REGISTERED NUMBER: 06204088 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

BOWMED IBISQUS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Profit or Loss

8

Statement of Profit or Loss and Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

S Myerscough

C Borghese

REGISTERED OFFICE:

C/O Christian Douglass

Accountants Limited

2 Jordan Street

Knott Mill

Manchester

M15 4PY

REGISTERED NUMBER:

06204088 (England and Wales)

AUDITORS:

Christian Douglass Accountants Limited

Chartered Accountants

Statutory Auditor

2 Jordan Street

Knott Mill

Manchester

M15 4PY

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

REVIEW OF BUSINESS

2024 was challenging with cost increases in the supply chain and significant supplier manufacturing delays. Despite these issues, our business model and experienced team enabled us to achieve an excellent above-budget performance.

2024 saw an increase in revenue & margin of 21% & 38% respectively over 2023 results with a 13% increase in volume supplied year on year.

Total equity has strengthened, but the company's cash position reduced to £900k from £1.2m in 2023 due to changes at the parent company level.

PRINCIPAL RISKS AND UNCERTAINTIES

Competition

The UK generics market is highly competitive with numerous multi-national companies. Our business model and committed employees are key to maintaining our position in this complex market.

We rely on third-party contract manufacturers for product supply, leading to increased supply prices due to energy costs and EU regulatory requirements. This presents both threats and opportunities.

Suppliers

The quality and efficiency of our supply chain are crucial to our success. We mitigate dependence on individual suppliers by introducing new products from diverse sources. However, lengthening supply chain lead times mean higher stock holdings and additional costs.

The large cost increases for transporting goods from the EU to the UK continue, and dealing with different EU countries as a third country remains challenging. Our staff now have considerable knowledge and skills in this area

People

We employ a highly skilled and resourceful team, providing continuous learning and cross-functional understanding. By recruiting the right people, valuing their contributions, and supporting their welfare and career development, we benefit from their passion and expertise, which contributes to the company's financial wellbeing.

External Risks

Quality: We operate in a highly regulated pharmaceutical industry and employ Quality & Regulatory experts to ensure compliance. Our focus on quality at all stages and a well-developed Business Continuity Plan enable effective operation and risk mitigation.

Net Zero: We have published our third carbon reduction plan (CRP) and are committed to achieving net zero by 2050. The demands of net zero are challenging for a small company, but we continue to develop our understanding of our carbon footprint.

Regulatory: The performance of the regulatory authorities has improved for recent licence applications from September 2024, however there is still a backlog in the older applications which are stuck in the system with no obvious solution. This situation directly impacts our core business.

Northern Ireland: Significant paperwork barriers and regulatory difficulties persist, causing wasted work and physical waste in the supply of medicinal products.

Financial Risks

Our customer base remains stable.

Additional costs for customs, transport, and storage, along with product price rises, are expected. Growth relies on new products, which are subject to licensing delays.

ON BEHALF OF THE BOARD:

S Myerscough - Director

20 June 2025

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

DIVIDENDS

Interim dividends of £3,036,024 (2023: £2,299,900) were paid during the year.

RESEARCH AND DEVELOPMENT

Bowmed Ibisqus via the Group continues to invest in licensing/distribution of new products to be marketed in the UK. Additionally, we endeavour to contribute to Group resources to enable the in-house development and licensing of additional products.

FUTURE DEVELOPMENTS

Bowmed Ibisqus expects to consolidate its position during 2025 after an exceptional performance in 2024; in the medium term we will continue to source and launch new products for launch in the UK secondary care market.

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 Myerscough

C Borghese

FINANCIAL INSTRUMENTS

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

BRANCHES

At no time during the year did the company operate any branches outside of the United Kingdom.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Christian Douglass Accountants Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

S Myerscough - Director

20 June 2025

Opinion

We have audited the financial statements of Bowmed Ibisqus Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.

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 IFRSs as adopted by the UK; and

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

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

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

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:

The audit, conducted in accordance with the ISAs (UK), required the exercise of professional judgment and the application of professional skepticism throughout. The audit was planned so as to identify and assess the risks of material misstatement of the financial statements, howsoever arising, and we subsequently designed and performed audit procedures responsive to those risks. We obtained an understanding of the company's systems of internal control, which management have established as described above, and undertook walkthrough testing to confirm their operation, solely to assist with designing audit procedures that are appropriate in the circumstances. We evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates used by management. We audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business, if any. Further, we reviewed and concluded on the appropriateness of management's use of the going concern basis of accounting.

