REGISTERED NUMBER: 15678655 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

25 APRIL 2024 TO 31 DECEMBER 2024

FOR

AMATHUS DRINKS GROUP LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditor

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Statement of Financial Position

12

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Statement of Cash Flows

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

C P Georgiou

Miss I A Georgiou

Mrs L Machlouzarides

SECRETARY:

Mrs L Machlouzarides

REGISTERED OFFICE:

1 Kings Avenue

London

N21 3NA

REGISTERED NUMBER:

15678655 (England and Wales)

INDEPENDENT AUDITOR:

M Georghiades

( Senior Statutory Auditor )

M Georghiades and Associates

130A Drakes Lane Potters Bar

Hertfordshire

EN6 1AF

The directors present their strategic report of the company and the group for the period 25 April 2024 to 31 December 2024.

REVIEW OF BUSINESS

The directors are pleased to report a good year with a turnover of £13,830,948. The gross profit during the year is £

3,576,122. The profit before tax for the year is £1,326,306.

We remain optimistic that Amathus Drinks Group Limited will be well placed to seize any business opportunities that arise in the coming year.

The Group continues to enjoy strength in all key ratios. In particular, the Group's considerable buying power enabled it to buy in stock ahead of exceptional duty increases, which showed an immediate return in the year. The Group also added to its highly specialised and award winning retail portfolio in the year, opening a new store in East Sheen. The board has identified further opportunities to expand its B2C offer alongside an improving online performance, and sees these expanding areas as significant contributors to its underlying strength in the premium wholesale market in the periods ahead.

The Board has reviewed its deep-sea supply chain for vulnerability to disruption from the intensification of conflicts in

the Middle East and Russia-Ukraine. The Board does not believe those crises are likely to affect the Group more than any other similar business or sector.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework.

The Group's risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.

(i) Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date.

(ii) Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Group has procedures with the object of minimising such losses as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments.

(iv) Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Borrowings issues at variable rates expose the Group to cash flow interest rate risk. The Group's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. From time-to-time, the Group carries out sensitivity analysis to establish whether any increase/decrease in interest rates will have a small effect on results and equity of the Group, because all financial instruments are fixed rate or pegged to LIBOR/EURIBOR with fixed margin. Strengthening or weakening against the relevant currency, there would be an equal and opposite impact on the profit/loss and other equity. This analysis assumes that all other variables, in particular interest rates, remain constant.

(v) Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates and liabilities are denominated in a currency that is not the Group's functional currency. The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the American Dollar, the Euro and Singapore dollar. The Group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

The Group has a resilient business model in place, and is committed to the preservation of cash flows and cost optimisation. The directors are re-assured that the Group will continue to be well-supported by its shareholders.

The directors have no reason to believe that the Group is exposed to the ongoing Russia-Ukraine conflict (or the eruption of conflict in the Middle East in the final quarter) in any way, and that it will not affect any of its participants generally in its key markets.

Employees

It is the policy of the Group to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Group and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development support to promote a maximum level of attainment. The Group vigorously supports all equalities and is proud of the diversity of its workforce at all levels of the organisation.

Environmental Policy

The Board acknowledges that environmental protection is one of the Group's business responsibilities. It aims for a continuous improvement in the Group's environmental performance and to comply with all relevant regulations in particular in relation to waste packaging. The Group seeks to maintain a high proportion of its records electronically and of the paper it does use, over 80% of its paper consumption is recycled through the use of recycling bags.

SECTION 172(1) STATEMENT

The directors of the Group are aware of their duty under Section 172 of the Companies Act 2006 to act in a way they consider, in good faith, would be most likely to promote the long-term success of the Group for the benefit of its members as a whole. In doing so, they have had regard to the matters set out in Section 172(1)(a) to (f), including the interests of the Group’s employees, fostering relationships with suppliers and customers, the impact of operations on the community and environment, and maintaining a reputation for high standards of business conduct.

Throughout the year, the directors considered these factors when making strategic and operational decisions. The Group’s key stakeholders include its employees, customers, suppliers, shareholders, and the wider community and environment. The directors believe that meaningful engagement with these groups is essential to the Group’s long-term success.

The directors actively engaged with employees through regular communication, team briefings, appraisals, and both formal and informal dialogue. The Group’s flat organisational structure supports immediate and direct access to senior management, encouraging open communication and employee feedback. These interactions informed key decisions, particularly around staff development, welfare, and working practices.

Customers and suppliers are integral to the Group’s operations. Regular meetings are held with major suppliers to review performance, manage risks, and explore commercial opportunities. There is ongoing dialogue with customers through account management and service teams, with any issues escalated and resolved promptly to maintain service quality and satisfaction.

The directors also maintained open engagement with shareholders and ensured that decisions such as reinvestment strategy and dividend policy were made in the long-term interests of members. The Group continues to review its impact on the community and environment and has taken steps to reduce waste and optimise logistics operations.

The directors are satisfied that their decision-making during the year ended 31 December 2024 was consistent with their duties under Section 172, supporting sustainable growth and responsible governance.

