Company registration number 02213725 (England and Wales)
SCHADES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SCHADES LIMITED
COMPANY INFORMATION
Directors
J M Hugill
M Bergmann
J H Park
Secretary
S Aldridge
Company number
02213725
Registered office
Brittain Drive
Codnor Gate Industrial Estate
Ripley
Derbyshire
United Kingdom
DE5 3RZ
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
SCHADES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
SCHADES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

Sales generated in the year increased from £39.9 million to £41.6 million. Excluding sales generated on international intercompany transactions, sales increased from £37.1 million to £39.4 million. The overall gross profit margin increased from 15.3% in 202 3 to 18% in 202 4, mainly due to the growth in label sales and the incorporation of a new subsidiary in the year.

Gains were made in labels sales during 202 4 across the group supported by the incorporation of Hamilton Schades - Labels Limited on the 27th August 2025. Label sales will be a continued area of sales focus for 202 5 allowing us to increase the product portfolio with major customers. It will also open a further market to us with the online retailers.

Alongside BRC, ISO 45001 certification being achieved in 2023 and retained in 2024.

Principal risks and uncertainties

Our principal risks and uncertainties are outlined below. These are the most significant risks that may adversely affect our business strategy and financial position or future performance.

Economic uncertainties
The group is impacted by global economic fluctuations in raw material prices (e.g. paper pulp). A closer association, through the ultimate ownership, enables a more regular assessment of these potential cost drivers with the source of our main raw materials.
Brand reputation
The group has established a reputation for providing a quality product at a fair price and is the market leader in providing business critical POS products to major retailers on a European wide basis. In order to ensure the group continues to deliver a 'best in class' service proposition there is a continuing evaluation of manufacturing and operational performance to ensure that 98% of all customer orders are delivered on time and complete.
Technological changes
The group's business area will be impacted by the use of technology in retail POS applications, along with the increase of internet shopping, and as such the group continues to pursue a diversification strategy in order to develop a product mix and customer base which is less vulnerable to technological developments. The aim is to evolve with the changing retail world, hence the investment in Label production. Schades now complements it's POS roll offering with labels for, not only product packaging, but also parcel labelling for the increase in demand of internet shopping and click and collect.
Key performance indicators

The group monitors and challenges performance to investigate the health and progress of the business. A range of financial measures are in place on a group wide basis which include the sales growth and gross profit margin.

In addition the group utilises a series of non-financial KPI's in line with g roup objectives, to ensure a high standard of delivery performance, manufacturing and operational excellence.

On behalf of the board

J M Hugill
Director
9 September 2025
SCHADES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company and group is the manufacture and supply of documentation paper rolls and self-adhesive labels for the food retails chains, non-food retailers, office stationery as well as financial institutions and resellers.

The group's objective is to firmly assert itself as the UK's largest supplier of thermal paper rolls and self-adhesive labels in support of the international Schades Group's continued expansion and growth plans.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £3,125,619. The directors do not recommend payment of a further dividend.

Directors

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

J M Hugill
M Bergmann
J H Park
Research and development

The group continues to invest in the latest machinery and technology to support the production of high-quality labels.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Future developments

The group continue to grow to become the market leader in till roll and adhesive lable provider to businesses.

SCHADES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Going concern

In assessing the appropriateness of the going concern assumption, the d irectors have reviewed detailed profit and loss forecasts and cash flow forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure for a period of at least 12 months from the date these financial statements have been approved. The ultimate parent company Harbour Investments GmbH has confirmed it will provide financial support to the business to the extent required to allow the group to meet its liabilities for a period of at least 12 months from the date these financial statements were approved.

Consequently, the directors are confident that the group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The true group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
J M Hugill
Director
9 September 2025
SCHADES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SCHADES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCHADES LIMITED
- 5 -
Opinion

We have audited the financial statements of Schades Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

SCHADES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHADES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

