REGISTERED NUMBER: 05007840 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

RAPID ELECTRICAL DISTRIBUTORS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

Mr NJ Edwell

SECRETARY:

Mrs F M Edwell

REGISTERED OFFICE:

Unit 10 Coln Industrial Estate

Old Bath Road

Colnbrook Slough

Berkshire

SL3 0NJ

REGISTERED NUMBER:

05007840 (England and Wales)

AUDITORS:

FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

The director presents his strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The director is pleased to report a significant improvement in turnover and profit as the industry and economy recovered from the adverse impacts of the Coronavirus pandemic from earlier years.

Despite the continued increases in the cost of raw materials and with competitive pricing within the electrical wholesale market, the gross profit for the year increased to £3.14m (2023 £2.91m).

Despite the underlying uncertainty in the wider economy, the company was able to successfully follow its business plan and forecast, exceeding its turnover and profit targets.

The key financial highlights are as follows:

31 December 2024

31 December 2023

Turnover

£15,047,916

£19,121,900

Gross Profit

£3,143,809

£2,918.439

Gross Profit %

20.9%

15.3%

Profit before tax

£529,947

£329,392

Net Assets

£1,670,555

£1,418,608

The company has performed strongly during the year, and the directors are pleased with its performance and position. The forecast for 2025 is one of further recovery with company continuing to grow and explore viable commercial projects.

The net current assets continue to strengthen, with a key focus maintaining liquidity which will enable the company to withstand any adverse effects of the current economic uncertainty.

PRINCIPAL RISKS AND UNCERTAINTIES

The Senior Management team led by the Managing Director constantly review any associated risks.

The principal risks identified are as follows:

Staffing

The company's staff are key to the services that it can provide and in common with many industries, the company is facing challenges in the labour market, with competition both within the industry and from other industries.

Liquidity

The Company makes use of an invoice finance discounting facility in order to mitigate short term liquidity risk. The Directors continually monitor cash flow forecasts in order manage this risk over the short to medium term.

Credit Risk

The Company is exposed to the credit risk of its customers. The Directors ensure that all key customers have regular credit checks undertaken by working closely with the credit insurance partner. The Company has also employed a credit controller to ensure all invoices are paid on a timely basis and queries are acted upon quickly.

Economic Outlook

There has been increased economic uncertainty with rising costs in the UK and Europe. The Directors keep a close eye on the day to day activities to monitor rising costs and prices.

Price Risk

The market in which the Company operates is highly competitive. There are on-going pressures from suppliers implementing price increases which impact profit margins. To mitigate this risk, the Company employs a specialist purchasing controller who is constantly assessing the market to obtain the best prices possible. The Company ensures it competes effectively by maintaining relationships with customers and by delivering a high level of customer service.

The company looks forward to FY2025 and beyond with confidence.

ON BEHALF OF THE BOARD:

Director

16 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of wholesale electrical distributors.

DIVIDENDS

An interim dividend of 2250 per share on the Ordinary shares £1 shares was paid on 12 September 2024. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary A shares £1 shares. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B shares £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2024 will be £ 225,000 .

FUTURE DEVELOPMENTS

The company plans further growth through investment into additional headcount in the business development team. Business development will focus on building on current customer accounts whilst also looking to obtain new customers and projects.

DIRECTOR

Mr NJ Edwell held office during the whole of the period from 1 January 2024 to the date of this report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mr NJ Edwell - Director

16 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

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

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

-

enquiry of management and those charged with governance around actual and potential litigation and claims;

-

enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; and

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

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 the accounting estimates were indicative of potential bias;

- Investigated the rationale behind significant or unusual transactions.

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.

