REGISTERED NUMBER: 02818847 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

HAYAKAWA INTERNATIONAL (UK) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

D K Bansal

M Hayakawa

T Hayashi

SECRETARY:

D K Bansal

REGISTERED OFFICE:

5 Davy Way

Llay Industrial Estate

Llay

Wrexham

Clwyd

LL12 0PG

REGISTERED NUMBER:

02818847 (England and Wales)

AUDITORS:

M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

BANK:

MUFG Bank Limited

Ropemaker Place

25 Ropemaker Street

London

EC2Y 9AN

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

REVIEW OF BUSINESS

The UK group's turnover has decreased this year by 13.4%. Direct costs have also decreased by a similar level of 13%. This has resulted in the gross profit margin this year decreasing slightly from 11.7% to 11.4% this year.

Profit before tax this year is 4.8% down 1.7% compared to the previous year of 6.5%.

The parent company has now completed the construction of the new building and the move of the manufacturing department into the new facility had gone well. The company has already seen improvements in the efficiency and productivity..

All businesses especially automotive sector are going through a tough time due to uncertainties caused by tariffs and conflicts all over the world, we understand that 2025 will be a challenging year as far as the sales and profitability are concerned. The management is confident that the company has the resources to deal with these challenges and go through this tough time, and that there will be opportunities to grow in the years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all the companies in the sector the principal risks faced by the company derive from the competition in the market and fluctuations in the foreign exchange rates. These risks are monitored closely by the executive board.

Whilst the directors are currently unable to reliably quantify the future impact of these events on the results, the directors expect that the group should be able to withstand any challenges that may arise.

KEY PERFORMANCE INDICATORS ("KPIS")

2024

2023

£

£

Turnover

21,045,995

24,296,278

Gross profit percentage

11.4%

11.7%

Net profit before tax and foreign exchanges profits / (losses)

1,356,559

1,803,506

Net assets

8,302,616

8,476,658

ON BEHALF OF THE BOARD:

D K Bansal - Director

4th August 2025

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

The directors during the year under review were:

D K Bansal

K Onoe

M Hayakawa

T Hayashi

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of import, manufacture and distribute Wire Harnesses, Cable Assemblies and Automotive Components.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 was £900,000 (2023: £360,000).

FUTURE DEVELOPMENTS

The group is in a strong position to develop it's operations.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1st January 2024 to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

K Onoe - resigned 1.5.24

T Hayashi - appointed 1.5.24

The directors shown below were in office at 31st December 2024 but did not hold any interest in the Ordinary shares shares of £1 each at 1st January 2024 (or date of appointment if later) or 31st December 2024.

D K Bansal

M Hayakawa

T Hayashi

FINANCIAL INSTRUMENTS

The group's operations expose it to a variety of financial risks including price risk, credit risk, liquidity risk and cash flow risk.

The group's principal financial instruments comprise sterling, euro, dollar and yen cash and bank deposit, together with trade debtors and trade creditors that arise directly from operations.

Credit risk

The group's credit risk is primarily attributable to its trade debtors. Credit risk is mitigated by monitoring and management of the credit limits given to its customers.

Price risk

The group is exposed to currency fluctuations as many raw materials need to be purchased in other currencies. The impact is continuously monitored and the steps are taken to mitigate any negative impacts such as re-quoting the customers or making foreign currency deals when the rates are favorable.

Liquidity risk/ cash flow risk

The directors consider that the group has the financial strength to cover the impact of any adverse events.

POST BALANCE SHEET EVENTS

There have been no events since the year end which would materially affect the financial statements.

FINANCIAL RISK MANAGEMENT

To mitigate the effects of such risks the directors have established procedures and methods which are reviewed on a regular basis, both on a monitoring basis and as a mechanism to identify new risks and uncertainties and to plan accordingly.

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). 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, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Directors Meeting.

ON BEHALF OF THE BOARD:

D K Bansal - Director

4th August 2025

Opinion

We have audited the financial statements of Hayakawa International (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st 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 31st 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence,

capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Joanne Evans (Senior Statutory Auditor)

for and on behalf of M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

4th August 2025

TURNOVER

4

21,045,995

24,296,278

Cost of sales

18,653,617

21,453,116

GROSS PROFIT

2,392,378

2,843,162

Administrative expenses

1,440,923

1,296,081

OPERATING PROFIT

6

951,455

1,547,081

Interest receivable and similar income

7

74,060

74,392

1,025,515

1,621,473

Interest payable and similar expenses

8

11,659

45,125

PROFIT BEFORE TAXATION

1,013,856

1,576,348

Tax on profit

9

287,898

360,581

PROFIT FOR THE FINANCIAL YEAR

725,958

1,215,767

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

725,958

1,215,767

Profit attributable to:

Owners of the parent

725,958

1,215,767

Total comprehensive income attributable to:

Owners of the parent

725,958

1,215,767

FIXED ASSETS

Tangible assets

12

909,013

723,342

Investments

13

-

-

909,013

723,342

CURRENT ASSETS

Stocks

14

3,162,323

4,489,474

Debtors

15

3,153,656

2,677,318

Cash at bank and in hand

2,838,328

3,357,781

9,154,307

10,524,573

CREDITORS

Amounts falling due within one year

16

1,730,013

2,755,215

NET CURRENT ASSETS

7,424,294

7,769,358

TOTAL ASSETS LESS CURRENT LIABILITIES

8,333,307

8,492,700

PROVISIONS FOR LIABILITIES

17

30,691

16,042

NET ASSETS

8,302,616

8,476,658

CAPITAL AND RESERVES

Called up share capital

18

300,000

300,000

Retained earnings

19

8,002,616

8,176,658

SHAREHOLDERS' FUNDS

8,302,616

8,476,658

The financial statements were approved by the Board of Directors and authorised for issue on 4th August 2025 and were signed on its behalf by:

