REGISTERED NUMBER: 01290334 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

INTERKET LIMITED

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

24

DIRECTORS:

T J Pattison

C E Parkander

REGISTERED OFFICE:

Unit 2 - Vulcan

Adlington Business Park

Adlington

Macclesfield

Cheshire

SK10 4ZN

REGISTERED NUMBER:

01290334 (England and Wales)

AUDITORS:

Allens Accountants Limited

Statutory Auditor and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

BANKERS:

Nordea Bank Finland Plc

8th Floor

City Place House

55 Basinghall Street

London

EC2V 5NB

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

The Company remains a key component of the UK Interket Group, which operates as part of the wider European Interket Group.

REVIEW OF BUSINESS

During the year the business re-located its manufacturing operations from Whaley Bridge to new premises in Adlington. A phased transfer of production equipment took place over a six month period enabling the dismantle and re-commission of each piece of equipment whilst maintaining sufficient production capacity to fulfil customer demand.

Overall customer demand remained at even levels throughout the year which was in line with 2023 as opposed to the fluctuations experienced across the market throughout 2020-2022. Turnover for the full year showed a slight reduction when compared to 2023 of 4.7%.

Compared to 2023 Gross Margin was down from 21.0% to 19.8%, the main contributing factors were marginal increases in cost areas including the raw material supply chains and other areas such as transport and machine consumables.

KEY PERFORMANCE INDICATORS

The Company measures progress by reference to operating efficiencies in terms of Machine Speeds, Production Waste and Downtime hours.

The key performance indicator is Earnings Before Interest, Taxation, Depreciation and Amortisation ('EBITDA') which including the one-off costs associated with the re-location showed reduced levels when compared to 2023, decreasing to 1.3% of Sales:

2024

2023

£'000

£'000

EBITDA

202

1,565

EBITDA as percentage of sales

1.3%

9.6%

The main impact came from the costs associated with the transfer of premises. During the re-location £0.4m was incurred in relation to the transfer of machinery, the operation of dual locations in terms of rent, rates, utilities, etc. incurred a further £0.4m and £0.2m was incurred on the remediation of the old premises prior to the expiry of the lease. Taking into account these one-off costs associated with the re-location, the underlying operations show a slight decrease in EBITDA to a revised 8.0% of Sales.

In addition to the re-location costs, Capital Investment of £1.2m was also made into the new production facility relating to operational supply, feeds and infrastructure.

The Company maintained its accreditations to the BRCGS Standard for Packaging Materials and the Quality Management System ISO 9001:2015.

PRINCIPAL RISKS AND UNCERTAINTIES

Foreign Exchange:

Approximately 40% of the Company's raw material purchases are denominated in Euro currency. This risk is managed through a natural hedge from Euro denominated sales and as required, by exchange contracts for the purchase of Euros.

Credit Risk:

The Company is very alert to the risk of customer insolvencies, this risk is managed by a high level focus on the credit control function. Customer payment records are monitored and credit limits are subject to regular review. The Board receives regular reports on amounts overdue and relevant action is taken.

New Customers are screened via a review of filed accounts and the use of credit checks as appropriate.

A Credit Insurance policy remains in place.

OUTLOOK

The Directors expect Turnover to be maintained at a similar level in 2025. It is anticipated that Profitability will return to more positive levels following the one-off costs incurred during 2024. This is further supported by the opportunities to improve production efficiencies in 2025 as a result of the new production facility.

ON BEHALF OF THE BOARD:

T J Pattison - Director

28th April 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the production of a wide range of self-adhesive labels and laminated materials which are supplied to the dairy, office product and automotive industries.

DIVIDENDS

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

DIRECTORS

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

T J Pattison

C E Parkander

Other changes in directors holding office are as follows:

J L Wharmby ceased to be a director after 31st December 2024 but prior to the date of this report.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes though bank borrowings.

The management's objectives are to:

- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising returns on any surplus funds;

- minimise the company's exposure to fluctuating interest rates when seeking new borrowing;

- match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the company's trading activities; and

- hedge against known exposures in relation to foreign exchange.

Where appropriate, funds are invested in sterling bank accounts and its borrowings where applicable are all obtained from standard bank loan accounts.This is designed to minimise any credit risk associated with not placing funds on deposit with a reputable clearing bank.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

T J Pattison - Director

28th April 2025

Opinion

We have audited the financial statements of Interket Limited (the 'company') for the year ended 31st 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 31st December 2024 and of its 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 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 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for the directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management and the board of directors about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedure to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and the board of directors concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Wright (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

Statutory Auditor and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

28th April 2025

TURNOVER

3

15,523,560

16,296,633

Cost of sales

12,447,222

12,872,912

GROSS PROFIT

3,076,338

3,423,721

Sales and marketing costs

616,274

613,010

Administrative expenses

3,050,910

1,993,089

3,667,184

2,606,099

(590,846

)

817,622

Other operating income

108,004

69,698

OPERATING (LOSS)/PROFIT

5

(482,842

)

887,320

Interest receivable and similar income

4,980

10,549

(477,862

)

897,869

Interest payable and similar expenses

6

103,891

115,513

(LOSS)/PROFIT BEFORE TAXATION

(581,753

)

782,356

Tax on (loss)/profit

7

(133,770

)

216,430

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(447,983

)

