canadian, US and Spanish navies
● CSC remains well positioned to secure strategically important defence
contracts over the longer term underpinning a strong outlook for newbuild
programmes in the UK and overseas from FY27 and beyond
● Potential contracts under UK HAR programmes drive expected revenue growth in
FY26 ramping up strongly from FY27 for both static storage and transportable
solutions
● Cooperation agreement with leading Type 4 composite cylinder manufacturer will
enable growth from the supply of lightweight hydrogen road trailers to meet UK
growing demand from FY27
● The longer-term outlook for Integrity Management services remains strong,
covering the in-situ lifecycle support and recertification of safety-critical
pressure systems, including future UK naval deployments
● Discussions with several overseas navies regarding Integrity Management
services for their existing surface ship and submarine fleets, with European
deployments expected during FY26
● Recent investment in skills and operational capability at the Sheffield
facility are driving efficiency improvements and underpinning plans for
revenue and margin growth to deliver mid-term targets to 2028
Outlook
● Robust defence order book and significant opportunities in the UK hydrogen
market underpin a positive outlook for significant earnings growth in FY26,
with contract revenues weighted heavily towards the second half of the year
● Further revenue and earnings growth is anticipated from FY27 onwards, driven
by the expansion of UK and overseas defence newbuild programmes and the
long-awaited rollout of large-scale UK hydrogen projects
● With significantly improved financial performance, strengthened balance sheet
and a clear strategic focus for the delivery of mid-term targets to 2028, the
Board looks forward with confidence to the year ahead and is excited about the
prospects for the Company over the medium to long term
Chris Walters, Chief Executive of Chesterfield Special Cylinders Holdings plc,
commented:
"We were pleased to deliver good strategic progress and significantly improved
financial performance in FY25, with earnings ahead of market expectations,
starting FY26 with a strong balance sheet and a positive outlook."
Additional Information
The person responsible for arranging release of this announcement on behalf of
the Company is Chris Walters, Chief Executive.
For further information, please contact:
Chesterfield Special Cylinders Holdings plc Tel: 0333 015 0710
Chris Walters, Chief Executive company.secretary@csc-holdings.com (mailto:company.secretary@csc-holdings.com)
Singer Capital Markets (Nomad and Broker) Tel: 0207 496 3000
Rick Thompson / Asha Chotai
COMPANY DESCRIPTION
www.csc-holdings.com (http://www.csc-holdings.com/) and
www.chesterfieldcylinders.com (http://www.chesterfieldcylinders.com)
Chesterfield Special Cylinders is a world-leading designer and manufacturer of
high-pressure gas storage and transportation systems, used principally in
safety-critical defence and hydrogen energy applications, and provides
inspection, testing and recertification services throughout the system
lifecycle.
Chair's statement
Chesterfield Special Cylinders Holdings plc (the "Company") is the parent
company of Chesterfield Special Cylinders Limited ("CSC"), which is recognised
as a world-leading designer and manufacturer of high-pressure gas storage and
transportation systems, used principally in safety-critical defence and
hydrogen energy applications, and provides inspection, testing and
recertification services throughout the system lifecycle.
This Annual Report covers the financial year ended 27 September 2025 ("FY25"),
during which CSC made good progress towards its 2028 targets, first announced
in February 2025, securing strategically significant contracts from key
hydrogen and overseas defence customers and record growth from Integrity
Management services.
The consolidated financial performance from continuing operations was
significantly improved over FY24, with a strong second half contributing to
full-year revenue of £16.6 million (2024: £14.8 million) and Adjusted
EBITDA(*) after central costs, well ahead of market expectations at £0.8
million (2024: Adjusted EBITDA loss of £0.9 million). The loss after tax for
the period was materially lower at £0.6 million (2024: £2.3 million loss).
Proceeds from the sale of the Precision Machined Components ("PMC") division
in October 2024 strengthened the balance sheet and supported a significantly
improved year-end net cash position of £2.1 million (2024: £0.1 million),
while providing future working capital flexibility. Following the sale of PMC,
there is a clear focus on the development and success of CSC and the
realisation of growth opportunities in defence and hydrogen energy markets and
in Integrity Management lifecycle services.
Strong order intake during FY25 of £23.4 million (2024: £13.1 million)
underpinned an order book of £16.3 million at the end of the period (2024:
£9.5 million).
* Adjusted EBITDA is defined as earnings / loss before interest, tax,
depreciation, amortisation and exceptional costs.
Defence
CSC continues to focus on the delivery of the existing order book for UK and
overseas defence customers and remains well positioned for further growth in
these markets over the medium term.
Defence revenue increased by 15% to £12.8 million (2024: £11.1 million),
reflecting strong growth from overseas contracts secured during the first half
of the year and record performance from UK Integrity Management deployments,
together offsetting reduced revenue from UK naval newbuild programmes nearing
completion.
The defence outlook for FY26 is underpinned by overseas defence contracts
secured in FY24 and FY25 for submarine and surface ship programmes for the
Royal Australian, Royal Canadian, US and Spanish navies. Further overseas
defence contract awards are expected in Q1 2026.
Over the longer term, the backdrop of geopolitical tensions and the
well-documented increasing global defence budgets underpin a strong outlook
for newbuild programmes in the UK and overseas. These include initial
milestones for the SSN-A (AUKUS) Astute submarine replacement programme
expected from FY27, future opportunities in the US submarine programme from
FY28 and wider overseas surface ship and submarine newbuild opportunities. CSC
remains well positioned to secure these strategically important defence
contracts.
Hydrogen
Hydrogen revenue of £2.6 million (2024: £1.7 million) was the highest on
record and reflects in-factory lifecycle services for static storage and road
trailers and initial milestones for the bp Aberdeen Hydrogen Hub contract,
secured in the first half of the year.
The delayed rollout of UK government funded hydrogen projects has been
frustrating for developers and the wider supply chain. However, in April 2025,
the UK government reaffirmed its commitment to support domestic green hydrogen
production growth through the Hydrogen Allocation Rounds (HAR). Overall, ten
HAR1 projects have been approved by the government and a shortlist of 27 HAR2
projects has also been announced. CSC is actively engaged and strongly
positioned with key developers regarding storage and transport systems for
HAR1 and HAR2 newbuild contracts, which are expected to be operational between
2026 and 2029. These potential contracts are expected to drive newbuild
revenue growth from HAR1 during FY26, ramping up strongly with HAR2 from FY27.
One major contract award under HAR1 that was previously expected in Q4 2025 is
now expected in Q1 2026 and we expect our first HAR2 contract awards within
FY26 for delivery during FY27.
The anticipated growth in green hydrogen production and offtake from HAR and
privately funded projects is driving fleet expansion plans for hydrogen road
trailers in the UK. CSC has signed a cooperation agreement with a leading
European Type 4 composite cylinder manufacturer, enabling the integration and
supply of advanced lightweight modular hydrogen storage systems and road
trailers to meet this growing UK demand from FY27.
Integrity Management services
Record revenue in Integrity Management of £4.8 million (2024: £2.4 million)
reflects a peak in activity on major UK naval deployments throughout the year.
The longer-term outlook for Integrity Management services remains strong,
covering the in-situ lifecycle support and recertification of safety-critical
pressure systems, including future UK naval deployments. CSC is in discussions
with several overseas navies regarding Integrity Management services for their
existing surface ship and submarine fleets, with European deployments expected
during FY26.
Strategy
Our strategy and mid-term targets to 2028 were set out in the 2024 Annual
Report as follows:
· Deliver revenue over £30 million
· Double high-value overseas defence sales to underpin a 40%
increase in overall defence sector revenue
· Grow hydrogen sales to 30% of total revenue, through newbuild
static storage and trailer projects
· Double Integrity Management service sales through growth in
existing UK and new overseas markets
· Maintain 30% of revenue from high-value lifecycle support
services, including in-situ Integrity Management and factory-based retesting
and recertification
· Deliver sustainable Adjusted EBITDA margins above 15% before
central costs
Good strategic progress was made during FY25, as follows:
· Divest non-core PMC division
o PMC sale proceeds used to strengthen the balance sheet and provide working
capital flexibility. No further cash consideration is expected in relation to
the sale of PMC
· Defence
o Overseas defence contracts secured for the Royal Australian, Royal
Canadian and Spanish navies, underpinning the defence order book for FY26 and
beyond
o Qualification contract secured to supply US submarine newbuild programme
progressing well, with initial product delivery expected in Q1 2027
· Hydrogen
o Highest revenue performance on record for hydrogen projects
o Contract secured to supply large-scale storage to bp Aberdeen City
hydrogen hub
o Positioning for FY26 contract awards across UK HAR1 and HAR2 programmes
o Type 1 steel and Type 4 composite road trailer products launched in the UK
market
o French refuelling station project secured, delivery in FY26
· Lifecycle Services
o Highest revenue performance on record for UK Integrity Management naval
deployments
o Advanced discussions with European navies and their prime contractors,
orders expected in FY26
Outlook
A robust defence order book and significant opportunities in the UK hydrogen
market underpin a positive outlook for significant earnings growth in FY26,
with contract revenues weighted heavily towards the second half of the year.
Further strong revenue growth is anticipated from FY27 onwards, driven by the
expansion of UK and overseas defence newbuild programmes and from the rollout
of large-scale hydrogen production through UK HAR projects.
With significantly improved financial performance, strengthened balance sheet
and a clear strategic focus for the delivery of mid-term targets to 2028, the
Board looks forward with confidence to the year ahead and is excited about the
prospects for CSC over the medium to long term.
Nick Salmon
Chair
Strategic report
Overview
Chesterfield Special Cylinders ("CSC") is a world-leading designer and
manufacturer of high-pressure gas storage and transportation systems, used in
safety-critical applications across defence, hydrogen, energy and industrial
markets. CSC is one of only five companies globally that can compete for ultra
large cylinder contracts to meet the demanding safety and performance
standards specified for these industries. As a trusted OEM, CSC also provides
mandatory inspection, testing and recertification services throughout the
system lifecycle.
CSC's high-pressure cylinders and storage packages are mission-critical
components in many end user applications, including several high-pressure
systems on naval submarines and surface vessels, safety systems on fighter
jets, hydrogen storage and transportation for refuelling and energy supply,
air pressure vessels in offshore motion compensation systems, breathing air
systems on dive support vessels and bulk storage and transportation of
industrial gases, including road trailers.
Lifecycle services are a growing part of the CSC business. In-factory
inspection, testing and reconditioning services extend the life of bulk gas
storage systems and road trailers to meet demanding safety standards and
mandatory recertification requirements. Where systems cannot be removed for
period maintenance, CSC's in-situ Integrity Management services minimise
operational disruption and increase system availability, while enabling
mandatory recertification. Together, these lifecycle services have been built
on CSC's unrivalled industry knowledge and OEM experience.
All product design, manufacturing and in-factory recertification work is
undertaken at CSC's facility in Sheffield, UK. In-situ Integrity Management
teams deploy to projects in the UK and overseas, working onshore and offshore.
