REGISTERED NUMBER: 10950807 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Shalico Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

P Randall

Mrs K K Rodgers

N B Spafford

Mrs S Spafford

SECRETARY:

P Randall

REGISTERED OFFICE:

9 Westwood Business Park

Brunel Road

Totton

Southampton

Hampshire

SO40 3YS

REGISTERED NUMBER:

10950807 (England and Wales)

AUDITORS:

Roches

1 Manor Court

6 Barnes Wallis Road

Segensworth

Fareham

Hampshire

PO15 5TH

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

This Strategic Report has been prepared in accordance with the requirements of Section 414 of the Companies Act 2006. Its purpose is to inform members of the company and help them assess how the directors have performed their duty to promote the success of the company in accordance with Section 172 of the Companies Act 2006

REVIEW OF BUSINESS

Financial review and group key performance indicators:

2024 2023

Revenue £13.2m £12.1

Gross margin 43.3% 40.7%

Operating margin 12.3% 7.4%

Net profit before tax £1.6m £0.9m

The Group had a strong performance in 2024 with strong growth and improved margins and profitability.

The order book is strong entering 2025 and the company anticipates strong results for the foreseeable future.

ON BEHALF OF THE BOARD:

P Randall - Director

29 September 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

P Randall

Mrs K K Rodgers

N B Spafford

Mrs S Spafford

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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 group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

P Randall - Director

29 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

Identifying and assessing potential risks related to irregularities

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

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

o the Company's own assessment of the risks that irregularities may occur either as a result of fraud or error;

o results of our enquiries of management about their own identification and assessment of the risks of irregularities;

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

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

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

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

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

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Conduct Authority regulations, pensions and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included the competition and anti-bribery laws, data protection and employment, environmental and health and safety regulations.

Audit response to risks identified

As a result of performing the above, we identified the disclosure of adjusting items as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains this matter in more detail and also describes the specific procedures we performed in response to that key audit matter.

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

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

o enquiring of management concerning actual and potential litigation and claims;

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

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

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

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

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

Use of our report

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

Richard Roche (Senior Statutory Auditor)

for and on behalf of Roches

1 Manor Court

6 Barnes Wallis Road

Segensworth

Fareham

Hampshire

PO15 5TH

29 September 2025

TURNOVER

3

13,164,508

12,081,761

Cost of sales

7,467,465

7,164,867

GROSS PROFIT

5,697,043

4,916,894

Administrative expenses

4,080,158

3,971,181

1,616,885

945,713

Other operating income

57,446

54,926

OPERATING PROFIT

5

1,674,331

1,000,639

Interest receivable and similar income

6,557

2,104

1,680,888

1,002,743

Interest payable and similar expenses

6

57,637

103,623

PROFIT BEFORE TAXATION

1,623,251

899,120

Tax on profit

7

617,749

316,051

PROFIT FOR THE FINANCIAL YEAR

1,005,502

583,069

Profit attributable to:

Owners of the parent

1,005,502

583,069

PROFIT FOR THE YEAR

1,005,502

583,069

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,005,502

583,069

Total comprehensive income attributable to:

Owners of the parent

1,005,502

583,069

FIXED ASSETS

Intangible assets

9

-

690,174

Tangible assets

10

449,542

309,602

Investments

11

-

-

449,542

999,776

CURRENT ASSETS

Stocks

12

134,841

165,568

Debtors

13

3,585,034

3,352,140

Cash at bank and in hand

2,904,404

2,755,043

6,624,279

6,272,751

CREDITORS

Amounts falling due within one year

14

3,222,132

4,154,008

NET CURRENT ASSETS

3,402,147

2,118,743

TOTAL ASSETS LESS CURRENT LIABILITIES

3,851,689

3,118,519

CREDITORS

Amounts falling due after more than one year

15

(36,061

)

(341,481

)

PROVISIONS FOR LIABILITIES

19

(99,377

)

(66,289

)

NET ASSETS

3,716,251

2,710,749

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

3,715,251

2,709,749

SHAREHOLDERS' FUNDS

3,716,251

2,710,749

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

P Randall - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

6,893,272

6,893,272

6,893,272

6,893,272

CURRENT ASSETS

Debtors

13

350,000

350,000

Cash at bank and in hand

119,063

252,579

469,063

602,579

CREDITORS

Amounts falling due within one year

14

7,200,538

6,935,456

NET CURRENT LIABILITIES

(6,731,475

)

(6,332,877

)

