REGISTERED NUMBER: 05669057

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

CHADWICK TEXTILES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Notes to the Financial Statements

16

DIRECTORS:

J D Chadwick

J Wilmott

T E Roberts

REGISTERED OFFICE:

92 George Richards Way

Broadheath

Altrincham

Cheshire

WA14 5ZR

REGISTERED NUMBER:

05669057

AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

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

REVIEW OF BUSINESS

This report aims to present a balanced view of the development and the performance of the company.

PRINCIPAL ACTIVITIES

The principal activities of the company are the design and sale of brand quality, unbranded sportswear. The company is committed to the provision of high performance non branded clothing for sports teams, clubs & schools together with outstanding customer service and support with the objective of providing affordable high performance team wear.

REVIEW OF BUSINESS

RESULTS AND DIVIDENDS

The company continued to trade successfully through a period of an unsettled global market which brings on cost base challenges. Ordinary dividends were paid during the year of £222,216 (2023: £222,216), along with a distribution in specie to shareholders of £355,750 (2023: £nil), as explained below. The company's results for the year are included within these financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Effective working capital management is a priority to ensure the associated risks are controlled and balanced against the challenging market environment in which we operate.

The main financial risks facing the company are those relating to rising labour costs, foreign currency exchange and the widely publicised global supply chain issues and the subsequent rising container costs. The director's policy agreed for managing these financial risks remain unchanged. The directors work closely to manage any foreign exchange fluctuations and working directly with freight forwarders to ensure we have secured space on vessels from China to the UK , managing pricing and delays caused by the global impact of the current wars.

NON - FINANCIAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy is robust and have few risks associated. The key business risks and uncertainties affecting the company are considered to relate to a certain level of dependence on the strength of our customer base and any government changes and in addition, the company's ability to maintain adequate continuity of supply chain within the context of global uncertainties on raw material availability and demand.

NON-FINANCIAL PERFORMANCE INDICATORS

The company's key non-financial indicators are those related to employee health, safety and well-being, training, development, quality, community, and customer satisfaction. The company and its employees continue to support a wide variety of community projects.

FUTURE DEVELOPMENTS AND INVESTMENT

The company will continue to invest in the continuous improvement of its existing products and in the development of new innovative products to facilitate sales growth, long term sustainability and efficiency gains across a range of market sectors. This ongoing investment will ensure the company provides ever increasing levels of product quality, performance, customer service and satisfaction.

Cyber security continues to be a focus for investment and is integrated into the organisation wide governance frameworks, including strategy, risk management processes and compliance and audit procedures.

SUPPLIERS

The company commits to regular engagement and collaboration with our supply chain and are committed to paying in line with supplier payment terms.

OUR COMMITMENT TO THE ENVIRONMENT

Corporate objectives continue to focus on doing the right thing for our community and the environment in everything we do, we have significantly reduced paper and plastic usage throughout both manufacturing and office activities and continue to find ways of 'recycling and reusing'.

Our philosophy is simple: do the right thing. As an independent British business with Directors who have over 60 years of experience, we've seen the industry change and we're evolving with it. Our "Three Ps" approach - People, Planet, Profit - is the backbone of every decision we make.

Whether it's our ethical sourcing practices, the durability of our products, or our approach to shipping and packaging, we are building a business that supports long term sustainability for everyone in the supply chain, including our retail partners.

- Sustainability in Action: From sourcing fabric and trims from OEKO-TEX® approved suppliers to packaging every garment in biodegradable bags, we're reducing environmental impact without compromising product quality.

- Ethical Sourcing: All our factories, under the stewardship of our team in China, are audited to amfori BSCI standards and we also make use of amfori BEPI, ensuring safe working conditions, fair pay and environmental care throughout our supply chain.

- Carbon Footprint Reduction: From container optimisation in shipping to switching to electric vehicles in our UK fleet, we're taking action to lower emissions across the board.

- Reforestation Initiatives: We've helped plant over 400,000 trees through long-term partnerships in the UK and Tanzania, offsetting some of our carbon footprint while making a tangible difference.

- Premium Products That Last: Our teamwear isn't fast fashion. It's designed for durability and longevity, with many of our bestselling products still going strong over a decade later.

- People First: From weekly fitness classes and employee coaching to mental health support, we champion our people just as passionately as we support our partners.