Purpose, vision and strategy
Our purpose, vision and strategy are focused on the development and growth of
CSC through the supply of safety-critical pressure systems and lifecycle
services, principally across defence and hydrogen energy markets.
Building on our proud 120-year heritage, we will continually develop and grow
our brand and reputation through product quality and customer service,
underpinned by the motivation and commitment of our skilled, engaged and
empowered workforce.
Purpose
Our purpose is the design, manufacture and lifecycle support of systems that
deliver value for customers in demanding, safety-critical environments where
the consequences of system failure could be catastrophic. This purpose
addresses three key areas:
Safety
o Meeting demanding international standards for system design and
manufacture, enabling customers to meet their safety responsibilities
Performance
o Innovative and cost-effective designs, delivered on time, enabling
customers and end users to meet their operational goals
Assurance
o Lifecycle support to maximise operational availability and maintain
compliance with mandatory safety requirements through life
Vision
Our vision is to create value for customers, shareholders and other
stakeholders through the development and growth of CSC as a world-leading
supplier of gas storage and transportation systems and lifecycle services.
This vision was first set out in the 2024 Annual Report in the form of
mid-term targets to 2028 across six key areas against a 2024 baseline. These
six targets are reconfirmed as follows:
Deliver revenue Double high-value overseas defence revenue Grow hydrogen sales to
>£30m 30% of total revenue
Double Maintain 30% of revenue from Adjusted EBITDA margin
Integrity Management revenue lifecycle services >15% before central cost
Strategy
Our strategy is focused on the development and success of CSC and the
realisation of growth opportunities for our products and services, principally
in defence and hydrogen energy markets. The current environment and outlook
for CSC in principal markets underpin the strategy as follows:
Defence
o Trusted supplier of safety-critical pressure systems to navies and defence
contractors worldwide
o Long-term newbuild programme visibility, with high-value contracts and
irregular phasing
o Sole supplier to UK and EU newbuild programmes for domestic and export
programmes
o Sole supplier of system revalidation services for the UK fleet, with
opportunities emerging overseas
Hydrogen
o World-leading reputation for the supply and lifecycle support of storage
and transportation systems
o Emerging market with long-term growth outlook
o Strong UK government funding commitment to hydrogen clean energy projects
o Established and growing customer base in road trailer periodic inspection
and testing
Lifecycle Services
o Unique in-situ Integrity Management and in-factory lifecycle support
services, covering mandatory inspection, testing and recertification across
defence, hydrogen and other safety-critical markets
Our strategic objectives are measurable and relate directly to enabling and
delivering the mid-term goals to 2028. The strategy and objectives were first
presented in the 2024 Annual Report and have been updated below to reflect
progress made during FY25 and to address changes in principal markets, new
opportunities and risks.
FY25 strategic progress
Progress made against FY25 objectives as set out in the 2024 Annual Report:
Sale of PMC
o Use proceeds to repay term loan and strengthen the balance sheet
§ Loan repayment completed in October 2024
§ Stronger balance sheet, working capital flexibility
Defence
o Qualify as critical supplier to major US defence contractor and position
for new orders
§ Qualification progressing well. Extended customer schedule for
qualification is now early 2027, with first boat set order expected in 2027
and manufacturing from FY28
o Drive stronger margins from UK and European defence contract milestones
§ Strong defence contract margins delivered in FY25, supported by UK
Integrity Management deployments
Hydrogen
o Secure contracts to supply hydrogen storage to UK NZHF Strand 2, HAR1 and
HAR2 projects
§ UK NZHF Strand 2 project secured to supply bp Aberdeen City hydrogen hub
§ UK HAR1 and HAR2 approved or shortlisted, but contracts delayed, expected
in FY26
o Launch hydrogen road trailer products and secure new orders from UK and
European customers
§ Type 1 steel and Type 4 composite hydrogen road trailer designs launched
in UK market
§ Several major enquiries in the pipeline for FY26 and FY27 order placement
o Develop European customer relationships to secure hydrogen refuelling
station contracts
§ Initial contract secured with French customer for refuelling station
storage
Lifecycle Services
o Invest in Integrity Management resources to support growth in UK and
European markets
§ Recruitment and training are progressing to support expected growth
o Secure new Integrity Management contracts for European defence customers
§ In advanced discussions with three European navies and their prime
contractors, orders expected in FY26
FY26 strategic objectives
Secure UK and overseas naval newbuild contracts, secure UK HAR1 hydrogen
contracts, expand UK HAR2 opportunities pipeline, secure in-situ Integrity
Management contracts for overseas naval customers
Defence
o Deliver completion milestones for UK Dreadnought submarine newbuild
programme
o Deliver manufacturing milestones for ongoing Australian, Canadian, Spanish
and French submarine and surface ship newbuild programmes
o Secure UK SSN-A (AUKUS) newbuild contracts to strengthen the UK defence
outlook from FY27
o Secure Taiwanese and French-built export submarine newbuild contracts to
grow overseas defence order book, deliver early manufacturing milestones
o Progress qualification to supply US submarine programme, completion in Q1
2027
Hydrogen
o Deliver UK NZHF Strand 2 large-scale storage to bp Aberdeen City Council
o Secure UK HAR1 large-scale storage system contract, delayed from FY25, and
deliver initial contract milestones
o Secure UK HAR2 contracts, build opportunities pipeline for delivery from
FY27
o Secure Type 1 and Type 4 hydrogen road trailer orders for UK customers
Lifecycle Services
o Secure and deliver Integrity Management deployments for UK naval fleet
revalidation packages
o Secure Integrity Management contracts for Portuguese, Spanish and Swedish
naval customers and further expand pipeline of overseas naval opportunities
o Secure 2026 road trailer fleet recertification contracts with gas majors
FY27-FY29 strategic objectives
Accelerate growth in hydrogen and defence markets and in lifecycle services,
drive profitability and cash generation
Defence
o Conclude qualification to supply US submarine programme
o Secure first contract to supply US submarine programme, for delivery from
FY28 and FY29
o Deliver UK SSN-A contract milestones
o Secure UK and overseas contracts for submarine and surface ship newbuild
programmes to underpin longer-term defence outlook
Hydrogen
o Deliver final UK HAR1 contract milestones
o Secure and deliver UK HAR2 contracts through to FY29
o Secure and deliver UK HAR3 contracts for delivery from FY29
o Expand Type 1 and Type 4 hydrogen road trailer order book for UK
customers, with deliveries expected from FY27
Lifecycle Services
o Expand high-value Integrity Management services for UK and overseas
submarine and surface ship fleets
o Accelerate growth for in-situ and in-factory lifecycle services for the
hydrogen energy market, based on the expanding installed fleet
Principal risks and uncertainties are set out in the strategic report,
together with an explanation of how these risks are managed or mitigated.
Business and financial review
Good strategic progress was made towards 2028 targets during the year, and
financial performance was significantly improved, with earnings ahead of
market expectations.
Overall revenue from continuing operations was £16.6 million (2024: £14.8
million) and Adjusted EBITDA* after central costs was £0.8 million (2024:
Adjusted EBITDA loss of £0.9 million). The loss after tax for the period was
£0.6 million (2024: £2.3 million).
Proceeds from the sale of the PMC division in October 2024 supported a
year-end net cash position of £2.1 million (2024: £0.1 million), which
helped to strengthen the balance sheet and provided future working capital
flexibility.
Overall order intake during FY25 of £23.4 million (2024: £13.1 million)
underpinned an order book of £16.3 million at the end of the period (2024:
£9.5 million).
The following table presents consolidated financial performance for the
continuing operations and excludes PMC discontinued operations.
£ million 2025 2024 2023 2022 2021
Revenue 16.6 14.8 20.7 17.6 18.9
Defence 12.8 11.1 17.2 13.5 11.1
Hydrogen energy 2.6 1.7 2.1 2.4 2.2
Industrial 0.5 1.6 0.5 0.7 5.3
Offshore services 0.7 0.4 0.9 1.0 0.3
Gross margin** 39% 33% 41% 31% 28%
Adjusted trading EBITDA*** 1.6 0.8 3.9 1.1 2.6
Central costs**** (0.8) (1.7) (1.9) (1.7) (1.7)
Adjusted EBITDA 0.8 (0.9) 2.0 (0.6) 0.9
* Adjusted EBITDA is defined as earnings / (loss) before
interest, tax, depreciation, amortisation and exceptional costs
** Restated from 2022 for reclassification of labour costs from
cost of sales to administration costs
*** Adjusted trading EBITDA is defined as earnings before interest,
tax, depreciation, amortisation and exceptional costs for CSC before central
costs
**** Central costs include the employment and administration costs of
the Board of Directors, central staff costs, regulatory costs of operating as
a public limited company quoted on the London Stock Exchange
Defence
Defence revenue increased by 15% to £12.8 million (2024: £11.1 million),
reflecting strong growth from overseas contracts secured during the first half
of the year, as revenue reduced from UK naval newbuild programmes nearing
completion, and record performance from UK naval Integrity Management
deployments.
Defence order intake more than doubled to £19.1 million (2024: £9.3
million), driven by growth from overseas newbuild contracts and UK Integrity
Management naval deployments The defence order book at the end of the period
was significantly stronger at £14.6 million (2024: £8.2 million).
Overseas contract awards secured in the year include submarine and surface
ship programmes for the Royal Australian, Royal Canadian, US and Spanish
navies.
CSC continues to focus on the delivery of the existing order book for UK and
overseas defence customers and remains well positioned for growth in overseas
defence markets over the medium term. The backdrop of geopolitical tensions
and increasing global defence budgets underpin a strong outlook for newbuild
programmes in the UK and overseas, including initial milestones for the SSN-A
(AUKUS) Astute submarine replacement programme expected from FY27, future
opportunities in the US submarine programme from FY28 and wider overseas
surface ship and submarine newbuild opportunities.
Hydrogen
Hydrogen revenue increased by over 50% to £2.6 million (2024: £1.7 million),
the highest hydrogen revenue on record for CSC. This performance reflects
in-factory lifecycle services for static storage and road trailers and the
initial milestones for the bp Aberdeen Hydrogen Hub contract, secured in the
first half of the year.
Hydrogen order intake also more than doubled to £3.2 million (2024: 1.5
million) and the hydrogen order book at the end of the period was £1.2
million (2024: £0.6 million).
In April 2025, the UK government reaffirmed its commitment to support domestic
green hydrogen production growth through the Hydrogen Allocation Rounds (HAR).
Overall, ten HAR1 projects have been approved by the government and a
shortlist of 27 HAR2 projects has been announced. CSC is actively engaged with
key developers regarding storage and transport systems for HAR1 and HAR2
newbuild contracts, which are expected to be operational between 2026 and
2029.
One major contract award under HAR1 that was previously expected in Q4 2025 is
now expected in Q1 2026 and we expect our first HAR2 contract award within
FY26.
