CBS Products (KT), Ltd 31/12/2024 iXBRL

Deferred tax (note 20)

At 1 January 2024 and 31 December 2024

Company registration number: 10774860

CBS Products (KT), Ltd

Financial statements

31 December 2024

CBS Products (KT), Ltd

Contents

Directors and other information

Strategic report

Directors' report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

CBS Products (KT), Ltd

Directors and other information


	Directors
		L Klein Fox
		T R Klein Jr
		K J Owen
		M J Thomason
		M Turney


	Company number	10774860


	Registered office	Westgate House
		Royland Road
		Loughborough
		Leicestershire
		LE11 2EH


	Business address	Pillings Road
		Oakham
		Rutland
		LE15 6QF


	Auditor	Turner & Smith
		Westgate House
		Royland Road
		Loughborough
		Leicestershire
		LE11 2EH




	Bankers	J. P. Morgan

		HSBC Bank Plc

CBS Products (KT), Ltd

Strategic report

Year ended 31 December 2024

Principal activity

The principal activity for the year under review continues to be that of the design and manufacture of cable installation equipment for the telecoms and power distribution industries.

Fair review of the business

Sales in the Telecoms sector fell for the second year running during a year in which the overall UK market reduced in size, added to which the market saw continued increased competition from overseas manufacturers. Sales in the US were also significantly down on 2023, although we expect the US market to pick up over the next year or two. To take account of the smaller UK telecoms market the company has significantly reduced its overhead cost base. Sales in the Power sector grew for the second year running and we expect this to continue in the foreseeable future.

Key performance indicators 2024 2023

(£000s) (£000s)

Turnover 5,268 7,882

Gross profit 1,481 1,810

Gross profit margin 28.1% 23.0%

Operating loss (150) (192)

Operating loss margin (2.8)% (2.4)%

EBITDA 99 69

EBITDA % 1.9% 0.9%

Principal risks and uncertainties

The outlook for the year to 31 December 2025 continues to be challenging in the UK Telecoms sector. The company continues to seek to increase its exports to Europe, the USA, the Far East and Africa where it sees opportunities for growth and has already made inroads into three of these areas. The market for the Power sector products is firming as electricity suppliers look to source more energy from green sources (solar and wind), all of which need to be connected to the National Grid. The regulatory requirement to have electric cars and boilers, among other items in the future is also driving investment in the power network. The company is well placed to take advantage of the growth afforded by these markets.

This report was approved by the board of directors on 2 September 2025 and signed on behalf of the board by:

M Turney

Director

CBS Products (KT), Ltd

Directors' report

Year ended 31 December 2024

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

Directors

The directors who served the company during the year were as follows:


L Klein Fox
T R Klein Jr
K J Owen
M J Thomason
M Turney

Dividends

The directors do not recommend the payment of a dividend.

Other matters

Since the financial year-end the company has continued to trade with a positive EBITDA. There are no circumstances of which the directors are aware that would suggest that the going concern basis is inappropriate.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report 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 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 judgments and accounting estimates that are reasonable and prudent; and

- 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 02 September 2025 and signed on behalf of the board by:

M Turney

Director

CBS Products (KT), Ltd

Independent auditor's report to the members of

CBS Products (KT), Ltd

Year ended 31 December 2024

Opinion

We have audited the financial statements of CBS Products (KT), Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 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 auditor’s 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report has 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 directors' report. 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 the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit team: obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework within which the company operates, focusing on those laws and regulations that had a direct effect on the financial statements; enquired of management and those charged with governance about their own identification and assessment of the risks and irregularities, including any known actual, suspected or alleged instances of fraud; discussed any matters about non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud; considered the internal controls set up to mitigate risks of fraud or non-compliance with laws and regulations. As part of our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of the management of its own consideration of fraud. Given that management are directly involved in the day to day management of the business and processing of information, in addressing the risk of fraud through management override of controls, we reviewed transactions for any significant instances outside the normal course of business. We assessed the appropriateness of key estimates and judgements made by management and challenged the assumptions used in accounting estimates where appropriate.Loss A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Roger Neal (Senior Statutory Auditor)

