REGISTERED NUMBER: 03110319 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

RAJAPACK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

D Cohen

D Marcovici

SECRETARY:

D Cohen

REGISTERED OFFICE:

DC10 Unit 1

Salford Road

Brogborough

Bedford

MK43 0AR

REGISTERED NUMBER:

03110319 (England and Wales)

SENIOR STATUTORY AUDITOR:

Stephen Pocock

AUDITORS:

BSR Bespoke

Chartered Accountants

Registered Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

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

Rajapack is the UK's leader in packaging distribution, business equipment and supplies, using traditional catalogues, alongside online channels, as the primary routes to market. The Company supply packaging products to meet the needs of businesses regardless of their size or location, across a broad range of business sectors, with a next day delivery as standard.

REVIEW OF BUSINESS

The Company's turnover of £41.5m, represented a decline in growth. During the year, the Company saw growth in their large customer base but this was more than offset by the reduction in small customers. This is reflective of some of the challenges within the market, with increased online competition and the increase in small business failures, as a result of issues within the macro-economic environment. The e-commerce boom from 2020, and 2021, stagnated during 2022 and then showed a decline through 2023 and 2024. Persistent inflation levels, political uncertainty and increased price sensitivity has impacted customer and end user demands, increasing competition across all customer types and sales channels.

Despite a 4.6% drop in revenue, the gross margin achieved showed a 1.5% increase to 48.6% in 2024, primarily driven by purchase cost reductions through improved supplier management, utilising the wider RAJA Group's purchasing power, and reduced raw material prices.

The Company's overheads remained tightly controlled despite increased inflationary pressure. Uncontrollable cost increases such as business rates, cost per click inflation, and wage inflation were partially mitigated through a sustained program of cost control led by the Directors and senior management team. This enabled the Company to post an EBITDA of £0.6m (£1.3m 2023).

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly assess the key business risks of the company, which are considered to be:

Cost price volatility

Given the market volatility that is currently prevalent in the UK, especially raw materials and energy pricing. This risk is mitigated by passing on purchase cost price changes (+/-) to our customers, as appropriate, and ensuring DIO (Days Inventory Outstanding) is at an appropriate level.

Trade Receivables/Bad Debt

The Senior Leadership at the company believe the current volatility in business within the UK, will lead to more companies going into administration, and more companies defaulting on monies owed. To mitigate this risk, the Company regularly reviews the credit risk of major customers, receives payment in advance for 1st orders, and determines credit limits for all new customers.

Regulatory Change

The Company recognises the significant changes that are happening within the packaging industry and the potential impact regulatory bodies could have on the future direction of the business, especially relating to the environment and CSR. As a result, the company regularly reviews the likelihood and impact of potential changes, enabling quick and agile reactions to changes such as EPR.

Data Protection

The Company sees data as a key resource and understands the benefits that it can bring to the business. This however does bring potential risks around GDPR and potential large fines. This is mitigated by the Company, and the larger Group, by control measures, continuous review and internal control procedures.

Employees

The loss of key personnel by the Company could cause significant disruption. This is managed by annual remuneration benchmarking across all roles to ensure market competitiveness.

SECTION 172 STATEMENT

Under section 172 of the Companies Act 2006, the Directors have a duty to promote the success of the Company for the benefit of its members as a whole. This includes having due regard to the broad range of stakeholders of the Company. The Directors view the key company stakeholders as its employees, customers, suppliers, shareholders, and the wider community and environment.

The Company has 5 key value that it uses to ensure decisions are made in the best interests of the company and its stakeholders:

-

Customer: Our business is built on customer satisfaction and loyalty. We want our customers to love working with us, and actively recommend us to others.

-

Do the right thing: We are honest and open in our communication; we always respect our colleagues and customers. We have a reputation for valuing integrity.

-

Be accountable: We take personal responsibility for what's in our control and we are happy to be accountable for our results.

-

Succeed together: We achieve more when we work together towards common goals. We are open and challenging, whilst supporting each other.

-

Be the best: We always seek to be the best we can be. We strive to fulfil our potential and feel rewarded by doing a great job every day.

