REGISTERED NUMBER: SC584425 (Scotland)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 December 2024

for

Demco Group Limited

Page

Group Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

15

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

REVIEW OF BUSINESS

The directors are happy to report another successful year for the group.

The group has generated £22,690,426 (2023: £17,356,330) of turnover due to excellent products and customer service. The group has generated £6,514,040 (2023: £3,822,314) of profits before tax to give satisfactory results.

At the period end the group had net assets of £12,347,453 (2023: £12,269,791) including distributable profits of £12,347,353 (2023: £12,269,691). The directors therefore believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £8,380,225 (2023: £8,298,034).

The directors believe that there is a strong foundation to build the business further and improve on the current period's results.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the main standard risk facing the group as being increased competition from other national companies. The directors believe that the quality of our products and customer service will help mitigate these risks going forward.

ON BEHALF OF THE BOARD:

Mr M Rabey - Director

8 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of manufacture and sale of antibacterial wipes and sale of stone products.

DIVIDENDS

The total distribution of dividends for the period ended 31 December 2024 will be £4,745,000.

DIRECTORS

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

Mr P Rabey

Mr M Rabey

Mr E Rabey

Mr D Rabey

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr M Rabey - Director

8 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through 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.

Greig Brown (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

Statutory Auditor

Unit 5

Gateway Business Park

Beancross Road

Grangemouth

FK3 8WX

22 September 2025

TURNOVER

3

22,690,426

17,356,330

Cost of sales

(11,129,302

)

(9,100,355

)

GROSS PROFIT

11,561,124

8,255,975

Administrative expenses

(5,227,587

)

(4,499,760

)

6,333,537

3,756,215

Other operating income

(1,255

)

16,100

OPERATING PROFIT

5

6,332,282

3,772,315

Income from interest in associated undertakings

18,418

-

Interest receivable and similar income

164,148

65,163

6,514,848

3,837,478

Interest payable and similar expenses

6

(808

)

(15,164

)

PROFIT BEFORE TAXATION

6,514,040

3,822,314

Tax on profit

7

(1,691,378

)

(956,696

)

PROFIT FOR THE FINANCIAL YEAR

4,822,662

2,865,618

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,822,662

2,865,618

Profit attributable to:

Owners of the parent

4,822,662

2,865,618

Total comprehensive income attributable to:

Owners of the parent

4,822,662

2,865,618

FIXED ASSETS

Intangible assets

10

1,330,793

1,515,126

Tangible assets

11

2,784,601

2,566,805

Investments

12

-

-

Investment property

13

-

-

4,115,394

4,081,931

CURRENT ASSETS

Stocks

14

2,862,444

3,061,984

Debtors

15

5,825,809

5,007,637

Cash at bank

6,882,014

3,587,790

15,570,267

11,657,411

CREDITORS

Amounts falling due within one year

16

(7,190,042

)

(3,359,377

)

NET CURRENT ASSETS

8,380,225

8,298,034

TOTAL ASSETS LESS CURRENT LIABILITIES

12,495,619

12,379,965

CREDITORS

Amounts falling due after more than one year

17

(12,774

)

(12,116

)

PROVISIONS FOR LIABILITIES

21

(135,392

)

(98,058

)

NET ASSETS

12,347,453

12,269,791

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

12,347,353

12,269,691

SHAREHOLDERS' FUNDS

12,347,453

12,269,791

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

Mr M Rabey - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

30,618

41,489

Investments

12

2,375,300

2,375,300

Investment property

13

1,900,246

1,891,447

4,306,164

4,308,236

CURRENT ASSETS

Debtors

15

1,452,326

2,429,888

Cash at bank

4,711,226

2,952,788

6,163,552

5,382,676

CREDITORS

Amounts falling due within one year

16

(4,076,925

)

(1,023,297

)

NET CURRENT ASSETS

2,086,627

4,359,379

TOTAL ASSETS LESS CURRENT LIABILITIES

6,392,791

8,667,615

CREDITORS

Amounts falling due after more than one year

17

(6,524

)

(12,116

)

PROVISIONS FOR LIABILITIES

21

(6,544

)

(9,191

)

NET ASSETS

6,379,723

8,646,308

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

6,379,623

8,646,208

SHAREHOLDERS' FUNDS

6,379,723

8,646,308

Company's profit for the financial year

2,478,415

2,854,638

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

Mr M Rabey - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

100

10,738,973

10,739,073

-

10,739,073

Changes in equity

Dividends

-

(1,334,900

)