The anticipated growth in green hydrogen production and offtake from HAR and
privately funded projects is driving fleet expansion plans for hydrogen road
trailers in the UK. CSC has signed a cooperation agreement with a leading
European Type 4 composite cylinder manufacturer, enabling the integration and
supply of advanced lightweight modular hydrogen storage systems and road
trailers to meet this growing UK demand.
Integrity Management services
Revenue from Integrity Management lifecycle services doubled to £4.8 million
(2024: £2.4 million), which was also the highest level on record and reflects
a peak in activity on major UK naval deployments throughout the year.
The longer-term outlook for Integrity Management services remains strong,
covering the in-situ lifecycle support and recertification of safety-critical
pressure systems, including future UK naval deployments. CSC is in discussions
with several overseas navies regarding Integrity Management services for their
surface ship and submarine fleets, with deployment expected in FY26.
Profitability
Gross profit was £6.4 million at 39% margin (2024: £4.9 million at 33%
margin restated). Overhead costs at £6.3 million were 5% lower than last year
(2024: £6.6 million restated) due to planned cost savings realised
principally in the first half of the year.
Adjusted operating profit of £43,000 (2024: adjusted operating loss of £1.7
million) in the year. Adding back depreciation charges of £0.8 million (2024:
£0.8 million), Adjusted EBITDA profit was £0.8 million in the year (2024:
Adjusted EBITDA loss of £0.9 million).
Exceptional costs
Exceptional costs of £0.8 million (2024: £0.7 million) were incurred in the
year, principally related to management bonuses paid on completion of the sale
of PMC in October 2024, reorganisation costs and corporate finance services.
Tax
The tax credit for Company continuing operations in the year was £0.2 million
(2024: tax credit of £0.3 million). The current year tax credit was
principally due to the incremental recognition of deferred tax on losses
brought forward in the Company. The Company is expected to recover the
resulting deferred tax asset through projected future profits between FY26 and
FY28. Corporation tax refunded in the year totalled £nil (2024: £6,000).
Loss per share
Basic loss per share from continuing operations was 1.6 pence (2024: loss per
share 6.1 pence). Allowing for add-back of exceptional costs, adjusted loss
per share was 0.0 pence (2024: adjusted loss per share of 4.7 pence).
Dividends
No dividends were paid in the year (2024: £nil) and no dividends have been
declared in respect of the year ended 27 September 2025 (2024: £nil).
Operating cash flow, capital expenditure and cash flow before financing
Operating cash inflow was £0.2 million (2024: £2.0 million), arising
primarily from Adjusted EBITDA of £0.8 million (2024: Adjusted EBITDA of
£0.6 million) and working capital outflows of £0.6 million (2024: inflows of
£1.4 million). Key movements within working capital in the year included
higher trade receivables at the end of the year due to increased sales in the
second half of the year.
Capital expenditure in the year was £0.3 million (2024: £0.4 million),
incurred principally for the replacement and maintenance of site facilities
and equipment. Proceeds from the disposal of the PMC division in the year was
£4.4 million.
Allowing for exceptional costs of £0.8 million (2024: £0.9 million), finance
costs of £0.1 million (2024: £0.5 million) and corporation tax refunds of
£nil (2024: £6,000), cash inflow before financing was £3.5 million (2024:
inflow of £0.2 million).
Cash balances, borrowings and liquidity
The cash balance at 27 September 2025 was £2.1 million (2024: £0.1 million).
The increase in the cash balance of £2.0 million is due to the cash inflow
before financing of £3.5 million, less repayment of the term loan of £1.0
million and repayment of £0.3 million lease liabilities. A balance of £0.2
million was also transferred to the discontinued PMC operation prior to its
sale.
Net cash at 27 September 2025 was £1.8 million (2024: £1.4 million net
debt). The decrease in net debt of £3.2 million is primarily due to the
£3.5 million cash inflow before financing.
Markets
UK & overseas defence
What is happening in the market? What does this mean for us?
Defence spending continues to be driven by the ongoing Russia-Ukraine As a world-leading supplier of high-pressure gas storage systems to NATO
conflict, increasing instability in the Middle East, and wider geopolitical members and NATO-friendly state navies, CSC has long-term contracts to supply
tension, including the threat to critical subsea assets. Commitments made mission-critical products and services for conventional and nuclear submarine
within NATO to increase defence budgets remain a primary factor behind the and surface ship programmes in the UK and overseas.
market outlook.
CSC is in discussion with navies and their prime contractors for future UK and
The UK government continues to affirm its commitment to its defence budget. UK overseas newbuild contracts which would support manufacturing activity to 2040
defence spending reached an estimated 2.32% of GDP in 2024, maintaining the and beyond. These programmes including the well-publicised SSN-A (AUKUS), for
national commitment of at least 2% of GDP and making it the second largest which CSC expects to commence early design and manufacturing stages from 2027.
defence budget in NATO. Looking ahead, the government remains committed to
increasing the defence budget to 2.5% of GDP by 2030. Sole supplier to UK Royal Navy newbuild programmes through prime contractors
BAE Systems and Babcock, CSC is also a long-term supplier to French
Importantly, the government repeatedly states that this investment will shipbuilder Naval Group for domestic and export newbuild programmes.
deliver a 'defence dividend', with an increase in orders for UK manufacturers,
enabling greater levels of private investment and job creation across the In January 2025, CSC was awarded a strategically significant contract to
supply chain. supply safety-critical pressure vessels to the US defence prime contractor,
General Dynamics Electric Boat (GDEB), the company responsible for the design,
The SSN-A (AUKUS) submarine programme, the tri-lateral agreement with the construction and lifecycle support of submarines for the US Navy.
United States and Australia to deliver next-generation nuclear-powered attack
submarines to replace the Astute-class, remains fundamental to the UK's The contract award covers supplier qualification and the delivery of pressure
long-term defence strategy. This programme continues to drive significant vessels to GDEB in early 2027 and provides a foundation for future growth and
investment in skills training and jobs in the UK, building on the initial development in the US naval defence market, where ongoing nuclear submarine
commitment to the design phase. new construction programmes are planned to run through to 2043.
Global defence spending saw a sharp increase in 2024 and is projected to Although the phasing of defence project milestones and contract revenues can
continue growing, particularly with a significant number of naval new fluctuate significantly between and within financial years, there is good
construction programmes now commencing, and many more in the design and medium and long-term visibility of vessel construction programmes and planned
planning stages across major allied nations. defence expenditure from navies and their prime contractors.
The US, Australia, Canada, and France remain committed to long-term investment CSC is the principal supplier of inspection and testing services to the UK MoD
programmes. In the US, the Columbia-class (ballistic missile submarine) and for through-life cylinder performance and safety management on various classes
Virginia-class (attack submarine) programmes are active, which continues to of nuclear submarine.
involve the use of the UK-approved supply chain.
CSC has current opportunities to supply European navies with these inspection
and testing services, typically having been the OEM for onboard pressure
systems when the submarines or surface ships were built.
Hydrogen energy
What is happening in the market? What does this mean for us?
The global hydrogen energy market continues to develop, underpinned by its CSC is well positioned to supply products and services to the growing hydrogen
potential to support decarbonisation in transport, power, and industrial market, primarily in the UK.
applications.
The development of smaller localised hydrogen refuelling station
At the start of 2025, the market was characterised by continued growth in infrastructure has slowed since 2020, driven by supply chain constraints, a
investment, albeit with some project delays and a recalibration of initial limited supply of green hydrogen and lower than expected demand from the
2030 targets. heavy-goods transport sector.
Capital spending globally on low-emissions hydrogen projects reached The shift to large-scale hydrogen production projects such as those now
approximately $4.3 billion in 2024, an 80% increase from 2023. Based on recent supported by the UK's NZHF Strands 1 and 2 funding from February 2024 and more
Final Investment Decisions (FIDs), this spending is projected to rise by over recent HAR funding programmes will seek to address green hydrogen supply
80% in 2025 to nearly $8 billion. issues in line with national clean energy targets.
While the overall pipeline of announced hydrogen production projects has Hydrogen production projects will require different types and sizes of
shrunk due to cancellations and delays, the number of projects reaching FID pressurised storage and transportation system. CSC is in discussion with UK
has grown by almost 20% since late 2023. HAR1 and HAR2 developers where its Type 1 steel cylinders are required for
static storage and road trailer applications and remains well positioned to
The uncertainty about costs, the challenge of matching offtake agreements to secure projects from Q4 2025 onwards.
production costs, and the need for clear regulatory frameworks remain the
primary barriers to faster deployment. The first projects under HAR1 and HAR2 are likely to progress cautiously
through 2026 and 2027, as developers take care with the implementation of new
In the UK, the government announced in April 2025 that it had shortlisted 27 technologies, compliance with regulatory regimes and the integration of system
projects to receive funding support through its second Hydrogen Allocation components from a wide range of suppliers.
Round (HAR), its flagship hydrogen policy and funding mechanism. HAR2 projects
are expected to become operational between 2026 and 2029. CSC hydrogen revenues hit a record level in FY25 and are expected to grow
strongly from FY26 onwards. Once developers have proven concepts under HAR1
The UK government is expected to publish an update to its Hydrogen Strategy at and HAR2, UK demand for storage systems and road trailers is expected to grow
the end of 2025. Key expectations of the update are: further from 2027 onwards.
Increase focus on hydrogen demand, recognising that certainty of offtake is Demand for hydrogen tube trailer periodic inspection, testing and
one of the biggest challenges facing developers. recertification continued steadily during 2025 and is expected to remain an
important component of CSC's lifecycle services revenue over the medium term.
Drop the 10GW 2030 production target CSC continues to expand its customer base of gas majors and independent
operators in this market, which has been supported by improved operational
Recommit to HAR3 and beyond. efficiencies and margins. CSC is one of very few suppliers of this specialised
safety-critical service.
The UK government has indicated that it will take action to increase levels of
UK content in HAR projects. A Call for Evidence on "options for the hydrogen
supply chain" will soon be published, and the government has stated it will
consider expanding the Clean Industry Bonus into the hydrogen sector, which
has already been introduced in the offshore wind sector to provide developers
with subsidies if they can evidence greater use of UK technology and job
creation.
Hydrogen energy (continued)
What is happening in the market? What does this mean for us?
This aligns with a statement in the HAR2 Due Diligence and Cost Assurance A major contract was secured in March 2025 to supply bp Aberdeen Hydrogen
Guidance document, which confirmed that the government is "exploring options Energy with large-scale storage systems under UK NZHF Strand 2 funding. A
where we could invest further into shorter and more sustainable supply chains further major contract under HAR1 was delayed from Q1 2025 and is now expected
through Hydrogen Allocation Round 3 and beyond." in Q4 2025 or early in Q1 2026.
