REGISTERED NUMBER: 06667449 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

WATKINS DISTRIBUTION UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

S A Stigers

L L Hamacher

SECRETARY:

Pinsent Masons Secretarial Limited

REGISTERED OFFICE:

1 Park Row

Leeds

LS1 5AB

REGISTERED NUMBER:

06667449 (England and Wales)

SENIOR STATUTORY AUDITOR:

Andrew Green LLB FCA

AUDITORS:

THP Limited

Chartered Accountants

and Statutory Auditors

34-40 High Street

Wanstead

London

E11 2RJ

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

REVIEW OF BUSINESS

2024 was another difficult year for the company, with adverse trading conditions, driven by the UK cost of living crisis, leading to a decline in turnover to £7.4m from £7.7m.

Due to a change in sales mix and the decline in retail customer sales, gross profit fell by 4.5%.

During the year the company closed 2 of its branches, taking the total number to 6.

The key performance indicators during the year were as follows:

2024

2023

£

£

Turnover

7,368,714

7,691,858

Gross profit

1,423,231

1,826,953

Gross profit margin

19.31%

23.75%

Operating (loss)/profit

(1,895,094)

(1,666,911)

At the balance sheet date the company had net current liabilities of £2,759,661 (2023: £607,504) and a balance sheet deficit of £2,525,061 (2023: £361,192).

Further information in relation to this and going concern is provided on page 4.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of the company's strategy are subject to a number of risks.

The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks.

Loss of sales volume

Whilst the company has a diverse customer base, there is an ongoing risk that a decline in sales volumes has an adverse impact on the company's trading results. The company attempts to mitigate this risk by establishing long term relationships with its key customers. These relationships are strengthened through a focus on providing exceptional levels of customer service, comprehensive and reliable after sales support and attractive products that are designed to meet the needs of the end user.

Loss of key manufacturing partner

The company has an exclusive relationship with Watkins Manufacturing Corporation which falls within the Masco Corporation group of companies; and the failure of this key manufacturing partner could lead to a temporary shortage of certain products. The company also holds appropriate levels of safety stock to mitigate any manufacturing failures of the key manufacturing partner if required.

Market changes

The company operates in a competitive environment and is dependent on the level of Wellness Products required by it's customer base. If market conditions worsened then the demand for our products would reduce and have an adverse effect on our profitability. The management continually review the products and strategy of the business in light of changing market conditions.

Financial risks

The company is exposed to a variety of financial risks, including the effect of changes in exchange rates. The company does not forward buy foreign currency to manage this risk and so is exposed to volatility in the profit and loss account due to rate changes.

Inflation and the cost of living crisis

Global inflationary pressures that have arisen following the outbreak of the war in Ukraine continue to represent the

largest risk to the business. These pressures are seen most clearly in relation to wages costs, utilities and general cost price inflation.

Liquidity risk

The Company makes use of a group cash pooling facility with its fellow group companies in order to mitigate short term liquidity risk. The Directors continually monitor cash flow forecasts in order to further manage this risk over the short and medium term.

ON BEHALF OF THE BOARD:

L L Hamacher - Director

18 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company during the year was to retail Spas and Aquatic Fitness Systems (AQF) to the general public and trade customers.

GOING CONCERN

The accounts have been prepared on a going concern basis despite the trading loss for the year and balance sheet deficit.

The company is party to a cashpooling arrangement with fellow group companies that provides up to £5,000,000 of funding until 31 December 2028. Based on the worst case scenario forecasts produced for the years ending 31 December 2025 and 31 December 2026, the company is expected to have significant cash headroom and will therefore have sufficient resources to meet its liabilities as they fall due.

The company has also received a letter of support from its parent company, Masco Corporation Limited, to continue to provide financial assistance as required.

The Directors are also reviewing the business and its operations to explore the potential for new revenue streams and due to changes in the allocation of central group costs, the results so far in 2025 much improved.

In light of this, the accounts have been prepared on a going concern basis.

DIVIDENDS

There were no dividends paid in the year (2023: £nil) and the Directors do not recommend the payment of a final dividend (2023: £nil).

FUTURE DEVELOPMENTS

With regards to addressing future developments; the company has reacted to sales fall and losses by carrying out a review of its sales staff and offices. This has included:

- Closure of 2 showrooms; Chelmsford (September) and Nottingham (November).

- During 2024 a new product range called "White Label" was launched; this is our own in-house branding and logo with the products manufactured by a third party. The feedback on this has been positive; with early indications that it should be successful.

