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REGISTERED NUMBER: 01420923 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 August 2024

for

Linco Care Limited

Linco Care Limited (Registered number: 01420923)






Contents of the Financial Statements
for the Year Ended 31 August 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


Linco Care Limited

Company Information
for the Year Ended 31 August 2024







DIRECTORS: Mr S Sekaleshfar
Mr F Sekaleshfar
Mr B B Todd
Mr M Todd
Mr J J Todd





SECRETARY: Mr F Sekaleshfar





REGISTERED OFFICE: Linco House
Manchester Road
Carrington
Manchester
M31 4BX





REGISTERED NUMBER: 01420923 (England and Wales)





AUDITORS: Freedman Frankl & Taylor
Statutory Auditors
Chartered Accountants
Reedham House
31 King Street West
Manchester
M3 2PJ

Linco Care Limited (Registered number: 01420923)

Strategic Report
for the Year Ended 31 August 2024

The directors present their strategic report for the year ended 31 August 2024.

Linco Care Limited is a specialist manufacturer and distributor of cosmetic products with all major operations located at one site in Manchester, UK. We operate a flexible manufacturing system and bespoke formulation development in contract manufacturing. Our brands include Calypso, Silkia, Dimples, Cabana Sun and others. We distribute across the UK and in over 60 countries worldwide, with customer types ranging from large grocery chains and department stores to local distributors.

Our core values are Quality, Ethics, and Innovation and our strategy is to create value for the masses, seek new opportunities and always adopt fair trade.

Linco Care Limited has continued its work on the implementation of quality assurance systems, succeeding in numerous audits, namely GMP ISO22716 (Good Manufacturing Practices), BRCGS (British Retail Consortium Global Sourcing), SMETA (Sedex Members Ethical Trade Audit) and others.

The company has a strong and stable workforce, steadily increasing in size, and many employees have over 10, or even over 20, years of service. The business prides itself in recruiting and developing local people and is committed to continuously improving their working environment. The Directors are most grateful for the continued support and dedication of all personnel, which has always been pivotal to the success of the business and hope it will continue for many years to come.

Financial review
Company sales are at their highest, bringing newer challenges to Linco Care Limited in terms of supply chain management for raw materials, components and production efficiencies.

The Calypso brand has again grown at its fastest pace, thanks to exhibition success and an increase in advertising, both at a retail and online level.

More innovative sun and skincare products have eased the introduction into niche markets globally, including the Far East. This was predominantly due to several heatwaves worldwide.

The Directors are satisfied with the performance of the company during the last 12 months and with the financial position at August 2024. They remain focussed on investing in and continually improving the business. The financial stability of Linco Care Limited looks secure in the short and medium term.

Risk management
The Directors continue to monitor all risks to the business:
- Debtors control via ongoing reviews of customer credit limits and proforma payments from international customers
- Exposure to Foreign Exchange Market - Forex exposure is limited through currency accounts with balances maintained at appropriate levels. Exchange rates are monitored and transfers between currency accounts are processed according to trends.
- Health and Safety - all reasonable steps have been taken to mitigate key risks and suitable monitoring is in place throughout.

Research and development
R&D is still classed as a pivotal department and process within Linco Care Ltd. With expenditure increasing year on year, we strive to innovate and to evolve the product range each year.

Looking forward
Linco Care aims to increase productivity by 30% through a machinery expansion plan due to complete before the end of 2025. The Directors ensure continued close relationships with customers and suppliers in order to navigate potential threats and risks to the business.

Going concern
The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement.


Linco Care Limited (Registered number: 01420923)

Strategic Report
for the Year Ended 31 August 2024

The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026.

The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements.

ON BEHALF OF THE BOARD:





Mr F Sekaleshfar - Director


20 May 2025

Linco Care Limited (Registered number: 01420923)

Report of the Directors
for the Year Ended 31 August 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

DIVIDENDS
The total distribution of dividends for the year ended 31 August 2024 will be £ 480,400 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

Mr S Sekaleshfar
Mr F Sekaleshfar
Mr B B Todd
Mr M Todd
Mr J J Todd

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

GOING CONCERN
The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement.