For and on behalf of

Turner & Smith

Accountants and Statutory Auditor

Westgate House

Royland Road

Loughborough

Leicestershire

LE11 2EH

02 September 2025

CBS Products (KT), Ltd

Statement of comprehensive income

Year ended 31 December 2024

		2024	2023
	Note	£	£


Turnover	4	5,268,079	7,882,839
Cost of sales		( 3,787,233)	( 6,072,417)
		_______	_______
Gross profit		1,480,846	1,810,422

Distribution costs		( 501,415)	( 602,053)
Administrative expenses		( 1,129,032)	( 1,399,947)
		_______	_______
Operating loss	5	( 149,601)	( 191,578)

Other interest receivable and similar income	9	872	-
Interest payable and similar expenses	10	( 197,093)	( 107,858)
Loss before taxation		( 345,822)	( 299,436)

Tax on loss	11	65,860	( 7,216)
		_______	_______
Loss for the financial year and total comprehensive income		( 279,962)	( 306,652)
		_______	_______

All the activities of the company are from continuing operations.

CBS Products (KT), Ltd

Statement of financial position

31 December 2024

		2024		2023
	Note	£	£	£	£

Fixed assets
Intangible assets	12	585,929		801,479
Tangible assets	13	485,347		497,219
		_______		_______
			1,071,276		1,298,698

Current assets
Stocks	14	4,480,511		5,007,498
Debtors	15	804,665		1,568,222
Cash at bank and in hand		1,092,059		634,203
		_______		_______
		6,377,235		7,209,923
Creditors: amounts falling due
within one year	16	( 2,393,303)		( 2,855,625)
		_______		_______
Net current assets			3,983,932		4,354,298
			_______		_______
Total assets less current liabilities			5,055,208		5,652,996

Creditors: amounts falling due
after more than one year	17		( 4,864)		( 322,691)

Provisions for liabilities	19		( 10,162)		( 10,162)

			_______		_______
Net assets			5,040,182		5,320,143
			_______		_______

Capital and reserves
Called up share capital	22		1		1
Capital contribution reserve	23		3,549,563		3,549,563
Profit and loss account	23		1,490,618		1,770,579
			_______		_______
Shareholders funds			5,040,182		5,320,143
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 02 September 2025 , and are signed on behalf of the board by:

M Turney

Director

Company registration number: 10774860

CBS Products (KT), Ltd

Statement of changes in equity

Year ended 31 December 2024

	Called up share capital	Capital contribution reserve	Profit and loss account	Total
	£	£	£	£


At 1 January 2023	1	3,549,563	2,077,231	5,626,795

Loss for the year			( 306,652)	( 306,652)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 306,652)	( 306,652)

	_______	_______	_______	_______
At 31 December 2023 and 1 January 2024	1	3,549,563	1,770,580	5,320,144

Loss for the year			( 279,962)	( 279,962)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 279,962)	( 279,962)

	_______	_______	_______	_______
At 31 December 2024	1	3,549,563	1,490,618	5,040,182
	_______	_______	_______	_______

CBS Products (KT), Ltd

Statement of cash flows

Year ended 31 December 2024

	2024	2023
	£	£

Cash flows from operating activities
Loss for the financial year	( 279,962)	( 306,652)

Adjustments for:
Depreciation of tangible assets	32,622	45,007
Amortisation of intangible assets	215,551	215,551
Amounts written off investments	-	( 12)
Other interest receivable and similar income	( 872)	-
Interest payable and similar expenses	197,093	107,858
Tax on loss	( 65,860)	7,216
Accrued expenses/(income)	( 125,450)	157,572

Changes in:
Stocks	526,987	58,058
Trade and other debtors	763,557	305,487
Trade and other creditors	( 450,345)	( 1,516,513)
	_______	_______
Cash generated from operations	813,321	( 926,428)

Interest paid	( 197,093)	( 107,858)
Interest received	872	-
Tax paid	( 76,798)	( 199,981)
	_______	_______
Net cash from/(used in) operating activities	540,302	( 1,234,267)
	_______	_______

Cash flows from investing activities
Purchase of tangible assets	( 20,750)	-
	_______	_______
Net cash (used in)/from investing activities	( 20,750)	-
	_______	_______