- In 2025, Hot Spring Spas introduced two standout Cold Plunge models, VIGOR and EMERGE. These premium, standalone units are designed to complement the hot tub range, particularly for users seeking to alternate between hot and cold therapy.

- Plans to open new store locations in Peterborough and Bishops Stortford are still on-going; it is hoped that the process will be completed by the end of 2025.

- In 2026, Watkins Manufacturing in the USA plans to introduce a dosing system and a new mobile app. The impact on the UK business is expected to be minimal.

- Integration of Watkins Distribution UK Ltd and Sauna360 UK. Sauna360 UK is a specialist provider of sauna, steam, and infrared wellness solutions, serving both residential and commercial markets across the UK. They’re part of the global360 Group, which includes legacy brands like Tylo, Helo, Kastor, Finnleo, and Amerec-some of the oldest and most respected names in sauna history. Watkins Distribution UK Ltd is expected to play a key role in integrating Sauna360’s product lines into the British market.

DIRECTORS

The directors who have held office during the period from 1 January 2024 to the date of this report are as follows:

C Krumrei - resigned 28 May 2024

V Teenarsipur - resigned 28 May 2024

S A Stigers - appointed 28 May 2024

L L Hamacher - appointed 28 May 2024

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 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 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 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.

AUDITORS

The auditors, THP Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L L Hamacher - Director

18 September 2025

Opinion

We have audited the financial statements of Watkins Distribution Uk Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 loss 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 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 five, 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:

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, and from our commercial knowledge and experience of the sector in which the Company operates;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, GDPR and data protection, anti-money laundering and anti-bribery, contract and employment law.

- 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 the accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and any other relevant regulators as required.

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.

Andrew Green LLB FCA (Senior Statutory Auditor)

for and on behalf of THP Limited

Chartered Accountants

and Statutory Auditors

34-40 High Street

Wanstead

London

E11 2RJ

18 September 2025

TURNOVER

7,368,714

7,691,858

Cost of sales

5,945,483

5,864,905

GROSS PROFIT

1,423,231

1,826,953

Administrative expenses

3,318,325

3,493,864

(1,895,094

)

(1,666,911

)

Other operating income

9

-

OPERATING LOSS

5

(1,895,085

)

(1,666,911

)

Interest payable and similar expenses

6

268,784

175,191

LOSS BEFORE TAXATION

(2,163,869

)

(1,842,102

)

Tax on loss

7

-

42,718

LOSS FOR THE FINANCIAL YEAR

(2,163,869

)

(1,884,820

)

FIXED ASSETS

Intangible assets

8

43,101

34,417

Tangible assets

9

191,499

211,895

234,600

246,312

CURRENT ASSETS

Stocks

10

3,006,636

3,621,623

Debtors

11

357,974

307,055

Cash at bank

2,749

917

3,367,359

3,929,595

CREDITORS

Amounts falling due within one year

12

6,127,020

4,537,099

NET CURRENT LIABILITIES

(2,759,661

)

(607,504

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,525,061

)

(361,192

)

CAPITAL AND RESERVES

Called up share capital

14

1

1

Share premium

15

999

999

Retained earnings

15

(2,526,061

)

(362,192

)

SHAREHOLDERS' FUNDS

(2,525,061

)

(361,192

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

L L Hamacher - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1

1,522,628

999

1,523,628

Changes in equity

Total comprehensive income

-

(1,884,820

)

-

(1,884,820

)

Balance at 31 December 2023

1

(362,192

)

999

(361,192

)

Changes in equity

Total comprehensive income

-

(2,163,869

)

-

(2,163,869

)

Balance at 31 December 2024

1

(2,526,061

)

999

(2,525,061

)

1.	STATUTORY INFORMATION

Watkins Distribution 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 and going concern

The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on a going concern basis despite the trading loss for the year and balance sheet deficit.

The company is party to a cashpooling arrangement with fellow group companies that provides up to £5,000,000 of funding until 31 December 2028. Based on the worst case scenario forecasts produced for the years ending 31 December 2025 and 31 December 2026, the company is expected to have significant cash headroom and will therefore have sufficient resources to meet its liabilities as they fall due.

The company has also received a letter of support from its parent company, Masco Corporation Limited, to continue to provide financial assistance as required.

The Directors are also reviewing the business and its operations to explore the potential for new revenue streams and due to changes in the allocation of central group costs, the results so far in 2025 much improved.

In light of this, the accounts have been prepared on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company 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 Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d).

Critical accounting judgements and key sources of estimation uncertainty

Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key estimate of the company is as follows:

Stock provisioning

The company sources hot tubs and related accessories from a related company in the US. Although the business is virtually supply to order it is still subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods.