The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026.

The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements.

STRATEGIC REPORT
In accordance with Section 414C (11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 the company has chosen to set out in the Company's Strategic Report information required by schedule 7 of the large and medium - sized Companies and Groups (Accounts and Reports) Regulations 2008.

Linco Care Limited (Registered number: 01420923)

Report of the Directors
for the Year Ended 31 August 2024


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

ON BEHALF OF THE BOARD:





Mr F Sekaleshfar - Director


20 May 2025

Report of the Independent Auditors to the Members of
Linco Care Limited

Opinion
We have audited the financial statements of Linco Care Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Linco Care Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

Report of the Independent Auditors to the Members of
Linco Care Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified
- the nature of the industry and sector, control environment and business performance;
- results of enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Company's documentation of their policies and
procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving other internal specialists including tax
regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions; and
- in addressing the risks of fraud through management override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the judgements made in making accounting estimates are
indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual
or outside the normal course of business.We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members, and remained alert to any indications of fraud or
noncompliance with laws and regulations throughout the audit.

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

Report of the Independent Auditors to the Members of
Linco Care Limited


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




Mr Adam Caplan BSc(Hons) BFP FCA (Senior Statutory Auditor)
for and on behalf of Freedman Frankl & Taylor
Statutory Auditors
Chartered Accountants
Reedham House
31 King Street West
Manchester
M3 2PJ

20 May 2025

Linco Care Limited (Registered number: 01420923)

Income Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £    £   

TURNOVER 3 14,563,736 13,031,630

Cost of sales 9,870,853 7,647,125
GROSS PROFIT 4,692,883 5,384,505

Distribution costs 235,969 147,171
Administrative expenses 2,997,466 2,994,856
3,233,435 3,142,027
OPERATING PROFIT 5 1,459,448 2,242,478

Interest receivable and similar income 1,002 2,223
1,460,450 2,244,701

Interest payable and similar expenses 6 13,231 -
PROFIT BEFORE TAXATION 1,447,219 2,244,701

Tax on profit 7 298,324 333,341
PROFIT FOR THE FINANCIAL YEAR 1,148,895 1,911,360

Linco Care Limited (Registered number: 01420923)

Other Comprehensive Income
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,148,895 1,911,360


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,148,895

1,911,360

Linco Care Limited (Registered number: 01420923)

Balance Sheet
31 August 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 1,368,030 1,212,015

CURRENT ASSETS
Stocks 10 5,429,906 4,931,270
Debtors 11 3,306,276 2,703,518
Cash at bank 1,213,562 1,222,865
9,949,744 8,857,653
CREDITORS
Amounts falling due within one year 12 2,098,429 1,416,906
NET CURRENT ASSETS 7,851,315 7,440,747
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,219,345

8,652,762

PROVISIONS FOR LIABILITIES 15 134,871 236,783
NET ASSETS 9,084,474 8,415,979

CAPITAL AND RESERVES
Called up share capital 16 1,000 1,000
Retained earnings 17 9,083,474 8,414,979
SHAREHOLDERS' FUNDS 9,084,474 8,415,979

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2025 and were signed on its behalf by:





Mr F Sekaleshfar - Director


Linco Care Limited (Registered number: 01420923)

Statement of Changes in Equity
for the Year Ended 31 August 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2022 1,000 7,094,019 7,095,019

Changes in equity
Dividends - (590,400 ) (590,400 )
Total comprehensive income - 1,911,360 1,911,360
Balance at 31 August 2023 1,000 8,414,979 8,415,979

Changes in equity
Dividends - (480,400 ) (480,400 )
Total comprehensive income - 1,148,895 1,148,895
Balance at 31 August 2024 1,000 9,083,474 9,084,474

