ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 04504179

DEACON HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

DEACON HOLDINGS LIMITED

COMPANY INFORMATION

Directors	J L Lambert
	B M Lambert
	D S Lambert
	J M Lambert
	Mrs B M Lambert


Registered number	04504179


Registered office	Grove House
	Icknield Road
	Goring
	Reading
	Berkshire
	RG8 0LT


Independent auditor	James Cowper Kreston Audit
	Chartered Accountants and Statutory Auditor
	Reading Bridge House
	George Street
	Reading
	Berkshire
	RG1 8LS

DEACON HOLDINGS LIMITED

CONTENTS

	Page
Group strategic report	1
Directors' report	2 - 3
Independent auditor's report	4 - 7
Consolidated statement of comprehensive income	8
Consolidated balance sheet	9
Company balance sheet	10
Consolidated statement of changes in equity	11
Company statement of changes in equity	12
Consolidated statement of cash flows	13 - 14
Consolidated analysis of net debt	14
Notes to the financial statements	15 - 29

DEACON HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

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

Business review

The turnover of the group reduced in 2024 compared to 2023 by 9.5% (2023 - reduced by 5.9%).

Net loss before tax was £36k in 2024 compared to £70k profit in 2023.

The decrease in turnover was due to the loss of a significant customer and this also contributed significantly to the reduction in net profit.

Principal risks and uncertainties

The directors consider that the main risks to which the group is exposed are:

∙bad debts, managed by strong credit control procedures: and

∙exchange rate movements, managed by currency hedging

Financial key performance indicators

The key performance indicators used by the group are detailed above.

Future developments

The group continues to invest in its own brands whilst creating strategic partnerships with manufacturers to broaden the product ranges that are distributed.

This report was approved by the board on 1 July 2025 and signed on its behalf.

J M Lambert

Director

Page 1

DEACON HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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.

Results and dividends

The loss for the year, after taxation, amounted to £50,219 (2023 - profit £33,876).

Directors

The directors who served during the year were:

J L Lambert

B M Lambert

D S Lambert

J M Lambert

Mrs B M Lambert

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 2

DEACON HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditor

The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

J M Lambert

Director

Date: 1 July 2025

Page 3

DEACON HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEACON HOLDINGS LIMITED

Opinion

We have audited the financial statements of Deacon Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Page 4

DEACON HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEACON HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

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

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

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 is 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.

Page 5

DEACON HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEACON HOLDINGS LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this
engagement that we designed and performed to detect material misstatements in respect of irregularities,
including fraud, were as follows:

∙Enquiry of management and those charged with governance around actual and potential litigation and
claims;

∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence.

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 Auditor's report.

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 an Auditor's report 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.

Page 6

DEACON HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEACON HOLDINGS LIMITED (CONTINUED)

Darren O'Connor BSc (Hons) FCCA ACA (Senior statutory auditor)

for and on behalf of

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS

3 July 2025

Page 7

DEACON HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	14,006,131	15,481,457
Cost of sales		(8,915,848)	(10,137,137)
Gross profit		5,090,283	5,344,320
Distribution costs		(2,094,533)	(2,152,712)
Administrative expenses		(2,984,791)	(3,035,230)
Other operating income		-	57,541
Operating profit	5	10,959	213,919
Amounts written off investments		-	33,352
Interest receivable and similar income	9	16,362	11,748
Interest payable and similar expenses		(121,192)	(164,995)
Other finance income		57,872	(23,684)
(Loss)/profit before taxation		(35,999)	70,340
Tax on (loss)/profit	10	(14,220)	(36,464)
(Loss)/profit for the financial year		(50,219)	33,876


Total comprehensive income for the year		(50,219)	33,876

(Loss)/profit for the year attributable to:
Owners of the parent Company	(50,219)	33,876
	(50,219)	33,876

The notes on pages 15 to 29 form part of these financial statements.

Page 8

DEACON HOLDINGS LIMITED

REGISTERED NUMBER: 04504179

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	11		4,321,579		4,216,384
			4,321,579		4,216,384
Current assets
Stocks	13	5,587,537		5,950,227
Debtors: amounts falling due within one year	14	1,889,127		1,917,986
Cash at bank and in hand	15	285,847		725,718
		7,762,511		8,593,931
Creditors: amounts falling due within one year	16	(2,810,587)		(2,758,306)
Net current assets			4,951,924		5,835,625
Total assets less current liabilities			9,273,503		10,052,009
Creditors: amounts falling due after more than one year	17		(1,583,000)		(2,325,803)
Provisions for liabilities
Deferred taxation	21	(55,868)		(41,352)
			(55,868)		(41,352)
Net assets			7,634,635		7,684,854

Capital and reserves
Called up share capital	22	95,600	95,600
Profit and loss account		7,539,035	7,589,254
		7,634,635	7,684,854

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 July 2025.