KEY PERFORMANCE-FINANCIAL & NON FINANCIAL

Description

2024 - £'000

Revenue

13,831

Gross profit

3,576

Operating profit/loss

967

Profit/Loss before tax

1,326

Net assets

21,265

Gross margin

25.86%

Current ratio

2.55

Quick ratio

1.28

Average number of employees

105

The company also monitors its performance by tracking other non-financial indicators that we believe are important to our long term success.

FINANCIAL POSITION

The Group is in good health and has adequate financial headroom allowing the expansion of the business from its own resources.

ON BEHALF OF THE BOARD:

C P Georgiou - Director

28 July 2025

The directors present their report with the financial statements of the company and the group for the period 25 April 2024 to 31 December 2024.

INCORPORATION

The group was incorporated on 25 April 2024 .

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of The principal activity of the Group in the year under review was that of a specialist drinks importer, distributor and retailer. Additionally, the Group is also engaged in property investment and lettings.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2024.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors who have held office during the period from 25 April 2024 to the date of this report are as follows:

C P Georgiou - appointed 25 April 2024

Miss I A Georgiou - appointed 25 April 2024

Mrs L Machlouzarides - appointed 25 April 2024

D Sarieddine - appointed 25 April 2024

D Sarieddine ceased to be a director after 31 December 2024 but prior to the date of this report.

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

FUTURE DEVELOPMENTS AND FINANCIAL INSTRUMENTS

The future developments and financial risks management of the company has been provided in the strategic report.

POLITICAL DONATIONS AND EXPENDITURE

During the year under review, the Group did not make any political donations.

THIRD PARTY INDEMNITY INSURANCE

The Group has maintained throughout the year Directors’ and officers’ liability insurance for the benefit of the

Group, the Directors and its officers. The Group has entered into qualifying third party indemnity arrangements for the benefit of all its Directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force.

STREAMLINED ENERGY AND CARBON REPORTING

As the Group has not consumed more than 40,000 KWh of energy in this reporting period, it qualifies as low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency

activities.

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), 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 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 auditor is 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 group's auditor is aware of that information.

AUDITOR

The auditor, M Georghiades, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C P Georgiou - Director

28 July 2025

Opinion

I have audited the financial statements of Amathus Drinks Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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 my 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 period 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

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

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I 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.

My 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 my Report of the Auditor thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

In my 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 I am 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, I have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

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

-	I have not received all the information and explanations I require for my audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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.

Auditor's responsibilities for the audit of the financial statements

My 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 Auditor that includes my 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 my 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 recognize 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 industry;

- 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;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

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 my 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 my Report of the Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

M Georghiades

( Senior Statutory Auditor )

M Georghiades and Associates

130A Drakes Lane Potters Bar

Hertfordshire

EN6 1AF

28 July 2025

REVENUE

3

13,830,948

Cost of sales

10,254,826

GROSS PROFIT

3,576,122

Distribution costs

585,159

Administrative expenses

2,106,812

2,691,971

884,151

Other operating income

83,227

OPERATING PROFIT

5

967,378

Exceptional items

6

377,687

1,345,065

Interest receivable and similar income

3,068

1,348,133

Interest payable and similar expenses

7

21,827

PROFIT BEFORE TAXATION

1,326,306

Tax on profit

8

(754,214

)

PROFIT FOR THE FINANCIAL PERIOD

2,080,520

Profit attributable to:

Owners of the parent

2,080,520

PROFIT FOR THE PERIOD

2,080,520

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,080,520

Total comprehensive income attributable to:

Owners of the parent

2,080,520

FIXED ASSETS

Intangible assets

10

-

Tangible assets

11

1,926,238

Investments

12

-

Investment property

13

9,434,106

11,360,344

CURRENT ASSETS

Inventories

14

9,296,245

Debtors

15

7,383,059

Cash at bank and in hand

1,906,060

18,585,364

CREDITORS

Amounts falling due within one year

16

7,276,731

NET CURRENT ASSETS

11,308,633

TOTAL ASSETS LESS CURRENT LIABILITIES

22,668,977

CREDITORS

Amounts falling due after more than one year

17

(1,171,517

)

PROVISIONS FOR LIABILITIES

19

(232,351

)

NET ASSETS

21,265,109

CAPITAL AND RESERVES

Called up share capital

20

100,100

Merger reserve

21

19,084,489

Retained earnings

21

2,080,520

SHAREHOLDERS' FUNDS

21,265,109

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2025 and were signed on its behalf by:

C P Georgiou - Director

FIXED ASSETS

Intangible assets

10

-

Tangible assets

11

-

Investments

12

100,100

Investment property

13

-

100,100

CREDITORS

Amounts falling due within one year

16

4,444

NET CURRENT LIABILITIES

(4,444

)

TOTAL ASSETS LESS CURRENT LIABILITIES

95,656

CAPITAL AND RESERVES

Called up share capital

20

100,100

Retained earnings

21

(4,444

)

SHAREHOLDERS' FUNDS

95,656

Company's loss for the financial year

(4,444

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2025 and were signed on its behalf by:

