REGISTERED NUMBER: 00260993 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Marton Mills Company Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

F I Dodson

B J Fearnley

L C Fletcher

R L Watts

D R Watts

C M Watts

SECRETARY:

B J Fearnley

REGISTERED OFFICE:

Pool Mills

Pool-In-Wharfedale

Otley

West Yorkshire

LS21 1TA

REGISTERED NUMBER:

00260993 (England and Wales)

AUDITORS:

S&W Audit

Statutory Auditor

Chartered Accountants

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

BANKERS:

HSBC Bank Plc

1 Well Croft

Shipley

West Yorkshire

BD18 3QH

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

PRINCIPAL ACTIVITY

The Company's principal activity during the year continued to be that of fabric manufacture.

There have not been any significant changes in the Company's activities in the year under review.

BUSINESS REVIEW

2024 was a challenging year for the company due to increased costs of labour combined with increased competition from imported fabrics. Turnover and profit are down when compared to 2023 but the Coronation in 2023 gave a significant boost to both turnover and profit. The 2024 figures represent a return to more normal levels.

Turnover reduced from £9.9 million in 2023 to £7.9 million this year. The Gross Profit was £1.5 million (20%) and the Net Profit for the year before tax was £0.3 million (3.6%).

The Directors of the company are satisfied with the performance of the company during the year and the position at the balance sheet date.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the Company are considered to relate to:

- The threat of competition, especially from imports

- Raw material prices

- Difficulty recruiting skilled employees

- Energy prices

- Fluctuations in exchange rates

FINANCIAL KEY PERFORMANCE INDICATORS

Financial performance is measured by turnover and operating profit. Turnover was £7,909,387 in 2024 compared to £9,903,992 in 2023 which is a decrease of £1,994,605. Operating profit was £265,838 in 2024 compared to £1,255,347 in 2023 which is a decrease of £989,509.

There was a decrease in stock value of £121,105 during the year, at 31st December the stock value was £3,101,831 in 2024 compared to £3,222,936 in 2023.

At 31st December, the bank account was in credit by £1,088,686 in 2024 compared to £1,356,540 in 2023 showing a decrease in cash at the year end of £267,854

FUTURE DEVELOPMENTS

The Directors intentions are to continue the strong performance of the company producing high quality British fabric using a highly efficient production process. To continue investing in both machinery and employees to maintain a flexible, highly skilled and engaged workforce and to consistently meet and exceed customer requirements and expectations.

ON BEHALF OF THE BOARD:

B J Fearnley - Director

16 September 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £42,139.

DIRECTORS

The directors who served during the year were:

D Watts

C Watts

L C Fletcher

R L Watts

F Dodson

B J Fearnley

RESULTS

The profit for the year, after taxation, amounted to £179,569 (2023: £919,366).

MATTERS COVERED IN THE STRATEGIC REPORT

Disclosures with regard to review of the business, principal risks and uncertainties, key performance indicators and future plans are included in the strategic report.

RISK MANAGEMENT

The company has exposure to two main areas of risk - liquidity risk and customer credit exposure.

Liquidity risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial

obligations as and when they fall due. The company expects to meet its financial obligations through

operating cash flows.

Customer credit exposure

The company offers credit terms to its customers which allow payment of the debt after delivery of the goods or services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. The risk is mitigated by strong on-going customer relationships and financial advice from a credit reference agency.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

AUDITORS

Under section 487(2) of the Companies Act 2006, S&W Partners (Leeds) Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

ON BEHALF OF THE BOARD:

B J Fearnley - Director

16 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 pages three and 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 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:

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through:

- Outsourcing accounts preparation and tax compliance to external experts.

- Subscribing to relevant updates from external experts and making changes to internal procedures and controls as necessary.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.

- UK taxation law

- UK Employment law and Health & Safety legislation.

- GDPR legislation.

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

- Obtaining written management representations regarding the adequacy of procedures in place to ensure adherence to the above laws and regulations.

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

- Stock provision, as this is an estimate made by management.

- Manipulation of the financial statements, especially revenue, via fraudulent journal entries.

The procedures we carried out to gain evidence in the above areas included:

- Challenging management regarding the assumptions used in the stock provision calculation, and comparison to market data and post-year-end data as appropriate.

- Substantive work on material areas affecting profits.

- Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times.

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities. In particular, both the senior statutory auditor and the audit manager have a number of years' experience in dealing with companies in this sector.

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.

James Sutton BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of S&W Audit

Statutory Auditor

Chartered Accountants

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

25 September 2025

TURNOVER

5

7,909,387

9,903,992

Cost of sales

6,353,513

7,238,906

GROSS PROFIT

1,555,874

2,665,086

Distribution costs

379,148

432,506

Administrative expenses

922,588

1,000,633

1,301,736

1,433,139

254,138

1,231,947

Other operating income

6

11,700

23,400

OPERATING PROFIT

9

265,838

1,255,347

Interest receivable and similar income

21,956

632

287,794

1,255,979

Interest payable and similar expenses

10

5,775

3,204

PROFIT BEFORE TAXATION

282,019

1,252,775

Tax on profit

11

102,450

333,409

PROFIT FOR THE FINANCIAL YEAR

179,569

919,366

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

179,569

919,366

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

2,918,452

2,062,508

Investment property

15

286,053

286,053

3,204,505

2,348,561

CURRENT ASSETS

Stocks

16

3,101,831

3,222,936

Debtors

17

1,410,116

1,905,038

Cash at bank and in hand

1,088,686

1,356,540

5,600,633

6,484,514

CREDITORS

Amounts falling due within one year

18

755,344

962,394

NET CURRENT ASSETS

4,845,289

5,522,120

TOTAL ASSETS LESS CURRENT LIABILITIES

8,049,794

7,870,681

CREDITORS

Amounts falling due after more than one year

19

(66,649

)