- the parent company 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 directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SCHADES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHADES LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Matthew Woodhead Bsc FCA
12 September 2025
Senior Statutory Auditor
For and on behalf of Azets Audit Services
2 Regan Way
Chartered Accountants
Chetwynd Business Park
Statutory Auditor
Chilwell
Nottingham
United Kingdom
NG9 6RZ
SCHADES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
41,591,501
39,920,476
Cost of sales
(34,085,429)
(33,805,408)
Gross profit
7,506,072
6,115,068
Distribution costs
(2,204,135)
(1,710,130)
Administrative expenses
(1,117,384)
(706,655)
Operating profit
4
4,184,553
3,698,283
Interest receivable and similar income
8
75,813
79,163
Interest payable and similar expenses
9
(139,172)
(55,026)
Profit before taxation
4,121,194
3,722,420
Tax on profit
10
(980,195)
(850,895)
Profit for the financial year
3,140,999
2,871,525
Profit for the financial year is all attributable to the owners of the parent company.
SCHADES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
3,140,999
2,871,525
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
180,312
(208,523)
Tax relating to other comprehensive income
(45,000)
52,250
Other comprehensive income for the year
135,312
(156,273)
Total comprehensive income for the year
3,276,311
2,715,252
Total comprehensive income for the year is all attributable to the owners of the parent company.
SCHADES LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Negative goodwill
12
(854,735)
-
0
Other intangible assets
12
56,000
-
0
Total intangible assets
(798,735)
-
0
Tangible assets
13
6,323,564
2,787,796
5,524,829
2,787,796
Current assets
Stocks
16
3,568,693
2,961,266
Debtors
17
12,112,441
10,177,395
Cash at bank and in hand
2,304,193
1,652,433
17,985,327
14,791,094
Creditors: amounts falling due within one year
18
(13,895,926)
(9,652,433)
Net current assets
4,089,401
5,138,661
Total assets less current liabilities
9,614,230
7,926,457
Creditors: amounts falling due after more than one year
19
(2,400,117)
(821,986)
Provisions for liabilities
Deferred tax liability
22
779,400
442,450
(779,400)
(442,450)
Net assets excluding pension liability
6,434,713
6,662,021
Defined benefit pension liability
23
(28,000)
(406,000)
Net assets
6,406,713
6,256,021
Capital and reserves
Called up share capital
24
1,333,000
1,333,000
Profit and loss reserves
5,073,713
4,923,021
Total equity
6,406,713
6,256,021
The financial statements were approved by the board of directors and authorised for issue on 9 September 2025 and are signed on its behalf by:
09 September 2025
J M Hugill
Director
Company registration number 02213725 (England and Wales)
SCHADES LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,398,333
2,787,796
Investments
14
1
-
0
3,398,334
2,787,796
Current assets
Stocks
16
2,906,626
2,961,266
Debtors
17
12,097,143
10,177,395
Cash at bank and in hand
1,502,062
1,652,433
16,505,831
14,791,094
Creditors: amounts falling due within one year
18
(11,702,147)
(9,652,433)
Net current assets
4,803,684
5,138,661
Total assets less current liabilities
8,202,018
7,926,457
Creditors: amounts falling due after more than one year
19
(1,222,265)
(821,986)
Provisions for liabilities
Deferred tax liability
22
678,472
442,450
(678,472)
(442,450)
Net assets excluding pension liability
6,301,281
6,662,021
Defined benefit pension liability
23
(28,000)
(406,000)
Net assets
6,273,281
6,256,021
Capital and reserves
Called up share capital
24
1,333,000
1,333,000
Profit and loss reserves
4,940,281
4,923,021
Total equity
6,273,281
6,256,021

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £3,007,567 (2023 - £2,871,525 profit).

The financial statements were approved by the board of directors and authorised for issue on 9 September 2025 and are signed on its behalf by:
09 September 2025
J M Hugill
Director
Company registration number 02213725 (England and Wales)
SCHADES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
1,333,000
5,573,478
6,906,478
Year ended 31 December 2023:
Profit for the year
-
2,871,525
2,871,525
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(208,523)
(208,523)
Tax relating to other comprehensive income
-
52,250
52,250
Total comprehensive income
-
2,715,252
2,715,252
Dividends
11
-
(3,365,709)
(3,365,709)
Balance at 31 December 2023
1,333,000
4,923,021
6,256,021
Year ended 31 December 2024:
Profit for the year
-
3,140,999
3,140,999
Other comprehensive income:
Actuarial gains on defined benefit plans
-
180,312
180,312
Tax relating to other comprehensive income
-
(45,000)
(45,000)
Total comprehensive income
-
3,276,311
3,276,311
Dividends
11
-
(3,125,619)
(3,125,619)
Balance at 31 December 2024
1,333,000
5,073,713
6,406,713
SCHADES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
1,333,000
5,573,478
6,906,478
Year ended 31 December 2023:
Profit for the year
-
2,871,525
2,871,525
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(208,523)
(208,523)
Tax relating to other comprehensive income
-
52,250
52,250
Total comprehensive income
-
2,715,252
2,715,252
Dividends
11
-
(3,365,709)
(3,365,709)
Balance at 31 December 2023
1,333,000
4,923,021
6,256,021
Year ended 31 December 2024:
Profit for the year
-
3,007,567
3,007,567
Other comprehensive income:
Actuarial gains on defined benefit plans
-
180,312
180,312
Tax relating to other comprehensive income
-
(45,000)
(45,000)
Total comprehensive income
-
3,142,879
3,142,879
Dividends
11
-
(3,125,619)
(3,125,619)
Balance at 31 December 2024
1,333,000
4,940,281
6,273,281
SCHADES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
5,655,991
5,908,968
Interest paid
(139,172)
(55,026)
Income taxes paid
(841,697)
(478,896)
Net cash inflow from operating activities
4,675,122
5,375,046
Investing activities
Purchase of business
(300,000)
-
Purchase of intangible assets
(42,000)
-
Purchase of tangible fixed assets
(3,144,883)
(874,032)
Proceeds from disposal of tangible fixed assets
252,518
-
Payment of retirement defined benefit contributions
(212,000)
(206,000)
Net cash used in investing activities
(3,446,365)
(1,080,032)
Financing activities
Payment of finance leases obligations
2,117,632
(6,950)
Dividends paid to equity shareholders
(3,125,619)
(3,365,709)
Net cash used in financing activities
(1,007,987)
(3,372,659)
Net increase in cash and cash equivalents
220,770
922,355
Cash and cash equivalents at beginning of year
1,646,589
724,234
Cash and cash equivalents at end of year
1,867,359
1,646,589
Relating to:
Cash at bank and in hand
2,304,193
1,652,433
Bank overdrafts included in creditors payable within one year
(436,834)
(5,844)
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Schades Limited (“the company”) is a private limited company domiciled and incorporated in England and