Tara Aldwin ACA (Senior Statutory Auditor)

for and on behalf of FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

19 September 2025

TURNOVER

5

15,047,916

19,121,900

Cost of sales

11,904,107

16,203,461

GROSS PROFIT

3,143,809

2,918,439

Administrative expenses

2,625,269

2,353,062

518,540

565,377

Other operating income

252,489

25,791

OPERATING PROFIT

7

771,029

591,168

Interest payable and similar expenses

8

241,082

261,776

PROFIT BEFORE TAXATION

529,947

329,392

Tax on profit

9

153,396

90,045

PROFIT FOR THE FINANCIAL YEAR

376,551

239,347

PROFIT FOR THE YEAR

376,551

239,347

OTHER COMPREHENSIVE INCOME

Revaluation of property

133,862

-

Income tax relating to other comprehensive income

(33,466

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

100,396

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

476,947

239,347

FIXED ASSETS

Tangible assets

12

1,787,447

1,462,644

Investments

13

100,000

100,000

1,887,447

1,562,644

CURRENT ASSETS

Stocks

14

708,308

811,639

Debtors

15

3,964,106

5,330,975

Cash at bank

358,689

383,385

5,031,103

6,525,999

CREDITORS

Amounts falling due within one year

16

4,833,094

6,258,986

NET CURRENT ASSETS

198,009

267,013

TOTAL ASSETS LESS CURRENT LIABILITIES

2,085,456

1,829,657

CREDITORS

Amounts falling due after more than one year

17

(204,014

)

(223,085

)

PROVISIONS FOR LIABILITIES

21

(210,887

)

(187,964

)

NET ASSETS

1,670,555

1,418,608

CAPITAL AND RESERVES

Called up share capital

22

103

103

Revaluation reserve

23

767,568

667,172

Retained earnings

23

902,884

751,333

SHAREHOLDERS' FUNDS

1,670,555

1,418,608

The financial statements were approved by the director and authorised for issue on 16 September 2025 and were signed by:

Mr NJ Edwell - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

103

718,486

667,172

1,385,761

Changes in equity

Dividends

-

(206,500

)

-

(206,500

)

Total comprehensive income

-

239,347

-

239,347

Balance at 31 December 2023

103

751,333

667,172

1,418,608

Changes in equity

Dividends

-

(225,000

)

-

(225,000

)

Total comprehensive income

-

376,551

100,396

476,947

Balance at 31 December 2024

103

902,884

767,568

1,670,555

Cash flows from operating activities

Cash generated from operations

1

794,546

815,724

Interest paid

(241,082

)

(261,776

)

Tax paid

(113,712

)

(30,624

)

Net cash from operating activities

439,752

523,324

Cash flows from investing activities

Purchase of tangible fixed assets

(212,007

)

(37,583

)

Net cash from investing activities

(212,007

)

(37,583

)

Cash flows from financing activities

New loans in year

167,115

-

Loan repayments in year

(251,625

)

(223,360

)

Amount withdrawn by directors

(93,616

)

(301,962

)

Loans to group companies

-

(82,000

)

Repayment of loans from group companies

245,291

55,000

Loans to connected parties

-

47,924

Repay loans to connected parties

(94,606

)

-

Equity dividends paid

(225,000

)

(206,500

)

Net cash from financing activities

(252,441

)

(710,898

)

Decrease in cash and cash equivalents

(24,696

)

(225,157

)

Cash and cash equivalents at beginning of year

2

383,385

608,542

Cash and cash equivalents at end of year

2

358,689

383,385

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

2024

2023

as restated

£

£

Profit before taxation

529,947

329,392

Depreciation charges

23,933

21,961

Finance costs

241,082

261,776

794,962

613,129

Decrease in stocks

103,331

75,184

Decrease/(increase) in trade and other debtors

1,302,420

(205,313

)

(Decrease)/increase in trade and other creditors

(1,406,167

)

332,724

Cash generated from operations

794,546

815,724

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

358,689

383,385

Year ended 31 December 2023

31.12.23

1.1.23

as restated

£

£

Cash and cash equivalents

383,385

608,542

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

383,385

(24,696

)

358,689

383,385

(24,696

)