Cash flows from financing activities
Proceeds from loans from group undertakings	( 40,544)	1,717,781
Payment of finance lease liabilities	( 21,152)	( 22,266)
	_______	_______
Net cash (used in)/from financing activities	( 61,696)	1,695,515
	_______	_______

Net increase/(decrease) in cash and cash equivalents	457,856	461,248
Cash and cash equivalents at beginning of year	634,203	172,955
	_______	_______
Cash and cash equivalents at end of year	1,092,059	634,203
	_______	_______

CBS Products (KT), Ltd

Notes to the financial statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England. The address of the registered office is Westgate House, Royland Road, Loughborough, Leicestershire, LE11 2EH.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the directors have made the following judgements:

- A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability;

- Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not;

- Sales Ledger debt provisions. Management review debts on a case basis to highlight deviation from terms and therefore possible provision requirement;

- Slow moving/obsolete stock provisions. Management review stock reports on a regular basis and provision is made on any items considered to not be in a saleable condition or, similarly, obsolete;

- Depreciation and residual values. Management have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular the useful economic life and residual fixtures and fittings, and have concluded that asset lives are appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Goodwill	-	10 %	straight line
Trade Name	-	5 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Freehold property	-	Land is not depreciated. Buildings are depreciated at 2% per annum.
Leased assets	-	20-33% straight line
Plant and machinery	-	20 %	straight line
Fittings fixtures and equipment	-	17-25% straight line
Motor vehicles	-	25 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

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. 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. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks and work in progress are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is calculated using the first-in, first-out method and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Turnover

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2024	2023
	£	£
UK	4,425,186	4,729,703
Rest of world	842,893	3,153,136
	_______	_______
	5,268,079	7,882,839
	_______	_______

5. Operating loss

Operating loss is stated after charging/(crediting):

	2024	2023
	£	£
Amortisation of intangible assets	215,550	215,550
Depreciation of tangible assets	32,622	45,007
Impairment of trade debtors	(56)	44,558
Research and development expenditure written off	42,013	151,662
Foreign exchange differences	5,598	1,021
Fees payable for the audit of the financial statements	15,100	14,475
Loan interest	197,093	107,858
	_______	_______

6. Auditors remuneration

	2024	2023
	£	£
Fees payable to Turner & Smith
Fees payable for the audit of the financial statements	10,185	9,700
	_______	_______
Fees payable to the company's auditor and its associates for other services:
Taxation advisory services	4,915	4,775
	_______	_______

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
Production staff	25	35
Distribution staff	5	7
Administrative staff	15	18
	_______	_______
	45	60
	_______	_______

The aggregate payroll costs incurred during the year were:

	2024	2023
	£	£
Wages and salaries	2,013,033	2,673,126
Other pension costs	80,652	102,026
	_______	_______
	2,093,685	2,775,152
	_______	_______

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	102,524	175,914
Company contributions to pension schemes in respect of qualifying services	11,295	21,960
	_______	_______
	113,819	197,874
	_______	_______

9. Other interest receivable and similar income

	2024	2023
	£	£
Bank deposits	872	-
	_______	_______

10. Interest payable and similar expenses

	2024	2023
	£	£
Loans from group undertakings	197,093	107,858
	_______	_______

11. Tax on loss

Major components of tax income/expense

	2024	2023
	£	£
Current tax:
UK current tax income/expense	( 3,945)	3,289
R & D Claims	( 61,915)	-
	_______	_______

Deferred tax:
Origination and reversal of timing differences	-	3,927
	_______	_______
Tax on loss	( 65,860)	7,216
	_______	_______

The tax assessed on the loss for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 23.50%).

Loss multiplied by rate of tax ( 86,456 ) ( 70,367 )

Adjustments in respect of prior periods ( 61,915 ) -

Effect of expenses not deductible for tax purposes 12,009 9,203

Effect of capital allowances and depreciation 51,415 55,699

Adjustment for losses forward 23,032 5,465

Other adjustments (3,945) 3,289

_______ | _______ |

Tax on loss ( 65,860 ) 3,289

_______ | _______ |

12. Intangible assets

	Goodwill	Trade name	Total
	£	£	£
Cost
At 1 January 2024 and 31 December 2024	2,090,487	130,032	2,220,519
	_______	_______	_______
Amortisation
At 1 January 2024	1,376,237	42,802	1,419,039
Charge for the year	209,049	6,502	215,551
	_______	_______	_______
At 31 December 2024	1,585,286	49,304	1,634,590
	_______	_______	_______
Carrying amount
At 31 December 2024	505,201	80,728	585,929
	_______	_______	_______
At 31 December 2023	714,250	87,230	801,480
	_______	_______	_______

