Trend Tool Technology LTD - Limited company accounts 25.1

REGISTERED NUMBER: 01338493

TREND TOOL TECHNOLOGY LTD

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive
Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Cash Flow Statement

19

Notes to the Consolidated Financial Statements

21

DIRECTORS:

S J Phillips

N McMillan

C R Lamb

A Roberts

C J Carter

T M Simons

SECRETARY:

C R Lamb

REGISTERED OFFICE:

Unit 6, Odhams Trading Estate

St Albans Road

Watford

Hertfordshire

WD24 7TR

REGISTERED NUMBER:

01338493

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

3rd Floor

Marlborough House

298 Regents Park Road

Finchley

London

N3 2SZ

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

Principle activity

In 2024 the company continued to focus on its principal activity of selling power and hand tools, and associated accessories. It has also continued to develop and strengthen its partnerships with its network of stockists throughout the UK, Europe & USA.

REVIEW OF BUSINESS

Sales have decreased to £30,738,502 (2024) from £33,468,176 (2023), nevertheless

Pre-tax profit of £1,200,139 (2024) has increased from the previous year of £1,146,538 (2023).

During 2024 our primary strategic plan was to stabilise sales and increase profits in the UK business. In Q1'24 we identified significantly weaker market demand in the UK construction industry than anticipated and so focussed efforts in cost reduction strategies to counteract the effects to our profitability and furthered our principal strategy to move the business away from low margin product categories and concentrate on our core competencies. This resulted in another significant increase of our GP%, despite sales decline versus 2023. 2024 demand declined in two forms, firstly customers reduced stockholding to conserve cash and secondly customer insolvencies were at an industry all-time high.

Looking ahead, we anticipate activity in the UK construction sector to remain subdued so the directors are confident that the performance of the company will remain steady in 2025.

Financial key performance indicators

The company's financial performance is assessed primarily by Turnover, Gross Profit, GP as % Turnover, EBITDA and EBITDA % of Turnover for the financial year:

Turnover

Gross Profit

Gross Profit
%

EBITDA

EBITDA %

2024

£30,738,502

£13,436,011

43.7%

£2,057,562

6.7%

2023

£33,468,176

£13,417,857

40.1%

£2,019,970

6.0%

2022

£33,202,431

£12,294,087

37.0%

£1,115,528

3.4%

2021

£35,548,890

£13,178,598

37.1%

£1,850,881

5.2%

2020

£28,805,778

£10,688,630

37.1%

£1,168,875

4.1%

2019

£22,419,763

£8,658,156

38.6%

£658,933

2.9%

CAGR%

+7%

+9%

+25%

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risk and uncertainty relates to any potential downturn in the UK economy and in particular the construction and home improvement markets.

ON BEHALF OF THE BOARD:

C R Lamb - Director

7 July 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £240,400.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S J Phillips

N McMillan

C R Lamb

A Roberts

C J Carter

T M Simons

Other changes in directors holding office are as follows:

M P Tideswell - resigned 20 December 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C R Lamb - Director

7 July 2025

Opinion

We have audited the financial statements of Trend Tool Technology LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

- 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.

- Reading minutes of meetings of those charged with governance.

- In addressing the risk 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 a 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 non-compliance with laws and regulations throughout the

audit.

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

forgery, collusion, omission or misrepresentation.

Whilst this is the case, our audit approach adopts a risk based approach which ensures that appropriate attention is devoted to the areas assessed as key audit risks. We performed a combination of procedures including analytical review, detailed substantive verification of transactions and balances as well as detailed test of controls, where appropriate.

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.

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.