The company's operation within the pharmaceutical industry necessitates regulation by the Medicines and Healthcare products Regulatory Agency. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, through discussion with the directors and other management (as required by auditing standards), and from inspection of the company's regulatory and legal correspondence and we discussed with the directors and other management, the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert for any indications of non-compliance throughout the audit.

The company is also subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, taxation legislation and pension legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with the auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of fraud based irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Mrs Deborah Burton F.C.A. (Senior Statutory Auditor)

for and on behalf of Christian Douglass Accountants Limited

Chartered Accountants

Statutory Auditor

2 Jordan Street

Knott Mill

Manchester

M15 4PY

15 September 2025

CONTINUING OPERATIONS

Revenue

3

32,037,144

26,372,545

Cost of sales

(24,716,726

)

(21,073,481

)

GROSS PROFIT

7,320,418

5,299,064

Administrative expenses

(2,714,799

)

(1,845,854

)

OPERATING PROFIT

4,605,619

3,453,210

Finance costs

5

(10,737

)

(1,230

)

Finance income

5

(59,021

)

210,732

PROFIT BEFORE INCOME TAX

6

4,535,861

3,662,712

Income tax

7

(1,148,491

)

(865,700

)

PROFIT FOR THE YEAR

3,387,370

2,797,012

PROFIT FOR THE YEAR

3,387,370

2,797,012

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,387,370

2,797,012

ASSETS

NON-CURRENT ASSETS

Owned

Property, plant and equipment

9

73,754

58,937

Right-of-use

Property, plant and equipment

9, 17

123,394

8,755

197,148

67,692

CURRENT ASSETS

Inventories

10

7,640,349

7,192,067

Trade and other receivables

11

5,634,898

5,526,267

Cash and cash equivalents

12

938,612

1,174,123

14,213,859

13,892,457

TOTAL ASSETS

14,411,007

13,960,149

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

13

100

100

Retained earnings

14

8,862,625

8,511,279

TOTAL EQUITY

8,862,725

8,511,379

LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities - borrowings

Lease liabilities

16, 17

101,181

-

Deferred tax

18

9,955

9,955

111,136

9,955

CURRENT LIABILITIES

Trade and other payables

15

4,692,668

4,803,032

Financial liabilities - borrowings

Lease liabilities

16, 17

22,213

8,755

Tax payable

722,265

627,028

5,437,146

5,438,815

TOTAL LIABILITIES

5,548,282

5,448,770

TOTAL EQUITY AND LIABILITIES

14,411,007

13,960,149

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

S Myerscough - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

8,014,167

8,014,267

Changes in equity

Dividends

-

(2,299,900

)

(2,299,900

)

Total comprehensive income

-

2,797,012

2,797,012

Balance at 31 December 2023

100

8,511,279

8,511,379

Changes in equity

Dividends

-

(3,036,024

)

(3,036,024

)

Total comprehensive income

-

3,387,370

3,387,370

Balance at 31 December 2024

100

8,862,625

8,862,725

Cash flows from operating activities

Cash generated from operations

1

3,995,909

(1,803,159

)

Interest paid

(7,642

)

-

Lease interest paid

(3,095

)

(1,230

)

Tax paid

(1,053,254

)

(519,501

)

Net cash from operating activities

2,931,918

(2,323,890

)

Cash flows from investing activities

Purchase of property, plant & equipment

(44,645

)

(14,913

)

Interest received

(59,021

)

210,732

Net cash from investing activities

(103,666

)

195,819

Cash flows from financing activities

Payment of lease liabilities

(27,739

)

(26,270

)

Equity dividends paid

(3,036,024

)

(2,299,900

)

Net cash from financing activities

(3,063,763

)

(2,326,170

)

Decrease in cash and cash equivalents

(235,511

)

(4,454,241

)