(1,334,900

)

-

(1,334,900

)

Total comprehensive income

-

2,865,618

2,865,618

-

2,865,618

Balance at 31 December 2023

100

12,269,691

12,269,791

-

12,269,791

Changes in equity

Dividends

-

(4,745,000

)

(4,745,000

)

-

(4,745,000

)

Total comprehensive income

-

4,822,662

4,822,662

-

4,822,662

Balance at 31 December 2024

100

12,347,353

12,347,453

-

12,347,453

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

7,126,470

7,126,570

Changes in equity

Dividends

-

(1,334,900

)

(1,334,900

)

Total comprehensive income

-

2,854,638

2,854,638

Balance at 31 December 2023

100

8,646,208

8,646,308

Changes in equity

Dividends

-

(4,745,000

)

(4,745,000

)

Total comprehensive income

-

2,478,415

2,478,415

Balance at 31 December 2024

100

6,379,623

6,379,723

Cash flows from operating activities

Cash generated from operations

1

10,966,480

2,368,545

Interest paid

(808

)

(14,954

)

Interest element of hire purchase payments paid

-

(210

)

Tax paid

(1,858,006

)

(879,165

)

Net cash from operating activities

9,107,666

1,474,216

Cash flows from investing activities

Purchase of intangible fixed assets

(4,800

)

-

Purchase of tangible fixed assets

(667,622

)

(761,448

)

Sale of tangible fixed assets

105,622

282,660

Interest received

164,148

65,163

Dividends received

18,418

-

Net cash from investing activities

(384,234

)

(413,625

)

Cash flows from financing activities

Loan repayments in year

(5,592

)

(53,592

)

Capital repayments in year

(42,104

)

(1,282

)

Amount introduced by directors

-

2,700

Amount withdrawn by directors

(636,512

)

-

Equity dividends paid

(4,745,000

)

(1,334,900

)

Net cash from financing activities

(5,429,208

)

(1,387,074

)

Increase/(decrease) in cash and cash equivalents

3,294,224

(326,483

)

Cash and cash equivalents at beginning of year

2

3,587,790

3,914,273

Cash and cash equivalents at end of year

2

6,882,014

3,587,790

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

31.12.24

31.12.23

£

£

Profit before taxation

6,514,040

3,822,314

Depreciation charges

582,047

640,323

Loss/(profit) on disposal of fixed assets

5,895

(94,061

)

Finance costs

808

15,164

Finance income

(182,566

)

(65,163

)

6,920,224

4,318,577

Decrease/(increase) in stocks

199,540

(646,989

)

Increase in trade and other debtors

(990,496

)

(1,404,408

)

Increase in trade and other creditors

4,837,212

101,365

Cash generated from operations

10,966,480

2,368,545

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

6,882,014

3,587,790

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,587,790

3,914,273

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

3,587,790

3,294,224

6,882,014

3,587,790

3,294,224

6,882,014

Debt

Finance leases

-

42,104

(54,604

)

(12,500

)

Debts falling due

within 1 year

(5,592

)

-

-

(5,592

)

Debts falling due

after 1 year

(12,116

)

5,592

-

(6,524

)

(17,708

)

47,696

(54,604

)

(24,616

)

Total

3,570,082

3,341,920

(54,604

)

6,857,398

1.	STATUTORY INFORMATION

Demco Group Limited is a private company, limited by shares, domiciled in Scotland, registration number SC584425. The registered office is Spectrum House, South View, Dales Industrial Estate, Peterhead, AB42 3JF.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

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 with wholly owned subsidiaries within the group.

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

Turnover

Turnover represents net invoiced sales of cleaning wipes and stone, excluding value added tax. Sales are recognised at the point at which the goods are delivered.

Goodwill

Goodwill, being the amount paid in connection with the acquisitions of businesses in 2019 and 2022, is being amortised evenly over its estimated useful life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets and depreciation

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on cost and 20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% on cost

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

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

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

16,977,306

14,176,498

Europe

4,957,452

2,455,332

Rest of World

755,668

724,500

22,690,426

17,356,330

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

3,066,417

2,464,945

Social security costs

369,309

271,112

Other pension costs

36,909

30,865

3,472,635

2,766,922

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

31.12.24

31.12.23

Employees

71

59

The average number of employees by undertakings that were proportionately consolidated during the year was 63 (2023 - 49 ) .

31.12.24

31.12.23

£

£

Directors' remuneration

48,000

54,000