Hassan Behcet (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

3rd Floor

Marlborough House

298 Regents Park Road

Finchley

London

N3 2SZ

7 July 2025

TURNOVER

3

30,738,502

33,468,176

Cost of sales

17,302,491

20,050,321

GROSS PROFIT

13,436,011

13,417,855

Distribution costs

1,665,523

1,835,832

Administrative expenses

10,073,924

9,952,360

11,739,447

11,788,192

OPERATING PROFIT

6

1,696,564

1,629,663

Interest receivable and similar
income

1,096

496

1,697,660

1,630,159

Interest payable and similar
expenses

8

497,521

483,621

PROFIT BEFORE TAXATION

1,200,139

1,146,538

Tax on profit

9

314,278

263,917

PROFIT FOR THE FINANCIAL YEAR

885,861

882,621

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

885,861

882,621

Profit attributable to:

Owners of the parent

885,861

882,621

Total comprehensive income attributable to:

Owners of the parent

885,861

882,621

FIXED ASSETS

Intangible assets

13

57,455

21,615

Tangible assets

14

579,108

767,907

Investments

15

-

636,563

789,522

CURRENT ASSETS

Stocks

16

12,032,068

11,238,868

Debtors

17

8,587,147

7,935,769

Cash at bank

70,400

102,322

20,689,615

19,276,959

CREDITORS

Amounts falling due within one year

18

12,935,706

12,302,396

NET CURRENT ASSETS

7,753,909

6,974,563

TOTAL ASSETS LESS CURRENT
LIABILITIES

8,390,472

7,764,085

CREDITORS

Amounts falling due after more than
one year

19

(386,331

)

(380,113

)

PROVISIONS FOR LIABILITIES

23

(99,950

)

(125,242

)

NET ASSETS

7,904,191

7,258,730

CAPITAL AND RESERVES

Called up share capital

24

8,000

Retained earnings

25

7,896,191

7,250,730

SHAREHOLDERS' FUNDS

7,904,191

7,258,730

The financial statements were approved by the Board of Directors and authorised for issue on 7 July 2025 and were signed on its behalf by:

C R Lamb - Director

A Roberts - Director

FIXED ASSETS

Intangible assets

13

57,455

21,615

Tangible assets

14

579,108

767,907

Investments

15

2,793

639,356

792,315

CURRENT ASSETS

Stocks

16

12,032,068

11,238,868

Debtors

17

8,587,147

7,935,769

Cash at bank

70,400

102,322

20,689,615

19,276,959

CREDITORS

Amounts falling due within one year

18

13,486,251

12,775,366

NET CURRENT ASSETS

7,203,364

6,501,593

TOTAL ASSETS LESS CURRENT
LIABILITIES

7,842,720

7,293,908

CREDITORS

Amounts falling due after more than
one year

19

(386,331

)

(380,113

)

PROVISIONS FOR LIABILITIES

23

(99,950

)

(125,242

)

NET ASSETS

7,356,439

6,788,553

CAPITAL AND RESERVES

Called up share capital

24

8,000

Retained earnings

25

7,348,439

6,780,553

SHAREHOLDERS' FUNDS

7,356,439

6,788,553

Company's profit for the financial
year

808,286

740,999

The financial statements were approved by the Board of Directors and authorised for issue on 7 July 2025 and were signed on its behalf by:

C R Lamb - Director

A Roberts - Director

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 January 2023

8,000

6,598,829

6,606,829

Changes in equity

Dividends

-

(230,720

)

(230,720

)

Total comprehensive income

-

882,621

Balance at 31 December 2023

8,000

7,250,730

7,258,730

Changes in equity

Dividends

-

(240,400

)

(240,400

)

Total comprehensive income

-

885,861

Balance at 31 December 2024

8,000

7,896,191

7,904,191

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 January 2023

8,000

6,270,274

6,278,274

Changes in equity

Dividends

-

(230,720

)

(230,720

)

Total comprehensive income

-

740,999

Balance at 31 December 2023

8,000

6,780,553

6,788,553

Changes in equity

Dividends

-

(240,400

)

(240,400

)

Total comprehensive income

-

808,286

Balance at 31 December 2024

8,000

7,348,439

7,356,439

Cash flows from operating activities

Cash generated from operations

1

(854,039

)

2,731,824

Interest paid

(571,185

)

(394,415

)

