REGISTERED NUMBER: NI030439 (Northern Ireland)

Strategic Report, Report of the Director and

Audited Financial Statements

for the Year Ended 31 December 2024

for

Europa Tool Company Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Profit or Loss and Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTOR:

P Lillicrapp

SECRETARY:

P Lillicrapp

REGISTERED OFFICE:

94 University Avenue

Belfast

Co. Antrim

BT7 1GY

REGISTERED NUMBER:

NI030439 (Northern Ireland)

INDEPENDENT AUDITORS:

Leigh Christou Ltd

Chartered Certified Accountants and

Statutory Auditor

Leofric House

Binley Road

Coventry

CV3 1JN

The director presents his strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The principal activity of the company in the year under review was that of wholesale distribution of tool parts and end mills.

For the year ended 31 December 2024, performance is reported using the following Key Performance Indicators:

2024

2023

£

£

Turnover

5,085,558

5,248,913

Profit/(Loss) before taxation

(131,261

)

(104,451

)

On the 7th February 2025, Troy (UK) Limited; a buying group representing a proportion of the Company's customers went into administration. A provision for irrecoverable debts has been included in the financial statements amounting to £217,314.

Management have proactively taken appropriate steps to mitigate any future effects on long term revenue by opening direct accounts with the customers, independent of the buying group, who still require the goods to be supplied. In the opinion of the director the new arrangements help to diversify the Company's exposure to risk, and future credit losses.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to risks and uncertainties associated with economic and political conditions around the world, including but not limited to; government regulations, taxes including value-added taxes, import and export duties/tariffs and quotas, anti-dumping regulations, incidents and fears involving security, man-made or natural disasters, health epidemics, terrorism and wars, political unrest and other restrictions on trade and travel.

The United Kingdom's exit from the European Union (Brexit), continues to present operational challenges for the company, including; delays with freight companies and at various customs points, increases in distribution costs and non-recoverable duty, and increased administration costs. This risk is being managed by the directors and management of the individual subsidiaries and overseen by the YG-1 Co. Limited board of directors.

The special military operation in Ukraine, and its macro-economic inflationary after-effects also presents a key risk to the company, as an increased number of company insolvencies caused by the economic downturn could lead to a reduction in the company's customer base. However, the company mitigates this risk by not being over-reliant on one customer. The company is also well-positioned in the industry through its offering of low-cost tooling, which in times of economic downturn can lead to new customers.

The company maintains a Euro Bank Account. The company make similar levels of both sales and purchases in Euros which acts as a natural hedge against Foreign Exchange differences.

Credit risk applies to financial assets held by the company including bank balances and other trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The company mitigates its exposure to liquidity risk by managing its cash and borrowing requirement to ensure that the company has sufficient liquid resources to meet the operating needs of the business.

ON BEHALF OF THE BOARD:

P Lillicrapp - Director

21 March 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of wholesale distribution of tool parts and end mills.

DIVIDENDS

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

EVENTS SINCE THE END OF THE YEAR

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

DIRECTOR

P Lillicrapp held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state that the financial statements comply with IFRS;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

P Lillicrapp - Director

21 March 2025

Opinion

We have audited the financial statements of Europa Tool Company Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:

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

-	have been properly prepared in accordance with IFRSs as adopted by the UK; and

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Key audit matters

Key audit matters are those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit

• Going concern - availability of finance

• Going concern - availability of group support

• Going concern - reliability of management forecasts

• Recoverability of intangible assets

• Valuation of inventory

• Completeness of liabilities

• Revenue recognition

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

C A Christou FCCA MAE (Senior Statutory Auditor)

for and on behalf of Leigh Christou Ltd

Chartered Certified Accountants and

Statutory Auditor

Leofric House

Binley Road

Coventry

CV3 1JN

21 March 2025

CONTINUING OPERATIONS

Revenue

3

5,085,558

5,248,913

Cost of sales

(3,283,024

)

(3,549,842

)

GROSS PROFIT

1,802,534

1,699,071

Other operating income

-

121

Distribution costs

(1,894,464

)

(1,505,950

)

Administrative expenses

(17,032

)

(27,842

)

OPERATING (LOSS)/PROFIT BEFORE EXCEPTIONAL ITEMS

(108,962

)

165,400

Exceptional items

5

-

(255,624

)

