REGISTERED NUMBER: 01596369 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

CARRS OF SHEFFIELD (MANUFACTURING)

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

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

R J Carr

M Carr

A M Carr

SECRETARY:

M Carr

REGISTERED OFFICE:

Troy House

2 Holbrook Avenue

Halfway

Sheffield

South Yorkshire

S20 3FH

REGISTERED NUMBER:

01596369 (England and Wales)

INDEPENDENT AUDITORS:

Hodgson & Oldfield

Statutory Auditors

Aizlewood's Mill

Nursery Street

Sheffield

S3 8GG

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

REVIEW OF BUSINESS

The company continues to operate in a difficult economic climate with a stagnating UK economy with minimal economic growth, inflation higher than expected and increasing, Government driven, wage costs. This is compounded by higher energy costs that greatly hinder manufacturing companies.

All of these factors have a detrimental effect on the luxury goods market as customers monitor their budgets. The operating loss for the year reflects both the above conditions and some exceptional wage and salary costs of £103,622 due to restructuring.

Annual sales fell by 7.2% and the operating loss was £(198,777), (2023: £57,518).

Despite all this the company has maintained a strong position in the market.

With the company's retail outlet performing well, continued investment and improvement of its digital platform and specialist, high quality orders being achieved within the factory, the company is confident of stability and returning to profitability within a competitive market place.

The company has been proactive over the past few years in recognising the challenges facing the luxury goods markets and reacting accordingly. The company continues to streamline its operations, maintaining a close eye on administration expenses and concentrating its efforts on producing and selling high quality products that are worthy of the "Carrs" brand.

The business works with a number of key performance indicators (KPI's) and the management team measure and review these on a regular basis.

The main KPI's are as follows:

Cashflow

- The company monitors this on a regular basis and provides forecasts to

be able to maintain cashflow stability going forward.

Turnover

- This is an important indicator for a company that focuses on both retail

and wholesale sales. Turnover is closely monitored along with future orders.

Administrative expenses

- It is important in a company of our size to monitor these closely and try to be as efficient in our administrative procedures as possible to aid profitability.

Stock

- This is a key indicator for the business. Stock availability needs to be

maintained, while making sure that stock is turned over efficiently in order to

aid working capital.

PRINCIPAL RISKS AND UNCERTAINTIES

The company remains focussed on steering the business forward through this difficult economic climate. The company has a strong management team with a variety of skill sets that work together closely to guide the businesses economic progression.

The company faces very little risk from the impact of fluctuating exchange rates on transactions denominated in foreign currencies. The principal uncertainties are from competitor activity and fluctuations in commodity prices, particularly silver. These risks are minimised by review of competitor activity and consumer trends. The company continues to monitor closely its pricing policy, manufacturing processes and buying strategies in light of fluctuating commodity prices. Silver is now purchased weekly to average out any commodity fluctuations.

The company continues to strengthen its place in the market, producing quality products in both quality retail outlets and online. We are one of only a few companies in our field with the skills, expertise and staff to maintain a UK manufacturing capability.

The company is focussed on maintaining, then increasing its market share with the "Carrs" brand of high quality luxury products.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses a variety of financial instruments, including the operation of bank accounts and various items, such as stock, trade debtors and trade creditors, which arise directly from its operations. The main purpose of these financial instruments is to provide working capital for the company's operations.

The directors are of the view that the main risks arising from the company's financial instruments are interest rate risk, liquidity risk and credit risk. The directors set and review policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Interest rate risk

The company finances its operations through its banking resources but has on occasion used bank funding and shareholders' funds. The bank funding is at a competitive rate of interest and is reviewed annually.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Cash flows are monitored on a monthly basis.

Credit risk

The principal credit risk arises from trade debtors. In order to manage credit risk, credit limits are set for customers and a regular review is made of trade debtors outstanding. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.

All potential areas of financial risk are monitored regularly and reviewed by the directors. Any preventative or corrective measures are taken as necessary.

FUTURE DEVELOPMENTS

The company is focussed on continuing to develop its online store presence, so that it provides a constant and solid source of revenue.

The company continues to source new customers, both in the domestic market and abroad, concentrating on high quality, bespoke products.

Based on trading results to date in 2025 and the overall performance over the last 4 years, the company remains in a strong position to tackle the ongoing challenges caused by high inflation, cost of living increases, Brexit, recent US tariffs and the continuing conflict in Ukraine affecting fuel price stability.

ON BEHALF OF THE BOARD:

R J Carr - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of silverware and precious metal fabricators.

DIVIDENDS

An interim dividend of £0.0334875 per share was paid on 7 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £133,950.