Wales. The registered office is Brittain Drive, Codnor Gate Industrial Estate, Ripley, Derbyshire, DE5 3RZ.

The group consists of Schades Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled.The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Schades Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

In assessing the appropriateness of the going concern assumption, the directors have reviewed detailed profit and loss forecasts and cash flow forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure for a period of at least 12 months from the date these financial statements have been approved. The ultimate parent company Harbour Investments GmbH has confirmed it will provide financial support to the business to the extent required to allow the group to meet its liabilities for a period of at least 12 months from the date these financial statements were approved.

Consequently, the directors are confident that the group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Negative Goodwill is determined where the fair value of the net assets acquired exceeds the consideration transferred is recognised within the balance sheet. Negative Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of each type of asset acquired, which spans from 1-5 years.

For the purposes of impairment testing, goodwill and negative goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill and negative goodwill is allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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

Brands & licences
5 years straight line
1.8
Tangible fixed assets

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

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

Freehold land and buildings
25 - 50 years straight line
Plant and equipment
5 - 12 years straight line
Fixtures and fittings
3 - 5 years straight line
Computers
3 years straight line

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

1.9
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 their 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 or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises 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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

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

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.18
Leases

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to 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 lease d asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

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

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
41,591,501
39,920,476
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
39,407,073
37,144,408
Rest of European Union
2,184,428
2,776,068
41,591,501
39,920,476
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
710,016
494,003
Amortisation of intangible assets
(212,684)
-
Operating lease charges
51,534
26,920
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
38,950
34,650
Audit of the financial statements of the company's subsidiaries
33,000
-
71,950
34,650
For other services
Taxation compliance services
11,500
5,250
All other non-audit services
4,000
1,650
15,500
6,900
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
106
47
49
47
Administration
21
8
9
8
Total
127
55
58
55
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,844,287
1,937,418
2,280,347
1,937,418
Social security costs
325,401
184,917
229,315
184,917
Pension costs
98,013
162,078
69,839
162,078
3,267,701
2,284,413
2,579,501
2,284,413
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
209,080
127,213
Company pension contributions to defined contribution schemes
22,000
94,920
231,080
222,133
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
209,080
127,213
Company pension contributions to defined contribution schemes
22,000
94,920
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
75,813
79,163
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
7,297
-
Interest payable to group undertakings
94,370
8,289
Interest on finance leases and hire purchase contracts
23,505
32,737
Net interest on the net defined benefit liability
14,000
14,000
Total finance costs
139,172
55,026
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
674,004
714,637
Adjustments in respect of prior periods
14,241
(36,724)
Total current tax
688,245
677,913
Deferred tax
Origination and reversal of timing differences
266,449
172,931
Adjustment in respect of prior periods
25,501
51
Total deferred tax
291,950
172,982
Total tax charge
980,195
850,895

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
4,121,194
3,722,420
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,030,299
875,513
Tax effect of expenses that are not deductible in determining taxable profit
10,375
1,822
Adjustments in respect of prior years
(11,134)
(36,724)
Amortisation on assets not qualifying for tax allowances
(53,421)
-
0
Other permanent differences
23,575
10,233
Deferred tax adjustments in respect of prior years
(19,499)
51
Taxation charge
980,195
850,895