In a letter from the Chancellor to CSC, Ms Reeves said: "The government is Over the longer term to 2050 and beyond, large-scale hydrogen transportation
progressing multiple aspects of the Hydrogen economy, and places particular is expected to be predominantly by pipeline, and some high-density bulk
strategic importance on developing domestic supply chains from hydrogen storage may move to liquefied hydrogen, but demand for pressurised buffer
production to usage". Publicly, the Chancellor has repeatedly stated: "where storage and road trailer transportation is expected to remain.
things are made, and who they are made by, matters".
While the demand for new pressurised storage and transportation systems may
It is important to note that whilst the UK government continues to pursue its reduce as pipeline infrastructure expands, there will remain a strong market
clean power mission, and the Prime Minister attended COP30 to reinforce the for CSC in the periodic inspection and testing of the installed fleets of
UK's commitment to the energy transition, the political consensus in cylinders, generating a repeat high-value revenue stream over the longer-term.
Westminster on net zero has broken.
The Conservative Party, who introduced the UK's legal requirement to achieve
net zero carbon emissions by 2050, are now in favour of formally scrapping the
target. In addition, Reform UK, who have led in opinion polls since Spring
2025, proposed cancelling subsidies for wind and solar projects and favour
domestic fossil fuel extraction, off and onshore. Reform UK have, as of
November 2025, not said anything formally regarding hydrogen, but they do
regularly propose taking action to reindustrialise the UK and build up
manufacturing capabilities.
The EU Hydrogen Bank remains the central instrument for scaling hydrogen
production, imports, and infrastructure across Europe. Despite progress,
industry uncertainty persists due to slow permitting, unclear subsidy design,
and missing offtake agreements. For example, seven projects withdrew from the
2nd auction.
The European Parliament plans to cut industrial electricity prices from
January 2026. This will improve cost competitiveness for electrolysers, while
policy focus is broadening, with hydrogen, SAF, ammonia, and e-methanol now
seen as complementary pillars of industrial decarbonisation.
National measures such as Germany's Hydrogen Acceleration Act and industrial
power price scheme aim to strengthen investment confidence and accelerate
market delivery from 2026.
Industrials
What is happening in the market? What does this mean for us?
The market for bulk gas storage and transportation has a diverse customer Specialised new build opportunities for high-volume industrial gas storage are
base, including industrial gas majors, higher education and scientific ad hoc and provide strong margin opportunities, while in-situ and factory
research bodies, civil nuclear and conventional power plants and specialised inspection, testing and reconditioning services have been identified as a
applications, including space programmes. moderate growth area for CSC.
Offshore services
What is happening in the market? What does this mean for us?
The market for offshore services includes products and services related to oil These sectors rely on specialised high-pressure gas storage systems. CSC has
and gas exploration, production, and support, as well as offshore renewable traditionally played a role in delivering safety-critical cylinder packages
energy developments like wind farms. and providing in-situ and factory-based periodic inspection and testing
services in this highly regulated market.
The oil and gas market is characterised by deepwater and ultra-deepwater
exploration and production, requiring robust and reliable solutions for Applications include:
operations under extreme conditions.
● Motion compensation systems of offshore installations, including
The offshore renewables sector, particularly wind energy, is expanding the supply of air pressure vessels for new build projects and the provision of
rapidly. Floating wind turbines and wave energy systems, increasingly spares and periodic inspection services through life.
supporting green hydrogen production, are key growth areas.
● Diving support systems, including the supply of new
safety-critical breathing air storage packages and the periodic inspection,
testing and upgrading of installed systems.
The demand for Integrity Management services is forecast to increase steadily
for diving support vessels, offshore installations and floating cranes over
the next few years.
Principal risks
Risk identification and management
The Directors have identified the principal risks and uncertainties that could
materially affect the activities, performance and financial position of the
Company and its subsidiaries.
Risk management is overseen by the Board, which includes setting the risk
appetite based on the nature of each risk and available mitigations.
Effective risk management helps to protect the Company and its stakeholders,
while enabling the execution of the strategy and the sustainable delivery of
growth targets.
The risk register identifies the key business risks and documents the status
and trends, together with the policies and practices in place to support risk
mitigations.
The Board considers the risk register and any supplementary sub-registers
twice per year through the Audit and Risk Committee.
Principal risks
The principal risks identified by the Directors are summarised in the table
below. All risks considered by the Board cover a broader range of areas than
the principal risk in this table.
Risk and potential impact Status and key mitigations
1. Global economic conditions, political uncertainty and market sector
volatility
Economic factors and market sectors Status: No change in FY25
Economic and political factors may adversely impact key markets, in particular Uncertainty in the international trade environment increased, with policy
in the UK and NATO-allied countries, and the activities and decisions of changes and tariffs implemented by the US.
customers and suppliers, which in turn may impact sales and the availability
and cost of materials and therefore the financial performance. Geopolitical factors continued to drive activity in UK and overseas defence
markets through commitments to increased spending in Europe and across NATO.
CSC principally operates in the defence and hydrogen energy market sectors, The UK government has reinforced its commitment to clean energy, including
with some activity in industrial and offshore services markets. wind, solar and hydrogen projects.
A slowdown in either or both of these key markets may adversely impact sales, While the defence sector has benefitted from these macro trends, it should be
financial performance and liquidity requirements. noted that defence spending on naval newbuild programmes is variable over
time. Work on current major UK defence programmes passed a peak in early 2024,
with the next major UK submarine newbuild programme expected to commence from
2027.
CSC is positioned strongly for growth in overseas defence markets and secured
orders in 2024 and 2025 that have helped mitigate the reduction in UK
programmes and strengthened the overall defence order book.
Development and growth in the hydrogen market was slower than expected during
2025, but the outlook remains positive. CSC is positioned strongly in the UK
hydrogen market, which is expected to account for an increasing share of
revenues from 2026.
CSC maintains close contact with its customers, major suppliers and industry
associations to ensure the best possible understanding of future project
requirements and the availability and cost of materials, given the prevailing
macro-economic conditions.
Risk and potential impact Status and key mitigations
1. Global economic conditions, political uncertainty and market sector
volatility (continued)
Economic factors and market sectors (continued) CSC quotes on short-term validity to protect against changes in raw material,
energy and component costs and ensures appropriate commercial protections
against through-contract escalations, cancellations or delays.
CSC is proactively growing its in-factory and in-situ lifecycle services
activities, which provide some resilience against the variability, delays and
potential downturns in defence and hydrogen newbuild programmes.
Foreign exchange Status: No change in FY25
A proportion of the CSC's business is carried out in overseas markets and Natural hedges are in place for the main currencies that CSC is exposed to in
contracts may adopt currencies other than Sterling, in which CSC and the contracts with customers and suppliers. All foreign currency transactions are
Company recognise the bulk of their costs. completed by treasury function, including the use of forward exchange
contracts, when appropriate.
Exposure to exchange rate fluctuations may affect the financial results and
cash position. CSC typically quotes for business on a short quote expiry and where
appropriate will include price escalation clauses to limit exposure to
fluctuations in foreign currencies.
2. Governmental policy, regulation, legislation and compliance
Government policies Status: No change in FY25
Revenue generated from defence and hydrogen energy contracts may be impacted The UK government confirmed commitments to steadily increase defence spending
by changes to UK government policies which the Company may not be able to through to 2030 and announced major naval newbuild programmes in June 2025.
influence.
The UK government's stance on hydrogen energy appears to be very supportive,
Changes in UK government policy may result in amendments to tax and employment with established HAR funding rounds progressing, although slower than
policies that could adversely affect the business. expected.
CSC is leading a joint campaign with a group of UK hydrogen technology
manufacturers to influence government policy and practices that help maximise
UK supplied content in government-funded hydrogen production projects (HAR).
Increased Employer's National Insurance costs have adversely impacted costs
and constrained recruitment.
Health, Safety & Environment Status: No change in FY25
CSC operates a heavy industrial manufacturing facility and has a fundamental CSC is accredited to international ISO standards for HSE and operates with an
duty to protect its people, other stakeholders and the environment from harm established management system, which is subject to periodic independent
whilst conducting its business. third-party audit.
Managers and appointed safety officers have completed recognised HSE training.
Senior management monitors HSE performance during weekly and monthly
management meetings, taking actions to address trends or key findings. The
Directors review HSE performance during Board meetings. Performance improved
during FY25, with the overall number of safety incidents falling. All
employees have objectives to support the continuous improvement of safety
performance.
Risk and potential impact Status and key mitigations
3. Contract delivery, commercial relationships and customer concentration
Contract delivery Status: Reduced risk in FY25
CSC designs and manufactures products and provides services that are mission In recent years, the CSC has invested consistently in people, systems and
critical to its customers and end users. management processes to help drive improvements to on-time delivery and
right-first-time product conformity to meet customer expectations.
Failure to deliver products and services on time and to the required standard
may result in significant financial impact (e.g. warranty claims and Contract performance is reviewed by senior management against time, cost and
liquidated damages), lost future orders and an adverse impact on reputation. quality goals.
The Directors review delivery performance against targets in monthly Board
meetings.
Commercial relationships Status: Reduced risk in FY25
Failure to adequately manage contract risk and, as a result, commit to Onerous legacy contracts have either ended or been renegotiated with
obligations which the Company is unable to meet without incurring significant acceptable commercial terms.
unplanned costs.
Authority for the approval of major contract terms and conditions rests with
the senior management team or is delegated according to Company policies.
CSC also seeks to minimise the impact of delivery risk through its terms of
business, including limiting exposure to claims for liquidated damages and
avoiding any exposure to consequential damages.
Commercial management skills and processes have been strengthened considerably
in recent years.
Customer concentration Status: No change in FY25
CSC customer concentration is high. Relationships with key customers could be Key customer relationship management is a continued focus for the management
materially adversely affected by several factors, including: team. Recent improvements to operational improvement have increased customer
satisfaction and retention.
· customer decisions to diversify or change how products are sourced;
Expansion of the defence customer base to include new overseas prime
· failure to agree on mutually acceptable pricing or terms; contractors (e.g. US) will help to reduce dependency on UK defence customers.
· failure to meet contractual commitments; The growth of the hydrogen energy business will add new customers and help
lower customer concentration.
· significant or prolonged disputes.
Provision of lifecycle services enables the expansion of the customer base to
If CSC was unable to enter similar relationships with other customers on a include the periodic inspection and testing of non-CSC supplied products.
timely basis, or at all, the business could be materially adversely impacted.
Risk and potential impact Status and key mitigations
4. Supply chain
Supplier dependency Status: No change in FY25
CSC is dependent on its supply chain for cost, quality and on-time delivery. Strengthened supplier management and procurement activities have supported the
reduction of supply chain risk and reduced the supplier concentration in key
Failure of individual suppliers or the supply chain may result in significant areas.
operational disruption (e.g. raw material delivery and outsourced processes)
and delays to contract delivery, leading to potential financial impact and Most of the seamless steel tube used in the manufacturing of ultra-large
damage to customer relationships. high-pressure cylinders has historically been sourced from two suppliers in
mainland Europe, which reduced to one key supplier from 2024.
