REGISTERED NUMBER: 06444981 (England and Wales)

LUMISHORE LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 JANUARY 2024 TO 28 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

13

DIRECTORS:

S Biddlecombe

J Seymour

J Wagstaff

REGISTERED OFFICE:

Unit D12

Ashmount Business Park

Upper Fforest Way

Swansea Enterprise Park

Swansea

SA6 8QR

REGISTERED NUMBER:

06444981 (England and Wales)

SENIOR STATUTORY AUDITOR:

Henry Lloyd-Davies

AUDITORS:

Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The directors present their strategic report for the period 1 January 2024 to 28 December 2024.

REVIEW OF BUSINESS

The company is 100% focused on the Marine Leisure lighting markets for all boat sizes from small runabouts and tenders to Superyachts. The directors consider that the key financial performance indicators are those that monitor the performance in respect of the geographical split of this business.

2024

2023

£'000000

£'000000

United Kingdom

1.466

1.709

Europe

3.309

3.223

United States of America

3.670

3,461

Rest of World

987

736

It should be noted that the vast majority of UK sales are to Boatbuilders who, themselves, are primarily exporters outside the UK.

The company continued to trade strongly with steady growth of 3% taking annual turnover to £9,4m (2023: £9.1m). Europe, USA and Rest of World sales have shown growth of 2.6%, 6.0% and 34.1% respectively. In the UK there was a slight fall in sales of 14.2% due to some customers showing some liquidity issues.

On the 30th September 2024 the Lumishore group was purchased by the Garmin Nederlands BV, part of the global Garmin group. On this date, the existing directors resigned and S Biddlecombe, J Seymour and J Wagstaff were appointed. Garmin is a multinational technology company that primarily designs, develops, manufactures and distributes GPS-enabled products in the Auto-OEM, Marine, Aviation, Outdoor and Fitness markets.

On 17th December 2024, a restructuring of the group took place and Global Lighting & Vision Systems Limited (GLVS Ltd), the direct parent company of Lumishore Limited, was purchased by Garmin (Europe) Limited, based in the UK. On the 19th December 2024 Lumishore Limited sold its subsidiary Lumishore USA LLC to Garmin Limited for $9,542,160 which resulted in a gain on disposal (after translation) of £6,153,405.

It is the intention of the directors that in the future Lumishore Limited and its parent Global Lighting and Vision Systems Limited will be amalgamated with Garmin (Europe) Limited.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces a number of business risks and uncertainties due to worsening trading conditions and new competition. In view of this, the directors are looking carefully at both existing and potential new markets. In particular, this table sets out the key risks that have been identified, with the company's approach to mitigating those risks.

Risk

Impact on company

Mitigation

Supply chain and economic disruption

Lumishore has a number of key suppliers required for raw materials. There is risk to margins or manufacturing disruptions should these suppliers no long trade or have issues on distribution.

Responsive action continues to be taken to widen the supplier base following disruptions to the supply chain and have alternative suppliers for key electronic components.The company is continuing to work closely with its new and long-standing suppliers to minimise the risk of future disruption.

Global Macroeconomic uncertainty

Global macroeconomic changes such as significant such as war, tariffs and global uncertainty could cause supply chain disruptions and impacts on commodity prices.

Action is being taken to widen the supplier base, in particular in relation to specialist metal supply. The company is continuing to work closely with its new and long-standing suppliers to minimise the risk of future disruption.

Macroeconomic uncertainty in UK

At present, there is an increased level of macroeconomic uncertainty, including sustained higher interest rates, cost and wage inflation. This is starting to impact on levels of customer demand, risk of non-payment and a rise in our own operational costs particularly in relation to our supply chain.

We are actively monitoring the situation and have contingency measures in place to manage these risks which include the widening of the supplier base and working with those suppliers to build relationships and obtain the best possible prices. The company has a global customer base to spread the risk across many countries.

Exposure to foreign markets

The company has significant exposure to overseas markets. Changing legislation in other regulations can affect product specification, as does the effect of the UK having left the European Union. More diversity in legislation can only increase manufacturing costs.

The company continues to prioritise its overseas markers against the limited UK market. The USA will remain a significant part of the global marine market.

Product obsolescence

The technology industry is fast moving and there are risks associated with investing too heavily in a product that then becomes obsolete. In particular, this can lead to wasted development costs, written off inventory and opportunity cost of time that could have been invested in other areas. There is also a reputational risk in being associated with out of date products.

Continuous monitoring of the trade and popular press allows identification of trends and in future years funds will be set aside for speculative research to identify the best avenues for development (historically, efforts have been focused on development rather than identification of products).

New entrants to the market

Prima faciae, barriers to entry are fairly low, and new entrants who specialise in only one item and invest significant capital can make cost savings, particularly if their production is based overseas. New entrants can therefore potentially offer low selling prices to gain initial market share, which directly affects sales.

The company has a sufficiently diverse product range to allow some absorption of issues from temporary loss of trade. Development of new products continues, with effort directed towards innovation so that the company's products can be clearly distinguished from those of competitors. This is particularly true in the area of systems integration and communication where the company continues to lead the industry.