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
45,000
(52,250)
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
11
Dividends
2024
2023
2024
2023
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary Shares
Final paid
2.35
2.52
3,125,619
3,365,709
12
Intangible fixed assets
Group
Negative goodwill
Brands & licences
Total
£
£
£
Cost
At 1 January 2024
-
0
-
0
-
0
Additions
(1,068,419)
57,000
(1,011,419)
At 31 December 2024
(1,068,419)
57,000
(1,011,419)
Amortisation and impairment
At 1 January 2024
-
0
-
0
-
0
Amortisation charged for the year
(213,684)
1,000
(212,684)
At 31 December 2024
(213,684)
1,000
(212,684)
Carrying amount
At 31 December 2024
(854,735)
56,000
(798,735)
At 31 December 2023
-
0
-
0
-
0
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2024
1,169,848
8,905,791
-
0
273,367
10,349,006
Additions
33,988
4,380,430
25,399
58,485
4,498,302
Disposals
-
0
(503,829)
-
0
-
0
(503,829)
At 31 December 2024
1,203,836
12,782,392
25,399
331,852
14,343,479
Depreciation and impairment
At 1 January 2024
963,620
6,383,187
-
0
214,403
7,561,210
Depreciation charged in the year
6,779
676,972
3,020
23,245
710,016
Eliminated in respect of disposals
-
0
(251,311)
-
0
-
0
(251,311)
At 31 December 2024
970,399
6,808,848
3,020
237,648
8,019,915
Carrying amount
At 31 December 2024
233,437
5,973,544
22,379
94,204
6,323,564
At 31 December 2023
206,228
2,522,604
-
0
58,964
2,787,796
Company
Freehold land and buildings
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 January 2024
1,169,848
8,905,791
273,367
10,349,006
Additions
-
0
1,384,224
11,103
1,395,327
Disposals
-
0
(503,829)
-
0
(503,829)
At 31 December 2024
1,169,848
9,786,186
284,470
11,240,504
Depreciation and impairment
At 1 January 2024
963,620
6,383,187
214,403
7,561,210
Depreciation charged in the year
6,779
508,020
17,473
532,272
Eliminated in respect of disposals
-
0
(251,311)
-
0
(251,311)
At 31 December 2024
970,399
6,639,896
231,876
7,842,171
Carrying amount
At 31 December 2024
199,449
3,146,290
52,594
3,398,333
At 31 December 2023
206,228
2,522,604
58,964
2,787,796
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1
-
0

On 27th August 2024, the company acquired 100% of the issued share capital of Hamilton - Schades Labels Limited, a newly incorporated entity on the date of acquisition. Trading results for the wholly owned subsidiary from the date of acquisition to the 31 December 2024 are presented within the group's financial statements.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
-
Additions
1
At 31 December 2024
1
Carrying amount
At 31 December 2024
1
At 31 December 2023
-
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Hamilton - Schades Labels Limited
Brittain Drive, Codnor Gate Industrial Estate, Ripley, Derbyshire, United Kingdom, DE5 3RZ
Sale of adhesive labels
Ordinary Shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Hamilton - Schades Labels Limited
133,433
133,432
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
2,856,634
2,653,248
2,507,778
2,653,248
Work in progress
46,968
-
-
-
Finished goods and goods for resale
665,091
308,018
398,848
308,018
3,568,693
2,961,266
2,906,626
2,961,266
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
10,957,889
8,089,317
8,977,828
8,089,317
Amounts owed by group undertakings
21,769
8,936
2,110,266
8,936
Other debtors
141,750
75,466
141,750
75,466
Prepayments and accrued income
273,005
75,736
149,271
75,736
11,394,413
8,249,455
11,379,115
8,249,455
Amounts falling due after more than one year:
Amounts owed by group undertakings
718,028
1,927,940
718,028
1,927,940
Total debtors
12,112,441
10,177,395
12,097,143
10,177,395

Amounts owed by group undertakings due within one year are unsecured, repayable on demand and bear no interest.