J M Lambert

Director

The notes on pages 15 to 29 form part of these financial statements.

Page 9

DEACON HOLDINGS LIMITED

REGISTERED NUMBER: 04504179

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	11		3,602,414		3,663,397
Investments	12		1,432,735		1,432,735
			5,035,149		5,096,132
Current assets
Debtors: amounts falling due within one year	14	1,227,563		1,565,998
Cash at bank and in hand	15	229,304		688,392
		1,456,867		2,254,390
Creditors: amounts falling due within one year	16	(2,215,382)		(2,252,921)
Net current (liabilities)/assets			(758,515)		1,469
Total assets less current liabilities			4,276,634		5,097,601

Creditors: amounts falling due after more than one year	17		(1,583,000)		(2,324,400)

Net assets			2,693,634		2,773,201

Capital and reserves
Called up share capital	22	95,600	95,600
Profit and loss account		2,598,034	2,677,601
		2,693,634	2,773,201

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 July 2025.

J M Lambert

Director

The notes on pages 15 to 29 form part of these financial statements.

Page 10

DEACON HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	95,600	7,555,378	7,650,978

Profit for the year	-	33,876	33,876

At 1 January 2024	95,600	7,589,254	7,684,854

Loss for the year	-	(50,219)	(50,219)
At 31 December 2024	95,600	7,539,035	7,634,635

The notes on pages 15 to 29 form part of these financial statements.

Page 11

DEACON HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	95,600	2,560,549	2,656,149

Profit for the year	-	117,052	117,052

At 1 January 2024	95,600	2,677,601	2,773,201

Loss for the year	-	(79,567)	(79,567)
At 31 December 2024	95,600	2,598,034	2,693,634

The notes on pages 15 to 29 form part of these financial statements.

Page 12

DEACON HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(50,219)	33,876
Adjustments for:
Negative goodwill write off	-	(33,352)
Amortisation of intangible assets	-	(4,169)
Depreciation of tangible assets	301,866	229,605
Loss on disposal of tangible assets	777	1,234
Interest paid	121,192	164,995
Interest received	(16,362)	(11,748)
Taxation charge	14,220	36,464
Decrease in stocks	362,690	2,643,189
Decrease in debtors	30,606	357,015
Increase/(decrease) in creditors	125,830	(1,816,578)
Increase in amounts owed to related parties	107,000	30,000
Net fair value (gains)/losses recognised in P&L	(57,872)	23,684
Corporation tax received/(paid)	-	(172,443)
Net cash generated from operating activities	939,728	1,481,772

Cash flows from investing activities
Purchase of tangible fixed assets	(431,581)	(184,456)
Sale of tangible fixed assets	25,297	-
Interest received	16,362	11,748
Net cash from investing activities	(389,922)	(172,708)
Cash flows from financing activities
Repayment of loans	(741,400)	(241,400)
Repayment of other loans	(75,000)	(216,208)
Interest paid	(121,192)	(164,995)
Net cash used in financing activities	(937,592)	(622,603)
Net (decrease)/increase in cash and cash equivalents	(387,786)	686,461
Cash and cash equivalents at beginning of year	725,581	15,436
Foreign exchange gains and losses	(51,948)	23,684
Cash and cash equivalents at the end of year	285,847	725,581

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	285,847	725,718
Bank overdrafts	-	(137)

Page 13

DEACON HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£

	285,847	725,581

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	725,718	(439,871)	285,847
Bank overdrafts	(137)	137	-
Debt due after 1 year	(2,324,400)	741,400	(1,583,000)
Debt due within 1 year	(391,381)	75,000	(316,381)
Finance leases	(38,781)	35,585	(3,196)
	(2,028,981)	412,251	(1,616,730)

The notes on pages 15 to 29 form part of these financial statements.

Page 14

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The company is a private limited company which is incorporated and domiciled in the UK. The address of the registered office is Grove House, Icknield Road, Goring, Berkshire, RG8 0LT.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

This mainly represents represents the sale of ironmongery parts to merchants in the building, roofing, fencing and agricultural trade. Revenue on the supply of goods is recognised on the date of delivery to the customer.

Deacon Holdings Limited provides management services to the group and other companies within the ironmongery trade. Revenue from services is spread evenly over the period of the related service contract.

2.4

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 15

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.5

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.7

Intangible assets

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.