Linco Care Limited (Registered number: 01420923)

Cash Flow Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,111,961 (571,940 )
Interest paid (13,231 ) -
Tax paid (400,622 ) 149,149
Net cash from operating activities 698,108 (422,791 )

Cash flows from investing activities
Purchase of tangible fixed assets (247,814 ) (502,271 )
Sale of tangible fixed assets 5,800 400
Interest received 1,002 2,223
Net cash from investing activities (241,012 ) (499,648 )

Cash flows from financing activities
Amount withdrawn by directors 14,799 -
Equity dividends paid (480,400 ) (590,400 )
Net cash from financing activities (465,601 ) (590,400 )

Decrease in cash and cash equivalents (8,505 ) (1,512,839 )
Cash and cash equivalents at beginning of
year

2

1,222,067

2,734,906

Cash and cash equivalents at end of year 2 1,213,562 1,222,067

Linco Care Limited (Registered number: 01420923)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2024

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

2024 2023
£    £   
Profit before taxation 1,447,219 2,244,701
Depreciation charges 88,704 89,781
Profit on disposal of fixed assets (2,705 ) (400 )
Finance costs 13,231 -
Finance income (1,002 ) (2,223 )
1,545,447 2,331,859
Increase in stocks (498,636 ) (1,635,286 )
Increase in trade and other debtors (602,758 ) (211,078 )
Increase/(decrease) in trade and other creditors 667,908 (1,057,435 )
Cash generated from operations 1,111,961 (571,940 )

2. CASH AND CASH EQUIVALENTS

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

Year ended 31 August 2024
31.8.24 1.9.23
£    £   
Cash and cash equivalents 1,213,562 1,222,865
Bank overdrafts - (798 )
1,213,562 1,222,067
Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 1,222,865 2,734,906
Bank overdrafts (798 ) -
1,222,067 2,734,906


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank 1,222,865 (9,303 ) 1,213,562
Bank overdrafts (798 ) 798 -
1,222,067 (8,505 ) 1,213,562
Total 1,222,067 (8,505 ) 1,213,562

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements
for the Year Ended 31 August 2024

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

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

Turnover
The turnover shown in the profit and loss account represents amounts receivable for goods dispatched during the year, exclusive of Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of goods or once the customer has accepted responsibility for the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in the respect of the transaction can be measured reliably.

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

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Buildings leasehold2% - 25% per annum straight line
Plant and machinery15% per annum straight line
Fixtures, fittings and computer equipment15% - 25% per annum straight line
Motor vehicles25% per annum straight line
Assets under constructionNo depreciation will be charged until the asset is in use

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated on a 'first in first out' basis at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the .year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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


Foreign exchange
Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

The company operates two defined contribution pension schemes and contributions payable for the year are charged to the profit and loss account. Any amounts outstanding at the balance sheet date are included in other creditors.

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

Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Standard stock costings incorporate judgements about expected raw material prices.

Going concern
The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement.

The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment cover the period to 31st May 2026.

The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 9,429,168 9,408,163
Europe 1,668,990 1,351,000
Asia 3,227,648 2,122,649
America 5,775 15,828
Australia and New Zealand 123,455 58,744
Africa 64,736 45,603
Caribbean 43,964 29,643
14,563,736 13,031,630

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,245,432 2,312,595
Social security costs 249,469 235,415
Other pension costs 64,791 50,449
3,559,692 2,598,459

The average number of employees during the year was as follows:
2024 2023

Production staff 64 55
Distribution staff 5 6
Administrative staff 12 11
81 72

2024 2023
£    £   
Directors' remuneration 386,168 456,910
Directors' pension contributions to money purchase schemes 8,828 9,330

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 220,688 300,760
Pension contributions to money purchase schemes 8,828 9,330

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 88,704 89,781
Profit on disposal of fixed assets (2,705 ) (400 )
Auditors' remuneration 18,000 25,000
Foreign exchange differences 7,307 13,501
Operating lease charges 222,857 163,792
Research and development costs 85,597 40,556