TOTAL ASSETS LESS CURRENT LIABILITIES

161,797

560,395

CREDITORS

Amounts falling due after more than one year

15

-

338,307

NET ASSETS

161,797

222,088

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

160,797

221,088

SHAREHOLDERS' FUNDS

161,797

222,088

Company's loss for the financial year

(60,291

)

(109,135

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

P Randall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

2,126,680

2,127,680

Changes in equity

Total comprehensive income

-

583,069

583,069

Balance at 31 December 2023

1,000

2,709,749

2,710,749

Changes in equity

Total comprehensive income

-

1,005,502

1,005,502

Balance at 31 December 2024

1,000

3,715,251

3,716,251

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

330,223

331,223

Changes in equity

Total comprehensive income

-

(109,135

)

(109,135

)

Balance at 31 December 2023

1,000

221,088

222,088

Changes in equity

Total comprehensive income

-

(60,291

)

(60,291

)

Balance at 31 December 2024

1,000

160,797

161,797

Cash flows from operating activities

Cash generated from operations

1

1,521,796

2,596,119

Interest paid

(57,637

)

(103,623

)

Tax paid

(364,506

)

(131,535

)

Net cash from operating activities

1,099,653

2,360,961

Cash flows from investing activities

Purchase of tangible fixed assets

(241,646

)

(56,110

)

Sale of tangible fixed assets

4,000

-

Interest received

6,557

2,104

Net cash from investing activities

(231,089

)

(54,006

)

Cash flows from financing activities

Loan repayments in year

(757,226

)

(698,126

)

Capital repayments in year

38,023

(20,051

)

Net cash from financing activities

(719,203

)

(718,177

)

Increase in cash and cash equivalents

149,361

1,588,778

Cash and cash equivalents at beginning of year

2

2,755,043

1,166,265

Cash and cash equivalents at end of year

2

2,904,404

2,755,043

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

31.12.24

31.12.23

£

£

Profit before taxation

1,623,251

899,120

Depreciation charges

789,272

774,821

Profit on disposal of fixed assets

(1,392

)

-

Finance costs

57,637

103,623

Finance income

(6,557

)

(2,104

)

2,462,211

1,775,460

Decrease/(increase) in stocks

30,727

(47,069

)

Increase in trade and other debtors

(232,894

)

(799,071

)

(Decrease)/increase in trade and other creditors

(738,248

)

1,666,799

Cash generated from operations

1,521,796

2,596,119

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,904,404

2,755,043

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,755,043

1,166,265

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,755,043

149,361

2,904,404

2,755,043

149,361

2,904,404

Debt

Finance leases

(18,496

)

(38,023

)

(56,519

)

Debts falling due within 1 year

(755,914

)

418,924

(336,990

)

Debts falling due after 1 year

(338,307

)

338,307

-

(1,112,717

)

719,208

(393,509

)

Total

1,642,326

868,569

2,510,895

1.	STATUTORY INFORMATION

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

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

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.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of seven years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% on cost, 15% on reducing balance and 10% on cost

Plant and machinery

-

33% on cost, 25% on reducing balance, 20% on cost, 15% on reducing balance, 10% on cost, Straight line over 7 years and Straight line over 6 years

Fixtures and fittings

-

33% on cost, 25% on cost, 20% on cost, 15% on reducing balance and Straight line over 10 years

Motor vehicles

-

25% on reducing balance

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 year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£

£

United Kingdom

13,128,684

11,290,921

Europe

35,824

790,840

13,164,508

12,081,761

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

2,640,030

2,363,624

Social security costs

288,257

250,336

Other pension costs

225,711

160,383

3,153,998

2,774,343

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

31.12.24

31.12.23

Direct

43

40

Indirect

12

12

Directors

2

2

57

54

The average number of employees by undertakings that were proportionately consolidated during the year was 57 (2023 - 54 ) .

31.12.24

31.12.23

£

£

Directors' remuneration

203,006

189,198

Directors' pension contributions to money purchase schemes

165,098

104,781

Information regarding the highest paid director for the year ended 31 December 2024 is as follows:

31.12.24

£

Emoluments etc

127,973

Pension contributions to money purchase schemes

3,832

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Hire of plant and machinery

52,439

87,049

Other operating leases

43,564

43,742

Depreciation - owned assets

87,727

73,081

Depreciation - assets on hire purchase contracts

11,371

11,566

Profit on disposal of fixed assets

(1,392

)

-

Goodwill amortisation

690,174

690,174

Auditors' remuneration

8,500

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

HP interest

1,648

2,076

Late payment interest

-

977

Bank loan interest

55,989

100,570

57,637

103,623