Page 16

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Land and buildings	-	1 - 2% straight line
Motor vehicles	-	33.3% reducing balance
Fixtures and fittings	-	10 - 33.3% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.10

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 cost of purchase on a first in, first out basis. Work in progress and finished goods include 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 profit or loss.

2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated 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 Group's cash management.

Page 17

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Creditors

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

2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.15

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilites like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgments, estimates and assumptions that effects the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments ( apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statemements.

Stock

Stock is not considered to be perishable or go out of date, however it is deemed reasonable to put in place a policy for slow moving stock.

	Sale of goods	14,006,131	15,481,457

All turnover arose within the United Kingdom.

Page 18

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Depreciation	301,867	303,615
Exchange differences	-	(57,541)
Other operating lease rentals	144,504	10,310

Fees payable to the Company's auditor in respect of:
The auditing of accounts of associates of the Company	15,000	14,500
Audit and consolidation of the parent company's financial statement	8,100	7,500
Taxation compliance services	4,200	4,750
Financial statement preparation for non audited entities	2,000	2,000

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Wages and salaries	2,640,206	2,708,268	124,000	21,920
Social security costs	246,520	250,303	14,600	17,274
Cost of defined contribution scheme	50,900	72,400	-	-
	2,937,626	3,030,971	138,600	39,194

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Administration and management	25	28
Warehouse, distribution and sales	58	77

	83	105

Page 19

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	124,000	21,920
	124,000	21,920

Key management personnel are deemed to be the directors as disclosed above.

9.	Interest receivable
		2024	2023
		£	£

Other interest receivable

16,362

11,748

Corporation tax
Current tax on profits for the year	-	54,753
Adjustments in respect of previous periods	(296)	(296)
	(296)	54,457

Total current tax	(296)	54,457

Deferred tax
Origination and reversal of timing differences	14,516	(17,993)
Total deferred tax	14,516	(17,993)


		14,220	36,464

Page 20

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.Taxation (continued)

(Loss)/profit on ordinary activities before tax

(35,999)

70,340

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)	(9,000)	16,544
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	3,624	1,831
Capital allowances for year in excess of depreciation	-	13,805
Adjustments to tax charge in respect of prior periods	(296)	295
Other timing differences leading to an increase (decrease) in taxation	19,892	5,963
Adjust deferred tax to average rate of corporation tax	-	(1,974)
Total tax charge for the year	14,220	36,464

Factors that may affect future tax charges

There are no factors that may effect future tax charges.

Page 21

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Tangible fixed assets
	Group

	Land and buildings	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	4,387,678	1,219,350	802,263	6,409,291
Additions	-	419,471	12,110	431,581
Disposals	-	(118,256)	-	(118,256)
At 31 December 2024	4,387,678	1,520,565	814,373	6,722,616
Depreciation
At 1 January 2024	724,281	799,593	669,033	2,192,907
Charge for the year on owned assets	60,983	182,258	58,625	301,866
Disposals	-	(93,736)	-	(93,736)
At 31 December 2024	785,264	888,115	727,658	2,401,037
Net book value
At 31 December 2024	3,602,414	632,450	86,715	4,321,579
At 31 December 2023	3,663,397	419,757	133,230	4,216,384

The remaining net book value of assets held under hire purchase agreements was £27,418 (2023: £42,676).

Page 22

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.Tangible fixed assets (continued)

	Company

		Land and buildings
		£
	Cost or valuation
	At 1 January 2024	4,387,678
	At 31 December 2024	4,387,678
	Depreciation
	At 1 January 2024	724,281
	Charge for the year on owned assets	60,983
	At 31 December 2024	785,264
	Net book value
	At 31 December 2024	3,602,414
	At 31 December 2023	3,663,397

12.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	1,432,735
	At 31 December 2024	1,432,735

Page 23

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

John George & Sons Limited	2/4 Deacon Way, Reading, Berkshire, RG30 6AZ	Ordinary	100%
Artisan (Pre-Packs) Limited	2/4 Deacon Way, Reading, Berkshire, RG30 6AZ	Ordinary	100%
Henry Shaw and Sons Limited	2/4 Deacon Way, Reading, Berkshire, RG30 6AZ	Ordinary	100%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit/(Loss)
	£	£

John George & Sons Limited	4,573,401	29,348
Artisan (Pre-Packs) Limited	98,404	-
Henry Shaw and Sons Limited	1,716,151	-

13.	Stocks
		Group	Group
		2024	2023
		£	£

	Finished goods and goods for resale	5,587,537	5,950,227

14.