Interest element of hire purchase
payments paid

(1,960

)

(1,459

)

Tax paid

(506,771

)

(62,898

)

Net cash from operating activities

(1,933,955

)

2,273,052

Cash flows from investing activities

Purchase of intangible fixed assets

(45,057

)

(6,224

)

Purchase of tangible fixed assets

(164,863

)

(118,595

)

Sale of tangible fixed assets

5,380

62,658

Interest received

1,096

496

Net cash from investing activities

(203,444

)

(61,665

)

Cash flows from financing activities

Amount introduced by directors

979,340

625,763

Amount withdrawn by directors

(932,223

)

(1,428,497

)

Hire purchase capital repayments in year

(16,170

)

(14,229

)

Net cash from financing activities

30,947

(816,963

)

(Decrease)/increase in cash and cash equivalents

(2,106,452

)

1,394,424

Cash and cash equivalents at
beginning of year

2

(4,812,136

)

(6,206,560

)

Cash and cash equivalents at end of
year

2

(6,918,588

)

(4,812,136

)

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

2024

2023

£

Profit before taxation

1,200,139

1,146,538

Depreciation charges

360,998

390,308

Profit on disposal of fixed assets

(3,500

)

(62,658

)

Finance costs

497,521

483,621

Finance income

(1,096

)

(496

)

2,054,062

1,957,313

(Increase)/decrease in stocks

(793,200

)

875,773

Increase in trade and other debtors

(778,683

)

(693,188

)

(Decrease)/increase in trade and other creditors

(1,336,218

)

591,926

Cash generated from operations

(854,039

)

2,731,824

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 December 2024

31.12.24

1.1.24

£

Cash and cash equivalents

70,400

102,322

Bank overdrafts

(6,988,988

)

(4,914,458

)

(6,918,588

)

(4,812,136

)

Year ended 31 December 2023

31.12.23

1.1.23

£

Cash and cash equivalents

102,322

56,915

Bank overdrafts

(4,914,458

)

(6,263,475

)

(4,812,136

)

(6,206,560

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

Net cash

Cash at bank

102,322

(31,922

)

70,400

Bank overdrafts

(4,914,458

)

(2,074,530

)

(6,988,988

)

(4,812,136

)

(2,106,452

)

(6,918,588

)

Debt

Finance leases

(38,660

)

16,170

(22,490

)

(38,660

)

16,170

(22,490

)

Total

(4,850,796

)

(2,090,282

)

(6,941,078

)

1.	STATUTORY INFORMATION

Trend Tool Technology Ltd is a private company, limited by shares, domiciled in England and Wales, registration number 01338493.

The presentation currency of the financial statement is the Pound Sterling (£).

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.

The financial statements have been prepared on a going concern basis.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

There is estimation uncertainty in calculating stock provisions. A review of stock is carried out at the year end. Whilst every attempt is made to ensure that the stock provision is as accurate as possible, there remains a risk that the provision does not match the level of stock which ultimately prove to be obsolete.

There is estimation uncertainty in calculating the sales rebates payable accrual. Whilst every attempt is made to ensure that the accrual is as accurate as possible, there remains a risk that the accrual does not match the level of sales rebates that ultimately prove to be payable.

There is estimation uncertainty in calculating the supplier rebates receivable provision. Whilst every attempt is made to ensure that the provision is as accurate as possible, there remains a risk that the accrual does not match the level of supplier rebates that ultimately prove to be receivable.

There is estimation uncertainty in calculating amortisation. A full line by line review of intangible assets is carried out by management regularly. Whilst every attempt is made to ensure that the amortisation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

over the length of the lease

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit or loss in the period to which they relate.

Patents and licenses

Expenditure on patents and licences are written off over their commercial life of five years.

Investment in subsidiaries

Investment in subsidiary undertakings are recognised at cost.