Climate risk

The company being in the manufacturing industry faces increasing challenges associated with environmental and social externalities attributed to product manufacturing, transport, use and disposal. Rapid obsolescence of hardware products may worsen these externalities.

The company continually assesses the climate related risks and the risks identified are integrated into our existing risk management processes to proactively manage the risks.

FUTURE MARKETS

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. The company will continue to focus on industry diversification and development of new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position.

FINANCIAL EXPOSURES

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling, US dollars and Euros with all foreign currency transactions subject to currency exposure. The company does not enter into any formally designated hedging arrangements.

RESEARCH AND DEVELOPMENT

The company continues to invest in expanding its product portfolio as well as innovating in the areas of integration and communication.

ON BEHALF OF THE BOARD:

S Biddlecombe - Director

30 May 2025

The directors present their report with the financial statements of the company for the period 1 January 2024 to 28 December 2024.

DIVIDENDS

The total distribution of dividends for the period ended 28 December 2024 will be £ 7,490,122 .

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors who have held office during the period from 1 January 2024 to the date of this report are as follows:

G P Evans - resigned 30 September 2024

E Evans - resigned 30 September 2024

S Biddlecombe - appointed 30 September 2024

J Seymour - appointed 30 September 2024

J Wagstaff - appointed 30 September 2024

GOING CONCERN

The directors have prepared these accounts on a going concern basis, which assumes the company will continue to be able to meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements. The entity has recently been acquired, and there is potential for it to be integrated into the parent company within the next 12 months following the approval of the financial statements. This integration introduces a material uncertainty regarding the entity's ability to continue as a going concern.

However, it is important to note that the entity currently possesses substantial reserves and maintains significant operational activity. These factors support the entity's ability to continue as a going concern independently, should the integration not proceed.

While the final decision regarding the integration has not been made, the entity's financial health and operational viability provide a strong foundation for its continued existence as a standalone entity.

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

AUDITORS

The auditors, Bevan Buckland LLP (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Biddlecombe - Director

30 May 2025

Opinion

We have audited the financial statements of Lumishore Limited (the 'company') for the period ended 28 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 28 December 2024 and of its profit for the period 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.

Material uncertainty relating to going concern

We draw attention to note 2 in the financial statements, which explains that the entity has recently been acquired, and there is potential for it to be integrated into the parent company within the next 12 months following the date of approval of these financial statements. As stated in note 2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 five, 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. 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.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

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

-

enquiring of management, including obtaining and reviewing support documentation, concerning the company's 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;

-

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

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management 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;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

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.

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.

Henry Lloyd-Davies (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

30 May 2025

TURNOVER

3

9,432,663

9,128,136

Cost of sales

4,839,575

5,202,577

GROSS PROFIT

4,593,088

3,925,559

Distribution costs

160,798

162,701

Administrative expenses

3,085,202

1,975,888

3,246,000

2,138,589

1,347,088

1,786,970

Other operating income

260,933

261,318

Gain/loss on revaluation of investments

-

11,095

OPERATING PROFIT

5

1,608,021

2,059,383

Profit/loss on sale of tangible fixed assets

6

(12,836

)

-

Profit/loss on sale of investments

6

6,159,487

-

7,754,672

2,059,383

Interest receivable and similar income

42,378

16,393

7,797,050

2,075,776

Interest payable and similar expenses

7

10

11

PROFIT BEFORE TAXATION

7,797,040

2,075,765

Tax on profit

8

357,765

322,193

PROFIT FOR THE FINANCIAL PERIOD

7,439,275

1,753,572

Retained earnings at beginning of period

2,111,556

2,357,984

Dividends

9

(7,490,122

)

(2,000,000

)

RETAINED EARNINGS AT END OF PERIOD

2,060,709

2,111,556

FIXED ASSETS

Tangible assets

10

1,239,538

780,769

Investments

11

-

1,071,315

1,239,538

1,852,084

CURRENT ASSETS

Stocks

12

2,336,122

2,576,997

Debtors

13

1,635,252

1,858,458

Cash at bank

1,662,466

1,012,307

5,633,840

5,447,762

CREDITORS

Amounts falling due within one year

14

4,530,844

4,811,969

NET CURRENT ASSETS

1,102,996

635,793

TOTAL ASSETS LESS CURRENT LIABILITIES

2,342,534

2,487,877

PROVISIONS FOR LIABILITIES

16

279,825

374,321

NET ASSETS

2,062,709

2,113,556

CAPITAL AND RESERVES

Called up share capital

17

2,000

2,000

Retained earnings

18

2,060,709

2,111,556

SHAREHOLDERS' FUNDS

2,062,709

2,113,556

The financial statements were approved by the Board of Directors and authorised for issue on 30 May 2025 and were signed on its behalf by:

S Biddlecombe - Director

1.	STATUTORY INFORMATION

Lumishore 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

The directors have prepared these accounts on a going concern basis, which assumes the company will continue to be able to meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements. The entity has recently been acquired, and there is potential for it to be integrated into the parent company within the next 12 months following the approval of the financial statements. This integration introduces a material uncertainty regarding the entity's ability to continue as a going concern.