C P Georgiou - Director

Called up

share

Retained

Merger

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

100,100

-

-

100,100

Total comprehensive income

-

2,080,520

19,084,489

21,165,009

Balance at 31 December 2024

100,100

2,080,520

19,084,489

21,265,109

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100,100

-

100,100

Total comprehensive income

-

(4,444

)

(4,444

)

Balance at 31 December 2024

100,100

(4,444

)

95,656

Cash flows from operating activities

Cash generated from operations

1

(8,836,708

)

Interest paid

(21,827

)

Tax paid

192,366

Net cash from operating activities

(8,666,169

)

Cash flows from investing activities

Purchase of tangible fixed assets

(255,459

)

Sale of tangible fixed assets

9,424,520

Interest received

3,068

Net cash from investing activities

9,172,129

Cash flows from financing activities

New loans in year

1,300,000

Share issue

100,100

Net cash from financing activities

1,400,100

Increase in cash and cash equivalents

1,906,060

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

1,906,060

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

£

Profit before taxation

1,326,306

Depreciation charges

56,650

Loss on disposal of fixed assets

540

Finance costs

21,827

Finance income

(3,068

)

1,402,255

Increase in inventories

(9,296,245

)

Increase in trade and other debtors

(7,510,003

)

Increase in trade and other creditors

6,567,285

Cash generated from operations

(8,836,708

)

2.	CASH AND CASH EQUIVALENTS

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

Period ended 31 December 2024

31.12.24

25.4.24

£

£

Cash and cash equivalents

1,906,060

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 25.4.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

-

1,906,060

1,906,060

-

1,906,060

1,906,060

Debt

Debts falling due within 1 year

-

(130,000

)

(130,000

)

Debts falling due after 1 year

-

(1,170,000

)

(1,170,000

)

-

(1,300,000

)

(1,300,000

)

Total

-

606,060

606,060

1.	STATUTORY INFORMATION

Amathus Drinks Group Ltd 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

Basis of consolidation

The Group financial statements consolidate the financial statements of Amathus Drinks Plc and all its subsidiary undertakings drawn up to 31 December each year. No profit and loss account is presented for Amathus Drinks Plc as permitted by section 408 of the Companies Act 2006.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Goodwill

Goodwill arising on acquisition of a trade or on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life of 10 years. No amortisation is provided in the year of purchase.

Significant judgements and estimates

In preparing these financial statements the directors have made the following judgements:

- Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where

appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

- Revaluation of Tangible Fixed Assets

The group holds freehold land and buildings at fair value and performs a revaluation annually. This process involves significant management judgement, particularly in evaluating external valuations, selecting appropriate valuation methodologies, and determining relevant market comparables. Independent external valuations are used as the primary basis for determining fair value. However, these valuations rely on key estimates and assumptions, including local market trends, property condition, location, and evidence from recent comparable transactions.

- Stocks

Stock is valued at lower of cost and net realisable value. A source of estimation uncertainty surrounds the net realisable value of the stock and as to whether or not there is an indication of impairment. To address this, management review both historic and post year end sales of all stock lines compared to quantity of stock held and use this to form the basis for any impairment. In order to establish an appropriate cost of the stock, the cumulative value of the last purchase price, the cost of duty, commission and shipping are taken into account.These costs are re-assessed on an annual basis.

- Amortisation

The group exercises judgement to determine useful lives and residual values of intangible fixed assets. The

assets are amortised down to their residual values over their estimated useful lives. Management considers that carrying value of intangible fixed assets is reasonable and therefore that no impairment charge is required in the current year.

- Provisions

Provisions have been made for trade debtors and inventory obsolescence and returns, where appropriate.

These provisions are an estimate of the actual costs and the timing of future cash flows is dependent on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made.

Revenue

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

Tangible fixed assets

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 - 1% on cost

Short leasehold - Over the life of the lease

Plant and machinery - 15% on reducing balance

Motor vehicles - 25% on reducing balance

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment

losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Freehold land and buildings are revalued annually, with any movements in fair value recognised in other

comprehensive income and accumulated in the revaluation reserve. Freehold land is not depreciated.

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in

circumstances indicate the carrying value may not be recoverable.

The Group has adopted a policy of not to depreciate the asset in the year of acquisition, however full

depreciation will be provided in the year of disposal.

Impairment of non-financial assets

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value less costs to sell and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Group bases its impairment calculation on detailed budgets and forecast calculations, which are

prepared separately for each of the Group's CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognised in the statement of comprehensive income in

expense categories consistent with the function of the impaired asset, except for a property previously revalued when the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of comprehensive income unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Investment property

Investment properties are properties held either to earn rental or for capital appreciation or both.

Investment property is initially measured at cost, including transaction costs. Subsequent to initial recognition,

the company applies the fair value model, whereby investment property is remeasured to fair value at each

reporting date. Changes in fair value are recognized in profit or loss.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Costs include all costs incurred in bringing each product to its present location and condition under first-in

first-out (FIFO) basis.

Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period 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 statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences 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 income on a straight line basis over the lease term.

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.

Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.