REGISTERED NUMBER: 00878297

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

LAMBSON INNOVATE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

to

4

Report of the Independent Auditors

5

to

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

to

21

DIRECTORS:

M A Lundy

G Monkman

Mrs D C Carlisle

T Russell

D G Bean

SECRETARY:

Mrs D C Carlisle

REGISTERED OFFICE:

Hunt Street

Whitwood Mere

Castleford

West Yorkshire

WF10 1NS

REGISTERED NUMBER:

00878297

AUDITORS:

Allens Accountants Limited

Statutory Auditor and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

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

REVIEW OF BUSINESS

The financial results were in line with expectations of the Board. Turnover decreased from that of last year as demand for our products decreased due to a general downturn in the economy.

Like many businesses our supply chain management is crucial. We have positive relationships with our suppliers. These have been built up over many years and this has stood the business in good stead.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's strategic position is to be a supplier of high quality laminated boards, differentiating itself from other suppliers in the maintenance of high quality product from high quality supplier partnerships.

The company is confident that continued working in partnership with customers and suppliers will mean it will be able to sustain and improve the existing business going forward. The benefits of working with our supply chain partners are key to ensuring consistent supply to the market.

Due to the significant purchases of raw materials in USD it is noted that constant review of this currency fluctuation is necessary. As a result, continual monitoring is undertaken to minimise the risk to gross profit margins.

KEY PERFORMANCE INDICATORS

The company uses a number of KPI's to monitor its performance, many of which have been gleaned from the "Industry Forum", an initiative involving a number of key suppliers involved with one of the industry's major customers. Thus many KPI's are used in working towards a Lean Manufacturing operating environment -

Delivery Schedule Achievement (DSA), Overall Equipment efficiency (OEE) and Machine Not Right First Time (NRFT) performances being 3 of the key monitors of operational efficiency.

Other Financial KPI's such as gross profit margin, debtor / creditor and stock days as well as absolute sales value per month and wages as a percentage of sales value are also reported within the Monthly Management Information packs prepared for Directors and Senior Management.

SUSTAINABILITY AND THE ENVIRONMENT

We continue to work with our customers & supply chain in reducing energy usage. We have our own in-house initiatives to reduce energy consumption including labour efficiencies reducing the need to work full 24 hour shifts and thus reducing overnight energy requirements. We also have our own waste reduction projects which are having the beneficial impact of reducing landfill costs as well as reducing environmental impacts through reduced emissions. Significant investment has been made in 2017 on a new biomass system to eliminate costs from disposal of waste product and generate income from RHI

The company is FSC certificated ensuring chain of custody traceability is available for all of our Far Eastern materials.

OWNERSHIP

The ultimate ownership of the business changed during 2023. The shares in the parent company, Nimbus Building Products Limited, were transferred to an Employee Ownership Trust.

ON BEHALF OF THE BOARD:

Mrs D C Carlisle - Secretary

26th September 2025

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

DIVIDENDS

An interim dividend of £16.67 per share on the Ordinary £0.05 shares was paid on 30th April 2024. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Deferred £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31st December 2024 will be £ 500,000 .

RESEARCH AND DEVELOPMENT

The company invests in bringing new and innovative products to the market.

DIRECTORS

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

M A Lundy

G Monkman

Other changes in directors holding office are as follows:

Mrs D C Carlisle - appointed 1st August 2024

T Russell - appointed 1st August 2024

D G Bean - appointed 1st August 2024

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.

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Mrs D C Carlisle - Secretary

26th September 2025

Opinion

We have audited the financial statements of Lambson Innovate Limited (the 'company') for the year ended 31st 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 31st December 2024 and of its 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 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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

Identifying and assessing potential risks related to irregularities

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

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

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

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

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

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

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

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

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

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

Audit response to risks identified

Our procedure to respond to risks identified included the following:

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

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

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

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

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

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

Use of our report

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

Paul Wright (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

Statutory Auditor and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

26th September 2025

TURNOVER

4

20,760,529

37,334,122

Cost of sales

15,462,845

27,911,688

GROSS PROFIT

5,297,684

9,422,434

Distribution costs

698,242

1,024,997

Administrative expenses

2,616,201

3,019,569

3,314,443

4,044,566

OPERATING PROFIT

6

1,983,241

5,377,868

Interest receivable and similar income

(26,039

)

32,058

1,957,202

5,409,926

Interest payable and similar expenses

7

775,456

888,859

PROFIT BEFORE TAXATION

1,181,746

4,521,067

Tax on profit

8

251,060

1,058,020

PROFIT FOR THE FINANCIAL YEAR

930,686

3,463,047

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

930,686

3,463,047

FIXED ASSETS

Tangible assets

10

2,361,666

2,519,759

CURRENT ASSETS

Stocks

11

8,038,067

9,369,182

Debtors

12

7,015,311

7,282,561

Cash at bank and in hand

1,376,114

27,661

16,429,492

16,679,404

CREDITORS

Amounts falling due within one year

13

8,475,840

9,298,226

NET CURRENT ASSETS

7,953,652

7,381,178

TOTAL ASSETS LESS CURRENT LIABILITIES

10,315,318

9,900,937

PROVISIONS FOR LIABILITIES

17

360,722

377,027

NET ASSETS

9,954,596

9,523,910

CAPITAL AND RESERVES

Called up share capital

18

9,000

9,000

Retained earnings

19

9,945,596

9,514,910

SHAREHOLDERS' FUNDS

9,954,596

9,523,910

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

G Monkman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

9,000

18,051,863

18,060,863

Changes in equity

Dividends

-

(12,000,000

)

