REGISTERED NUMBER: 12821248 (England and Wales)

SARACO INDUSTRIES HOLDINGS LIMITED

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

I M Bapu

H Patel

REGISTERED OFFICE:

Parkside House

167 Chorley New Road

Bolton

Lancashire

BL1 4RA

REGISTERED NUMBER:

12821248 (England and Wales)

SENIOR STATUTORY AUDITOR:

Robert Stafford BA(Hons) FCA

AUDITORS:

SCCA Ltd T/a Stafford & Co

Chartered Accountants

and Statutory Auditor

3 The Studios

320 Chorley Old Road

Bolton

Lancashire

BL1 4JU

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

REVIEW OF BUSINESS

The principal activity of the group continues to be that of manufacturing and distribution of household and babywipes.

2024

2023

£

£

Turnover

25,263,857

24,039,682

Gross profit

4,023,898

2,941,590

Net profit before tax

1,597,330

746,986

Turnover percentage growth / (decline) year on year

5.09%

8.72%

Gross profit percentage

15.9%

12.2%

Net profit before tax percentage

6.4%

3.1%

Saraco Industries Holdings Limited ('Saraco') turnover increased by £1.2m (5%) from prior year, which was largely down to organic growth with existing customers.

By managing the purchase of raw materials Saraco managed to take advantage of key raw materials when the prices were reducing. This helped manage to achieve slightly higher than prior year Gross profit of 16%. Profit before tax increased to 6% compared to 3% in 2023. The existing strategy to have a large portfolio of suppliers, ensures that competition in prices is controlled, and regular supply of raw materials is maintained.

The additional investment in new machinery in 2023 has helped increase for the full year of 2024 and has also allowed Saraco to remain efficient and hence reducing manufacturing scrap. Plant maintenance is key to the business to ensure reduced downtime and with additional machinery less changeovers are needed. This additional capacity can only further help growth of Saraco, who continues to increase it's share in the UK market.

Strategy remains to diversify in to new market segments and to open up new opportunities in markets where we had very little presence previously. This strategic move bodes well for future growth.

The increase in trading accounts continues to be key in our development and our risk spreading strategy. New accounts are being secured constantly and importantly are being retained, therefore growth in active accounts continue to remain on a steady and upward trajectory.

Resource planning, upskilling, multiskilling, succession programs continue and are key to driving further production efficiencies and company agility.

Saraco continues to improve on material usage and maximising efficiencies from their enhanced machinery.

Saraco is also streamlining it's supply chain, by investing locally, which shall bring raw materials closer to its manufacturing base, hence helping to be more competitive.

PRINCIPAL RISKS AND UNCERTAINTIES

The group makes little use of financial instruments other than an operational bank account, so its exposure to credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit and loss of the company.

PRICE RISK

The group is exposed to commodity price risk as a result of its operations. The directors believe that the group has adequate controls established to ensure that prices charged to customers reflect any potential large price increases.

FOREIGN EXCHANGE RISK

The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euros. Foreign risk arises from future commercial transaction and recognised assets and liabilities.

HEALTH SAFETY AND ENVIRONMENT

The key tenet of the business continues to be health, safety, quality and the environment. The health and safety of all employees remains paramount.

Our policy aims to provide and support a culture where health, safety, quality and the environment is at the top of everyone's agenda. This has been achieved by ensuring that all our staff, operatives and sub-contractors receive adequate training, have the correct personal protective equipment and feel empowered to raise any concerns that they may have.

ON BEHALF OF THE BOARD:

I M Bapu - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of manufacture and distribution of disposable hygiene products.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 will be £111,018.

DIRECTORS

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

I M Bapu

H Patel

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made a charitable donation of £169,852 (2023: £133,915).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, SCCA Ltd T/a Stafford & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

I M Bapu - Director

26 September 2025

Opinion

We have audited the financial statements of Saraco Industries Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent 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:

Our audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2024.

We planned our audit so that we have so that we would have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with laws or regulations.

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

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

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

- Enquiring of management whether they are aware of any non-compliance with laws and regulations.

- Enquiring of management whether they are aware of any actual, suspected or alleged fraud.

