REGISTERED NUMBER: 03655237 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Premier Clothing Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mrs Edna Violet Batson

Mr Jeoffrey Paul Batson

Mr Jonathan Peter Batson

Mr Ian Charles Milburn

Mr Stuart Paul Banks FCA

SECRETARY:

Mrs Edna Violet Batson

REGISTERED OFFICE:

Unit 7

Deeside Point

Zone 3 Deeside Industrial Park

Deeside

Flintshire

CH5 2UA

REGISTERED NUMBER:

03655237 (England and Wales)

SENIOR STATUTORY AUDITOR:

Neil Barton

AUDITORS:

Forvis Mazars LLP

Chartered Accountants

and Statutory Auditor

One St Peter's Square

Manchester

M2 3DE

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

The principal activity of the company is the sourcing and wholesale distribution of the 'Premier' brand of corporate and hospitality clothing.

OVERVIEW

Throughout 2024, Premier Clothing Limited experienced modest sales growth, in the UK and EU markets, along with increased revenue in North America. The total revenue for the year reached £22.70m, an increase from £22.37m in 2023. This growth is attributed to the company's strategic initiatives to maintain its presence in the hospitality sector but also to expand into new product offerings such as Outerwear, Knitwear, and Workwear. This includes the introduction of the "Onna by Premier" brand in the USA, UK & EU which focuses on active uniforms for the medical, veterinary, and caring professions.

The gross profit for the year was £6.60m, slightly lower than £6.79m in 2023. The decrease in gross profit was primarily due to higher costs of goods. However, the company anticipates that most of the margin reduction pressures have subsided and expects gross margins to improve in 2025.

2024 was marked by continued investment in operating markets such as the USA, whilst also improving efficiencies with a particular focus on inventory. Inventory levels were lowered to £20.67m from £25.29m in 2023, reflecting the company's efforts to enhance efficiencies through our SKU reduction program whilst maintaining market leading inventories on core product ranges.

Total operating costs decreased to £5.19m from £5.27m in 2023. EBITDA was £1.45m, down from £1.62m in 2023.

SUSTAINABILITY INITIATIVES

Premier Clothing Limited is dedicated to sustainability and has implemented several initiatives to reduce its environmental impact and promote social responsibility:

Sustainable Product Development: In 2024, the company continued to launch new styles that incorporate sustainable and recycled fibres as well as transitioning core products to these new materials.

Certifications and Memberships: The company successfully maintained its GOTS (Global Organic Textile Standard) and GRS (Global Recycled Standard) certifications and continued its membership in the "Better Cotton" initiative.

Transparency and Reporting: Premier Clothing Limited is committed to transparency in its sustainability efforts. The company provides tangible data that makes sustainability both visible and meaningful, empowering customers with no-cost sustainability initiatives that align with today's environmental and social priorities.

Future Plans: Looking ahead the company plans to implement Scope 3 for its brands, work towards "Ecovadis" certification and implement the Digital Product Passport for its garments.

KEY PERFORMANCE INDICATORS

The principal key performance indicators are:

2024

2023

£m

£m

Revenue

22.70

22.37

Gross profit

6.60

6.79

EBITDA

1.45

1.62

Shareholders' funds

20.72

19.77

Stocks

20.67

25.29

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties of the business are considered to relate to political and macro-economic factors regarding the state of the economy, global commodity prices, interest rates, global shipping, and foreign exchange rates. In particular, these risks include:

Tariff changes have impacted global trade dynamics, with various countries imposing tariffs on imports and exports. These changes have affected the cost of goods and supply chain operations.

The continuing conflict in Ukraine and other geo-political tensions which have led to a challenging environment with inflation, currency fluctuations, and risks of an economic slowdown. This is again affecting the supply chain with the risk of longer lead times.

Inflation and employment taxes have led to substantial wage growth and associated employment costs, as well as operating costs in all areas of the business.

ON BEHALF OF THE BOARD:

Mr Ian Charles Milburn - Director

11 September 2025

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

DIVIDENDS

The total amount of dividends paid in the year was £nil (2023: £nil).

FUTURE DEVELOPMENTS

The company will continue to invest in new styles and designs, including sustainable and recycled products.

Other future developments are covered in the Strategic Report.

DIRECTORS

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

Mrs Edna Violet Batson

Mr Jeoffrey Paul Batson

Mr Jonathan Peter Batson

Mr Ian Charles Milburn

Mr Stuart Paul Banks FCA

DIRECTORS' INDEMNITY INSURANCE

Indemnity insurance cover is in place for all directors.