Amounts owed by group undertakings due after one year are unsecured, repayable on the 20th August 2029 and bear interest at 3.5%.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
436,834
5,844
436,834
5,844
Obligations under finance leases
21
876,165
336,664
500,172
336,664
Trade creditors
8,057,119
6,764,258
6,847,143
6,764,258
Amounts owed to group undertakings
2,335,455
214,762
2,335,455
214,762
Corporation tax payable
561,186
714,638
561,186
714,638
Other taxation and social security
787,635
825,167
590,370
825,167
Other creditors
841,532
791,100
430,987
791,100
13,895,926
9,652,433
11,702,147
9,652,433

Amounts owed to group undertakings are unsecured, repayable on demand and bear no interest.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
2,400,117
821,986
1,222,265
821,986
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
436,834
5,844
436,834
5,844
Payable within one year
436,834
5,844
436,834
5,844
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,376,337
336,664
500,172
336,664
In two to five years
2,400,117
821,986
1,222,265
821,986
3,276,282
1,158,650
1,722,437
1,158,650
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Finance lease obligations
(Continued)
- 30 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
769,718
572,454
Tax losses
(26,502)
(26,052)
Retirement benefit obligations
45,000
(52,250)
Short term timing differences
(8,816)
(51,702)
779,400
442,450
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
662,565
572,454
Tax losses
(26,502)
(26,052)
Retirement benefit obligations
45,000
(52,250)
Short term timing differences
(2,591)
(51,702)
678,472
442,450
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
442,450
442,450
Charge to profit or loss
291,950
191,022
Charge to other comprehensive income
45,000
45,000
Liability at 31 December 2024
779,400
678,472
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
98,013
162,078

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit scheme - group and company

The company operates a defined benefit scheme for qualifying employees. The company has adopted Financial Reporting Standard 102 "Retired Benefits" in these financial statements.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 1 April 201 8 and has been updated each year for Financial Reporting Standard 102 to 31 December 20 2 4 for the purposes of these financial statements. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2024
2023
Key assumptions
%
%
Discount rate
5.6
5.0
Retail Price Inflation (RPI)
3.1
3.1
Pension increases - RPI maximum 5%
3.1
3.1
Pension increases - RPI maximum 2.5%
2.5
-
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Current pensioner aged 65
- Males
86.9
87.7
- Females
89.7
90.3
Future retiree upon reaching 65
- Males
89.1
89.9
- Females
92.0
92.6

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Group and company
2024
2023
£
£
Present value of defined benefit obligations
28,000
406,000
Deficit in scheme
28,000
406,000
Total liability recognised
28,000
406,000
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Retirement benefit schemes
(Continued)
- 32 -

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
£
£
Present value of defined benefit obligations
6,433,000
6,941,000
Fair value of plan assets
(6,405,000)
(6,535,000)
Deficit in scheme
28,000
406,000
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
11,000
(214,000)
Less: calculated interest element
311,000
321,000
Return on scheme assets excluding interest income
322,000
107,000
Actuarial changes related to obligations
(502,312)
101,523
Total costs/(income)
(180,312)
208,523
Group and company
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2024
6,941,000
Benefits paid
(331,000)
Actuarial gains and losses
(502,000)
Interest cost
325,000
At 31 December 2024
6,433,000

The defined benefit obligations arise from plans which are wholly or partly funded.

Group
Group and company
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2024
6,535,000
Interest income
311,000
Return on plan assets (excluding amounts included in net interest)
(322,000)
Benefits paid
(331,000)
Contributions by the employer
212,000
At 31 December 2024
6,405,000
SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Retirement benefit schemes
(Continued)
- 33 -

The actual return/(loss) on plan assets was (£11,000) (2023 £214,000)

Equity instruments
1,660,000
1,623,000
Bonds
707,000
754,000
Insured pension
3,796,000
3,935,000
Cash
242,000
223,000
6,405,000
6,535,000
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,333,000
1,333,000
1,333,000
1,333,000
25
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
2,335,455
214,762

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
739,797
1,936,876
26
Controlling party

The largest group and ultimate parent undertaking in which the results of the company are consolidated is that headed by Harbour Investments Holdings GmbH, a German registered investment fund.

SCHADES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
3,140,999
2,871,525
Adjustments for:
Taxation charged
980,195
850,895
Finance costs
139,172
55,026
Amortisation and impairment of intangible assets
(212,684)
-
Depreciation and impairment of tangible fixed assets
710,016
494,003
Pension scheme non-cash movement
14,312
14,477
Movements in working capital:
(Increase)/decrease in stocks
(607,427)
296,535
(Increase)/decrease in debtors
(1,935,046)
2,277,762
Increase/(decrease) in creditors
3,426,454
(951,255)
Cash generated from operations
5,655,991
5,908,968
28
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,652,433
651,760
2,304,193
Bank overdrafts
(5,844)
(430,990)
(436,834)
1,646,589
220,770
1,867,359
Obligations under finance leases
(1,158,650)
(2,117,632)
(3,276,282)
487,939
(1,896,862)
(1,408,923)
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