Engagement with employees is seen as critical by the Company following the ever-changing working environments post pandemic. This is managed by the Board through many channels including employee engagement surveys, quarterly business presentations and monthly team meetings. This provides great support and assistance to the business.

The company engages with shareholders on a regular basis through the presentation of monthly financial reports.

The key decisions taken by the board in the year have been focussed on improving sales and service to our customers, increasing efficiency, and creating a commercial focus across the business.

KEY PERFORMANCE INDICATORS (KPI'S)

As a company we are driven by turnover, gross margin and service ratios. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, those being turnover, gross margin, EBITDA, and debtor days (44.9 (2023: 54.5)).

EMPLOYEES

The heartbeat of RAJA UK is its employees. At the end of 2024 we had 167 FTEs.

We continue to invest in their development and well-being, with a new and enhanced online learning platform launched during the year alongside a focus on all aspects of employees health, with 22 (12 2023) employees trained as mental health first aiders in 2024.

The Company also has a diverse mix of employees with 44.2% identifying as female, 55.8% as male.

CSR

Corporate Social Responsibility underpins the values of RAJA UK with charity and environmental impact being significant areas of focus within the business. In 2024 we achieved the following:

-

Ecovardis Gold accreditation putting RAJA UK in the top 3% of companies within our industry.

-

2 packaging and the environment awards demonstrating our partnership and commitment with our Suppliers and Customers to be innovative and sustainable.

-

ISO27001: Information Security Management System accreditation achieved.

RAJA Group also signed up to SBTi in May 2024 as we continue to develop our understanding of Scopes 1-3 emissions and how we can effectively reduce them.

STREAMLINED ENERGY AND CARBON REPORTING

Throughout 2024 the business incurred the following emissions: Gas for own use 344 MWh (2023: 520 MWh); Electricity for own use 563 MWh (2023: 560 MWh). The consumption of fuel for the purposes of transport cannot currently be calculated due to the wide range in delivery partners which are utilised by The Company along with constraints currently available within our IT systems. Following the award of Ecovardis Gold accreditation, RAJA UK will continue to strive for CSR improvements and will look to achieve Platinum standard in 2025.

RESEARCH AND DEVELOPMENT

The Company embraces the use of technology and sees data, and automation as the key to providing our Customers with a world class service, continued efficiency and cost control. The Company continues to look at ways to reduce their carbon footprint and embraces the challenge of helping our customers choose sustainable packaging options, especially with the EPR regulations coming into force in 2025.

FUTURE DEVELOPMENTS

The Company embraces the use of technology and sees data, and automation as the key to providing our Customers with a world class service, continued efficiency and cost control. The Company continues to look at ways to reduce their carbon footprint and embraces the challenge of helping our customers choose sustainable packaging options, especially with the EPR regulations coming into force in 2025.

ON BEHALF OF THE BOARD:

D Marcovici - Director

31 July 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 the supply of packaging materials.

DIVIDENDS

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

DIRECTORS

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

D Cohen

D Marcovici

Other changes in directors holding office are as follows:

A F J Charpy ceased to be a director after 31 December 2024 but prior to the date of this report.

The directors' interests in the share capital of the parent company are disclosed in that company's accounts.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments, research and development, financial instruments, engagement with suppliers, customers and other in business relationship with the company and streamlined energy and carbon reporting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

In preparing the financial statements the directors are required to state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

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, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Marcovici - Director

31 July 2025

Opinion

We have audited the financial statements of Rajapack Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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 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 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant are:

-

the form and content of the financial statements, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006;

-

UK Employment Law and General Data Protection Regulation (GDPR), and

-

International Organisation for Standardization, including, ISO9001, ISO14001, ISO45001 and ISO27001.

We gathered an understanding of how the entity is complying with the above frameworks by enquiring and observing management and those charged with governance, ensuring there is a culture of honesty with an emphasis on fraud prevention which may reduce opportunities for fraud to occur as well as acting as a deterrent.

We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment.

We designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error.

We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.

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.