358,689

Debt

Debts falling due within 1 year

(3,103,923

)

2,923,797

(180,126

)

Debts falling due after 1 year

(223,085

)

19,071

(204,014

)

(3,327,008

)

2,942,868

(384,140

)

Total

(2,943,623

)

2,918,172

(25,451

)

1.	STATUTORY INFORMATION

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

2.	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 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 amounts 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.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Rapid Electrical Distributors Limited is a wholly owned subsidiary of Rapid Electrical Distributors Holdings Limited and the results of Rapid Electrical Distributors Limited are included in the consolidated financial statements of Rapid Electrical Distributors Holdings Limited, which are available from St Ann's Quay, 118 Quayside, Newcastle Upon Tyne, United Kingdom, NE1 3BD.

Related party exemption

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 (Rapid Electrical Distributors (Watford) Limited) with wholly owned subsidiaries within the group.

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

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 delivery 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.

Tangible fixed assets

Tangible fixed assets, except for Freehold land and buildings, are initially measured at cost and subsequently measured at cost, less accumulated depreciation and any impairment losses.

Freehold land and buildings are held at revalued amount, being the fair value at the date of the most recent valuation less any subsequent depreciation and accumulated impairment losses.

Freehold property is revalued to ensure its carrying amount does not differ materially from its fair value at the reporting date.

Increases in valuation are recognised in other comprehensive income and accumulated in a revaluation reserve, unless they reverse a decrease previously recognised in the profit and loss.

Decreases in valuations recognised in other comprehensive income to the extent any existing revaluation reserve for the asset, and otherwise in the profit and loss.

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:

Improvement to premises

10% straight line

Plant and equipment

25% reducing balance

Office equipment

25% straight line

Depreciation is charged in full in the year of acquisition and nil in the year of disposal.

The company assesses at each reporting date whether there is any indication that an asset may be impaired. If such an indication exists, the company estimates the recoverable amount of the asset and recognises an impairment loss where appropriate.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the disposal of an asset is included in the profit or loss.

Investments in subsidiaries

Investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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.

Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

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.

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 company 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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

Equity instruments

Equity instruments issued by the company 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 company.

Taxation

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 company'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 is recognised in respect of all timing differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, as required by FRS 102 Section 29 - Income Tax.

Deferred tax liabilities are recognised for all timing differences that are expected to result in taxable amounts in future periods.

Deferred tax assets are recognised only to the extent that it is probable they will be recovered through the reversal of deferred tax liabilities or future taxable profits.

Deferred tax is not recognised on:

Initial recognition of goodwill, or

Timing differences arising on initial recognition of an asset or liability in a transaction that is not a business combination and that affects neither accounting nor taxable profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if recovery is no longer probable.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the timing differences reverse.

Deferred tax is recognised on a non-discounted basis.

Deferred tax is charged or credited to the profit and loss account, except where it relates to items recognised outside profit and loss (e.g., in other comprehensive income or equity). In such cases, the related deferred tax is also recognised in equity or other comprehensive income, in line with the underlying transaction.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

Deferred tax is recognised in full on the revaluation of freehold property. The temporary difference arises because the carrying amount of the revalued asset exceeds its tax base. The resulting deferred tax liability is recognised directly in other comprehensive income, consistent with the treatment of the underlying revaluation gain, and is charged to the revaluation reserve.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Leases

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

Pension costs and other post-retirement benefits

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

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

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those cost 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.

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.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the director is 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.

In the opinion of the directors there are no critical accounting judgements.

The key source of estimation uncertainty, which may have a significant effect on the amounts recognised in the financial statements, relates to stock provisions. At the year end the director reviewed stocks for slow moving items and obsolescence. A provision has been included in these financial statements as noted in Note 14.

5.

TURNOVER

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

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

2024

2023

as restated

£

£

Sale of goods

14,321,647

18,495,122

Commissions

726,269

626,778

15,047,916

19,121,900