OPERATING LOSS

(108,962

)

(90,224

)

Finance costs

6

(22,570

)

(14,614

)

Finance income

6

271

387

LOSS BEFORE INCOME TAX

7

(131,261

)

(104,451

)

Income tax

8

-

-

LOSS FOR THE YEAR

(131,261

)

(104,451

)

Other comprehensive income

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(131,261

)

(104,451

)

ASSETS

NON-CURRENT ASSETS

Owned

Intangible assets

9

12,907

20,495

Property, plant and equipment

10

34,520

34,354

Right-of-use

Property, plant and equipment

10, 19

353,456

302,354

Investments

11

-

-

400,883

357,203

CURRENT ASSETS

Inventories

12

3,866,852

3,414,653

Trade and other receivables

13

1,162,635

1,314,705

Cash and cash equivalents

14

317,750

496,251

5,347,237

5,225,609

TOTAL ASSETS

5,748,120

5,582,812

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

15

1,972,933

1,972,933

Retained earnings

16

910,919

1,042,180

TOTAL EQUITY

2,883,852

3,015,113

LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities - borrowings

Lease liabilities

18, 19

243,448

213,568

CURRENT LIABILITIES

Trade and other payables

17

2,498,603

2,256,625

Financial liabilities - borrowings

Lease liabilities

18, 19

122,217

97,506

2,620,820

2,354,131

TOTAL LIABILITIES

2,864,268

2,567,699

TOTAL EQUITY AND LIABILITIES

5,748,120

5,582,812

The financial statements were approved by the director and authorised for issue on 21 March 2025 and were signed by:

P Lillicrapp - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,972,933

1,146,631

3,119,564

Changes in equity

Total comprehensive income

-

(104,451

)

(104,451

)

Balance at 31 December 2023

1,972,933

1,042,180

3,015,113

Changes in equity

Total comprehensive income

-

(131,261

)

(131,261

)

Balance at 31 December 2024

1,972,933

910,919

2,883,852

Cash flows from operating activities

Cash generated from operations

1

(29,870

)

13,660

Interest paid

(22,570

)

(14,614

)

Net cash from operating activities

(52,440

)

(954

)

Cash flows from investing activities

Purchase of tangible fixed assets

(192,090

)

(93,118

)

Sale of tangible fixed assets

11,167

5,369

Interest received

271

387

Net cash from investing activities

(180,652

)

(87,362

)

Cash flows from financing activities

New loans in year

174,268

88,292

Loan repayments in year

(119,677

)

(96,429

)

Net cash from financing activities

54,591

(8,137

)

Decrease in cash and cash equivalents

(178,501

)

(96,453

)

Cash and cash equivalents at beginning of year

2

496,251

592,704

Cash and cash equivalents at end of year

2

317,750

496,251

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

31.12.24

31.12.23

£

£

Loss before income tax

(131,261

)

(104,451

)

Depreciation charges

139,968

114,035

Profit on disposal of fixed assets

(2,725

)

-

Finance costs

22,570

14,614

Finance income

(271

)

(387

)

28,281

23,811

Increase in inventories

(452,199

)

(82,068

)

Decrease/(increase) in trade and other receivables

152,070

(36,491

)

Increase in trade and other payables

241,978

108,408

Cash generated from operations

(29,870

)

13,660

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

317,750

496,251

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

496,251

592,704

1.	STATUTORY INFORMATION

Europa Tool Company Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

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

The principal place of business is Unit 2 Kingfisher Court, Hemdale Business Park, Nuneaton, CV11 6GY.

2.	ACCOUNTING POLICIES

Basis of preparation

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

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Inventories:

Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Estimates are required in relation to forecast sales volumes and inventory balances.In situations where excess inventory balances are identified, estimates of net realisable values for the excess volumes are made. Inventory provision for estimated losses as of 31 December 2024 amounted to £1,007,105 (2023: £1,009,196).

During the period, there was a change in accounting estimate for inventory provision. The basis of calculating the inventory provision was updated to be consistent with the YG-1 Group methodology. The effect of this change was to reduce the inventory provision, and hence increase the inventory valuation and profit for the period, by £236,844. The updated basis for calculating the inventory provision is expected to be consistently applied for the foreseeable future.