There are few alternative suppliers globally that can match the cost, quality
and lead times of the current European supplier. CSC's established strategic
supplier relationship is well supported by long-term supply and cooperation
agreements and collaboration on joint product development in defence hydrogen
energy markets.
5. Financial
Funding and liquidity Status: Reduced risk in FY25
CSC and the Company maintain financial resources sufficient to meet its At the end of FY25, the Company had no bank loans, overdrafts or other related
obligations over the short and longer term, including cash headroom and financial liabilities. Proceeds from the sale of the PMC division in October
working capital flexibility to enable operational delivery. 2024 supported a year-end net cash position of £2.1 million, which helped to
strengthen the balance sheet and provides future working capital flexibility.
Systems for financial planning, management and control include a comprehensive
budgeting process, with annual budgets and detailed three-year plans,
including market-sensitised scenarios, approved by the Directors. Monthly
monitoring of actual results against budget by the Directors is a standard
practice, as is the quarterly review of financial forecasts, which consider
operational performance, trading conditions and market opportunities.
Annual budgets include a consolidated profit and loss, balance sheet and cash
flow forecast for the year ahead and the subsequent three-year period, based
on the management team's understanding of principal markets, customers, supply
chains and operational resources.
Increased commercial focus has improved payment terms with customers for
long-term contracts.
Earnings from continuing operations during FY25 were significantly improved
over FY24 and are expected to improve further throughout the forecast period
to FY29. Assumptions regarding working capital and capex cash requirements
over the forecast period have been incorporated to support growth in defence
and hydrogen energy markets.
Risk and potential impact Status and key mitigations
6. Availability of key resources
Leadership Status: No change FY25
As a publicly quoted SME, the Company is dependent on a small senior Given the future strategy, the management team has been strengthened in recent
management team with responsibilities to shareholders and a wide range of years to provide governance and the strategic, financial, operational and
stakeholders. commercial leadership to deliver business performance and meet established
targets.
Chris Webster, Chief Operating Officer joined the Company in April 2022. Sally
Millen was appointed Director of Finance in November 2024. Other key
management roles have been strengthened since 2024, underpinning confidence in
performance and the delivery of growth plans.
The senior management engages proactively with employees, customers, suppliers
and other stakeholders.
Retention of key staff in critical roles Status: Reduced in FY25
Failure to evolve organisation structure and culture could prevent the Company Recruitment, retention and engagement of employees is a key focus for the
from recruiting and retaining the right talent, knowledge and skills to Company, recognising the value created by its people. Proactive steps taken by
deliver the strategy and targets. senior management include the continuing investment in training and
development, embedded personal development reviews, benchmarked pay and
employee profit share scheme, Employee Forum and Town Hall communication
channels, succession planning and promotion from within, where possible,
investment in apprenticeships and support for continued
learning.
Major capital assets Status: No change in FY25
CSC relies on large or critical pieces of equipment, some of which are at or Key assets are subject to ongoing maintenance programmes and strategic spares
approaching their reasonable end-of-life assessment. are held.
Major breakdown may affect CSC's ability to maintain delivery performance, Significant improvements have been made to the planned maintenance and
meet customer expectations and deliver growth plans. availability of equipment, despite constrained replacement capex in recent
years.
7. Technology & innovation
Product development Status: No change in FY25
The strength of our business is built upon a history of delivering products The hydrogen energy market presents a significant growth opportunity. CSC Type
that advance safety and reliability in demanding environments. 1 steel products are trusted and well proven in the safety-critical storage
and transportation of hydrogen, while advanced light-weight Type 4 composite
Failure to keep abreast of market needs or to innovate solutions risks market cylinders enable more efficient transport of hydrogen and are likely to be
share to our competitors and loss of margins from price competition. selected by UK HAR projects for road trailer applications.
Risk and potential impact Status and key mitigations
7. Technology & innovation (continued)
Product development (continued) CSC will supply Type 4 trailers and Multi-Element Gas Container (MEGC) units
to UK customers through an established collaboration agreement with NPROXX, a
leading European Type 4 manufacturer. CSC will continue to provide periodic
inspection, testing and recertification services to operators of composite
Type 3 and Type 4 cylinders.
Technical managers and engineers in CSC work with customers and suppliers in
the development of progressive gas storage and transportation solutions.
Collaborations with major steel tube suppliers are supporting product and
service development in CSC.
Collaborations with academic and research bodies are supporting the
development of new manufacturing and inspection processes.
Disruptive technologies Status: No change in FY25
Technological advances in production processes or materials may result in a Note developments related to Type 4 composite cylinders above.
reduction in demand for CSC's products and services.
The monitoring of evolving technologies that may disrupt the defence and
hydrogen markets is ongoing and the Company will look to capitalise on the
opportunities they present for CSC and offset any threats.
8. Cyber security
Cyber crime Status: Increased risk in FY25
A cyber-attack or data breach may result in the theft of sensitive Threat levels and the cyber environment are constantly changing, with
information, operational disruption or financial loss. increasingly sophisticated cyber-crime. Several high-profile cyber-attacks,
including against Jaguar Land Rover, M&S, Co-op and Harrods, occurred in
Company exposure includes risks to intellectual property, personal data of the UK during 2025.
customers and employees, quality and manufacturing systems.
The Company maintains up-to-date security measures including firewalls,
network monitoring, and regular vulnerability assessments. The Company uses
secure cloud storage with secure data access under the 24/7 control and
support of a professional Managed Service Provider.
The Company has Cyber Essentials Plus accreditation, which was renewed in
September 2025. Server and operating system upgrades were completed during
2024, providing additional cyber resilience.
All employees undertake regular mandatory cyber security training.
People
Steve Hammell, Chief Financial Officer, resigned from the Board and left the
Company on 31 October 2024. Sally Millen was appointed Director of Finance in
a non-Board position with effect from 1 November 2024. There were no other
Board changes during the year.
Appointments were made in CSC during the year to strengthen commercial and
project management functions and to increase capacity in Integrity Management
services in support of growth plans for UK and overseas deployments.
Training activity during the year focused on manufacturing process and quality
inspection skills development to support upcoming UK and overseas defence
programmes from FY27. An additional apprentice intake during the year, in
cooperation with Sheffield University's Advanced Manufacturing Research
Centre, increased the current apprentice cohort to five. Three former
apprentices are currently progressing through Mechanical Engineering degree
courses at Sheffield University.
Section 172 statement
The Board of Chesterfield Special Cylinders Holdings plc has put in place
appropriate measures to enable it to understand and comply with its collective
and individual responsibilities under Section 172 of the Companies Act 2016.
Each Director understands their obligation to act individually and together in
a way they consider to be in good faith and would be most likely to promote
the success of the Company for the benefit of its members as a whole. In
making decisions on behalf of the Company, Board members carefully consider:
the likely consequences of any decision in the long term;
the interests of the Company's employees;
the need to proactively foster the Company's business relationships with
suppliers, customers and others;
the impact of the Company's operations on local communities and the
environment;
the desirability of the Company maintaining a reputation for high standards of
business conduct; and
the need to act fairly between members and stakeholders of the Company.
The Board recognises that long-term growth and profitability are enhanced when
the business acts in a sustainable and responsible manner, with respect for
all stakeholders.
Engaging with stakeholders strengthens business relationships and helps to
inform better decisions and deliver on commitments. The Board is regularly
updated on feedback and insight from wider stakeholder engagement, enabling
the Directors to understand any issues and consider any decisions to be made.
Details can be found in the Corporate Governance Report, specifically
principles three and four regarding stakeholder engagement.
The stakeholders of the Company and its subsidiary include its:
· shareholders;
· customers;
· employees;
· suppliers;
· government, regulators and industry bodies; and
· the communities in which we operate.
Shareholders
The Board aims to behave responsibly towards our shareholders and to treat
them equally and fairly. The Company demonstrated resilience during the
challenging conditions of recent years, including the Covid-19 pandemic,
depressed oil and gas markets, fluctuating defence contract schedules and the
impact of the Russia-Ukraine conflict on supply chains. We are in a strong
position to execute our value-creation strategy for shareholders.
The Company held an Annual General Meeting in March 2025 to directly engage
with all shareholders. In addition, Executive Directors meet periodically with
the Company's major shareholders and also engage with smaller shareholders.
Harwood Capital LLP, a major shareholder, appointed a representative to the
Board in May 2023. Feedback obtained from investor meetings is reviewed by the
Board and used in the formulation and execution of strategy. The Executive
Director and management team also host and attend events for new and existing
private investors, including accommodating investors who wish to visit its
manufacturing sites.
Customers
Our customers are pioneers in what they do. We work in close collaboration
with them to develop technical solutions for their engineering needs and
produce products that can be trusted to perform in environments where failure
would be catastrophic. Customer feedback helps us measure customer
satisfaction. Customer satisfaction and loyalty are crucial factors that
determine our financial performance and we look to improve this constantly.
Building and nurturing trusted customer relationships and maintaining open
channels of communication ensures that customers:
receive the information they require;
are consulted on matters relevant to them;
are heard and their needs actioned; and
feedback is collected and reviewed in a structured manner.
The Board has regard to this information in making decisions regarding capital
investment, workforce size and distribution, production planning and
continuous improvement initiatives.
Employees
Committed, well trained, highly skilled and motivated employees are at the
heart of our business. We strive to create a working environment where our
employees can fulfil their potential by providing clear organisational purpose
and objectives, appropriately structured incentive schemes and by providing
training and career development opportunities, including a commitment to our
apprenticeship programme. We get the best from our people by nurturing our
unique culture reflected in our 4 core values:
We put people first;
We deliver to the highest standard;
We work with each other; and
We innovate and create the future.
It is the policy of the Company to communicate with employees through
site-based employee forums and by regular briefing meetings conducted by
senior management to promote a long-term perspective of the business. We also
undertake periodic employee engagement surveys using a structured
questionnaire to gather employee feedback that is used to evolve the culture
and practices of the Company.
These communication methods provide a two-way flow of information between
senior management and employees, providing valuable insight into the
perspective and interests of employees. The Board has regard to this
information in making decisions in relation to pay levels for specific
employee groups, Company-wide pay reviews, updating of terms and conditions,
investment in site facilities and amenities, investment in health & safety
and in provision of training and career development opportunities.
The Company operates a number of employee incentive schemes including
performance-related bonuses covering all staff grades.
Suppliers
We build and maintain strong, long-term relationships with our suppliers. A
robust supply chain is critical to the delivery of our products/services
on-time, on-cost and on-quality.
We have continued to focus on strengthening our supplier relationships and
performance during the year, with key initiatives including:
Measurement of supplier quality and on-time delivery performance;
Proactive engagement led by supplier managers who ensure that any issues are
dealt with promptly;
Regular meetings to review supplier performance and the outlook for demand;
and
Collaboration and long-term supply agreements with key suppliers.
