REGISTERED NUMBER: 03908736 (England and Wales)

Basetek Limited

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Directors' Report

5

Independent Auditors' Report

8

Statement of Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

J P Ashfield

Mrs F A Ashfield

P J L Ashfield

S J Matthews

SECRETARY:

Mrs F A Ashfield

REGISTERED OFFICE:

3 Lytham Road

Ransomes Europark

Ipswich

Suffolk

IP3 9BL

REGISTERED NUMBER:

03908736 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

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

FAIR REVIEW OF THE BUSINESS

The company’s continued focus on delivering outstanding customer service has been instrumental in securing several significant new procurement contracts during the year. This aligns with the company’s strategic objective of strengthening client relationships and expanding its market presence.

Although turnover for 2024 was marginally lower than in 2023, the company achieved an improved gross profit margin, resulting in a £0.25m increase in gross profit to £5.85m. This reflects an ongoing emphasis on operational efficiency and value-driven delivery.

The directors have maintained strong oversight of overheads, and this, combined with the financial benefits of a robust balance sheet and solid cash generation, has contributed to a £0.67m increase in profit before tax to £3.33m. These results support the company’s strategic goals of sustainable profitability and long-term financial resilience.

PRINCIPAL RISKS AND UNCERTAINTIES

The company mitigates standard commercial risks through professional operations, a highly capable team, and strong relationships with key customers and suppliers across diverse sectors and regions.

The principal risks and uncertainties facing the company are as follows:

Exposure to bad debts

The company operates across a wide geographical market, which increases its exposure to potential bad debts. To mitigate this risk, strict credit control procedures are implemented for both new and existing customers. The age and value of trade debtor balances are closely monitored and reviewed in detail on a weekly basis.

Exposure to exchange rates

The company reports in sterling and conducts operations in multiple foreign currencies. Consequently, it is exposed to foreign exchange risk arising from fluctuations in exchange rates. This risk primarily affects the translation of financial results and the valuation of related net assets. To mitigate this exposure, the company actively employs hedging strategies. These include natural hedging, by aligning sales and purchases in the same currencies, as well as the use of forward exchange contracts.

Financial risk

In line with standard business practice, the company is committed to minimising financial risk. The directors employ a range of measures to manage this risk, including the preparation of regular management accounts and the close monitoring of cash flow.

SECTION 172(1) STATEMENT

Promoting the success of the company

The Companies (Miscellaneous Reporting) Regulations 2018 requires companies to publish a statement explaining how the directors have had regard to matters set out in Section 172(1) (a) to (f) of the Companies Act 2006 in performing their duties under Section 172.

In accordance with Section 172, the directors confirm that they have acted in a way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its stakeholders as a whole. The paragraphs below summarise how the directors have had regard to the matters set out in Section 172(1) (a) to (f) of the Act.

The likely consequences of any decision in the long-term

The directors carefully consider the long-term impact of their decisions, evaluating the potential future consequences to ensure that the interests of all stakeholders are appropriately addressed. These decisions may relate to tendering for contracts, maintaining company profitability, or supporting employee well-being.

The interest of the company's employees

The company is committed to creating an environment where individuals can achieve success in the short term while also fostering opportunities for long-term growth and sustainability. Our employees are at the heart of our operations, representing the company in delivering our core activities and strategic goals. We strive to be a responsible employer within the local community—offering fair pay and benefits, and maintaining a strong focus on health, safety, and a positive workplace environment.

Some key focuses from 2024 include:

- Staff socials for interaction outside of work.

- Investment in staff training.

The need to foster business relationships

The directors recognise that strong business relationships are essential to long-term success. From global suppliers to international customers, the company is committed to promoting and applying its core principles to maintain mutually beneficial partnerships.

Suppliers play a critical role in delivering the high-quality service our customers expect. The company has cultivated successful and trusted relationships with suppliers worldwide, supporting the achievement of its strategic objectives. Similarly, customers have come to expect a consistent level of service that is central to their satisfaction, and ultimately to their decision to renew or expand their contracts with the company.

The community and the environment

Our employees are proud members of the local community, and we actively support local charitable initiatives to give back and strengthen the neighborhoods where we live and work.

In line with our commitment to sustainability, we have installed solar panels on our office and warehouse facilities and transitioned to electric vehicles. These efforts are part of our ongoing strategy to reduce our carbon footprint and promote environmental responsibility.

Maintain high standards of business conduct

Being economically, environmentally, and socially responsible requires maintaining high standards of business conduct. The company upholds these standards to support effective decision-making and regularly monitors performance to ensure compliance.

The directors recognise their important role in promoting and overseeing a company culture that reflects the desired values, attitudes, and behaviours. This includes ensuring that these principles are evident in their actions and in the way they engage with stakeholders.

The need to act fairly between members of the company

The directors evaluate which course of action will best deliver the company’s long-term strategy, while considering its impact on all stakeholders and balancing the company’s interests with theirs.