Trade receivables:

Accounts receivable are measured at transaction price less provisions. Estimates are required in relation to future sales returns, customer chargebacks, allowances and rebates, and any bad debts. Total accounts receivables provisions offset within debtors as of 31 December 2024 amounted to £253,703 (2023: £34,374).

Revenue recognition

IFRS 15 Revenue, requires revenue to be recognised under a 'five step' approach when a customer obtains

control of goods or services in line with the performance obligations identified on the contract. Under IFRS 15,

revenue recognition must reflect the standard's five-step approach which requires the following:

- Identification of the contract with the customer;

- Identification fo the performance obligations in the contract;

- Determination of the transaction price;

- Allocation of the transaction price to the performance obligations;

- Recognition of the revenue when (or as) each performance obligation is satisfied.

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 and services in the course of ordinary activities is measured at fair value of the consideration received or receivable, net of returns, trade discounts, settlement discounts and volume rebates.

Revenuer from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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 the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised on completion of each performance obligation and when control has been passed to the customer. This is recognised at a point in time upon provision of an executed sales agreement or purchase order which signify that control has been passed to the customer and recovery of the consideration is probable.

The Company issues discounts based on sales volumes which are recognised as a reduction in revenue.

Cash and cash equivalents

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

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

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.

Property, plant and equipment

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.

Short leasehold

-

Straight line over 10 years

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Inventories

Inventories are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bring the stocks to their present location and condition.

Taxation

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.

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 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.

Leases

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

• Leases of low value assets; and

• Leases with a duration of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the group’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

On initial recognition, the carrying value of the lease liability also includes:

• amounts expected to be payable under any residual value guarantee;

• the exercise price of any purchase option granted in favour of the group if it is reasonable certain to assess that option;

• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

• lease payments made at or before commencement of the lease;

• initial direct costs incurred; and

• the amount of any provision recognised where the group is contractually required to dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised, except the discount rate remains unchanged. In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss.

Employee benefit costs

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

Going concern

On the 7th February 2025 Troy (UK) Limited; a buying group representing a proportion of the Company's customers went into administration. A provision for irrecoverable debts has been included in the financial statements amounting to £217,314.

Management have proactively taken appropriate steps to mitigate any future effects on long term revenue by opening direct accounts with the customers, independent of the buying group, who still require the goods to be supplied. In the opinion of the director, the new arrangements help to diversify the Companies' exposure to risk, and future credit losses.

On the basis above, and with continued group support, the Director is of the opinion that it is reasonable to prepare the accounts on a going concern basis.

3.

REVENUE

Segmental reporting

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

UK

4,655,173

4,710.781

Europe

293,342

397,318

Rest of World

102,562

140,814

5,051,077

5,248,913

Revenue from contracts with customers

All revenue relates to the one principal activity of the company, the sale of goods.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

942,804

736,556

Social security costs

94,851

73,619

Other pension costs

24,819

21,828

1,062,474

832,003

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

31.12.24

31.12.23

Warehouse and admin staff

25

21

Directors

1

1

26

22

31.12.24

31.12.23

£

£

Director's remuneration

88,006

84,421

Director's pension contributions to money purchase schemes

7,321

7,321

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

Money purchase schemes

1

1

5.	EXCEPTIONAL ITEMS

The exceptional items in the prior year relate to:

£

Costs in relation to contractual dispute

287,000

Refund of freight charges

(31,376

)

255,624

6.	NET FINANCE COSTS

31.12.24

31.12.23

£

£

Finance income:

Deposit account interest

271

387

Finance costs:

Bank charges

2,929

3,286

Foreign exchange movement

4,036

424

Leasing

15,605

10,904

22,570

14,614

Net finance costs

22,299

14,227

7.	LOSS BEFORE INCOME TAX

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

31.12.24

31.12.23

£

£

Cost of inventories recognised as expense

3,283,024

3,549,842

Leases

10,164

12,974

Depreciation - owned assets

15,881

13,896

Depreciation - assets on hire purchase contracts or finance leases

116,499

92,553

Profit on disposal of fixed assets

(2,725

)

-

Patents and licences amortisation

1,199

1,197

Computer software amortisation

6,389

6,389

Auditors' remuneration

13,500

13,800

Auditors' remuneration for non audit work

3,067

14,042

8.	INCOME TAX

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.