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 laws 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) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 theta are sufficient to show and explain the company's transactions and disclose with reasonable accurate 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

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr Ian Charles Milburn - Director

11 September 2025

Opinion

We have audited the financial statements of Premier Clothing Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 an auditor's report 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 the 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 company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

-

Inquiring of management and, where appropriate, those charged with governance, as to whether the

company is in compliance with laws and regulations, and discussing their policies and procedures regarding

compliance with laws and regulations;

-

Inspecting correspondence, if any, with relevant licensing or regulatory authorities;

-

Communicating identified laws and regulations to the engagement team and remaining alert to any

indications of non-compliance throughout our audit; and

-

Considering the risk of acts by the company which were contrary to applicable laws and regulations,

including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cutoff assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

-

Making enquiries of the directors and management on whether they had knowledge of any actual,

suspected or alleged fraud;

-

Gaining an understanding of the internal controls established to mitigate risks related to fraud;

-

Discussing amongst the engagement team the risks of fraud; and

-

Addressing the risks of fraud through management override of controls by performing journal entry

testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Neil Barton (Senior Statutory Auditor)

for and on behalf of Forvis Mazars LLP

Chartered Accountants

and Statutory Auditor

One St Peter's Square

Manchester

M2 3DE

11 September 2025

TURNOVER

4

22,699,224

22,372,641

Cost of sales

(16,098,665

)

(15,582,785

)

GROSS PROFIT

6,600,559

6,789,856

Distribution costs

(4,508,161

)

(4,466,943

)

Administrative expenses

(681,462

)

(806,760

)

1,410,936

1,516,153

Other operating income

-

83,449

OPERATING PROFIT

6

1,410,936

1,599,602

Interest receivable and similar income

15,988

8,793

1,426,924

1,608,395

Interest payable and similar expenses

7

(156,155

)

(228,752

)

PROFIT BEFORE TAXATION

1,270,769

1,379,643

Tax on profit

8

(325,015

)

(332,720

)

PROFIT FOR THE FINANCIAL YEAR

945,754

1,046,923

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

945,754

1,046,923

FIXED ASSETS

Intangible assets

9

46,679

64,748

Tangible assets

10

23,093

41,928

Investments

11

889

889

70,661

107,565

CURRENT ASSETS

Stocks

12

20,666,677

25,288,910

Debtors: amounts falling due within one year

13

2,275,460

1,454,362

Cash at bank

1,077,866

447,976

24,020,003

27,191,248

CREDITORS

Amounts falling due within one year

14

(3,369,974

)

(7,520,245

)

NET CURRENT ASSETS

20,650,029

19,671,003

TOTAL ASSETS LESS CURRENT LIABILITIES

20,720,690

19,778,568

PROVISIONS FOR LIABILITIES

16

(146

)

(3,778

)

NET ASSETS

20,720,544

19,774,790

CAPITAL AND RESERVES

Called up share capital

17

111,111

111,111

Share premium

18

119,441

119,441

Retained earnings

18

20,489,992

19,544,238

SHAREHOLDERS' FUNDS

20,720,544

19,774,790

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

Mr Ian Charles Milburn - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

111,111

18,497,315

119,441

18,727,867

Changes in equity

Total comprehensive income

-

1,046,923

-

1,046,923

Balance at 31 December 2023

111,111

19,544,238

119,441

19,774,790

Changes in equity

Total comprehensive income

-

945,754

-

945,754

Balance at 31 December 2024

111,111

20,489,992

119,441

20,720,544

1.	STATUTORY INFORMATION

Premier Clothing Limited ('The Company') is primarily engaged in the B2B distribution of hospitality and corporate wear under the Premier brand.

The company is a private company limited by shares and is incorporated in England and Wales. The address of the principal place of business and the registered office is Unit 7, Deeside Point, Deeside, Flintshire, CH5 2UA.

2.	STATEMENT OF COMPLIANCE

The financial statements of Premier Clothing Limited have been prepared in compliance with United Kingdom Accounting Standards, including 'The Financial Reporting Accounting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation

The financial statements are prepared on the going concern basis under the historical cost convention and comply with United Kingdom Accounting Standards and the Companies Act 2006.

Going concern

The company meets its day to day working capital requirements through its agreed banking facilities which are negotiated on a group wide basis.

After reviewing the company's and the group's forecasts and projections, the directors are satisfied that the company and the group has adequate resources to continue in operational existence for the foreseeable future, including a period of not less than 12 months from the date of signing of these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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);

•

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

•

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

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

Key accounting judgements and estimates

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are discussed below:

(i) Stock valuation provision (shown as a reduction in stock and debited to the Income Statement through cost of sales)

A valuation loss is recognised where the expected selling price is less than cost. In arriving at this impairment loss, judgements and estimates have been used to assess the anticipated future selling prices of stocks held at the year end, particularly for slow-moving and discontinued items.

The main areas of judgement are:

(i) Impairment of assets

In assessing whether there have been any indicators of impairment, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability.

(ii) Depreciation and amortisation rates

In assessing the depreciation and amortisation rates the directors consider the expected useful life of the specific asset involved. To allow for an appropriate policy to be applied many fixed asset categories have a range of depreciation rates.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents net invoiced sales of goods, net of returns, discounts and rebates, excluding value added tax. Revenue is recognised when the goods are delivered to the customer. Carriage charges made to customers are included in revenue.