OWNERSHIP CHANGES DURING THE YEAR

The company transferred its fabric trade by way of dividend in specie to its former parent company CT Holdings Limited as explained in note 10 to these financial statements. The effective date of the transfer was 1st January 2024. The dividends had a value of £355,750 and consisted of stock, debtors and creditor that represented the company's fabric trade.

Following the above transaction, 100% of the company's share capital was transferred from CT Holdings Limited to Team Edge Limited by way of dividend in specie.

The company had within its business two distinct trading activities: Fabrics and Garments. The directors of the group have separated the two trades for several reasons. The fabric and garments are imported from overseas, and the costs associated with the logistics worldwide have been challenging. The directors wanted to minimise risk and exposure from adverse trading conditions by separating the two trades as a means of protection going forward. In addition to protecting each trade from the other, the directors of the have been reflecting that each trade has its own challenges, and the separation of the trades would provide two distinct companies with differing objectives. The directors and senior management team believe the separation will provide focus with objectives being met more efficiently to improve trading going forward. The separation will give clarity of the trading expenses per division. The directors' expectation is that the major focus will be on growing Garments as the margin here can be stronger and ultimately very attractive for outside investment within a period of 2 to 3 years. Fabrics already has a solid margin with a slight steadier and simpler cost base.

As a result of the demerger of CT Holdings Limited - the Fabric Trade, that company subsequently left the group but remains under common control of the shareholders of this company's new ultimate parent group JDC Holdings Limited.

The garment trade operates out of Chadwick Textiles Limited.

The fabric trade operates out of CT Holdings Limited.

This has been a successful demerger and both trades have traded positively during 2024.

ON BEHALF OF THE BOARD:

J Wilmott - Director

25 September 2025

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

PRINCIPAL ACTIVITIES

The principal activity of the company in the year under review was the design, manufacture and development of brand quality unbranded Teamwear/Sportwear.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £577,966 (2023: £222,216), which includes £355,750 dividend in specie relating to the transfer of the fabrics trade to C.T. Holdings Limited.

DIRECTORS

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

J D Chadwick

J Wilmott

T E Roberts

DIRECTORS' INDEMNITY

The company has made qualifying third party provisions for the benefit of its directors which remain in force at the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The directors have chosen to disclose future developments, risk management, engagement with employees, supplier information, environment information and post balance sheet events in the strategic report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records 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.

ON BEHALF OF THE BOARD:

J Wilmott - Director

25 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

-	the financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

Karen Dent (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

25 September 2025

TURNOVER

3

9,115,628

-

9,115,628

Cost of sales

(4,165,245

)

-

(4,165,245

)

GROSS PROFIT

4,950,383

-

4,950,383

Distribution costs

(359,303

)

-

(359,303

)

Administrative expenses

(4,206,893

)

-

(4,206,893

)

384,187

-

384,187

Other operating income

444,855

-

444,855

OPERATING PROFIT

5

829,042

-

829,042

Interest receivable and similar income

12,154

-

12,154

Interest payable and similar expenses

7

(123,959

)

-

(123,959

)

PROFIT BEFORE TAXATION

717,237

-

717,237

Tax on profit

8

(205,377

)

-

(205,377

)

PROFIT FOR THE FINANCIAL YEAR

511,860

-

511,860

TURNOVER

3

9,016,810

1,641,000

10,657,810

Cost of sales

(4,361,223

)

(726,033

)

(5,087,256

)

GROSS PROFIT

4,655,587

914,967

5,570,554

Distribution costs

(402,995

)

(48,439

)

(451,434

)

Administrative expenses

(3,537,836

)

(420,679

)

(3,958,515

)

OPERATING PROFIT

5

714,756

445,849

1,160,605

Write off of intercompany loan

6

(750,000

)

-

(750,000

)

Interest payable and similar expenses

7

(105,344

)

(2,369

)

(107,713

)

(LOSS)/PROFIT BEFORE TAXATION

(140,588

)

443,480

302,892

Tax on (loss)/profit

8

(246,061

)

(161,763

)

(407,824

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(386,649

)

281,717

(104,932

)

PROFIT/(LOSS) FOR THE YEAR

511,860

(104,932

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

511,860

(104,932

)

FIXED ASSETS

Tangible assets

11

274,228

313,338

Investments

12

38,300

-

312,528

313,338

CURRENT ASSETS

Stocks

13

3,488,137

3,085,488

Debtors

14

2,061,362

2,284,450

Cash at bank

238,216

253,072

5,787,715

5,623,010

CREDITORS

Amounts falling due within one year

15

2,306,528

2,050,859

NET CURRENT ASSETS

3,481,187

3,572,151

TOTAL ASSETS LESS CURRENT LIABILITIES

3,793,715

3,885,489

CREDITORS

Amounts falling due after more than one year

16

(47,348

)