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

United Kingdom

25,952,725

28,790,374

Europe

2,355,872

2,447,261

Rest of the world

2,429,905

2,230,541

30,738,502

33,468,176

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

Wages and salaries

5,135,384

5,374,184

Social security costs

539,562

552,564

Other pension costs

395,170

371,763

6,070,116

6,298,511

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

2024

2023

Management and office

40

42

Selling and distribution

47

49

87

91

5.	DIRECTORS' EMOLUMENTS

2024

2023

£

Directors' remuneration

1,606,869

1,645,178

Directors' pension contributions to money purchase schemes

86,474

72,967

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6

Information regarding the highest paid director is as follows:

2024

2023

£

Emoluments etc

588,426

581,270

6.	OPERATING PROFIT

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

2024

2023

£

Hire of plant and machinery

32,783

21,778

Depreciation - owned assets

327,954

369,242

Depreciation - assets on hire purchase contracts

23,828

15,355

Profit on disposal of fixed assets

(3,500

)

(62,658

)

Patents and licences amortisation

9,217

5,711

Foreign currency exchange (gains)/losses

(22,266

)

9,563

Operating lease rentals - Land and buildings

551,448

531,068

7.	AUDITORS' REMUNERATION

Auditors remuneration for 2024 was £26,880 (2023: £28,439).

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

Bank interest

419,937

394,415

Other interest

75,624

87,747

Hire purchase

1,960

1,459

497,521

483,621

9.

TAXATION

Analysis of tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

2024

2023

£

Current tax:

UK corporation tax

312,933

269,098

Adjustment in respect of prior years

-

USA corporation tax

26,637

52,359

Total current tax

339,570

321,457

Deferred tax

(25,292

)

(57,540

)

Tax on profit on ordinary activities

314,278

263,917

UK corporation tax has been charged at 25% (2023 - 25%). USA corporation tax has been

charged at 21% (2023 - 21%)

Factors affecting tax charge

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 on ordinary activities

1,200,13
9

1,146,5
38

Profit on ordinary activities multiplies by the standard rate of
corporation tax

UK profit on ordinary activities £1,095,927 (2023 - £952,558)

273,982

224,046

USA profits on ordinary activities £104,212 (2023 - £193,980)

26,637

52,359

Effects of:

Expenses not deductible for tax purposes

1,289

1,852

Profit on disposal of assets

(875

)

(14,737

)

Depreciation in excess of capital allowances

38,537

57,964

Deferred tax

(25,292

)

(57,540

)

Timing differences

-

Adjustment in relation to prior years

-

Current tax charge

314,278

263,917

10.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.

11.

DIVIDENDS

An interim dividend of £30.05 per share was declared on 30 April 2024.

12.	PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in and independently administered fund. The pension costs charge represents contributions payable by the company to the fund and amounted to £395,170 (2023: £371,763).

13.	INTANGIBLE FIXED ASSETS

Group

Patents

and

licences

£

COST

At 1 January 2024

139,700

Additions

45,057

At 31 December 2024

184,757

AMORTISATION

At 1 January 2024

118,085

Amortisation for year

9,217

At 31 December 2024

127,302

NET BOOK VALUE

At 31 December 2024

57,455

At 31 December 2023

21,615

Company

Patents

and

licences

£

COST

At 1 January 2024

139,700

Additions

45,057

At 31 December 2024

184,757

AMORTISATION

At 1 January 2024

118,085

Amortisation for year

9,217

At 31 December 2024

127,302

NET BOOK VALUE

At 31 December 2024

57,455

At 31 December 2023

21,615

14.	TANGIBLE FIXED ASSETS

Group

Improvements

Fixtures

to

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2024

920,512

836,092

141,132

1,515,103

3,412,839

Additions

17,353

10,224

42,300

94,986

164,863

Disposals

(1,880

)

-

(1,880

)

At 31 December 2024

935,985

846,316

183,432

1,610,089

3,575,822

DEPRECIATION

At 1 January 2024

640,343

649,876

56,655

1,298,058

2,644,932

Charge for year

55,745

94,433

44,271

157,333

351,782

At 31 December 2024

696,088

744,309

100,926

1,455,391

2,996,714

NET BOOK VALUE

At 31 December 2024

239,897

102,007

82,506

154,698

579,108

At 31 December 2023

280,169

186,216

84,477

217,045

767,907

The net book value of tangible fixed assets includes £ 24,820 (2023 - £ 48,648 ) in respect of assets held under hire purchase contracts.