However, it is important to note that the entity currently possesses substantial reserves and maintains significant operational activity. These factors support the entity's ability to continue as a going concern independently, should the integration not proceed.

While the final decision regarding the integration has not been made, the entity's financial health and operational viability provide a strong foundation for its continued existence as a standalone entity.

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.

Preparation of consolidated financial statements

The financial statements contain information about Lumishore 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 undertakings are included by full consolidation in the consolidated financial statements of its parent, Garmin Ltd, Muehlentalstrasse 2, 8200 Schaffhausen, Switzerland.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates arid 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.

Useful economic lives of tangible assets

The annual depreciation charges for tangibles 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 reassessed 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. See following notes for the useful economic lives for each class of assets.

Provision against slow moving and obsolete stock

During the year and at the balance sheet date the directors quantify the stock items deemed obsolete or slow moving. This is considered in reference to older stock items no longer marketed and stock items not bought or sold for a period of time. The company include provisions in their valuations for these items, however the actual amount of obsolete and slow moving stock may vary from these estimates.

Provision against potential bad debts

During the year and at the balance sheet date the directors quantify the amounts recoverable on any debtors still outstanding.

Provision against warranty items

During the year and at the balance sheet date the directors assess the level of returns against each product line and provide for an appropriate level of warranty returns in line with this assessment. The assessment is based on historical data and may vary from actual warranty returns incurred in the future. An additional provision is made around warranty costs on Super Yacht products, this is estimated using information available at the time and actual costs associated with these warranty claims may differ from this estimate.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company operates a manufacturing operation that sell a range of on board and below board boat lighting products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery.

Sales are made to customers with a 1-3 year warranty, subject to certain conditions regarding the usage and investigation of any faults. Accumulated experience is used to estimate and provide for such returns at the time of sale.

Tangible fixed assets

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

Improvements to property

-

in accordance with the property lease

Plant and Machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

Straight line over 4 years

Computer equipment

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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.

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.

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.

Fixed asset investments

Fixed asset investments in subsidiaries are stated at cost. Provision is made where, in the opinion of the directors, there has been a permanent diminution in the carrying value of a fixed asset investment.

Warranties

The company provides warranties of between 1 and 3 years on a number of its products. A warranty provision is assessed at each year end, in reference to the failure rates reported by product type, with specific provisions made where appropriate. There no specific provisions at this time. Provisions are released at the end of the warranty period.

Government Grants

Government grants towards revenue items are released to the profit and loss account when the expenditure is incurred.

Cash at bank and cash in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price.

Provision for liabilities

Provisions are recognised when the company has a present obligation (legal and constructive) from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Functional and Presentation Currency

The company's functional and presentation currency is pounds sterling.

Financial instruments

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.

Basic financial assets

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.

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

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

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.

Derecognition of financial liabilities

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

3.

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:

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

United Kingdom

1,465,898

1,708,716

Europe

3,309,477

3,222,931

United States of America

3,670,072

3,460,941

Rest of world

987,216

735,548

9,432,663

9,128,136

4.	EMPLOYEES AND DIRECTORS

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Wages and salaries

2,517,980

1,967,842

Social security costs

3,712

5,139

2,521,692

1,972,981

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

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

Directors

2

2

Management staff

7

7

Operational staff

41

43

50

52

The directors of the company are deemed the Key Management Personnel.

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Directors' remuneration

96,000

99,053

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Hire of plant and machinery

3,494

579

Other operating leases

1,775

-

Depreciation - owned assets

229,289

153,294

Auditors' remuneration:

Audit Fee

34,970

14,000

Auditors' remuneration:

Non audit fees

17,893

17,000

Foreign exchange differences

94,116

60,729

R&D expenditure

-

72,564

6.	EXCEPTIONAL ITEMS

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Profit/loss on sale of tangible fixed assets

(12,836

)

-

Profit/loss on sale of investments

6,159,487

-

6,146,651

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Interest paid

10

11

8.

TAXATION

Analysis of the tax charge

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

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Current tax:

UK corporation tax

243,261

356,178

Under/(Over) provision in prior year

-

(15,524

)

Total current tax

243,261

340,654

Deferred tax

114,504

(18,461

)

Tax on profit

357,765

322,193

Reconciliation of total tax charge included in profit and loss

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

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Profit before tax

7,797,040

2,075,765

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

1,949,260

518,941

Effects of:

Expenses not deductible for tax purposes

(1,499,370

)

1,853

Depreciation in excess of capital allowances

2,631

-

Adjustments to tax charge in respect of previous periods

-

(15,557

)

R&D adjustments

(94,756

)

(109,292

)

Superdeduction

-

(169

)

Patent box claim

-

(51,177

)

Marginal rate adjustment

-

(22,406

)

Total tax charge

357,765

322,193

9.

DIVIDENDS

Period

1.1.24

to

Year Ended

28.12.24

31.12.23

£

£

Final

7,490,122

2,000,000