(64,086

)

PROVISIONS FOR LIABILITIES

21

(406,023

)

(366,903

)

NET ASSETS

7,577,122

7,439,692

CAPITAL AND RESERVES

Called up share capital

22

868,643

868,643

Share premium

23

32,114

32,114

Capital redemption reserve

23

36,746

36,746

Retained earnings

23

6,639,619

6,502,189

SHAREHOLDERS' FUNDS

7,577,122

7,439,692

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

B J Fearnley - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

868,643

5,633,810

32,114

36,746

6,571,313

Changes in equity

Dividends

-

(50,987

)

-

-

(50,987

)

Total comprehensive income

-

919,366

-

-

919,366

Balance at 31 December 2023

868,643

6,502,189

32,114

36,746

7,439,692

Changes in equity

Dividends

-

(42,139

)

-

-

(42,139

)

Total comprehensive income

-

179,569

-

-

179,569

Balance at 31 December 2024

868,643

6,639,619

32,114

36,746

7,577,122

Cash flows from operating activities

Cash generated from operations

1

1,195,655

780,308

Interest paid

(5,775

)

(3,204

)

Tax paid

(260,542

)

(97,398

)

Net cash from operating activities

929,338

679,706

Cash flows from investing activities

Purchase of tangible fixed assets

(1,097,251

)

(510,119

)

Sale of tangible fixed assets

-

7,902

Interest received

21,956

632

Net cash from investing activities

(1,075,295

)

(501,585

)

Cash flows from financing activities

Amount introduced by directors

-

626

Amounts repaid to the directors

(79,758

)

(5,413

)

Equity dividends paid

(42,139

)

(50,987

)

Net cash from financing activities

(121,897

)

(55,774

)

(Decrease)/increase in cash and cash equivalents

(267,854

)

122,347

Cash and cash equivalents at beginning of year

2

1,356,540

1,234,193

Cash and cash equivalents at end of year

2

1,088,686

1,356,540

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit for the financial year

179,569

919,366

Depreciation charges

233,626

204,930

Loss/(profit) on disposal of fixed assets

7,681

(4,809

)

Finance costs

5,775

3,204

Finance income

(21,956

)

(632

)

Taxation

102,450

333,409

507,145

1,455,468

Decrease/(increase) in stocks

121,105

(584,856

)

Decrease in trade and other debtors

563,759

249,799

Increase/(decrease) in trade and other creditors

3,646

(340,103

)

Cash generated from operations

1,195,655

780,308

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,088,686

1,356,540

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,356,540

1,234,193

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

1,356,540

(267,854

)

1,088,686

1,356,540

(267,854

)

1,088,686

Total

1,356,540

(267,854

)

1,088,686

1.	STATUTORY INFORMATION

Marton Mills Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements of Marton Mills Company Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland' ('FRS 102') and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost conversation, with the exception of the revaluation of investment properties.

The financial statements are presented in Sterling (£).

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 4).

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget, in making their assessment. Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received ore receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is revenue earned from the sale of goods.

Turnover from the sale of goods is recognised when the Company has transferred the significant risks and rewards of ownership to the buyer. This is usually at the point that the customer has signed for the delivery of goods.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill - 5 years

Intangible assets

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

Straight line over 50 years

Plant and machinery

-

Straight line over 15 years

Motor vehicles

-

Straight line over 5 years

Computer equipment

-

Straight line over 10 years

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable property adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the profit and loss account.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the of purchase on a first in, first outbasis. Work in progress and finished goods included labour and attributable overheads.

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

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

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 or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction.

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 and non-monetary items are measured at fair value are measured using the exchange when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the profit and loss account within 'other operating income'.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposit held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowing in current liabilities.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net transaction costs, and are measured subsequently at amortised cost using the effective interest method.

4.	SIGNIFICANT JUDGEMENTS AND ESTIMATES

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include provisions for stock obsolescence.

5.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

6,244,687

8,054,475

Rest of World

1,664,700

1,849,517

7,909,387

9,903,992

The percentage split of UK Sales and export sales is set out below.

2024

2023

%

%

UK Sales

79.0

81.3

Export Sales

21.0

18.7

6.	OTHER OPERATING INCOME

2024

2023

£

£

Rents received

11,700

23,400

7.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,000,509

2,047,591

Social security costs

201,056

206,251

Other pension costs

195,008

191,023

2,396,573

2,444,865

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

2024

2023

Monthly

15

16

Weekly

37

43

52

59

8.	DIRECTORS' REMUNERATION

2024

2023

£

£

Director's emoluments

224,199

258,390

Company's contributions to defined contribution pension schemes

33,462

39,411

257,661

297,801

During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £83,985 (2023 - £86,906).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £3,509 (2023 - £5,015).