Stephen Pocock (Senior Statutory Auditor)

for and on behalf of BSR Bespoke

Chartered Accountants

Registered Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

24 September 2025

TURNOVER

3

41,469,782

43,449,131

Cost of sales

22,060,594

23,788,329

GROSS PROFIT

19,409,188

19,660,802

Distribution costs

2,574,431

2,522,258

Administrative expenses

18,510,758

17,981,653

21,085,189

20,503,911

(1,676,001

)

(843,109

)

Other operating income

1,033,748

1,169,513

OPERATING (LOSS)/PROFIT

5

(642,253

)

326,404

Interest receivable and similar income

47,946

-

(594,307

)

326,404

Interest payable and similar expenses

6

43,364

48,744

(LOSS)/PROFIT BEFORE TAXATION

(637,671

)

277,660

Tax on (loss)/profit

7

(113,237

)

155,361

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(524,434

)

122,299

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(524,434

)

122,299

FIXED ASSETS

Intangible assets

8

124,233

209,740

Tangible assets

9

2,122,049

2,640,031

Investments

10

-

-

2,246,282

2,849,771

CURRENT ASSETS

Stocks

11

6,272,638

5,606,581

Debtors

12

6,804,568

7,402,372

Cash at bank

265,799

226,880

13,343,005

13,235,833

CREDITORS

Amounts falling due within one year

13

10,297,893

10,184,724

NET CURRENT ASSETS

3,045,112

3,051,109

TOTAL ASSETS LESS CURRENT LIABILITIES

5,291,394

5,900,880

PROVISIONS FOR LIABILITIES

17

317,837

402,889

NET ASSETS

4,973,557

5,497,991

CAPITAL AND RESERVES

Called up share capital

18

500,100

500,100

Retained earnings

19

4,473,457

4,997,891

SHAREHOLDERS' FUNDS

4,973,557

5,497,991

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2025 and were signed on its behalf by:

D Marcovici - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

500,100

4,875,592

5,375,692

Changes in equity

Total comprehensive income

-

122,299

122,299

Balance at 31 December 2023

500,100

4,997,891

5,497,991

Changes in equity

Total comprehensive income

-

(524,434

)

(524,434

)

Balance at 31 December 2024

500,100

4,473,457

4,973,557

1.	STATUTORY INFORMATION

Rajapack 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 (£).

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.

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 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Rajapack Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, KCF SC, 16 Rue de L Étang Industrial zone Paris Nord II, 93290 Tremblay-en-France.

Turnover

Turnover is recognised when it is probable that future economic benefits will flow to the company from the sale of goods and services and is measured as the fair value of consideration which the company expects to receive from those transactions. Sales of goods are recognised at the point of sale or on delivery of the goods and when the risks and rewards of ownership have passed to the customer. Turnover from internet sales is recognised at the point when the goods are despatched to the customer. Turnover from services is recognised when the services are provided.

Turnover from internet sales is recognised at the point when the goods are despatched to the customer.

Turnover is recognised net of returns and of trade discounts and is shown exclusive of value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Any amortisation or impairment losses are included in administrative expenses in the statement of comprehensive income.

Website costs are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets

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

Short leasehold

-

at varying rates on cost

Plant and machinery

-

at varying rates on cost

Computer equipment

-

at varying rates on cost

Stock

Stocks are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

Financial instruments

The company enters into basic financial instruments that give rise to financial assets and financial liabilities including trade and other debtors, trade and other creditors, bank account balances, bank loans and other loans and borrowings and investments in certain non puttable and non convertible equity instruments.

Debt instruments which are not payable or receivable within one year are initially accounted for at the transaction price and are subsequently accounted for at amortised cost using the effective interest method. Debt instruments payable and receivable within one year are measured at their undiscounted cash amounts. Where the debt instruments are treated as a financing transaction, then the financial asset or liability is measured at the present value of future cash flows based on a market rate of interest. Debt instruments which are treated as financial assets and accounted for at amortised cost are also assessed for impairment.

Equity instruments are initially accounted for at transaction price. They are subsequently accounted for at cost unless they can be accounted for at fair value based on a readily available market price or fair value. Equity instruments which are treated as financial assets and accounted for at cost are also assessed for impairment.