- Enquiring of management whether they had internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.

- Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journal and fraudulent revenue recognition.

- Obtaining an understanding of the regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations that we considered in this context included; the financial framework the company operates under (FRS102) , the UK Companies Act, tax legislation, environmental legislation and licensing legislation.

Audit response to risks identified

Fraud due to management override

- To address the risk of fraud through management bias and override of controls, we:

- Audited the risk of management override of controls, including through testing journal entries for appropriateness.

- Assessed whether judgements and assumptions made in determining the accounting estimates included in the financial statements showed indications of potential bias; and

- Investigated the rationale behind any significant or unusual transactions included in the financial statements.

Fraudulent revenue recognition

- To address the risk of fraudulent revenue recognition we:

- Performed testing on a sample of turnover transactions that occurred during the financial year.

- Performed cut-off testing on turnover around the year end.

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

- Agreeing financial statement disclosures to underlying supporting documentation.

- Enquiring of management as to actual and potential litigation claims they are aware of.

- Reviewing legal costs nominals for evidence of potential litigation or claims.

- Reviewing correspondence with regulators for evidence of non-compliance with laws and regulations.

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for the detection and prevention of fraud, error and non-compliance with laws or regulations rests with the directors.

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.

Robert Stafford BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of SCCA Ltd T/a Stafford & Co

Chartered Accountants

and Statutory Auditor

3 The Studios

320 Chorley Old Road

Bolton

Lancashire

BL1 4JU

26 September 2025

TURNOVER

25,263,857

24,039,682

Cost of sales

21,239,959

21,098,092

GROSS PROFIT

4,023,898

2,941,590

Administrative expenses

2,646,084

2,219,024

1,377,814

722,566

Other operating income

3

308,098

116,287

OPERATING PROFIT

6

1,685,912

838,853

Interest payable and similar expenses

8

88,582

91,867

PROFIT BEFORE TAXATION

1,597,330

746,986

Tax on profit

9

264,114

(146,145

)

PROFIT FOR THE FINANCIAL YEAR

1,333,216

893,131

Profit attributable to:

Owners of the parent

1,333,216

893,131

PROFIT FOR THE YEAR

1,333,216

893,131

OTHER COMPREHENSIVE INCOME

Property revaluation

-

2,004,832

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

2,004,832

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,333,216

2,897,963

Total comprehensive income attributable to:

Owners of the parent

1,333,216

2,897,963

FIXED ASSETS

Tangible assets

12

7,974,951

8,451,140

Investments

13

-

-

7,974,951

8,451,140

CURRENT ASSETS

Stocks

14

3,212,954

3,103,323

Debtors

15

5,950,329

4,888,176

Cash at bank

1,018,946

1,340,379

10,182,229

9,331,878

CREDITORS

Amounts falling due within one year

16

6,158,018

6,472,201

NET CURRENT ASSETS

4,024,211

2,859,677

TOTAL ASSETS LESS CURRENT LIABILITIES

11,999,162

11,310,817

CREDITORS

Amounts falling due after more than one year

17

(1,200,817

)

(1,657,267

)

PROVISIONS FOR LIABILITIES

21

(195,901

)

(273,304

)

NET ASSETS

10,602,444

9,380,246

CAPITAL AND RESERVES

Called up share capital

22

200

200

Revaluation reserve

23

2,004,832

2,004,832

Retained earnings

23

8,597,412

7,375,214

SHAREHOLDERS' FUNDS

10,602,444

9,380,246

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:

I M Bapu - Director

FIXED ASSETS

Tangible assets

12

4,951,618

5,041,828

Investments

13

200

200

4,951,818

5,042,028

CURRENT ASSETS

Debtors

15

-

157,361

Cash at bank

178,002

600,519

178,002

757,880

CREDITORS

Amounts falling due within one year

16

116,790

3,944,565

NET CURRENT ASSETS/(LIABILITIES)

61,212

(3,186,685

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,013,030

1,855,343

CREDITORS

Amounts falling due after more than one year

17

932,917

1,359,917

NET ASSETS

4,080,113

495,426

CAPITAL AND RESERVES

Called up share capital

22

200

200

Retained earnings

23

4,079,913

495,226

SHAREHOLDERS' FUNDS

4,080,113

495,426

Company's profit for the financial year

3,695,705

574,520

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:

I M Bapu - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

200

6,578,412

-

6,578,612

Changes in equity

Dividends

-

(96,329

)

-

(96,329

)

Total comprehensive income

-

893,131

2,004,832

2,897,963

Balance at 31 December 2023

200

7,375,214

2,004,832

9,380,246

Changes in equity

Dividends

-

(111,018

)

-

(111,018

)

Total comprehensive income

-

1,333,216

-

1,333,216

Balance at 31 December 2024

200

8,597,412

2,004,832

10,602,444

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

200

17,035

17,235

Changes in equity

Dividends

-

(96,329

)

(96,329

)

Total comprehensive income

-

574,520

574,520

Balance at 31 December 2023

200

495,226

495,426

Changes in equity

Dividends

-

(111,018

)

(111,018

)

Total comprehensive income

-

3,695,705

3,695,705

Balance at 31 December 2024

200

4,079,913

4,080,113

Cash flows from operating activities

Cash generated from operations

1

1,309,232

182,516

Interest paid

(88,582

)

(91,867

)

Tax paid

(50,000

)

(471,173

)

Net cash from operating activities

1,170,650

(380,524

)

Cash flows from investing activities

Purchase of tangible fixed assets

(14,000

)

(1,280,318

)

Net cash from investing activities

(14,000

)

(1,280,318

)

Cash flows from financing activities

New loans in year

-

1,400,000

Loan repayments in year

(427,000

)

(369,750

)

Amount introduced by directors

-

1,273,966

Amount withdrawn by directors

(753,844

)

-

Equity dividends paid

(111,018

)

(96,329

)

Net cash from financing activities

(1,291,862

)

2,207,887

(Decrease)/increase in cash and cash equivalents

(135,212

)

547,045

Cash and cash equivalents at beginning of year

2

1,154,158

607,113

Cash and cash equivalents at end of year

2

1,018,946

1,154,158

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

1,597,330

746,986

Depreciation charges

490,189

422,478

Decrease in amounts due from associated

(369,161

)

-

Increase in amounts due to associated

-

185,065

Finance costs

88,582

91,867

1,806,940

1,446,396

(Increase)/decrease in stocks

(109,631

)

531,769

(Increase)/decrease in trade and other debtors

(308,309

)

178,800

Decrease in trade and other creditors

(79,768

)

(1,974,449

)

Cash generated from operations

1,309,232

182,516

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

1,018,946

1,340,379

Bank overdrafts

-

(186,221

)

1,018,946

1,154,158

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,340,379

1,095,119

Bank overdrafts

(186,221

)

(488,006

)

1,154,158

607,113

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

1,340,379

(321,433

)

1,018,946

Bank overdrafts

(186,221

)

186,221

-

1,154,158

(135,212

)

1,018,946

Debt

Debts falling due within 1 year

(37,000

)

-

(37,000

)

Debts falling due after 1 year

(1,359,917

)

427,000

(932,917

)

(1,396,917

)

427,000

(969,917

)

Total

(242,759

)

291,788

49,029

1.	STATUTORY INFORMATION

Saraco Industries Holdings 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings up to the 31st December 2024. The results of the subsidiaries acquired are consolidated for the period from or to the date on which control passed. Acquisitions are accounted for under the acquisition method.

Critical accounting judgements and key sources of estimation uncertainty

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

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

The key critical judgements and estimates applied are stock impairment.

The Directors do not consider any significant estimates or judgements are expected to affect the company's assets and liabilities over the next 12 months.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment

losses.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the costs, less estimated residual value, of each assets evenly over its expected useful life, as follows:

Freehold buildings

- 2% straight line

Leasehold land and building

- Over the lease term

Plant and machinery

- 20% straight

Fixtures and fittings

- 20% straight line

Motor vehicles

- 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

In 2023 the Directors agreed to change the accounting policy in relation to the treatment of property and land. A change in accounting policy was made and land and buildings were included at a revalued amount and any previous depreciation, at 2% straight line on property was reversed.