KEY PERFORMANCE INDICATORS

The directors consider the following key performance indicators are those that communicate the financial performance and strength of the company:

2024

2023

£

£

Turnover

39,867,526

41,412,830

Gross profit

5,850,928

5,596,938

Gross profit rate

14.68%

13.51%

Profit before taxation

3,332,661

2,667,168

Net assets

14,777,626

13,364,776

EBITDA

3,362,679

2,855,055

ON BEHALF OF THE BOARD:

J P Ashfield - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the global procurement of engineering and associated products.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was £1,085,626 (2023: £242,500). The directors do not propose a final dividend.

FUTURE DEVELOPMENTS

The directors will continue to explore new markets and opportunities in order to build upon the company's strong position.

DIRECTORS

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

J P Ashfield

Mrs F A Ashfield

P J L Ashfield

S J Matthews

ENERGY AND CARBON REPORT

The company's annual greenhouse gas emissions and energy data for the financial year ended 31 December 2024 was as follows:

2024

2023

Energy consumption

kWh

kWh

Aggregate of energy consumption in the year

158,981

143,311

2024

2023

Emissions of CO2 equivalent

metric tonnes

metric tonnes

Scope 1 - direct emissions

- Gas combustion

1.29

1.45

- Fuel consumed by owned transport

0.00

0.00

- Electric

1.71

1.63

3.00

3.08

Scope 2 - indirect emissions

- Electricity purchased

-12.82

-7.81

Scope 3 - other indirect emissions

- Fuel consumed by non owned transport

0.36

6.15

Total gross emissions

-9.46

1.42

Intensity ratios

Tonnes CO2e per £ sales revenue

-0.00000024

0.000000034

Tonnes CO2e per average no. employee

-0.24

0.03

Quantification and reporting methodology

The company has followed the 2019 HM Government Environmental Reporting Guideline. The company has also

used the GHG Reporting Protocol - Corporate Standard and the 2020 UK Government conversion factors.

Intensity measurement

The chosen intensity measurement ratios are tonnes of CO2 per £ of sales revenue and tonnes of CO2 per

employee.

DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT

Under Section 414c(ii) of the Companies Act 2006, the following information is included within the Strategic Report:

(a) a review of the business including developments in the year, performance and current position;

(b) a summary of the principal risks and uncertainties affecting the position of the company; and

(c) information relating to the KPIs of the company.

DIRECTORS' RESPONSIBILITIES STATEMENT

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 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), including Financial Reporting Standard 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 accounting estimates that are reasonable and prudent;

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

-	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, Knights Lowe Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J P Ashfield - Director

26 September 2025

Opinion

We have audited the financial statements of Basetek Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page seven, 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 an Auditors' 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.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates. Through discussions with the directors we identified laws, regulations and certifications that could reasonably be expected to have a material effect on the financial statements. The details of these discussions were shared with the audit team and considerations given as to where and how fraud may occur in the company.

The laws, regulations and certifications considered as being significant to the company included UK company law and financial reporting standards, Incoterms 2020, ISO 9001 certification, ISO 14001 certification and Cyber Essentials Plus certification.

We undertook audit procedures in response to the potential risks relating to irregularities which includes risks of fraud and non-compliance with laws and regulations. These procedures comprised of enquiry with management concerning any actual or potential claims or litigation, review and testing of journal and other entries to the nominal ledger both in the audited year and after the statement of financial position date, review of post year end transactions to identify any legal proceedings after the statement of financial position date, along with undertaking analytical procedures to assist in identifying any unexpected amounts and variances within the financial statements that may be an indication of fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are however inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been undertaken in accordance with the applicable standards.

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 Auditors' Report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' 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.

Michael Mortimer FCA FCCA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

26 September 2025

TURNOVER

4

39,867,526

41,412,830

Cost of sales

34,016,598

35,815,892

GROSS PROFIT

5,850,928

5,596,938

Distribution costs

232,171

274,658

Administrative expenses

2,333,635

2,555,918

2,565,806

2,830,576

OPERATING PROFIT

7

3,285,122

2,766,362

Interest receivable and similar income

145,103

1,551

3,430,225

2,767,913

Interest payable and similar expenses

8

97,564

100,745

PROFIT BEFORE TAXATION

3,332,661

2,667,168

Tax on profit

9

834,185

666,678

PROFIT FOR THE FINANCIAL YEAR

2,498,476

2,000,490

OTHER COMPREHENSIVE INCOME

Foreign currency retranslation

-

(5,599

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(5,599

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,498,476

1,994,891

FIXED ASSETS

Tangible assets

11

5,257,539

5,301,620

Investments

12

6

6

5,257,545

5,301,626

CURRENT ASSETS

Stocks

13

4,920,159

4,827,523

Debtors

14

6,301,717

6,744,633

Cash at bank and in hand

5,026,325

5,301,992

16,248,201

16,874,148

CREDITORS

Amounts falling due within one year

15

6,365,498

8,467,072

NET CURRENT ASSETS

9,882,703

8,407,076

TOTAL ASSETS LESS CURRENT LIABILITIES

15,140,248

13,708,702

PROVISIONS FOR LIABILITIES

16

362,622

343,926

NET ASSETS

14,777,626

13,364,776

CAPITAL AND RESERVES

Called up share capital

17

205

205

Capital redemption reserve

18

5

5

Retained earnings

18

14,777,416

13,364,566

SHAREHOLDER FUNDS

14,777,626

13,364,776

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:

J P Ashfield - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

205

11,612,175

5

11,612,385

Changes in equity

Dividends

-

(242,500

)

-

(242,500

)

Total comprehensive income

-

1,994,891

-

1,994,891

Balance at 31 December 2023

205

13,364,566

5

13,364,776

Changes in equity

Dividends

-

(1,085,626

)

-

(1,085,626

)

Total comprehensive income

-

2,498,476

-

2,498,476

Balance at 31 December 2024

205

14,777,416

5

14,777,626

1.	STATUTORY INFORMATION

Basetek Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Basetek (Holdings) Limited, a copy of which can be obtained from the directors at 3 Lytham Road, Ransomes Europark, Ipswich, IP3 9BL. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(e) No disclosure has been given for the aggregate remuneration of key management personnel.

Preparation of consolidated financial statements

The financial statements contain information about Basetek Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Basetek (Holdings) Limited, 3 Lytham Road, Ransomes Europark, Ipswich, Suffolk, IP3 9BL.

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.

Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. These estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these judgements and estimates have been made include:

(a) Impairment of investments

The company reviews all investments for indication of impairment. It is considered that the investment in Dubai Marine and Charter S.A. has been impaired in full and therefore written down to nil. The details are disclosed in note 12.

(b) Recoverability of debtor balances

The company makes an estimate of the recoverable value of trade and other debtors. This estimate is based on a number of factors including the ageing profile of the debtors and historical experience. When necessary, a provision is made to reduce the net carrying value.

(c) Provisions

Due to the nature of provisions, a significant part of their determination is based upon estimates and/or judgements concerning the future. A provision has previously been recognised to the extent that the losses of the associate (Dubai Marine and Charter S.A.) are in excess of the investment value.

(d) Useful economic lives of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Revenue recognition

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

Turnover is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Transfers of risks and rewards vary depending on the nature of the products sold and the individual terms of the contract of sale. Sales made under internationally accepted trade terms, Incoterms 2020, are recognised as revenue when the company has completed the primary duties required to transfer risks as defined by the International Chamber of Commerce Official Rules for the Interpretation of Trade Terms. Sales made outside Incoterms 2020 are generally recognised on delivery to the customer.

Tangible fixed assets

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

Freehold property

-

4% on cost and 2% on cost

Plant and machinery

-

25% on cost

Office furniture

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Freehold land is not depreciated.

Investments in subsidiaries and associates

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price. Unless repayable on demand, a financing transaction is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in the Statement of Comprehensive Income. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the Statement of Comprehensive Income, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in the Statement of Comprehensive Income immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised on taxable profit for the current and past periods. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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

Foreign currency translations are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges ruling at the date of transaction.

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 the Statement of Comprehensive Income in the period to which they relate.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Statement of Financial Position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the Statement of Comprehensive Income unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the Statement of Comprehensive Income in the period it arises.

Going concern

At the time of approving the financial statements, the directors hold a reasonable expectation that the company has adequate resources to maintain operational existence for the foreseeable future. Accordingly, the directors continue to apply the going concern basis of accounting in the preparation of the financial statements.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company. An analysis by geographical market has not been provided as the directors consider that it would be seriously prejudicial to the interests of the company to disclose this information.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,373,270

1,453,383

Social security costs

139,776

144,233

Other pension costs

77,752

112,950

1,590,798

1,710,566

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

2024

2023

Operational and administration

37

38

Warehouse

3

3

40

41

6.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

169,034

162,554

Directors' pension contributions to money purchase schemes

7,017

46,838

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

Money purchase schemes

2

3

7.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation - owned assets

77,557

88,693

Loss on disposal of fixed assets

4,763

-

Auditors' remuneration - audit of these financial statements

32,600

29,700

Auditors' remuneration for non audit work

28,990

26,625

Foreign exchange differences

253,140

216,388

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest payable

97,564

100,745

9.

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

815,489

661,659

Deferred:

Origination and reversal of

timing differences

18,696

5,019

Tax on profit

834,185

666,678

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

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

3,332,661

2,667,168

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

833,165

666,792

Effects of:

Expenses not deductible for tax purposes

1,082

5,443

on deferred tax provision

Other timing differences

(62

)

1,372

Marginal relief

-

(41,619

)

Impairment of amounts owed by associated company

-

27,818

Share of associated company losses

-

6,872

Total tax charge

834,185

666,678

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2024.

2023

Gross

Tax

Net

£

£

£

Foreign currency retranslation

(5,599

)

-

(5,599

)

10.

DIVIDENDS

2024

2023

£

£

Interim

1,085,626

242,500