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 as the amount of tax payable using the tax rates and laws that 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

The financial statements are presented in Sterling, which is also the functional currency of the Company. Transactions in currencies other than the functional currency of the Company are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

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. The assets of the scheme are held separately from those of the company and operated independently by Metlife.

Consolidated accounts

No consolidated financial statements have been produced for the year as the 100% owned subsidiary, Aid-Pack Systems Limited, was dormant throughout the year. As at 31 December 2024 the share capital and reserves amounted to £5,000 (2023: £5,000).

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.

Leased assets

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3.

TURNOVER

Of the company's total turnover >99% (2023: >99%) is attributable to the UK market for the sale of goods and <1% (2023: <1%) to Non-UK markets. All turnover originated in the UK.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

6,482,567

6,257,170

Social security costs

700,079

669,011

Other pension costs

659,546

609,154

7,842,192

7,535,335

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

31.12.24

31.12.23

Sales

46

41

Administration

66

65

Warehouse

63

74

175

180

31.12.24

31.12.23

£

£

Directors' remuneration

-

-

5.	OPERATING (LOSS)/PROFIT

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

31.12.24

31.12.23

£

£

Depreciation - owned assets

710,167

773,220

Goodwill amortisation

40,000

40,000

Website amortisation

45,507

46,340

Auditors' remuneration

20,750

36,000

Taxation compliance services

1,000

1,000

Other non- audit services

6,000

5,000

Foreign exchange differences

200,522

(13,133

)

Other operating leases

1,890,349

1,858,745

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Loan interest

43,364

48,744

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

(28,185

)

111,256

Deferred tax

(85,052

)

44,105

Tax on (loss)/profit

(113,237

)

155,361

UK corporation tax has been charged at 25% (2023 - 23.50%).

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

(Loss)/profit before tax

(637,671

)

277,660

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

(159,418

)

65,250

Effects of:

Expenses not deductible for tax purposes

46,142

41,264

Adjustments to tax charge in respect of previous periods

39

(47,726

)

Changes in rate of deferred tax

-

96,573

Total tax (credit)/charge

(113,237

)

155,361

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company’s financial year straddles this date, a blended corporation tax rate of 23.5% was applied in the prior year, calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial year for which each main tax rate was applicable.

8.	INTANGIBLE FIXED ASSETS

Goodwill

Website

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

400,000

231,701

631,701

AMORTISATION

At 1 January 2024

259,999

161,962

421,961

Amortisation for year

40,000

45,507

85,507

At 31 December 2024

299,999

207,469

507,468

NET BOOK VALUE

At 31 December 2024

100,001

24,232

124,233

At 31 December 2023

140,001

69,739

209,740

9.	TANGIBLE FIXED ASSETS

Short

Plant and

Computer

leasehold

machinery

equipment

Totals

£

£

£

£

COST

At 1 January 2024

1,139,528

1,813,969

2,195,192

5,148,689

Additions

65,737

56,138

70,310

192,185

At 31 December 2024

1,205,265

1,870,107

2,265,502

5,340,874

DEPRECIATION

At 1 January 2024

393,211

637,031

1,478,416

2,508,658

Charge for year

130,370

218,256

361,541

710,167

At 31 December 2024

523,581

855,287

1,839,957

3,218,825

NET BOOK VALUE

At 31 December 2024

681,684

1,014,820

425,545

2,122,049

At 31 December 2023

746,317

1,176,938

716,776

2,640,031

10.	FIXED ASSET INVESTMENTS

The company's investments at the Balance Sheet date in the share capital of companies include the following:

100% ownership of the ordinary shares of Aid-Pack Systems Limited, a company registered in England and Wales, registered office DC10 Unit 1, Salford Road, Brogborough, Bedford, MK43 0AR. The cost as at 1 January 2024 and 31 December 2024, was £82,000 and the provision for diminution as at the same dates was £82,000, leaving a net book value of £nil (2023: £nil).

At 31 December 2024 the share capital and reserves of Aid-Pack Systems Limited was £5,000 (2023: £5,000).