Cash and cash equivalents at beginning of year

2

1,174,123

5,628,364

Cash and cash equivalents at end of year

2

938,612

1,174,123

1.	RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before income tax

4,535,861

3,662,712

Depreciation charges

57,567

55,516

Finance costs

10,737

1,230

Finance income

59,021

(210,732

)

4,663,186

3,508,726

Increase in inventories

(448,282

)

(1,462,502

)

Increase in trade and other receivables

(109,427

)

(1,310,218

)

Decrease in trade and other payables

(109,568

)

(2,539,165

)

Cash generated from operations

3,995,909

(1,803,159

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

938,612

1,174,123

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,174,123

5,628,364

1.	STATUTORY INFORMATION

Bowmed Ibisqus Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06204088 and the registered office is at 2 Jordan Street, Knott Mill, Manchester, M15 4PY.

The principal activity of the company is that of a supplier of generic pharmaceutical products to NHS hospitals.

The Total Comprehensive Income for the year is wholly attributable to the owners of the parent.

The financial statements are presented in Sterling, which is also the functional currency of the company.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

In preparing these financial statements the directors have made judgements and estimates:

- in determining whether there are any indicators of impairment of the company's tangible fixed assets. Factors taken into account in reaching such a decision include the economic viability and expected future financial performance of the assets;

- in determining the residual values and useful economic lives of tangible fixed assets. The company depreciates tangible fixed assets over their expected useful lives. The estimation of the useful lives of assets is based upon historic performance as well as expectations about future use. Assumptions are necessary regarding possible technological changes and maintenance programmes which can affect the actual lives of the assets; and

- in determining the recoverability of debtors and stocks. The company establishes a provision for debtors that are estimated to be irrecoverable and for stocks which are not expected to realise at least cost. When assessing recoverability the directors consider factors such as the ageing of items, past experience of recovery and current information regarding the asset.

Revenue recognition

Revenue represents the value of goods sold, less returns received, at selling price exclusive of value added tax. Revenue is further adjusted on account of rebates payable to customers. Sales are recognised when the company considers that it has fulfilled its obligations to the customer which is deemed to be EITHER

- on despatch of goods where the company despatches to customer premises OR

- on making goods available for collection where the client is responsible for collecting.

Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure directly attributable to bringing the asset to the location and condition necessary for operation by the company.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset, other than freehold land which is not depreciated, over its estimated useful life.

Short leasehold right-of-use asset

Over the term of the lease

Plant and machinery

- 25% - 33% on cost

Office equipment

- 25% on cost

Financial instruments

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

Financial instruments include bank balances, current trade and other debtors and current trade and other creditors which are all included on a non-discounted basis, at transaction price less any necessary impairment. A review for impairment is carried out at each balance sheet date.

Financial liabilities - borrowings, per note 16, are financial instruments representing financing transactions and are measured at each reporting date at amortised cost using the effective interest method.

Income and expenditure generated in respect of these financial instruments, including interest receivable and payable and foreign exchange gains or losses, are recognised in the income statement as they accrue.

Inventories

Inventories are valued at the lower of cost and net realisable value and after making necessary provisions.

In general, cost is determined on an actual basis, based upon identifiable batch numbers, and represents purchase invoice price.

Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the cost of realisation.

Provision is made where necessary for slow moving, obsolete or defective stocks, guided by product expiry dates.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred Taxation

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

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

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

Research and development

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

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences resulting from the settlement of such transactions and from the translation at year end exchange rates of assets and liabilities are recognised in the statement of profit or loss.

Right-of-use assets and lease liabilities

Leases are recognised, measured and presented in line with IFRS 16 'Leases'. In accordance with the standard, the company recognises a right-of-use asset and a lease liability at the commencement date of the contract for all leases conveying the right to control the use of an identified asset for a period of time. The commencement date is the date on which a lessor makes an underlying asset available for use by a lessee.

The lease liability is initially measured at the present value of the outstanding lease payments, discounted using the interest rate implicit in the lease if that rate is readily available or an accessible borrowing rate. The lease liability is included within Financial liabilities - borrowings.

Lease payments included in the measurement comprise fixed payments, less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option reasonably expected to be exercised and payments of penalties for terminating the lease (if the lease term reflects the lessee exercising an option to terminate the lease).