13. Tangible assets

	Freehold property	Leased assets	Plant and machinery	Fixtures, fittings and equipment	Total
	£	£	£	£	£
Cost
At 1 January 2024	462,285	77,809	96,157	67,446	703,697
Additions	-	-	20,750	-	20,750
	_______	_______	_______	_______	_______
At 31 December 2024	462,285	77,809	116,907	67,446	724,447
	_______	_______	_______	_______	_______
Depreciation
At 1 January 2024	49,534	33,985	64,044	58,913	206,476
Charge for the year	9,426	21,762	5,371	( 3,935)	32,624
	_______	_______	_______	_______	_______
At 31 December 2024	58,960	55,747	69,415	54,978	239,100
	_______	_______	_______	_______	_______
Carrying amount
At 31 December 2024	403,325	22,062	47,492	12,468	485,347
	_______	_______	_______	_______	_______
At 31 December 2023	412,751	43,824	32,113	8,533	497,221
	_______	_______	_______	_______	_______

14. Stocks

	2024	2023
	£	£
Work in progress	617,447	133,357
Finished goods and raw materials	3,702,049	4,767,458
Stock on sale or return	161,015	106,683
	_______	_______
	4,480,511	5,007,498
	_______	_______

15. Debtors

	2024	2023
	£	£
Trade debtors	662,097	1,034,006
Amounts owed by group undertakings	58,220	456,550
Prepayments and accrued income	84,348	77,666
	_______	_______
	804,665	1,568,222
	_______	_______

16. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	236,193	582,300
Amounts owed to group undertakings	1,716,923	1,457,467
Accruals and deferred income	235,508	360,958
Corporation tax	9,899	152,557
Social security and other taxes	107,114	223,932
Obligations under finance leases	17,827	21,152
Other creditors	69,839	57,259
	_______	_______
	2,393,303	2,855,625
	_______	_______

17. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Amounts owed to group undertakings	-	300,000
Obligations under finance leases	4,864	22,691
	_______	_______
	4,864	322,691
	_______	_______

18. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

	2024	2023
	£	£
Not later than 1 year	17,827	21,152
Later than 1 year and not later than 5 years	4,864	22,691
	_______	_______
	22,691	43,843
	_______	_______
Present value of minimum lease payments	22,691	43,843
	_______	_______

19. Provisions

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 19)	10,162	10,162
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of capital allowances.

21. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 97,337 (2023: £ 113,498 ).

These plans include both pension and healthcare costs.

22. Called up share capital

Issued, called up and fully paid

	2024		2023
	No	£	No	£
Ordinary shares of £ 1.00 each	1	1	1	1
	_______	_______	_______	_______

23. Reserves

Capital contribution reserve represents a capital contribution from the parent company, Zah Group, Inc, of £3,549,563 which was provided for the purpose of acquiring capital assets.Profit and loss account represents retained earnings to date.

24. Analysis of changes in net debt

	At 1 January 2024	Cash flows	At 31 December 2024
	£	£	£
Cash and cash equivalents	634,203	457,856	1,092,059
Debt due within one year	(1,478,619)	(256,131)	(1,734,750)
Debt due after one year	(322,691)	317,827	(4,864)
	_______	_______	_______
	( 1,167,107)	519,552	( 647,555)
	_______	_______	_______

25. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2024	2023	2024	2023
	£	£	£	£
General Machine Products (KT), LLC	325,190	2,194,572	48,941	445,093
Tenacious Holdings, Inc	-	-	9,279	11,457
Zah Group, Inc	197,093	1,807,858	( 1,715,005)	( 1,709,645)
Klein Tools, Inc	162,217	102,246	( 1,918)	( 47,822)
	_______	_______	_______	_______

26. Parent undertaking

The parent undertaking is Zah Group, Inc a company incorporated in the USA. The address of Zah Group, Inc is 500 Klein Tools Boulevard, Mansfield, Texas, 76063, USA.