Company

Improvements

Fixtures

to

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2024

920,512

836,092

141,132

1,515,103

3,412,839

Additions

17,353

10,224

42,300

94,986

164,863

Disposals

(1,880

)

-

(1,880

)

At 31 December 2024

935,985

846,316

183,432

1,610,089

3,575,822

DEPRECIATION

At 1 January 2024

640,343

649,876

56,655

1,298,058

2,644,932

Charge for year

55,745

94,433

44,271

157,333

351,782

At 31 December 2024

696,088

744,309

100,926

1,455,391

2,996,714

NET BOOK VALUE

At 31 December 2024

239,897

102,007

82,506

154,698

579,108

At 31 December 2023

280,169

186,216

84,477

217,045

767,907

15.	FIXED ASSET INVESTMENTS

Company

Unlisted

investmen

£

COST

At 1 January 2024

and 31 December 2024

2,793

NET BOOK VALUE

At 31 December 2024

2,793

At 31 December 2023

2,793

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Trend Tool Technology Inc

Registered office: 7351 West Friendly Avenue, Suite A, Greensboro, NC 27410, USA

Nature of business: Cutting tool specialists

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

577,182

472,969

Profit for the year

77,576

141,621

Trend Tool Technology Limited

Registered office: Trend Tool Technology Limited, Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin 1, D01 K2C5

Nature of business: Wholesale of machine tools

%

Class of shares:

holding

Ordinary

100.00

This is a dormant subsidiary.

16.

STOCKS

Group

Company

2024

2023

2024

2023

£

Finished goods

12,032,068

11,238,868

12,032,068

11,238,868

17.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Trade debtors

7,941,612

7,265,231

7,941,612

7,265,231

Directors' loan accounts

-

127,306

-

127,306

Prepayments

645,535

543,232

645,535

543,232

8,587,147

7,935,769

8,587,147

7,935,769

18.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans and overdrafts (see note 20)

6,988,988

4,914,458

6,988,988

4,914,458

Hire purchase contracts (see note 21)

9,350

16,170

9,350

16,170

Trade creditors

2,372,940

3,631,033

2,372,940

3,631,033

Tax

153,848

321,049

132,215

278,507

Social security and other taxes

267,124

272,848

266,732

272,243

VAT

484,124

548,665

484,124

548,665

Other creditors

534,439

380,872

534,439

380,872

Amounts due to subsidiary

-

574,389

523,972

Directors' loan accounts

66,046

-

66,046

-

Accrued expenses

2,058,847

2,217,301

2,057,028

2,209,446

12,935,706

12,302,396

13,486,251

12,775,366

19.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2024

2023

2024

2023

£

Hire purchase contracts (see note 21)

13,140

22,490

13,140

22,490

Other creditors

373,191

357,623

373,191

357,623

386,331

380,113

386,331

380,113

20.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2024

2023

2024

2023

£

Amounts falling due within one year

or on demand:

Bank overdrafts

6,988,988

4,914,458

6,988,988

4,914,458

21.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase

contracts

2024

2023

£

Gross obligations repayable:

Within one year

10,779

18,130

Between one and five years

15,216

25,995

44,125

Finance charges repayable:

Within one year

1,429

1,960

Between one and five years

2,076

3,505

5,465

Net obligations repayable:

Within one year

9,350

16,170

Between one and five years

13,140

22,490

38,660

Company

Hire purchase

contracts

2024

2023

£

Gross obligations repayable:

Within one year

10,779

18,130

Between one and five years

15,216

25,995

44,125

Finance charges repayable:

Within one year

1,429

1,960

Between one and five years

2,076

3,505

5,465

Net obligations repayable:

Within one year

9,350

16,170

Between one and five years

13,140

22,490

38,660

Group

Non-cancellable

operating leases

2024

2023

£

Within one year

552,590

551,446

Between one and five years

984,160

1,349,602

In more than five years

311,913

499,061

1,848,663

2,400,109

Hire purchase contracts relate to motor vehicles in both group and company.

