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

The results of the company for the year are set out in the profit and loss account on page 10. Company turnover for the year was £45,092,607 (2023: £46,089,588) with a profit before taxation of £455,830 (2023: £1,879,259 loss).

Gross margin has improved by 3.83% to 21.18% (2023: 17.35%), this is driven by supply chain price decreases along with increased selling prices to customers and by the expense reductions achieved as a result of continuous improvement activities. Admin costs decreased as a % of turnover to 19.8% (2023: 20.5%); this is driven by a £507k decrease in admin costs and the decrease in the turnover. The inventory value has remained consistent at £10.6m year on year.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the company are detailed below.

Commercial/ price risk

The directors view aggressive price competition to be the predominant risk in the short to medium term, as companies in the sector focus on market share. The company is also exposed to fluctuations in commodity prices which impacts on direct raw material costs and gross margin.

Foreign currency risk

The company is exposed to foreign exchange risk in respect of both sales and purchases, with transactions denominated in a number of currencies including the US Dollar and the Euro.

Ukraine

The conflict in Ukraine has not affected business any further in 2024.

Global Economy Effect

Post supply chain issues during Covid and since with the global freight, are forcing customers to evaluate their supply chains and look to deglobalize where possible to mitigate any future risk. INX have benefited from this by increased intercompany sales and increased sales to our independent customers during 2024. Destocking projects by a lot of customers in 2023 has now reversed as some are trying to mitigate risks posed by ongoing conflicts in various regions.

Middle East

Re-routing of vessels to avoid the conflict may affect inbound raw material deliveries and outbound customer order deliveries. INX UK are continually working with customers proactively to ensure supply chains incorporate any additional disruptions to shipping routes. Thus avoiding any knock on effect to supply.

Environmental matters

Streamlined Energy and Carbon Reporting (SECR) Statement

Introduction

The below statement contains INX International UK Ltd.’s annual energy consumption, associated relevant greenhouse gas emissions, and additional related information, as required under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Methodology

The methodology applied to the calculation of Greenhouse Gas emissions is the ‘GHG Protocol Corporate Accounting and Reporting Standard’. An ‘operational control’ boundary has been applied. Carbon conversion factors have been taken from ‘UK Government GHG Conversion Factors for Company Reporting Emissions are reported’ where available, alternatively in line with Sakata INX we have also used the IDEA conversion factors. Electricity emissions have been reported as ‘location-based’.

Energy Use and Greenhouse Gas Emissions

The table below shows the total annual UK energy use and associated GHG emissions relating to the consumption of electricity & natural gas, for the period of 1st January 2024 – 31st December 2024.

Table – Energy Consumption and Emissions 2024         2023

Electricity (kWh)          3,301,441        3,115,239

Total (kWh)                  3,301,441        3,115,239

Natural gas (m3)                 24,906         22,230

Total (m3)                 24,906         22,230

Diesel oil (L)                      185         480

Total (L)                           185         480

Fugitive emissions (kg)                 -      17.5

Total (kg)                      -         17.5

Scope 1 Direct Emissions (tCO2e)          49.22         69.14

Scope 2 Indirect Emissions (tCO2e)      - -

Scope 3 Other Indirect Emissions (tCO2e)           -          -

Total Emissions (tCO2e)              49.22         69.14

Emissions Intensity (tCO2e/£m turnover)      1.09         1.50

Emissions Intensity

For purposes of baselining and ongoing comparison, it is required to express the emissions using a carbon intensity metric. The intensity metric chosen is £m turnover. The resulting emissions intensity, using location-based emissions, is 1.09 (2023: 1.50).

Energy Efficiency Actions

In 2024 we have continued to improve our preventative maintenance – employing a new Engineering Manager. Additionally, INX invested in a more efficient vat wash system, reducing the need for heating water, reducing waste and also water consumption.

INX continues to evaluate the financial and environmental impact of installing solar panels at the Heywood site. In addition, INX is currently arranging for an energy audit to be completed in 2025.