Revenue recognition

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

Sales of goods are recognised on sale to the customer, which is considered to be the point of delivery and when the significant risks and rewards of the goods have been passed to the customer.

Goodwill

On 30 November 2016, the company acquired two showrooms from Hot Tub Barn Limited. Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's Interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.

Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life of 10 years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long term leasehold property - Term of the lease

Plant and machinery - 15% straight line

Motor vehicles - 4 years

Fixtures and fittings- 15% straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

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 balance sheet date.

Deferred taxation

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

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

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

Foreign currencies

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

Operating leases: the company as lessee

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

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Corporation tax - group relief

Corporation Tax losses are surrendered to/received from other group companies for no consideration.

In specific circumstances, individual group companies may reach agreement between themselves to surrender and/or receive group relief for consideration.

Such agreements usually run for 5 years before being subject to review.

Should group relief be surrendered to/received from other group companies for consideration, the consideration paid will reflect, at a minimum, the corporation tax amounts surrendered and/or received.

These amounts are reported as expenses or benefits within the tax on profit/(loss) on ordinary activities within the Statement of Comprehensive Income.

On a discretionary basis, group companies may agree to compensate for amounts in excess of the corporation tax amounts surrendered and/or received. In this instance, the excess over the corporation -tax amount is shown as a separate movement within the Statement of Comprehensive Income on the Statement of financial position.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,465,255

1,627,140

Social security costs

159,744

177,613

Other pension costs

21,089

25,984

1,646,088

1,830,737

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

2024

2023

Sales

15

16

Distribution

5

5

Administration

8

9

28

30

The Directors are deemed to be the key management for the purposes of disclosure under FRS102.

All Directors are remunerated by other group companies, with no costs recharged to the company.

2024

2023

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

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

2024

2023

£

£

Hire of plant and machinery

51,019

55,408

Other operating leases

546,319

581,923

Depreciation - owned assets

61,901

49,886

Loss/(profit) on disposal of fixed assets

4,996

(250

)

Goodwill amortisation

11,800

11,801

Computer software amortisation

18,720

-

Auditors' remuneration

22,500

26,100

Foreign exchange differences

(2,978

)

(22,229

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Group undertaking interest

268,784

175,191

7.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

2024

2023

£

£

Deferred tax

-

42,718

Tax on loss

-

42,718

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

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Loss before tax

(2,163,869

)

(1,842,102

)

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

(540,967

)

(460,526

)

Effects of:

Expenses not deductible for tax purposes

501

(270

)

Capital allowances in excess of depreciation

-

(5,871

)

Depreciation in excess of capital allowances

11,943

-

Utilisation of tax losses

528,523

466,667

Deferred tax

-

42,718

Total tax charge

-

42,718

All tax losses have been group relieved.

A deferred tax asset of £27,460 (2023: £9,476) in relation to trading losses has been recognised to the extent that it will offset a deferred tax liability.

8.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 January 2024

118,003

-

118,003

Additions

-

22,197

22,197

Reclassification/transfer

-

50,086

50,086

At 31 December 2024

118,003

72,283

190,286

AMORTISATION

At 1 January 2024

83,586

-

83,586

Amortisation for year

11,800

18,720

30,520

Eliminated on disposal

-

33,079

33,079

At 31 December 2024

95,386

51,799

147,185

NET BOOK VALUE

At 31 December 2024

22,617

20,484

43,101

At 31 December 2023

34,417

-

34,417

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2024

272,344

82,249

129,011

44,167

527,771

Additions

63,717

-

-

-

63,717

Disposals

(14,040

)

(7,000

)

-

(22,780

)

(43,820

)

Reclassification/transfer

-

-

(50,086

)

-

(50,086

)

At 31 December 2024

322,021

75,249

78,925

21,387

497,582

DEPRECIATION

At 1 January 2024

169,555

23,716

92,251

30,354

315,876

Charge for year

38,752

9,645

8,157

5,347

61,901

Eliminated on disposal

(8,835

)

(7,000

)

-

(22,780

)

(38,615

)

Reclassification/transfer

-

-

(33,079

)

-

(33,079

)

At 31 December 2024

199,472

26,361

67,329

12,921

306,083

NET BOOK VALUE

At 31 December 2024

122,549

48,888

11,596

8,466

191,499

At 31 December 2023

102,789

58,533

36,760

13,813

211,895

10.

STOCKS

2024

2023

£

£

Stocks

3,006,636

3,621,623