D K Bansal - Director

FIXED ASSETS

Tangible assets

12

909,014

723,343

Investments

13

4,828

4,828

913,842

728,171

CURRENT ASSETS

Stocks

14

644,009

934,842

Debtors

15

1,087,874

1,079,460

Cash at bank and in hand

1,391,331

2,117,278

3,123,214

4,131,580

CREDITORS

Amounts falling due within one year

16

281,905

609,926

NET CURRENT ASSETS

2,841,309

3,521,654

TOTAL ASSETS LESS CURRENT LIABILITIES

3,755,151

4,249,825

PROVISIONS FOR LIABILITIES

17

35,941

34,231

NET ASSETS

3,719,210

4,215,594

CAPITAL AND RESERVES

Called up share capital

18

300,000

300,000

Retained earnings

19

3,419,210

3,915,594

SHAREHOLDERS' FUNDS

3,719,210

4,215,594

Company's profit for the financial year

403,616

612,605

The financial statements were approved by the Board of Directors and authorised for issue on 4th August 2025 and were signed on its behalf by:

D K Bansal - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

300,000

7,320,891

7,620,891

Changes in equity

Dividends

-

(360,000

)

(360,000

)

Total comprehensive income

-

1,215,767

1,215,767

Balance at 31st December 2023

300,000

8,176,658

8,476,658

Changes in equity

Dividends

-

(900,000

)

(900,000

)

Total comprehensive income

-

725,958

725,958

Balance at 31st December 2024

300,000

8,002,616

8,302,616

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

300,000

3,662,989

3,962,989

Changes in equity

Dividends

-

(360,000

)

(360,000

)

Total comprehensive income

-

612,605

612,605

Balance at 31st December 2023

300,000

3,915,594

4,215,594

Changes in equity

Dividends

-

(900,000

)

(900,000

)

Total comprehensive income

-

403,616

403,616

Balance at 31st December 2024

300,000

3,419,210

3,719,210

Cash flows from operating activities

Cash generated from operations

1

934,575

2,189,587

Interest paid

(11,659

)

(45,125

)

Tax paid

(382,754

)

(373,807

)

Net cash from operating activities

540,162

1,770,655

Cash flows from investing activities

Purchase of tangible fixed assets

(233,675

)

(281,923

)

Interest received

74,060

74,392

Net cash from investing activities

(159,615

)

(207,531

)

Cash flows from financing activities

Equity dividends paid

(900,000

)

(360,000

)

Net cash from financing activities

(900,000

)

(360,000

)

(Decrease)/increase in cash and cash equivalents

(519,453

)

1,203,124

Cash and cash equivalents at beginning of year

2

3,357,781

2,154,657

Cash and cash equivalents at end of year

2

2,838,328

3,357,781

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

31.12.24

31.12.23

£

£

Profit before taxation

1,013,856

1,576,348

Depreciation charges

48,005

46,744

(Increase)/decrease in group debtor

38,498

(10,790

)

Increase/(decrease) in group creditor

(248,333

)

(561,090

)

Finance costs

11,659

45,125

Finance income

(74,060

)

(74,392

)

789,625

1,021,945

Decrease/(increase) in stocks

1,327,151

(329,940

)

(Increase)/decrease in trade and other debtors

(480,943

)

1,163,294

(Decrease)/increase in trade and other creditors

(701,258

)

334,288

Cash generated from operations

934,575

2,189,587

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 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,838,328

3,357,781

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,357,781

2,154,657

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

3,357,781

(519,453

)

2,838,328

3,357,781

(519,453

)

2,838,328

Total

3,357,781

(519,453

)

2,838,328

1.	STATUTORY INFORMATION

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

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

2.	STATEMENT OF COMPLIANCE

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.

3.	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, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit and loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Basis of consolidation

The financial statements consolidate the financial statements of the Hayakawa International (UK) Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of income and retained earnings.

The results and financial position of the Group entities that have a functional currency different to the Group's presentational currency of Sterling are translated in the consolidated financial statements at rates prevailing at the balance sheet date.

Significant judgements and estimates

In the application of the Group's accounting policies, management is required to make adjustments, estimates and assumptions about the classification and carrying values of assets and liabilities that are not readily available from other sources. Estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The main sources of estimation uncertainty that could have an effect on the amounts recognised in the financial statements are described below:

Estimated Useful Life and Residual Value of Fixed Assets.

As described below, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate.

Stock Impairment Provision

As described below, stock is valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow moving items. The allowance for impairment is made based on the age of the stock holding and the rate of consumption and is reviewed on a monthly basis.

Trade Debtors Impairment Provision

Trade debtors are initially recorded at the undiscounted amount of cash receivable. Appropriate allowances for estimated irrecoverable amounts are recognised in the Consolidated Statement of Income and Retained Earnings when there is objective evidence that the asset is impaired. The allowances are reviewed annually based on the age of the debt and correspondence with the parties concerned.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

2% on cost and 50 years

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

4 years

Computer equipment

-

50% on cost

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of cash inflows from other assets of groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The cost of stock issued is recognised as an expense in the Consolidated Statement of Income and Retained Earnings on a first in first out basis.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instruments is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date. 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. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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.

Pension costs and other post-retirement benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related services is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

Sale of goods

21,045,995

24,296,278

21,045,995

24,296,278

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

2,897,964

3,698,329

Europe

7,482,027

10,557,267

Rest of the world

10,666,004

10,040,682

21,045,995

24,296,278

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

972,416

978,594

Social security costs

125,542

112,350

Other pension costs

21,296

22,346

1,119,254

1,113,290