The information gathered from supplier engagement is used by the Board in
making decisions in relation to supplier payment policies, capital investment
and health & safety policies.
Government, regulators and industry bodies
As a technical leader in our field, we contribute to the development of
technical, safety and operational standards that relate to the products we
design and manufacture:
We engage periodically with local and national government representatives and
have encouraged visits to our sites;
We participate regularly in expert working groups with industry and regulatory
bodies; and
We communicate regularly and openly regarding policies that relate to the
sectors we are involved in.
The Board has regard to this information in making decisions in relation to
product development, regulatory compliance and health & safety
investments.
Communities in which we operate
The Company continues to support local charities and employees who
individually raise money or volunteer for local organisations. The objective
is to protect and enhance the reputation of the Company in its local community
and the markets it chooses to serve.
Environmental responsibility
The Company recognises that its activities have an impact on the environment.
Understanding and managing this impact are integral to effective governance
and good practice.
The Company has an environmental policy, and the Executive Directors and
management team are responsible for maintaining and implementing the policy at
the operating site of CSC.
The Company complies with all relevant environmental regulations and is
committed to the continuous improvement of its environmental performance and
management system. In particular, the Company seeks to reduce waste and energy
use and to prevent pollution.
As part of continuous improvement, it is the policy of the Company to
establish and document measurable environmental objectives. These objectives
are periodically reviewed, and the Company ensures that the resources required
to meet them are allocated for this purpose.
Employees are given such information, training and equipment as necessary to
enable them to undertake their work with the minimum impact on the
environment.
There were no notifiable environmental incidents in 2025 (2024: nil).
Safety
The Board places particular emphasis on health and safety and environmental
performance. An experienced safety manager with recognised HSE training covers
CSC's operation facility, reporting through senior management to the Chief
Executive, ensuring that the Company employs best practice, drives continuous
safety improvement and fulfils all statutory requirements.
CSC had one reportable safety incident (RIDDOR) in FY25 (2024: one RIDDOR).
Approval of the strategic report
The strategic report has been approved by the Board.
By order of the Board
Chris Walters
Chief Executive
Consolidated statement of comprehensive income
For the 52-week period ended 27 September 2025
Restated*
Notes 52 weeks ended 52 weeks ended
27 September 28 September
2025 2024
£'000 £'000
Continuing operations
Revenue 1 16,583 14,827
Cost of sales (10,197) (9,939)
Gross profit 6,386 4,888
Administration expenses (6,343) (6,560)
Operating profit / (loss) before exceptional costs 43 (1,672)
Separately disclosed items of administration expenses:
Exceptional costs 5 (790) (712)
(7,133) (7,272)
Total administration expenses
Operating loss (747) (2,384)
Finance costs 3 (62) (277)
Loss before taxation 4 (809) (2,661)
Taxation 9 192 316
Loss for the period from continuing operations (617) (2,345)
Profit / (loss) for the period from discontinued operations 12 263 (92)
Loss for the period attributable to the owners of the parent (354) (2,437)
Other comprehensive income / (expense) to be reclassified to profit or loss in
subsequent periods:
Currency exchange differences on translation of foreign operations
2 (11)
(11)
Total other comprehensive income / (expense) 2
Total comprehensive expense for
the period attributable to the owners of the parent (352) (2,448)
Basic earnings / (loss) per share
From continuing operations 7 (1.6)p (6.1)p
From discontinued operations 7 0.7p (0.2)p
From total loss 7 (0.9)p (6.3)p
Diluted earnings / (loss) per share
From continuing operations 7 (1.6)p (6.1)p
From discontinued operations 7 0.7p (0.2)p
From total loss 7 (0.9)p (6.3)p
Consolidated statement of financial position
As at 27 September 2025
Restated*
Notes 27 September 28 September
2025 2024
£'000 £'000
Non-current assets
Intangible assets - -
Property, plant and equipment 6,382 6,822
Contract assets - 551
Deferred tax asset 803 626
7,185 7,999
Current assets
Inventories 2,618 3,020
Trade and other receivables 5,568 3,977
Cash and cash equivalents 11 2,130 116
Assets classified as held for sale 12 - 9,313
10,316 16,426
Total assets 17,501 24,425
Current liabilities
Trade and other payables (5,492) (5,225)
Borrowings 8 - (1,000)
Lease liabilities 9 (219) (245)
Liabilities classified as held for sale 12 - (5,412)
(5,711) (11,882)
Non-current liabilities
Other payables (274) (497)
Lease liabilities 9 (143) (313)
Deferred tax liabilities (557) (572)
(974) (1,382)
Total liabilities (6,685) (13,264)
Net assets 10,816 11,161
Equity
Share capital 1,933 1,933
Share premium account 1,699 1,699
Translation reserve (262) (264)
Retained earnings 7,446 7,793
Total equity 10,816 11,161
Consolidated statement of changes in equity
For the 52-week period ended 27 September 2025
Share Share Translation reserve Retained earnings Total
capital premium equity
account
£'000 £'000 £'000 £'000 £'000
Balance at 30 September 2023 1,933 1,699 (253) 10,207 13,586
Share based payments
- continuing operations - - - 14 14
- discontinued operations - - - 9 9
Transactions with owners - - - 23 23
- - - (2,437) (2,437)
Loss for the period
- - (11) - (11)
Other comprehensive expense:
Exchange differences on translating foreign operations
Total comprehensive expense - - (11) (2,437) (2,448)
Balance at 28 September 2024 1,933 1,699 (264) 7,793 11,161
Share based payments
- continuing operations - - - 7 7
Transactions with owners - - - 7 7
- - - (354) (354)
Loss for the period
Other comprehensive income: - - 2 - 2
Exchange differences on translating foreign operations
Total comprehensive income / (expense) - - 2 (354) (539)
Balance at 27 September 2025 1,933 1,699 (262) 7,446 10,816
Consolidated statement of cash flows
For the 52-week period ended 27 September 2025
Notes 52 weeks ended 52 weeks ended
27 September 28 September
2025 2024
£'000 £'000
Operating activities
Operating cash flow 10 266 2,023
Exceptional costs (790) (944)
Finance costs paid (62) (455)
Income tax refunded - 6
Net cash (outflow) / inflow from operating activities (586) 630
Investing activities
Proceeds from sale of fixed assets - 19
Proceeds from sale of disposal group 12 4,392 -
Purchase of property, plant and equipment (302) (440)
Net cash inflow / (outflow) from investing activities 4,090 (421)
Net cash inflow before financing 3,504 209
Financing activities
Repayment of borrowings (1,000) (1,407)
Repayment of lease liabilities (262) (777)
New borrowings - 1,500
Net cash outflow from financing activities (1,262) (684)
Net increase / (decrease) in cash and cash equivalents 2,242 (475)
Cash and cash equivalents at beginning of period 116 945
Cash and cash equivalents at end of period 2,358 470
Cash and cash equivalents transferred to disposal group 12 (228) (354)
Cash and cash equivalents at end of period 2,130 116
Borrowings - (1,000)
Lease liabilities (362) (558)
Net Cash / (Debt) 11 1,768 (1,442)
Accounting policies
1. Basis of preparation
The consolidated financial statements have been prepared in accordance with
UK-adopted International Accounting Standards, in conformity with the
requirements of the Companies Act 2006. The Company has elected to prepare its
parent company financial statements in accordance with Financial Reporting
Standard 101 (FRS 101). The financial statements are made up to the Saturday
nearest to the period end for each financial period.
Chesterfield Special Cylinders Holdings plc, company number 06135104, is
incorporated and domiciled in the United Kingdom. The registered office
address is Meadowhall Road, Sheffield, South Yorkshire, S9 1BT.
The Company has applied all accounting standards and interpretations issued
relevant to its operations for the period ended 27 September 2025. The
consolidated financial statements have been prepared on a going concern basis.
The summary accounts set out above do not constitute statutory accounts as
defined by Section 434 of the UK Companies Act 2006. The summarised
consolidated statement of comprehensive income, the summarised consolidated
balance sheet at 27 September 2025, the summarised consolidated statement of
comprehensive income, the summarised consolidated statement of changes in
equity and the summarised consolidated statement of cash flows for the period
then ended have been extracted from the Group's 2025 statutory financial
statements upon which the auditor's opinion is unqualified and did not contain
a statement under either sections 498(2) or 498(3) of the Companies Act 2006.
The audit report for the period ended 27 September 2025 did not contain
statements under sections 498(2) or 498(3) of the Companies Act 2006.
The statutory financial statements for the period ended 27 September 2025 were
approved by the directors on 17 December 2025 but have not yet been delivered
to the Registrar of Companies. The statutory financial statements for the
period ended 28 September 2024 have been delivered to the Registrar of
Companies.
2. Going concern
The financial statements have been prepared on a going concern basis.
Projections for the period to the end of March 2027 demonstrate that the
Company, including its subsidiaries, can continue to operate and meet its
financial obligations as they fall due for at least twelve months from the
date of approval of the accounts. The Directors have not identified any
material uncertainties that may cast significant doubt on the ability of the
Company to continue to operate as a going concern. Factors likely to affect
the Company's future development, performance and position are set out in the
strategic report, together with principal risks and uncertainties.
At the end of the reporting period, the Company had no bank loans, overdrafts
or other related financial liabilities. Proceeds from the sale of the PMC
division in October 2024 supported a year-end net cash position of £2.1
million, which helped to strengthen the balance sheet and provides future
working capital flexibility.
The Company's systems for financial planning, management and control include a
comprehensive budgeting process, with annual budgets approved by the
Directors. Monthly monitoring of actual results against budget by the
Directors is a standard practice, as is the quarterly review of financial
forecasts, which consider operational performance, trading conditions and
market opportunities.
Annual budgets include a consolidated profit and loss, balance sheet and cash
flow forecast for the year ahead and the subsequent three-year period, based
on the management team's understanding of principal markets, customers, supply
chains and operational resources.
The FY26 budget and three-year plan to FY29 recognise that the Company remains
dependent on the trading profitability of CSC, which is itself dependent on
revenues from major UK and overseas defence contracts, UK hydrogen orders and
high-value Integrity Management services.
Due to the significance of revenues from UK hydrogen projects in the FY26
budget and three-year plan and the history of delays in this market, the
Directors have considered scenarios that pessimistically account for the loss
of all future hydrogen newbuild projects. The Directors have also considered
further sensitised scenarios that account for reasonably plausible delays to
the placement of UK and overseas defence contracts, in addition to the loss of
future hydrogen newbuild projects. The Directors believe that the loss of
future hydrogen contracts and material delays to defence contracts would give
the Company sufficient time to take mitigating actions and adjust operating
costs and capital expenditure plans to maintain liquidity and sufficient cash
headroom throughout the forecast period. These mitigations have been included
in the sensitised scenarios considered by the Directors in their confirmation
of the going concern basis of preparation.
3. New standards adopted in 2025
No new standards were applied during the year.