(12,000,000

)

Total comprehensive income

-

3,463,047

3,463,047

Balance at 31st December 2023

9,000

9,514,910

9,523,910

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

930,686

930,686

Balance at 31st December 2024

9,000

9,945,596

9,954,596

1.	COMPANY INFORMATION

Lambson Innovate Limited is a company limited by share capital and is incorporated in England and Wales. The registered office address is Hunt Street, Whitwood Mere, Castleford, West Yorkshire, WF10 1NS.

The nature of the company's operations and its principal activity is the sourcing, manufacture and supply of custom laminated boards, principally for the leisure industry.

2.	STATUTORY INFORMATION

Lambson Innovate Limited is a private company, limited by shares , registered in Not specified/Other. The company's registered number and registered office address can be found on the Company Information page.

3.	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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

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

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

Stock valuation

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

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

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

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

iii) the amount of turnover can be measured reliably;

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

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 improvements

-

over the period of the lease

Plant & machinery

-

10 - 20% p.a

Computer equipment

-

33% on cost

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

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

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

Stocks

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

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment.

Cash and cash equivalents

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, together with loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable in one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transactions, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Interest bearing borrowings

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

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Statement of Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.

Pension costs and other post-retirement benefits

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

Dividends

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

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

12,804,976

26,893,490

Europe

7,955,553

10,440,632

20,760,529

37,334,122

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,787,800

2,195,310

Social security costs

185,731

217,367

Other pension costs

75,419

149,054

2,048,950

2,561,731

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

2024

2023

Production staff

47

49

Administrative staff

11

14

58

63

2024

2023

£

£

Directors' remuneration

127,740

-

Directors' pension contributions to money purchase schemes

10,357

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

18,491

10,041

Depreciation - owned assets

257,894

229,640

Auditors' remuneration

12,960

6,330

Hire of motor vehicles

65,928

68,837

Rent lease

401,750

401,750

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

21,861

9,645

Invoice discounting

155,494

141,166

Interest on imports

177,579

267,166

Other loan interest

408,673

470,882

Interest on tax

11,849

-

775,456

888,859

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

267,365

1,044,617

Deferred tax:

Capital allowances in excess of depreciation

(16,305

)

13,403

Tax on profit

251,060

1,058,020

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

1,181,746

4,521,067

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

295,437

1,130,267

Effects of:

Expenses not deductible for tax purposes

4,073

33,965

Utilisation of tax losses

(48,450

)

(40,505

)

Change in rate

-

(65,707

)

enhanced deduction

Total tax charge

251,060

1,058,020

9.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £0.05 each

Interim

500,000

12,000,000

10.	TANGIBLE FIXED ASSETS

Short

leasehold

Plant &

Computer

improvements

machinery

equipment

Totals

£

£

£

£

COST

At 1st January 2024

2,713,153

3,615,569

168,277

6,496,999

Additions

13,127

53,434

33,240

99,801

At 31st December 2024

2,726,280

3,669,003

201,517

6,596,800

DEPRECIATION

At 1st January 2024

1,281,372

2,592,319

103,549

3,977,240

Charge for year

129,541

115,146

13,207

257,894

At 31st December 2024

1,410,913

2,707,465

116,756

4,235,134

NET BOOK VALUE

At 31st December 2024

1,315,367

961,538

84,761

2,361,666

At 31st December 2023

1,431,781

1,023,250

64,728

2,519,759

11.

STOCKS

2024

2023

£

£

Raw materials

7,780,717

9,030,991

Engineering etc stock

14,284

12,765

Finished goods

243,066

325,426

8,038,067

9,369,182

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

3,891,208

6,225,617

Amounts owed by group

undertakings

2,589,856

779,300

Other debtors

179,637

71,121

Tax

153,229

-

VAT

13,084

46,148

Prepayments and accrued income

188,297

160,375

7,015,311

7,282,561

The company is not currently seeking repayment of the amounts owed by group undertakings which are shown as a current asset above.

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts (see note 14)

4,116,156

2,975,749

Trade creditors

1,590,407

963,752

Amounts owed to group undertakings

-

3,590,912

Corporation Tax

-

544,617

Social security and other taxes

50,102

56,359

Invoice finance creditor

2,568,644

569,230

Other creditors

33,154

108,675

Accruals and deferred income

117,377

488,932

8,475,840

9,298,226

14.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

1,374,635

39,684

Bank loans

2,741,521

2,936,065

4,116,156

2,975,749