Debtors

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Trade debtors	1,675,313	1,789,564	-	-
Amounts owed by group undertakings	-	-	1,227,563	1,557,563
Other debtors	-	8,435	-	8,435
Prepayments and accrued income	213,814	119,987	-	-
	1,889,127	1,917,986	1,227,563	1,565,998

Page 24

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Cash at bank and in hand	285,847	725,718	229,304	688,392
Less: bank overdrafts	-	(137)	-	-
	285,847	725,581	229,304	688,392

16.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank overdrafts	-	137	-	-
Bank loans	124,981	124,981	124,981	124,981
Pension scheme loan	116,400	116,400	116,400	116,400
Trade creditors	888,910	729,162	4,830	6,384
Amounts owed to group undertakings	-	-	848,681	848,681
Amounts owed to other participating interests	999,100	892,100	999,100	892,100
Corporation tax	-	54,753	-	54,753
Other taxation and social security	266,318	320,409	125	22,167
Obligations under finance lease and hire purchase contracts	3,196	37,378	-	-
Other creditors	100,942	151,489	87,756	151,489
Accruals and deferred income	310,740	331,497	33,509	35,966
	2,810,587	2,758,306	2,215,382	2,252,921

Page 25

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	1,437,500	2,062,500	1,437,500	2,062,500
Pension scheme loan	145,500	261,900	145,500	261,900
Net obligations under finance leases and hire purchase contracts	-	1,403	-	-
	1,583,000	2,325,803	1,583,000	2,324,400

The following liabilities were secured:

Details of security provided:

All loans are repayable within 5 years.

The Santander bank loans are secured by a fixed charge and negative pledge over two properties with a current net book value of £3,056,851. The pension scheme loan is secured against a further two properties with a net book value of £149,751.

Page 26

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

18.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Amounts falling due within one year
Bank loans	124,981	124,981	124,981	124,981
Pension scheme loan	116,400	116,400	116,400	116,400
	241,381	241,381	241,381	241,381
Amounts falling due 1-2 years
Bank loans	1,437,500	2,062,500	1,437,500	2,062,500
Pension scheme loan	116,400	116,400	116,400	116,400
	1,553,900	2,178,900	1,553,900	2,178,900
Amounts falling due 2-5 years
Pension scheme loan	29,100	145,500	29,100	145,500
	29,100	145,500	29,100	145,500

	1,824,381	2,565,781	1,824,381	2,565,781

19.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2024	2023
		£	£

Within one year	3,196	37,378
Between 1-5 years	-	1,403
	3,196	38,781

Page 27

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Financial instruments
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	285,847	725,718	229,304	688,392

21.	Deferred taxation
	Group

		2024
		£

	At beginning of year	(41,352)
	Charged to profit or loss	(14,516)
	At end of year	(55,868)

The provision for deferred taxation is made up as follows:
	Group	Group
	2024	2023
	£	£

Accelerated capital allowances	(98,058)	(66,250)
Tax losses carried forward	42,190	24,898
	(55,868)	(41,352)

22.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

95,600 (2023 - 95,600) Ordinary shares of £1.00 each	95,600	95,600

Page 28

DEACON HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

23.	Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
The pension cost charge represents contributions payable by the company to the fund and amounted to £50,900 (2023: £72,400). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

24.	Commitments under operating leases
	At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2024	2023
		£	£

Not later than 1 year	160,000	160,000
Later than 1 year and not later than 5 years	338,333	498,333
	498,333	658,333

25.Other financial commitments

At the year end the company had forward contracts as follows to purchase EUR€400,000 and US $2,638,940 (2023: EUR€350,000 and US$ $2,034,719) with a fair value of £2,431,820 (2023: £1,899,553). The effect of the revaluation was a loss of £57,872 (2023: Loss of £23,684) which has been recognised in the profit and loss.

26.

Related party transactions

Balances and transactions between Deacon Holdings Limited and its subsidiaries are eliminated on consolidation and are not disclosed in this note.
The directors of Deacon Holdings Limited are also directors of another company. During the year the group charged the company management charges of £60,000 (2023: £185,000), sold goods totalling £28,491 (2023: £18,264) and made purchases of £966 (2023: £719). At the balance sheet date the amount due from the company was £999,100 (2023: £892,100).
In 2020 the company took out a loan of £400,000 with its pension scheme, this was then increased in February 2022 to £582,000. At the period end, a balance of £261,900 was outstanding (2023: £378,000). The interest rate of 3% per annum above the interest rate, with the charge for the year being £26,452 (2023: £33,660).
The company has loans from directors (and their related parties) of £75,000 as at the balance sheet date (2023: £150,000). These loans are unsecured and due within one year. The interest rate on these loans is 4% over base rate, with the charge for the year being £5,529 (2023: £13,896).

27.	Controlling party

The ultimate controlling party is a trust, in which there is no controlling person.

Page 29