4. Amendments to IFRSs that are mandatorily effective for future years
At the date of the authorisation of these financial statements, several new,
but not yet effective, standards and amendments to existing standards, and
interpretations have been published by the IASB. None of these standards or
amendments to existing standards have been adopted early by the Company.
Management anticipates that all relevant pronouncements will be adopted for
the first period beginning on or after the effective date of pronouncement.
The impact of new standards, amendments and interpretations not adopted in the
year have not been disclosed as they are not expected to have a material
impact on the Company's financial statements.
Notes to the consolidated financial statements
1. Segment analysis
IFRS 8 requires operating segments to be identified on the basis of internal
reports prepared to measure the performance of operating units of the Group.
During the period, the Group comprised the following operating segments:
● Chesterfield Special Cylinders Holdings plc ("Central"): this
segment comprises the publicly listed parent entity and its attributable
costs.
● Chesterfield Special Cylinders Limited ("CSC"): design and
manufacture of high-pressure gas storage and transportation systems, used
principally in safety-critical defence and hydrogen energy applications.
Inspection, testing and recertification services throughout the system
lifecycle.
● Precision Machined Components ("PMC"): manufacture and finishing
of precision-engineered components used in the oil and gas industry.
CSC and Central segments represent continuing operations as disclosed in the
statement of comprehensive income.
The disposal of PMC completed on 8 October 2024 and was part of the Group in
FY25 for ten days only. PMC represents discontinued operations and the asset
held for sale, in Note 12 of these financial statements.
For the 52-week period ended 27 September 2025
Central Group
CSC
£'000 £'000 £'000
Revenue from external customers 16,583 - 16,583
Gross profit 6,386 - 6,386
Adjusted EBITDA 1,623 (772) 851
Depreciation (724) (84) (808)
Operating profit / (loss) before exceptional costs 899 (856) 43
Exceptional costs (68) (722) (790)
Operating profit / (loss) 831 (1,578) (747)
Net finance costs (28) (34) (62)
Profit / (loss) before tax 803 (1,612) (809)
Segmental net assets* 10,666 150 10,816
Other segment information:
Taxation credit 36 156 192
Capital expenditure - property, plant and equipment 354 14 368
* Segmental net assets comprise the net assets of each division adjusted to
reflect the elimination of the cost of investment in subsidiaries.
For the 52-week period ended 28 September 2024
CSC Central Group
£'000 £'000 £'000
Revenue from external customers* 14,827 - 14,827
Gross profit** 4,888 - 4,888
Adjusted EBITDA 758 (1,678) (920)
Depreciation (660) (92) (752)
Operating profit / (loss) before exceptional costs 98 (1,770) (1,672)
Exceptional costs (53) (659) (712)
Operating profit / (loss) 45 (2,429) (2,384)
Net finance costs (53) (224) (277)
Profit / (loss) before tax (8) (2,653) (2,661)
Segmental net assets / (liabilities)*** 10,651 (1,376) 9,275
Other segment information:
Taxation credit 178 138 316
Capital expenditure - property, plant and equipment 381 154 535
* Revenue from external customers is stated after deducting inter-segment
revenue of £130,000 for PMC. There is no impact on the overall result for the
financial period.
** Gross profit for the prior period has been restated to reflect a
re-classification of labour costs in CSC from cost of sales to administration
expenses.
*** Segmental net assets comprise the net assets of each division adjusted to
reflect the elimination of the cost of investment in subsidiaries.
Revenue disaggregated by primary geographical markets is as follows:
Revenue
2025 2024
£'000 £'000
United Kingdom 11,058 11,486
Canada 1,987 -
Germany 804 399
Australia 738 1,239
France 642 1,118
Spain 569 199
USA 311 16
Norway 174 7
Italy 3 3
Rest of Europe 89 106
Rest of World 208 254
16,583 14,827
During the year, there were three customers that each contributed over 10% of
revenue. The revenue from these three customers was £8.7 million, or 52.4% of
total revenue (2024: two customers contributed £4.7 million or 31.8% of
revenue). The following tables provide an analysis of revenue by market.
Revenue 2025 2024
£'000 £'000
Defence 12,761 11,080
Hydrogen Energy 2,608 1,738
Industrial 485 1,559
Offshore services 729 450
16,583 14,827
Revenue disaggregated by pattern of revenue recognition and category is as
follows:
Revenue
2025 2024
£'000 £'000
Sale of goods transferred at a point in time 4,513 6,744
Sale of goods transferred over time 7,227 5,731
Rendering of services 4,843 2,352
16,583 14,827
The following aggregated amounts of transaction values relate to the
performance obligations from existing contracts that are unsatisfied or
partially unsatisfied as at 27 September 2025:
Revenue expected in future periods
£'000
Sale of goods - CSC 7,793
2. Impairment Review
The Company tests annually for impairment, in accordance with IAS 36, if there
are indicators that intangible or tangible fixed assets might be impaired. In
this reporting period, the Directors exercised their judgement on the basis of
information available at 27 September 2025.
The impairment methodology considers relevant Cash Generating Units ("CGU's")
within the continuing operations of the Company.
Each relevant CGU is assessed for potential indicators of impairment,
including internal or external factors or events that could reduce the
recoverable value of the fixed assets of the Company. If indicators of
impairment are identified, a full impairment review is undertaken to determine
the recoverable amount of the CGU.
The Directors exercise their judgement in determining the recoverable amount
of a CGU, involving the use of estimates in relation to the future prospects
of the CGU, in this case the CSC continuing operations of the Company.
The recoverable amount of a CGU is determined using a discounted cashflow
model that is based upon a five-year forecast period. The forecast takes into
account the firm order book, sales pipeline and market opportunities of the
CGU, together with expected gross margin performance and consideration of the
cost base, planned capital expenditure and estimated working capital needs of
the CGU. A long-term growth assumption is applied beyond the five-year
forecast period. The future cashflows are then discounted to a present,
recoverable value by applying a risk-adjusted pre-tax discount rate. If the
recoverable value of a CGU is less than the carrying value of its balance
sheet, then an impairment charge may be required. The carrying value of the
balance sheet is determined by application of the accounting policies of the
Company.
An impairment trigger has been identified for CSC given that, over the medium
term, the business will continue to transition from predominantly serving UK
defence programmes (relatively low competition and high margin contracts)
towards overseas defence programmes (more competition, greater price
sensitivity) and the UK hydrogen market (higher revenue growth potential but
more competitive and inherently lower margin). Also, over the medium term, the
business will focus on the growth and development of in-factory and in-situ
lifecycle inspection, testing and recertification services.
It is also noted that the sale of the PMC division at the start of FY25 has
resulted in CSC being the only trading subsidiary of the Company which needs
to support in full the ongoing Company central costs in its long-term
projections.
The future cashflows of CSC have been extrapolated from FY29 in perpetuity at
a growth rate of 2% and applying a risk-adjusted pre-tax discount rate of 16%.
On this basis, the recoverable value of CSC is estimated to be £17.1 million.
The carrying value of the net assets of CSC at 27 September 2025, adjusting
for cash, inter-company and deferred tax balances, was £8.8 million. On this
basis, an impairment charge is not required.
Potential delays to UK and overseas defence programmes and risks in the
development of the UK hydrogen market also present impairment triggers for the
assessment of sensitised cases, where revenue and earnings may be lower over
the medium term.
In the sensitised cases, cashflows are reduced in the period FY26-FY29 and
into perpetuity. The resulting recoverable value of CSC is £8.8 million,
equal to the carrying value of the net assets at 27 September 2025. Therefore,
an impairment charge is not required for this sensitised case.
3. Finance costs
2025 2024
£'000 £'000
Interest payable on bank loans and overdrafts - 10
Interest payable on term loan 4 170
Interest payable on lease liabilities 33 15
Other interest payable 25 82
62 277
4. Loss before taxation
Loss before taxation is stated after charging:
2025 2024
£'000 £'000
Depreciation of property, plant and equipment - owned assets 632 574
Depreciation of property, plant and equipment - leased assets 176 205
Loss on disposal of fixed assets - 22
Staff costs - excluding share-based payments 7,425 6,904
Cost of inventories recognised as an expense 5,307 4,945
Share-based payments 7 14
5. Exceptional costs
2025 2024
£'000 £'000
Costs in relation to the sale of PMC* 593 627
Costs in relation to the sale of PMC, recharged to discontinued operation - (131)
Other corporate finance services 48 -
Arrangement of term loan 10 111
Reorganisation costs 95 17
Debt advisory services on behalf of Lloyds Banking Company - 15
Write-down of historical fixed assets - 33
Other plc costs 44 40
790 712
*Exceptional costs in relation to the sale of PMC including transaction
advisor fees, legal costs and management incentives.
6. Taxation
2025 2024
£'000 £'000
Current tax (charge)
(Under) provision in respect of prior years - (52)
-
(52)
Deferred tax credit / (charge)
Origination and reversal of temporary differences 232 53
(Under) provision in respect of prior years (40) (147)
192
(94)
Total taxation credit / (charge)
192 (146)
Total taxation credit / (charge) is attributable to:
Loss from continuing operations 192 316
Loss from discontinued operations - (462)
Total taxation credit / (charge) 192 (146)
Corporation tax is calculated at 25% (2024: 25%) of the estimated assessable
loss for the period. Deferred tax is calculated at the rate applicable when
the temporary differences are expected to unwind, being 25% for both periods.
The credit / (charge) for the period can be reconciled to the loss per the
consolidated statement of comprehensive income as follows:
2025 2024
£'000 £'000
Loss before taxation: continuing operations (421) (2,661)
(Loss) / profit before taxation: discontinued operations (125) 370
Total loss before taxation (546) (2,291)
Theoretical tax credit at UK corporation tax rate 25% (2024: 25%) 136 572
Effect of (charges) / credits:
- non-deductible expenses (1) (19)
- non-deductible exceptional items (25) (225)
- adjustments in respect of prior years (40) (199)
- unrealised profit on sale of discontinued operation 97 -
- unrealised pre-sale loss in discontinued operation (31) -
- unrealised loss in overseas entities (11) (4)
- recognition and utilisation of losses brought forward 67 (271)
Total taxation credit / (charge) 192 (146)
As the most significant timing differences are not expected to unwind until
2026 or later, the deferred tax rate was maintained at 25% in the period.
7. Loss per ordinary share
The calculation of basic loss per share is based on the loss attributable to
ordinary shareholders divided by the weighted average number of shares in
issue during the period.
The calculation of diluted loss per share is based on basic loss per share,
adjusted to allow for the issue of shares on the assumed conversion of all
dilutive share options. As the Company made a loss after taxation for the
financial year there is no dilution to take place.
Adjusted loss per share shows loss per share after adjusting for the impact of
amortisation charges and any other exceptional items, and for the estimated
tax impact, if any, of those costs. Adjusted loss per share is based on the
loss as adjusted divided by the weighted average number of shares in issue.