To meet future climate data reporting requirement INX continues to work on the data collection processes for Scope 1, 2 and 3 information. As well as providing a more robust transition plan to achieve and deliver its future commitments. INX is further developing a process to engage with its supply chain to formalize the process for evaluating their commitment to obtaining and supplying GHG data and any risks associated with the supply chain in relation to ESG topics. In addition, it has the following validated SBTi targets related to supplier engagement and scope 3:-

SAKATA INX CORPORATION also commits that 89% of its suppliers by spend covering purchased goods and services will have science-based targets by 2029.

INX was included in the 2024 submission for CDP for both climate change and water. Sakata INX received a B rating in the latest assessment.

INX has expanded its sustainability function and has employed an ESG Analyst to support the ESG Director.

Both the ESG Director and ESG Analyst have now completed the training for Carbon Literacy and actively obtaining certification to run courses both within INX and also externally. Additionally, they are both Climate Ambassadors supporting the Government STEM initiative.

INX International is currently working on collecting data and calculating its scope 3 GHG emissions. This is underway currently and will be completed for 2024 during 2025. We are currently establishing what data is available, methodologies to enable the collection of this data, sources of carbon emission factors. A team has been set up with the support of the ESG Director to support this process.

Section 172 of the Companies Act 2006 requires a Director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing this, Section 172 requires a Director to have regard, among other matters to:

• the likely consequences of any decision in the long term; the interests of the company’s employees;

• the need to foster the company’s business relationships with suppliers, customers and others;

• the impact of the company’s operations on the community and the environment;

• the desirability of the company maintaining a reputation for high standards of business conduct;

• and the need to act fairly with members of the company.

The Directors give careful consideration to the factors set out above in discharging their duties under section 172.

The senior management team has identified the stakeholders we consider in this regard as being; shareholders, employees, customers, suppliers, governance and regulatory bodies, the local community and the environment in which we operate.

Shareholders

Engagement with our shareholders occurs on a regular basis by management and employees of Inx International UK. We share several resources with Inx International US and have several customer and supplier contracts which are agreed at a parent level. Regular communication takes place on the UK performance and business needs between the Directors and Senior Management of Inx International UK and Inx International US.

Employees

The Company recognises the value of its employees who are a significant contributor to the Company’s success and engages with employees on a regular basis by the way of employee forums, departmental reviews and newsletters. Annual reviews take place with each employee to ensure high standards are maintained and that we continue to develop our employees. We are working towards Investors in People accreditation. We are continuing to work on our Well Being Strategy.

Customers

Customer relationships are an important aspect of our business. The nature of our business is that we have few customers and many of our customers have several locations which we supply goods and inplant services to. This results with us having a very close relationship with many of these customers. Engagement is by regular contact, conducting voice of the customer surveys, annual reviews of service level agreements along with the benchmarking of our inplant services across the different customer manufacturing sites.

Suppliers

Suppliers are selected on the basis of their ability to provide the goods required by the Company at an acceptable price and appropriate level of service. Larger suppliers are mainly selected at a Global level. Suppliers are paid in accordance with terms agreed at the outset of the contract.

Governance and regulatory bodies

The Company ensures it is compliant with all legislative requirements as a minimum standard for its operations. The company is ISO14001 accredited and members of MAKE UK and The British Coatings Federation. Our next goal is to become ISO45001 accredited.

Local communities and environment in which we operate

The Company is aware that its activities may impact the local community and the wider environment in which we operate. Policies are implemented that reduce the impact on the environment whenever possible. One of our current initiatives is to engage with our customers to reduce the amount of plastic we use in our packaging.

Sustainability

The company vision is to work harmoniously with our suppliers and customers to create eco-friendly products that enhance people’s lives. To realise this vision we will innovate packaging, products, and sensorial experiences that are safe, sustainable, and support the circular economy. We will serve as role models in working collaboratively with customers to drive business growth that benefits our employees, consumers, and the environment. We also look to support our local community through ways of charitable events.

Our approach to sustainability can be viewed on our parent company website https://www.inxinternational.com/sustainability.

The Board holds regular meetings and is involved on a daily basis with issues concerning all aspects of the business, which it takes into account in its discussions and its decision-making process under section 172.