The group has options to purchase the motor vehicles for a nominal amount at the conclusion of the agreements. Interest rates underlying all obligations under hire purchase agreements are fixed at respective contract rates ranging from 0% to 7.37% (2023: 0% to 7.37%).

The hire purchase agreements are secured upon the assets to which they relate. The assets have a carrying value of £24,820 (2023: £48,648).

The directors consider that the carrying amount of the obligations under hire purchase agreements is approximate to their fair value.

Company

Non-cancellable

operating leases

2024

2023

£

Within one year

501,710

Between one and five years

932,087

1,246,649

In more than five years

311,913

499,061

1,745,710

2,247,420

The company had total commitments under non-cancellable operating leases as detailed above.

22.	SECURED DEBTS

The following secured debts are included within creditors:

Company

2024

2023

£

6,988,988

4,914,458

Advances under invoice discounting of £6,988,988 (2023: £4,914,458).

Advances under invoice discounting are also secured by way of a fixed and floating charge, dated September 2009, over all current and future assets of the company.

23.	PROVISIONS FOR LIABILITIES

Group

Company

2024

2023

2024

2023

£

Deferred tax

99,950

125,242

99,950

125,242

Group

Deferred

tax

£

Balance at 1 January 2024

125,242

Provided during year

(25,292

)

Balance at 31 December 2024

99,950

Company

Deferred

tax

£

Balance at 1 January 2024

125,242

Provided during year

(25,292

)

Balance at 31 December 2024

99,950

24.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

8,000

Ordinary

1

8,000

25.

RESERVES

Group

Retained

earnings

£

At 1 January 2024

7,250,730

Profit for the year

885,861

Dividends

(240,400

)

At 31 December 2024

7,896,191

Company

Retained

earnings

£

At 1 January 2024

6,780,553

Profit for the year

808,286

Dividends

(240,400

)

At 31 December 2024

7,348,439

26.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

At the balance sheet date, creditors include loans from shareholders and their close family members amounting to £600,485 (2023: £380,872).

During the year, interest amounting to £75,624 (2023: £87,747) was paid to shareholders and their close family members.

At the balance sheet date, debtors included a loan to a shareholder amounting to £Nil (2023: £127,307). A balance of £127,307 was owed by the shareholder at the start of the year. £412,223 was advanced to the shareholder during the year and £605,580 was repaid.

During the year, interest amounting to £1,096 (2023: £427) was charged on loans to shareholders and their close family members.

During the year, key management personnel emoluments amounted to £1,606,869 (2023: £1,645,178).

27.	ULTIMATE CONTROLLING PARTY

The group was controlled by S J Phillips throughout the year.

28.	SHARE-BASED PAYMENT TRANSACTIONS

The 2021 EMI scheme is for the benefit of certain directors and long serving employees. The scheme has a minimum vesting period of 3 years and a maximum of 10 years, and is equity settled by granting options to acquire £1 Ordinary B shares, at an exercise price of £1.00.

5,800 options were granted at the start of the scheme. During the period, 178 options were forfeited. No options were exercised or expired during the year. Accordingly, 5,622 options were outstanding at the balance sheet date, of which none were exercisable.

Given the nature and size of the group, no market value for its shares is readily available. Therefore, fair value of these options is calculated as the average EBITDA for the two financial years immediately proceeding the date of exercise multiplied by 5.

As a result of the above valuation methodology, no change was recognised (2023: £Nil) in the statement of comprehensive income for the year and therefore no liability in the balance sheet for the year ending 31-Dec-2024.