565,926

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(447,983

)

565,926

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

3,266,978

2,710,883

3,266,978

2,710,883

CURRENT ASSETS

Stocks

12

954,503

1,293,827

Debtors

13

4,260,047

4,835,778

5,214,550

6,129,605

CREDITORS

Amounts falling due within one year

14

3,327,137

3,018,834

NET CURRENT ASSETS

1,887,413

3,110,771

TOTAL ASSETS LESS CURRENT LIABILITIES

5,154,391

5,821,654

CREDITORS

Amounts falling due after more than one year

15

-

(85,510

)

PROVISIONS FOR LIABILITIES

19

(418,492

)

(552,262

)

NET ASSETS

4,735,899

5,183,882

CAPITAL AND RESERVES

Called up share capital

20

2,505,000

2,505,000

Share premium

325,000

325,000

Retained earnings

1,905,899

2,353,882

SHAREHOLDERS' FUNDS

4,735,899

5,183,882

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

T J Pattison - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2023

2,505,000

2,121,393

325,000

4,951,393

Changes in equity

Dividends

-

(333,437

)

-

(333,437

)

Total comprehensive income

-

565,926

-

565,926

Balance at 31st December 2023

2,505,000

2,353,882

325,000

5,183,882

Changes in equity

Total comprehensive loss

-

(447,983

)

-

(447,983

)

Balance at 31st December 2024

2,505,000

1,905,899

325,000

4,735,899

Cash flows from operating activities

Cash generated from operations

1

874,981

1,340,968

Interest paid

(90,372

)

(92,792

)

Interest element of hire purchase payments paid

(13,519

)

(22,721

)

Net cash from operating activities

771,090

1,225,455

Cash flows from investing activities

Purchase of tangible fixed assets

(1,243,375

)

(629,255

)

Sale of tangible fixed assets

-

37,067

Interest received

4,980

10,549

Net cash from investing activities

(1,238,395

)

(581,639

)

Cash flows from financing activities

Capital repayments in year

(147,237

)

(273,471

)

Group loans repaid / (advanced)

204,715

178,060

Net cash from financing activities

57,478

(95,411

)

(Decrease)/increase in cash and cash equivalents

(409,827

)

548,405

Cash and cash equivalents at beginning of year

2

(877,330

)

(1,425,735

)

Cash and cash equivalents at end of year

2

(1,287,157

)

(877,330

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(581,753

)

782,356

Depreciation charges

687,280

714,286

Profit on disposal of fixed assets

-

(37,067

)

Finance costs

103,891

115,513

Finance income

(4,980

)

(10,549

)

204,438

1,564,539

Decrease in stocks

339,324

384,151

Decrease in trade and other debtors

114,221

378,220

Increase/(decrease) in trade and other creditors

216,998

(985,942

)

Cash generated from operations

874,981

1,340,968

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 31st December 2024

31/12/24

1/1/24

£

£

Bank overdrafts

(1,287,157

)

(877,330

)

Year ended 31st December 2023

31/12/23

1/1/23

£

£

Bank overdrafts

(877,330

)

(1,425,735

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Bank overdrafts

(877,330

)

(409,827

)

(1,287,157

)

(877,330

)

(409,827

)

(1,287,157

)

Debt

Finance leases

(231,505

)

147,237

(84,268

)

(231,505

)

147,237

(84,268

)

Total

(1,108,835

)

(262,590

)

(1,371,425

)

1.	STATUTORY INFORMATION

Interket 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.	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.

Going concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

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.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those 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 if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgement has had the most significant effect on amounts recognised in the financial statements.

Stock valuation

A key area involving management judgement and estimate is in determining a stock valuation for old and slow moving stock items.

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 or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

i) the Company has transferred the significant risks and rewards of ownership to the buyer;

ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

iii) the amount of turnover can be measured reliably;

iv) it is probable that the Company will receive the consideration due under the transaction and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible fixed assets

Intangible fixed assets (including patents and licences) are capitalised and amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible fixed assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Tangible fixed assets

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

Long leasehold

-

over the period of the lease

Plant & machinery

-

2-10 years

Fixtures & fittings

-

2-5 years

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

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount.If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the statement of comprehensive income.

Stocks

Stock and work in progress are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. Cost comprises materials, direct labour and a share of production overheads appropriate to the relevant stage of production. For work in progress and finished goods manufactured by the company, cost is taken as production cost, including labour and an appropriate proportion of attributable overheads.

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 rate method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

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.

Interest bearing borrowings

Interest bearing borrowing are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

The company enters into basic financial instrument 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, together with loans to and from related parties.

The company also enters into complex financial instrument transactions such as foreign currency forward contracts. The related financial asset or liability is recognised at fair value at the balance sheet date where material.

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

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence if impairment is found, an impairment loss is recognised in the statement of comprehensive income.

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 taxation

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

Dividends

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

3.

TURNOVER

The turnover and loss (2023 - 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

£

£

UK

12,537,022

13,526,257

Europe

2,866,604

2,691,609

Rest of the world

119,934

78,767

15,523,560

16,296,633

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,070,259

2,768,287

Other pension costs

141,293

127,352

3,211,552

2,895,639

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

2024

2023

Production staff

50

53

Administrative staff

9

8

Sales staff

6

6

65

67