On behalf of the board

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

The principal activity of the company in the year is the manufacture and sale of inks for printing on cans. No significant change in the nature of these activities occurred during the year.

The comprehensive profit for the year as set out on page 10 is £330,034 (2023: £2,105,624 loss).

During the year, no dividends were paid (2023: £Nil).

There were no political donations made in the year (2023: £Nil).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The accounts have been prepared under a going concern basis as the directors have a reasonable expectation that the company and immediate parent Inx Group Limited have adequate resources to continue in operational existence for the foreseeable future. The company has £19.5m positive net current assets at the balance sheet date, has access to Inx Europe cash pooling facility for short term needs and access to other formal intergroup funding of $20m which can be drawn down if required.

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the Strategic Report, the 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 they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

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

- assess the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

We have audited the financial statements of Inx International UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 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 contained within the annual report. 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. 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 course of 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 our 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 have been prepared in accordance with applicable legal requirements.

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 in relation to which 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.

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.

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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Companies Act 2006, Health and Safety at Work Act and Employment Law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;

A fuller description of our responsibilities is provided on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 26 form part of the financial statements.

Inx International UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hilltop Road, Hareshill Distribution Park, Off Hareshill Road, Heywood, Lancashire, OL10 2TW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The individual accounts of INX International UK Limited have also adopted the following disclosure exemptions: - the requirement to present a statement of cash flows and related notes. The statement of cash flows and related notes will be provided in the consolidated statements, prepared by Sakata INX Corporation, copies of which are available from 1-23-37, Edobori, Nishi-ku, Osaka, Japan.

On the basis of their assessment of the company's financial position the company's directors have a reasonable expectation that the company will be able to continue in operational existence for the period of 12 months from the date of approval of these financial statements and as a result the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. true

The directors have prepared a detailed cash flow forecast for the next 12 months and subjected this to stress-tests to consider severe but plausible downsides, as well as any mitigating actions the directors could take if required. These forecasts indicate that the company will have sufficient funds to meet its liabilities as they fall due

The company has access to other formal intergroup funding of $20m which can be drawn down if required. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Turnover represents the total invoice value, excluding value added tax, of goods sold and services rendered during the year.

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Assets in the course of construction are not depreciated.

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, 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 directors do not deem there to be any judgments that are critical to the financial statements, however those deemed to have the most effect on the financial statements are inventory and debtor provisioning.

An analysis of the company's turnover is as follows:

The audit fees for the current year and prior year relate to both the company's audit fees, as well as the group auditor's fees.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

During the year employees' benefits in kind amounted to £69,695 (2023: £86,374).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

The corporation tax payable for the year has been reduced to £nil due to trading losses being utilised.

The company has tax estimated losses of £1,031,070 (2023: £1,626,728) remaining to carry forward against future profits.

Raw materials, consumables and changes in finished goods and work in progress recognised as cost of sales in the year amounted to £29,661,624 (2023: £32,281,172).

Interest is charged on Intercompany balances at 3.25%. Balances are repayable on demand.

Bank loans in the previous year consisted of 3 loans and were an unsecured Sterling term facility.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above relates to accelerated capital allowances and pension obligations, it is uncertain when the entire balance is expected to reverse.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount outstanding at the year end to be paid to the scheme was £57,389 (2023: £63,377).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the exemption available in accordance with FRS 102 1.12(e) not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

The share capital of the company is wholly owned by INX Europe Limited registered in England and Wales, which is the immediate parent company. The ultimate parent company is Sakata INX Corporation, a company incorporated in Japan. The consolidated financial statements of this group are available to the public.

The largest group in which the results of the company are consolidated is that headed by Sakata INX Corporation (registered office: 1-23-37, Edobori, Nishi-ku, Osaka, Japan). These consolidated financial statements are available to the public and may be obtained from the registered office of Sakata INX Corporation.

The smallest group in which the results of the company are consolidated is that headed by INX Group Limited (registered office: 150 North Martingale Road, Schaumburg, IL60173, USA). These consolidated financial statements are not available to the public.