Intangible assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged to administrative expenses in the Statement of Comprehensive Income. Amortisation is calculated using the straight line method, to allocate the depreciable amount of the assets over their estimated useful lives as follows:

Trademarks

- 10% on cost

Computer software

- 25% - 50% on cost

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates so as to write off their cost less residual amounts over their estimated useful economic lives. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.

Fixtures and fittings

- 25% - 50% on cost

Computer and office equipment

- 25% - 50% on cost

The residual values and useful lives of assets are reviewed and adjusted if appropriate at the end of each reporting period.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at cost or, if lower, selling price including costs to sell. Cost includes all costs of purchase and also other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out basis.

A provision is made for damaged, discontinued and slow-moving stock where appropriate.

Taxation

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

Current taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted at the end of the financial year.

Deferred tax

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

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 currency

The company's functional and presentation currency is pound sterling.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions. At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at the reporting date of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and a defined contribution pension plan.

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which service is received.

The company operates a defined contribution pension plan for its directors and 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 when they are due. Amounts not paid at the reporting date are included in accruals. The assets of the plan are held separately from the company in independently administered funds.

The company operates an annual bonus plan for certain employees. An expense is recognised in the Statement of Comprehensive Income when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

Financial instruments

Basic financial assets, including trade debtors, other receivables, cash and bank balances and investments are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade creditors, other payables, bank loans and other loans are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derivatives, including interest rate swaps and foreign exchange contracts, are not basic financial instruments.

The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates. Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently revalued to fair value at the reporting date. Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income under the most appropriate heading. The fair value of forward foreign currency contracts is calculated by reference to comparable contracts with similar maturity profiles.

Trade debtors and other receivables within one year

Trade debtors and other receivables with no stated interest rate are recorded at transaction price less any impairment.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

Trade creditors and other payables

Trade creditors and other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Impairment of assets

Assets not measured at fair value are reviewed for any indications that the asset may be impaired. If such indications exists the recoverable amount of the asset or the assets cash generating unit is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Any losses arising from impairment are recognised in the Statement of Comprehensive Income under the appropriate heading.

Related parties

The company discloses transactions with related parties. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the financial statements. No disclosure is provided regarding transactions with group companies.

4.

TURNOVER

The total turnover of the company for the year has been derived from its principal activity. Although trading is mostly undertaken in the UK there are also sales in the EU and USA. No further disclosure of overseas turnover is given due to it being considered commercially sensitive.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,070,383

1,032,745

Social security costs

108,263

106,566

Other pension costs

38,171

35,893

1,216,817

1,175,204

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

2024

2023

Sales and distribution

28

27

Administration

8

8

36

35

The company operates a defined contribution pension scheme for the benefit of employees and directors. The assets of the scheme are administered by an independent pensions provider. Pension payments are recognised as an expense during the year and amount to £38,171 (2023: £35,893). At the reporting date outstanding pension contributions amounted to £nil (2023: £nil).

2024

2023

£

£

Directors' remuneration

45,500

45,500

From 1 January 2022 most of the directors' remuneration has been met by the ultimate holding company, Ralawise Group Holdings Limited. Management charges of £240,000 (2023: £240,000) were paid to Ralawise Group Holdings Limited in the year, which includes the provision of directors' services.

6.	OPERATING PROFIT

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

2024

2023

£

£

Depreciation - owned assets

20,809

32,896

Profit on disposal of fixed assets

-

(31,663

)

Trademarks amortisation

5,000

5,000

Computer software amortisation

13,069

17,801

Auditors' remuneration

23,000

21,000

Foreign exchange differences

(25,656

)

(137,881

)

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

136,956

132,846

Interest paid on corporation

tax

6,648

7,809

Other loan interest

11,402

84,007

Directors' loan interest

959

4,090

Interest paid on other

taxation

190

-

156,155

228,752

8.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

326,019

213,076

Adjustment relating to earlier years

2,628

(1,507

)

Total current tax

328,647

211,569

Deferred tax

(3,632

)

121,151

Tax on profit

325,015

332,720

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

£

£

Profit before tax

1,270,769

1,379,643

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

317,692

324,506

Effects of:

Expenses not deductible for tax purposes

4,695

2,643

Tax effect of differing rates

-

7,169

Tax effect of super allowances

-

(91

)

Adjustment relating to earlier years

2,628

(1,507

)

Total tax charge

325,015

332,720

The main rate of corporation tax increased on 1 April 2023 from 19% to 25% and it has remained at that rate throughout the current period.

9.	INTANGIBLE FIXED ASSETS

Computer

Trademarks

software

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

250,000

152,178

402,178

AMORTISATION

At 1 January 2024

205,000

132,430

337,430

Amortisation for year

5,000

13,069

18,069

At 31 December 2024

210,000

145,499

355,499

NET BOOK VALUE

At 31 December 2024

40,000

6,679

46,679

At 31 December 2023

45,000

19,748

64,748