Subsequent to initial measurement the lease liability is measured using the amortised cost method.

The right-of-use asset is initially measured at cost, and included within Property, Plant and Equipment. Cost comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives, any initial direct costs incurred by the lessee plus an estimate of costs to be incurred by the lessee in dismantling and removing the underlying assets or restoring the site on which the asset is located.

Subsequent to initial measurement the right-of-use asset is depreciated on a straight-line basis. Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

The company has elected to account for short term leases using the practical expedients and payments in relation to these are recognised as an expense in the income statement on a straight-line basis over the lease term.

Employee benefit costs

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

3.

REVENUE

Revenue from contracts with customers

Revenue derives from the company's principal activity as described in note 1 and wholly from the sale of goods. The directors consider that disaggregation is appropriate to revenue only in respect of the geographical destination of goods sold. Goods sold into Europe totalled £1,308,199 (2023: £787,359) with the remainder sold within the UK.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

900,478

743,285

Social security costs

92,681

85,618

Other pension costs

155,604

108,086

1,148,763

936,989

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

31.12.24

31.12.23

Management, marketing and administration

11

10

Other pension costs represent the company's expense for payments to defined contribution pension schemes. Pension costs unpaid at the balance sheet date amounted to £14,126 (2023: £9,330).

31.12.24

31.12.23

£

£

Directors' remuneration

179,181

179,362

Directors' pension contributions to money purchase schemes

49,842

42,459

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

Money purchase schemes

1

1

Directors' remuneration includes benefits in kind.

5.	NET FINANCE COSTS

31.12.24

31.12.23

£

£

Finance income:

Deposit account interest

2,972

18,202

IBI SpA loan interest

(1,212

)

119,315

Other interest receivable

(60,781

)

73,215

(59,021

)

210,732

Finance costs:

Other Interest payable

7,642

-

Interest expense on lease liabilities

3,095

1,230

10,737

1,230

Net finance costs

69,758

(209,502

)

6.	PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Cost of inventories recognised as expense

22,349,223

19,404,853

Depreciation - owned assets

29,828

29,246

Depreciation - assets on finance leases

27,739

26,270

Auditors' remuneration

18,207

17,597

Effect of foreign exchange - cost of sales

96,490

(40,028

)

Auditors remuneration in respect of non-audit services

5,681

4,533

7.	INCOME TAX

Analysis of tax expense

31.12.24

31.12.23

£

£

Current tax:

Tax

1,148,491

865,700

Total tax expense in statement of profit or loss

1,148,491

865,700

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before income tax

4,535,861

3,662,712

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

1,133,965

861,470

Effects of:

Timing differences on fixed assets

4,545

3,342

Permanent differences

9,981

888

Tax expense

1,148,491

865,700

8.

DIVIDENDS

31.12.24

31.12.23

£

£

Ordinary shares of £1 each

Interim dividends paid

3,036,024

2,299,900

9.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST

At 1 January 2024

131,348

78,939

111,244

321,531

Additions

142,378

7,861

36,784

187,023

Disposals

(131,348

)

-

-

(131,348

)

At 31 December 2024

142,378

86,800

148,028

377,206

DEPRECIATION

At 1 January 2024

122,593

67,018

64,228

253,839

Charge for year

27,739

4,932

24,896

57,567

Eliminated on disposal

(131,348

)

-

-

(131,348

)

At 31 December 2024

18,984

71,950

89,124

180,058

NET BOOK VALUE

At 31 December 2024

123,394

14,850

58,904

197,148

At 31 December 2023

8,755

11,921

47,016

67,692

10.	INVENTORIES

31.12.24

31.12.23

£

£

Stocks for resale

7,640,349

7,192,067

11.	TRADE AND OTHER RECEIVABLES

31.12.24

31.12.23

£

£

Current:

Trade receivables

5,010,426

3,644,064

Amounts owed by group undertakings

414,019

1,720,847

Other debtors

-

7

Prepayments and accrued income

210,453

161,349

5,634,898

5,526,267

12.	CASH AND CASH EQUIVALENTS

31.12.24

31.12.23

£

£

Bank accounts

938,612

1,174,123

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.24

31.12.23

value:

£

£

100

Ordinary

£1

100

100