For the 52-week period ended 27 September 2025
£'000
Loss after tax from continuing operations (617)
Profit after tax from discontinued operations 263
Total loss after tax (354)
Number of shares ('000)
Weighted average number of shares - basic 38,667
Dilutive effect of share options - SAYE 63
Dilutive effect of share options - Warrants 1,933
Weighted average number of shares - diluted 40,663
Loss per share from continuing operations - basic (1.6)p
Earnings per share from discontinued operations - basic 0.7p
Total loss per share - basic (0.9)p
Loss per share from continuing operations - diluted (1.6)p
Earnings per share from discontinued operations - diluted 0.7p
Total loss per share - diluted (0.9)p
The effect of anti-dilutive potential shares is not disclosed in accordance
with IAS 33.
Adjusted loss per share is calculated as follows:
£'000
Loss after tax from continuing operations (617)
Profit after tax from discontinued operations 263
Exceptional costs: continuing operations 790
Profit on disposal of PMC: discontinued operations (388)
Tax effect of the above adjustments: continuing operations (198)
Tax effect of the above adjustments: discontinued operations 97
Adjusted loss (53)
Adjusted loss per share: continuing operations (0.0)p
Adjusted loss per share: discontinued operations (0.1)p
Total adjusted loss per share (0.1)p
The tax effect is based on applying a 25% tax rate to the adjustment for
exceptional costs.
For the 52-week period ended 28 September 2024
£'000
Loss after tax from continuing operations (2,345)
Loss after tax from discontinued operations (92)
Total loss after tax (2,437)
Number of shares ('000)
Weighted average number of shares - basic 38,667
Dilutive effect of share options - SAYE 193
Dilutive effect of share options - Warrants 1,933
Weighted average number of shares - diluted 40,793
Loss per share from continuing operations - basic and diluted (6.1)p
Loss per share from discontinued operations - basic and diluted (0.2)p
Total loss per share - basic and diluted (6.3)p
The effect of anti-dilutive potential shares is not disclosed in accordance
with IAS 33.
Adjusted loss per share is calculated as follows:
Loss after tax from continuing operations (2,345)
Loss after tax from discontinued operations (92)
Exceptional costs: continuing operations 712
Exceptional costs: discontinued operations 232
Tax effect of the above adjustments: continuing operations (178)
Tax effect of the above adjustments: discontinued operations (58)
Adjusted loss (1,729)
Adjusted loss per share: continuing operations (4.7)p
Adjusted earnings per share: discontinued operations 0.2p
Total adjusted loss per share (4.5)p
The tax effect is based on applying a 25% tax rate to the adjustment for
exceptional costs.
8. Borrowings
2025 2024
£'000 £'000
Current
Term loan - 1,000
On 14 November 2023, a new £1.5 million term loan facility was agreed with
two of the major shareholders of Chesterfield Special Cylinders Holdings plc.
The interest rate on the term loan was 14.25% per quarter, and total interest
payments of £4,000 were made in the year (2024: £170,000). The loan was
fully repaid in October 2024 following the sale of PMC.
In conjunction with the provision of the term loan, the two major shareholders
were issued with 1,933,358 warrants in aggregate (representing 5% of the
issued share capital) to subscribe for ordinary shares in the Company at a
price of 32 pence per share, representing a 20% premium to the closing share
price on 23 October 2023 (being the day prior to the announcement of the new
facility). The warrants may be exercised at any time in the 5 years following
drawdown of the facility and continue to be exercisable notwithstanding that
the facility was repaid in October 2024 before its final expiry.
Obligations under finance leases are secured on the plant and machinery assets
to which they relate.
The carrying amount of other borrowings is considered to be a reasonable
approximation of fair value. The carrying amounts of the Company's borrowings
are all denominated in GBP.
9. Lease liabilities
Lease liabilities are presented in the statement of financial position as
follows:
2025 2024
£'000 £'000
Current
Asset finance lease liabilities 149 116
Right of use asset lease liabilities 70 129
219 245
Non-current
Asset finance lease liabilities 30 125
Right of use asset lease liabilities 113 188
143 313
Leases are held for several items of plant, office equipment and motor
vehicles.
For right of use assets, with the exception of short-term leases and leases of
low-value underlying assets, each lease is reflected on the balance sheet as a
right-of-use asset and a lease liability.
Right-of-use assets are classified in a consistent manner to its property,
plant and equipment. Each lease generally imposes a restriction that, unless
there is a contractual right for the Company to sublet the asset to another
party, the right-of-use asset can only be used by the Company. Leases are
either non-cancellable or may only be cancelled by incurring a substantive
termination fee. Some leases contain an option to extend the lease for a
further term. The Company is prohibited from selling or pledging the
underlying leased assets as security.
For leases over office buildings and factory premises the Company must keep
those properties in a good state of repair and return the properties in their
original condition at the end of the lease. Further, the Company must insure
items of property, plant and equipment and incur maintenance fees on such
items in accordance with the lease contracts.
The lease liabilities are secured by the related underlying assets. Future
minimum lease payments at 27 September 2025 were as follows:
Within one Over one to
year five years Total
£'000 £'000 £'000
27 September 2025
Lease payments 247 152 399
Finance costs (28) (9) (37)
Net present value 219 143 362
Within one Over one to
year five years Total
£'000 £'000 £'000
28 September 2024
Lease payments 275 346 621
Finance costs (30) (33) (63)
Net present value 245 313 558
Lease payments not recognised as a liability
Liabilities for short-term leases are not recognised (leases with an expected
term of 12 months or less) or for leases of low value assets. Payments made
under such leases are expensed on a straight-line basis.
10. Reconciliation of operating profit / (loss) to operating cash flow
2025 2024
£'000 £'000
Adjusted Operating profit / (loss) from continuing operations 43 (1,672)
Adjustments for:
Depreciation of property, plant and equipment 808 752
Share option costs 7 14
Write-off of older assets - 54
Movement in translation reserve 2 (11)
Changes in working capital:
Decrease / (increase) in inventories 402 (362)
(Increase) / decrease in trade and other receivables (1,040) 1,153
Increase in trade and other payables 44 1,073
Operating cash flow from continuing operations 266 1,001
Adjusted Operating (loss) / profit from PMC discontinued operations (125) 780
Adjustments for:
Depreciation of property, plant and equipment 13 710
Share option costs - 9
Release of grants - (20)
Profit on disposal of property, plant and equipment - (19)
Write-off of older assets - 54
Changes in working capital:
Decrease in inventories 11 1,625
Decrease / (increase) in trade and other receivables 103 (955)
Decrease in trade and other payables (100) (1,162)
Operating cash flow from PMC discontinued operations (98) 1,022
Total operating cash flow 168 2,023
11. Net debt reconciliation
Leases
Cash Borrowings Total
£'000 £'000 £'000 £'000
At 30 September 2023 945 (907) (2,401) (2,363)
Cash flows (475) - - (475)
Repayments - 1,407 777 2,184
New facilities - term loan - (1,500) - (1,500)
New facilities - asset finance leases - - (408) (408)
New facilities - right of use asset leases - - (251) (251)
At 28 September 2024, including disposal group 470 (1,000) (2,283) (2,813)
Transfers to disposal group held for sale (354) - 1,725 1,371
At 28 September 2024 116 (1,000) (558) (1,442)
Cash flows 2,242 - - 2,242
Repayments - 1,000 262 1,262
New facilities - asset finance leases - - (66) (66)
Transfers to disposal group prior to sale (228) - - (228)
At 27 September 2025 2,130 - (362) 1,768
12. Discontinued operations (previously disposal group held for sale)
The sale of the Precision Machined Components (PMC) division to Raghu Vamsi
Machine Tools Private Limited, a manufacturer of specialised precision
engineered components based in India, completed on 8 October 2024. As such,
PMC was part of the Group's discontinued operations in FY25 for ten days only.
The assets and liabilities of PMC were classified as a disposal group held for
sale as at 28 September 2024. Revenue and expenses, gains and losses relating
to the discontinuation of this division have been eliminated from profit or
loss from the Group's continuing operations and are shown as a single line
item in the consolidated statement of comprehensive income.
Operating (loss) / profit of PMC in the period and the profit or loss from the
disposal group held for sale are summarised as follows:
52 weeks ended 52 weeks
27 September ended
2025 28 September
2024
£'000 £'000
Revenue 50 17,095
Cost of sales (103) (13,367)
Gross (loss) / profit (53) 3,728
Administration expenses (71) (2,948)
Operating (loss) / profit (124) 780
Exceptional costs - (232)
Finance costs (1) (178)
(Loss) / profit from discontinued operations before tax (125) 370
Tax charge - (462)
Loss from discontinued operations after tax (125) (92)
There is no tax charge or credit attributed to the discontinued operation. Its
loss in the ten days between the FY24 year-end and completion of the sale is
treated as unrealised.
The profit on disposal of the PMC division, recognised in the 52 weeks ended
27 September 2025, is as follows:
£'000
Proceeds from sale of disposal group 4,392
Less:
Non-current assets: property, plant and equipment 2,989
Deferred tax assets 10
Current assets: inventories 1,276
Current assets: trade and other receivables 4,321
Current assets: cash and cash equivalents 484
Current liabilities: trade and other payables (3,179)
Lease liabilities (1,727)
Deferred tax liabilities (170)
Net assets sold 4,004
Profit on disposal of the PMC division 388
Loss from discontinued operations after tax (125)
Profit for period from discontinued operations 263
The carrying amounts of assets and liabilities in this disposal group are
summarised as follows:
27 September 28 September
2025 2024
£'000 £'000
Non-current assets
Property, plant and equipment - 3,002
Deferred tax assets - 10
- 3,012
Current assets
Inventories - 1,287
Trade and other receivables - 4,660
Cash and cash equivalents - 354
- 6,301
Assets classified as held for sale - 9,313
Current liabilities
Trade and other payables - (3,517)
Lease liabilities - (308)
- (3,825)
Non-current liabilities
Other payables - -
Lease liabilities - (1,417)
Deferred tax liabilities - (170)
- (1,587)
Liabilities classified as held for sale - (5,412)
Net assets classified as held for sale - 3,901
The prior year figures above are stated before net amounts of £2,015,000 owed
by PMC to the continuing operations of the Group at the balance sheet date.
As at 28 September 2024, property, plant and equipment included £1,787,000 of
assets held under finance and right of use leases. Of this £423,000 related
to land and buildings and £1,364,000 to plant and machinery.
Cash flows generated by PMC for the reporting periods under review (which
exclude the transfers from continuing operations as presented in the primary
statement) are as follows:
52 weeks ended 52 weeks ended
27 September 28 September
2025 2024
£'000 £'000
Operating cash flow (98) 1,022
Exceptional costs - (232)
Finance costs - (178)
Income tax refunds - 6
Net cash (outflow) / inflow from operating activities (98) 618
Net cash outflow from Investing activities - (92)
Net cash outflow from financing activities - (419)
Cash (outflow) / inflow from discontinued operations (98) 107
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