(70,509

)

PROVISIONS FOR LIABILITIES

20

(28,716

)

(31,223

)

NET ASSETS

3,717,651

3,783,757

CAPITAL AND RESERVES

Called up share capital

21

1

1

Retained earnings

22

3,717,650

3,783,756

SHAREHOLDERS' FUNDS

3,717,651

3,783,757

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

J Wilmott - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

4,110,904

4,110,905

Changes in equity

Dividends

-

(222,216

)

(222,216

)

Total comprehensive income

-

(104,932

)

(104,932

)

Balance at 31 December 2023

1

3,783,756

3,783,757

Changes in equity

Dividends

-

(577,966

)

(577,966

)

Total comprehensive income

-

511,860

511,860

Balance at 31 December 2024

1

3,717,650

3,717,651

1.	STATUTORY INFORMATION

Chadwick Textiles Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 05669057 and the registered office is 92 George Richards Way, Broadheath, Altrincham, Cheshire, WA14 5ZR. The principal activity of the company is the manufacture of quality sportswear.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements represent the results of the individual entity. The functional and presentation currency is £ sterling.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

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

•

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

•

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

•

the requirements of paragraphs 29.28(b) and 29.29;

•

the requirement of paragraph 33.7;

•

the requirements of paragraph 24(b) of IFRS 6.

The company is included in the consolidated financial statements prepared by its ultimate parent company, JDC Holdco Limited.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Stock provision

Stocks are initially measured at the transaction price and subsequently measured at cost, less obsolescence provision. The directors make estimates as to the recoverability of these stocks and provide for them accordingly.

Accrued stock costs

Accrued stock expenditure is estimated by directors at each year end to ensure that all known liabilities are accounted for in the financial statements.

From a completeness perspective, the directors are not aware of any other critical judgements within the company that give rise to a significant risk of material adjustment within the next financial year.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of value added tax.

Revenue from the sale of goods is recognised when the significant risks and benefits of ownership of the product have been transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter:

Short leasehold

20% on cost and 10% on cost

Plant and machinery

20% on cost and 10% on cost

Fixtures and fittings

33% on cost and 25% on cost

Motor vehicles

20% on cost

Computer equipment

33% on cost

All fixed assets are initially recorded at cost. Assets are not depreciated until they are brought into use.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Short leasehold refers to improvements to a rented property.

At each balance sheet date, the group reviews the carrying amounts of its furniture and equipment to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks

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

Cost is based on purchase invoice plus freight and duty cost after allowing for exchange conversion to sterling.

Stocks comprise garments.

Financial instruments

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

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade debtors, other debtors, amounts due from group undertakings, amounts owed by related parties, directors' current accounts and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including bank loans and overdrafts, trade creditors, other creditors, amounts owed to related parties and accrued expenses that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to 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 for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Invoice discounting

The company has an invoice discounting agreement that enables it to receive advances against its sales invoices. The company discloses both the debtors and creditors relating to this agreement separately within its balance sheet.

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.

Investments

Investments comprise art works. Investments are held at cost less provision for impairment.

Going concern

At the balance sheet date of 31 December 2024, the company made a profit for the year of £511,860 (2023: £104,932 loss), and had net assets at that date of £3,717,651 (2023: £3,783,757).

Based on the current trading and future expectations the directors consider that the company has sufficient working capital to enable it to continue to trade and meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements. Therefore the financial statements for the year ended 31 December 2024 have been prepared on a going concern basis.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2024

2023

£

£

Garments

9,115,628

9,016,810

Fabrics

-

1,641,000

9,115,628

10,657,810

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

8,817,815

10,179,349

Europe

296,569

473,043

Rest of World

1,244

5,418

9,115,628

10,657,810

The company transferred its fabric trade by way of dividend in specie to its former parent company, CT Holdings Limited, as explained in note 10. The effective date of the transfer was 1 January 2024.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,046,740

2,804,732

Social security costs

348,841

286,014

Other pension costs

78,919

77,843

3,474,500

3,168,589

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

2024

2023

Admin

8

10

Sales

8

9

Operations

33

29

49

48

2024

2023

£

£

Directors' remuneration

1,325,038

938,742

Directors' pension contributions to money purchase schemes

51,052

24,197

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

982,507

625,059