DIRECTORS

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

R J Carr

M Carr

A M Carr

DISABLED PERSONS

Full and fair consideration is given to all applications for employment by disabled persons, having regard to their particular aptitudes and abilities.

EMPLOYEE TRAINING AND DEVELOPMENT

The directors remain committed to providing the conditions best suited to encourage the personal involvement of all employees in the development of the business. This involves the provision of training and regular communication with all employees.

ENVIRONMENT

The company recognises the importance of its environmental responsibilities and is continually trying to minimise any negative effects its activities may have on the environment. The company has installed solar energy at its main factory to help in reducing its carbon footprint.

POLITICAL AND CHARITABLE DONATIONS

The company made no political contributions. Charitable donations totalled £135 during the year.

DISCLOSURE IN THE STRATEGIC REPORT

A review of the business, the principal risks and uncertainties, financial risk management policies and future developments are shown in the strategic report on pages 2 to 4.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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, Hodgson & Oldfield, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R J Carr - Director

26 September 2025

Opinion

We have audited the financial statements of Carrs Of Sheffield (Manufacturing) 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, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 six, 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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence and skills to identify or recognise non-compliance with applicable laws and regulations.

- we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements and how the company is to comply with them. We did this through discussions with management and from our knowledge gained of the sector in which the company operates.

- enquiry of management and those charged with governance regarding actual and potential litigation and claims;

- enquiry of management to identify any instances of non-compliance with laws and regulations;

- reviewing minutes of meetings and other directives of those charged with governance.

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, including the rationale behind significant or unusual transactions and reviewing accounting estimates for bias;

- enquiry of management as to where they considered there was susceptibility to fraud and their knowledge of actual or suspected fraud.

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 further 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, omission or misrepresentation.

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.

Mr Scott Morton - Senior Statutory Auditor

for and on behalf of Hodgson & Oldfield

Statutory Auditors

Aizlewood's Mill

Nursery Street

Sheffield

S3 8GG

26 September 2025

TURNOVER

3

3,949,579

4,256,250

Cost of sales

2,173,568

2,370,015

GROSS PROFIT

1,776,011

1,886,235

Administrative expenses

1,974,534

1,828,944

(198,523

)

57,291

Other operating income

40

227

OPERATING (LOSS)/PROFIT

5

(198,483

)

57,518

Interest payable and similar expenses

6

493

-

(LOSS)/PROFIT BEFORE TAXATION

(198,976

)

57,518

Tax on (loss)/profit

7

(47,437

)

62,149

LOSS FOR THE FINANCIAL YEAR

(151,539

)

(4,631

)

LOSS FOR THE YEAR

(151,539

)

(4,631

)

OTHER COMPREHENSIVE INCOME

Revaluation uplift during the year

49,000

49,000

Revaluation at 31 December 2024

1,175,000

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,224,000

49,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,072,461

44,369

FIXED ASSETS

Tangible assets

9

4,246,180

3,141,696

CURRENT ASSETS

Stocks

10

2,527,225

2,549,683

Debtors

11

307,065

433,787

Cash at bank and in hand

925,749

1,001,560

3,760,039

3,985,030

CREDITORS

Amounts falling due within one year

12

432,988

466,367

NET CURRENT ASSETS

3,327,051

3,518,663

TOTAL ASSETS LESS CURRENT LIABILITIES

7,573,231

6,660,359

PROVISIONS FOR LIABILITIES

14

155,973

181,612

NET ASSETS

7,417,258

6,478,747

CAPITAL AND RESERVES

Called up share capital

15

4,000,000

4,000,000

Revaluation reserve

16

2,564,842

1,340,842

Retained earnings

16

852,416

1,137,905

SHAREHOLDERS' FUNDS

7,417,258

6,478,747

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

R J Carr - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

4,000,000

1,276,486

1,291,842

6,568,328

Changes in equity

Dividends

-

(133,950

)

-

(133,950

)

Total comprehensive income

-

(4,631

)

49,000

44,369

Balance at 31 December 2023

4,000,000

1,137,905

1,340,842

6,478,747

Changes in equity

Dividends

-

(133,950

)

-

(133,950

)

Total comprehensive income

-

(151,539

)

1,224,000

1,072,461

Balance at 31 December 2024

4,000,000

852,416

2,564,842

7,417,258

Cash flows from operating activities

Cash generated from operations

1

53,984

(482,570

)

Interest paid

(493

)

-

Tax paid

(37,340

)

(2,606

)

Net cash from operating activities

16,151

(485,176

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(15,441

)

Sale of tangible fixed assets

-

1,850

Net cash from investing activities

-

(13,591

)

Cash flows from financing activities

Amount introduced by directors

41,988

2

Amount withdrawn by directors

-

18,773

Equity dividends paid

(133,950

)