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest 13,231 -

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 372,190 298,507
Adjustments in respect of
prior periods 28,046 (162,416 )
Total current tax 400,236 136,091

Deferred tax:
Deferred tax (101,912 ) 196,995
Adjustments in respect of prior periods - 255
Total deferred tax (101,912 ) 197,250

Tax on profit 298,324 333,341

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,447,219 2,244,701
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.520%)

361,805

483,060

Effects of:
Expenses not deductible for tax purposes 658 34,107
Capital allowances in excess of depreciation (92,185 ) (49,126 )
Adjustments to tax charge in respect of previous periods 28,046 (162,416 )
Adjustments in respect of prior years - deferred tax - 255
Remeasurement of deferred tax for changes in tax rates - 27,461
Total tax charge 298,324 333,341

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

8. DIVIDENDS
2024 2023
£    £   
A shares of £1 each
Interim 117,900 147,900
B shares of £1 each
Interim 6,250 11,250
C shares of £1 each
Interim 37,500 67,500
D shares of £1 each
Interim 18,750 33,750
E shares of £1 each
Interim 70,000 45,000
F shares of £1 each
Interim 80,000 120,000
G shares of £1 each
Interim 80,000 120,000
H shares of £1 each
Interim 70,000 45,000
480,400 590,400

9. TANGIBLE FIXED ASSETS
Assets
Buildings under Plant and
leasehold construction machinery
£    £    £   
COST
At 1 September 2023 939,526 306,000 529,723
Additions 6,423 179,705 39,463
Disposals - - -
At 31 August 2024 945,949 485,705 569,186
DEPRECIATION
At 1 September 2023 245,329 - 328,243
Charge for year 23,529 - 58,083
Eliminated on disposal - - -
At 31 August 2024 268,858 - 386,326
NET BOOK VALUE
At 31 August 2024 677,091 485,705 182,860
At 31 August 2023 694,197 306,000 201,480

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. TANGIBLE FIXED ASSETS - continued

Fixtures,
fittings
and
computer Motor
equipment vehicles Totals
£    £    £   
COST
At 1 September 2023 159,339 75,720 2,010,308
Additions 2,224 19,999 247,814
Disposals - (71,620 ) (71,620 )
At 31 August 2024 161,563 24,099 2,186,502
DEPRECIATION
At 1 September 2023 152,896 71,825 798,293
Charge for year 3,855 3,237 88,704
Eliminated on disposal - (68,525 ) (68,525 )
At 31 August 2024 156,751 6,537 818,472
NET BOOK VALUE
At 31 August 2024 4,812 17,562 1,368,030
At 31 August 2023 6,443 3,895 1,212,015

10. STOCKS
2024 2023
£    £   
Raw materials and consumables 2,580,386 2,157,009
Finished goods and goods for
resale 2,849,520 2,774,261
5,429,906 4,931,270

Stock provision of £1,578,641 (2023: 1,834,694) was made based on slow movement and obsolete stock.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,072,860 2,505,203
Other debtors - 23,446
Amounts due from related party 157,027 -
Prepayments 76,389 174,869
3,306,276 2,703,518

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) - 798
Trade creditors 770,362 106,862
Tax 300,892 301,278
Social security and other taxes 185,551 173,723
Other creditors 15,479 (91,135 )
Directors' current accounts 14,799 -
Accrued expenses 811,346 925,380
2,098,429 1,416,906

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 798

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 31,596 53,072
Between one and five years 54,375 159,216
In more than five years - 44,398
85,971 256,686

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 134,871 236,783

Deferred
tax
£   
Balance at 1 September 2023 236,783
Credit to Income Statement during year (101,912 )
Balance at 31 August 2024 134,871

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

15. PROVISIONS FOR LIABILITIES - continued

Analysis of deferred tax balance

20242023
£   £   
Accelerated capital allowances134,871240,954
Short term timing differences-(4,171)
134,871236,783

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
200 A £1 200 200
25 B £1 25 25
200 C £1 200 200
75 D £1 75 75
100 E £1 100 100
150 F £1 150 150
150 G £1 150 150
100 H £1 100 100
1,000 1,000

17. RESERVES
Retained
earnings
£   

At 1 September 2023 8,414,979
Profit for the year 1,148,895
Dividends (480,400 )
At 31 August 2024 9,083,474

18. CAPITAL COMMITMENTS

As at 31 August 2024, the company had committed costs of £133,430 in relation to construction costs.

Linco Care Limited (Registered number: 01420923)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

19. RELATED PARTY DISCLOSURES

During the year, the director Mr B Todd introduced £485,158 into the company and withdrew amounts totalling £485,250. As at 31 August 2024 the company owed Mr B Todd £224 (2023: £316) under informal interest free loans.

During the year, the director Mr J Todd introduced £120,000 into the company and withdrew amounts totalling £120,950. As at 31 August 2024 the company owed Mr J Todd £1,419 (2023: £2,369) under informal interest free loans.

During the year, the director Mr M Todd introduced £120,000 into the company and withdrew amounts totalling £120,000. As at 31 August 2024 the company owed Mr M Todd £2,787 (2023: £2,787) under informal interest free loans.

During the year, the director Mr F Sekaleshfar introduced £116,595 into the company and withdrew amounts totalling £102,500. As at 31 August 2024 the company owed Mr F Sekaleshfar £Nil (2023: £14,095).

During the year, the shareholder Mrs B Todd introduced £67,500 into the company and withdrew amounts totalling £67,500. As at 31 August 2024 the company owed Mrs B Todd £140 (2023: £140) under informal interest free loans.

During the year, the shareholder Mrs N Sekalesfar introduced £43,979 into the company and withdrew amounts totalling £33,750. As at 31 August 2024 the company owed £10,229 to Mrs N Sekaleshfar (2023: £Nil).

During the year, the shareholder Dr F Sekaleshfar introduced £45,000 into the company and withdrew amounts totalling £29,324. As at 31 August 2024 the company owed Dr F Sekaleshfar £Nil (2023: £15,676).

Mr B Todd has an interest in a company Linco lmpex Inc which owns 100% of the share capital of Dimples Limited.

During the year, there were sales to Dimples Limited by the company of £28,298 (2023: £38,085). Purchases were also made from Dimples Limited amounting to £1,510 (2023: £12,918). At the year end included in amounts due from related party was £157,027 (2023: £5,962) owed to the company.

Mr S Sekaleshfar has a 100% interest in a company QHorizons Limited. During the year sales of £109,836 (2023: £97,974) and purchases amounting to £73,580 (2023: £nil) were made to QHorizons Limited. At the year end trade debtors includes £32,731 (2023: £44,594) owed to the company.

The directors Mr B Todd, together with his wife and Mr F Sekaleshfar own the property that the company trades from. Rent amounting to £222,857 (2023: £163,792) was charged to the company by the directors during the financial year. At the year end the company owed Orly Property £222,857 (2023: £208,500).

During the year dividends of £117,900 (2023: £147,900), £37,500 (2023: £67,500), £6,250 (2023: £11,250), £70,000 (2023: £45,000), £18,750 (2023: £33,750), £80,000 (2023: £120,000), £80,000 (2023: £120,000) and £70,000 (2023: £45,000) were paid to the director Mr B Todd, former director Mrs B Todd,·and the directors Mr F Sekaleshfar, Mr S Sekaleshfar and former director Mrs N Sekaleshfar, the directors Mr M Todd and Mr J Todd, and shareholder Dr F Sekaleshfar respectively.

20. ULTIMATE CONTROLLING PARTY

The company is under control of Mr B Todd and other family members by virtue of their majority interest in the share capital of the company.