(133,950

)

Net cash from financing activities

(91,962

)

(115,175

)

Decrease in cash and cash equivalents

(75,811

)

(613,942

)

Cash and cash equivalents at beginning of year

2

1,001,560

1,615,502

Cash and cash equivalents at end of year

2

925,749

1,001,560

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

31.12.24

31.12.23

£

£

(Loss)/profit before taxation

(198,976

)

57,518

Depreciation charges

119,516

134,958

Profit on disposal of fixed assets

-

(1,850

)

Finance costs

493

-

(78,967

)

190,626

Decrease/(increase) in stocks

22,458

(71,697

)

Decrease/(increase) in trade and other debtors

148,520

(58,156

)

Decrease in trade and other creditors

(38,027

)

(543,343

)

Cash generated from operations

53,984

(482,570

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

925,749

1,001,560

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,001,560

1,615,502

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,001,560

(75,811

)

925,749

1,001,560

(75,811

)

925,749

Total

1,001,560

(75,811

)

925,749

1.	STATUTORY INFORMATION

Carrs Of Sheffield (Manufacturing) 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.

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

Monetary amounts in these financial statements are rounded to the nearest £.

The company is an individual entity and not part of a group and prepares its financial statements on that basis.

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 as modified by the revaluation of certain assets.

Going concern

As part of their assessment of the going concern basis of preparation, the directors have reviewed both their ongoing trade and company forecasts with a view to effects on the company's trade, workforce and the wider markets. The company closely monitors financial performance with a range of tools at its disposal. While there has been a dip in wholesale sales currently the company's retail outlet has robust sales forecasts and online sales have continued growth, . Taking into account financial modelling, current trading performance and future orders, the directors have a a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements.

The company remains in a position of strong liquidity and does not rely on bank borrowing.

The accounts have therefore been prepared on a going concern basis.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in applying the company's accounting policies. These estimates and judgements are continually reviewed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the opinion of the management, there are no judgements or key sources of estimation uncertainty that have a significant impact on the financial statements, other than those stated below.

(a) Depreciation and residual values

The directors review the useful economic life and residual values of all fixed asset classes to ensure that they are appropriate in determining the depreciation cost for the year.

(b) Stock provision

The stock balance at the balance sheet date includes provision in respect of obsolete and slow moving stock lines. The provision is based on an assessment of the volume, timing and value of future sales of stock and cost of realisation. Historical sales data and the experience of management are also factors in the estimation process.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax, discounts and rebates. Turnover is recognised when the goods are physically delivered to the customer and the company has (a) transferred the significant risks and rewards of ownership to the buyer, (b) retains no continuing involvement or control over the goods, (c) the revenue can be measured reliably and (d) it is probable that the company will receive the consideration due from the transaction.

Impairment of fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

20% on cost and 10% on cost

Office equipment & fixtures

-

33% on cost and 20% on cost

Motor vehicles

-

25% on cost

Tools & dies

-

10% on cost and 2% on cost

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purpose of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis for finished goods. Raw materials and work in progress are valued on a weighted average basis.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and investments in ordinary shares. Therefore the company has elected to apply the provisions of Section 11 of FRS102 'Basic Financial Instruments' to all of its financial instruments.

Basic financial assets

Basic financial assets, which include debtors are initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest rate method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts, discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities which include creditors and bank loans are initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest rate method, 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 classified as payable within one year are not amortised.

The company's principal financial instruments comprise bank funds, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and to finance the company's operations. Due to the nature of the financial instruments used by the company there is no significant exposure to price risk, credit risk, liquidity risk or cash flow risk.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Premiums are charged against profits in the period in which they are incurred.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Tools and dies

Costs of developing tools and dies have been capitalised on the basis of direct costs which are able to be separately identified. Overheads are ignored for this purpose.

Operating leases

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

In the event that lease incentives are received they are recognised on a straight line basis over the period of the lease.

3.

TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

The directors are of the opinion that the disclosure of a geographical analysis of turnover would be prejudicial to the company's interest.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,451,445

1,381,300

Social security costs

119,800

120,152

Other pension costs

34,957

29,753

1,606,202

1,531,205

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

31.12.24

31.12.23

Staff (Including Directors)

20

20

Production

37

40

57

60

31.12.24

31.12.23

£

£

Directors' remuneration

29,850

29,850

5.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Depreciation - owned assets

119,516

134,958

Profit on disposal of fixed assets

-

(1,850

)

Auditors' remuneration

8,675

8,000

Loss/(Profit) on exchange

1,503

4,124

Other operating leases

15,440

15,440

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Interest on overdue taxation

493

-