REGISTERED NUMBER: 11062833 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Monat Global UK Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Profit or Loss

11

Statement of Profit or Loss and Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

18

DIRECTORS:

R Urdaneta

F J Urdaneta

L E Urdaneta Fuenmayor

REGISTERED OFFICE:

100 Avebury Boulevard

Milton Keynes

England

MK9 1FH

REGISTERED NUMBER:

11062833 (England and Wales)

AUDITORS:

Feltons Chartered Accountants & Statutory Auditor

1, The Green

Richmond

TW9 1PL

Introduction

The directors present their strategic report with the financial statements of the year ended 31 December 2023. The comparatives relates to the year ended 31 December 2022.

Principal activities

The principal activity of the company is retail of haircare and skincare products, operating mainly in the UK with limited EU sales.

BUSINESS REVIEW

Monat Global UK Ltd is a subsidiary of Alcora Corporation and was established as the company's first foray into the European market after successful recognition in the United States and expansion into Canada, providing premium hair-care and skin care products through the direct-selling channel. This report covers the financial year ended 31 December 2023.

The aim for 2023 was to build on the achievements of 2022 and continue to establish Monat Global as a leader in naturally based, anti-ageing innovation. Revenue recognised for the year was £2,162,833 (2022: £2,908,016), and has drastically decreased due to distribution restructuring. The company registered a pre-tax loss of £140,396 (2022: £170,061 Profit). Directors are focusing on rebuilding sales and cost efficiency and restructure the digital channels and distributor support to drive revenue growth in 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows.

The company is exposed to financial risks including credit risk, liquidity risk, and market risk, arising from the company's normal business activities. These risks and the company's approach to dealing with them are discussed below.

Competitive risk

The company operates in wholesale of haircare and skincare products. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with key suppliers. Additionally, the uncertain surrounding the economy due to the direct result of the United Kingdom's exit remain prominent factors factoring affecting the sector.

Operational risk

The main operational risk relating to the company's operations in retail of haircare and skincare products are through relationships with the customers and quality of products to client specifications. The company's ability to provide products to its customers depends on maintaining relationships. The overall risk is mitigated by ensuring that the orders are delivered to client's specification and quality products to the company to enable operations to grow.

Foreign exchange risks

The company has certain balances due to and from customers, suppliers and related parties in other currencies, primarily in PLN & USD, and the company is therefore exposes to currency fluctuations. As a matter of policy, the company choose not to currently use financial derivatives or currency hedging to manage its exposure and the directors review exposures to risk and review currency fluctuations on an ongoing basis to ensure any adverse effect is limited.

Credit risk

The company's principal financial assets are bank balances, trade and other receivables. The company's credit risk is primarily attributable to its trade receivables and balances from the related parties. The company gives significant attention to credit risk and manages the risk though credit control procedures to ensure that credit risk is at an acceptable level for its future operations.

Liquidity Risk

Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and that in this event suitable sources of funding may not be available. The company ensures that sufficient cash is available to fund ongoing operations and has sufficient cash reserves for its operations.

KEY PERFORMANCE INDICATORS

The directors of the company use a variety of financial performance indicators, including turnover, total operating profit, profit after tax, shareholders fund and average employees. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved.

The company's key financial and non-performance indicator for the year are as follows:

2023

2022

£

£

Turnover

2,162,833

2,908,016

Total operating profit/(loss)

(139,845)

170,194

Profit/(loss) after tax

(143,725)

84,532

Shareholders Fund

(1,700,111)

(1,556,386)

Average employees

29

35

FINANCIAL INSTRUMENTS

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 and foreign currency for which company minimise exposure to exchange rate volatility through its internal management processes.The company does not enter into any formally designated hedging arrangements.

ON BEHALF OF THE BOARD:

L E Urdaneta Fuenmayor - Director

26 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2023. The comparatives relates to the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the company is Retail distribution of beauty and personal care products.

DIVIDENDS

The directors do not recommend the payment of a dividend. The loss for the financial year of £143,725 will therefore be taken to reserves.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R Urdaneta

F J Urdaneta

L E Urdaneta Fuenmayor

Other changes in directors holding office are as follows:

S A Macmillan - resigned 10 November 2023

POLITICAL DONATIONS AND EXPENDITURE

No donation was made during the year.

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 UK-adopted international accounting standards. 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, Feltons Chartered Accountants and Statutory Auditors, were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed has been approved by the Board.

GOING CONCERN

The directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, alongwith continued operational and financial support from its ultimate parent company, Alcora Corp. The directors have made this assessment for a period of at least one year from the date of approval of these financial statements. In particular, the directors have considered the Company's forecasts and projections which have taken account of pressures on income. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

ON BEHALF OF THE BOARD:

L E Urdaneta Fuenmayor - Director

26 September 2025

Qualified Opinion

We have audited the financial statements of Monat Global UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;

- have been properly prepared in accordance with IFRSs as adopted by the UK; and

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

Basis for Qualified Opinion

During the course of our audit, we identified a discrepancy between the physical stock take and the inventory records maintained in the company’s accounting system, while reconciling and rolling back the inventory records from the date of stock count back to 31 December 2023. The company has not been able to reconcile or provide satisfactory evidence to support the variance of 25,868 quantities. As a result, we were unable to obtain sufficient appropriate audit evidence regarding the carrying amount of inventories of £368,612 (Net of provisions) recorded in the financial statements as at 31 December 2023.

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 Qualified Opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the variance in inventory quantities of 25,868 held at 31 December 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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

Except for the matter described in the basis of qualified opinion section of our report, 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.

Arising solely from the limitations on the scope of our work relating to the inventory, referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purposes of our audit; and

- we were unable to determine whether adequate accounting records had been kept.

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

- 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.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

- We obtained an understanding of laws and regulations that could reasonably be expected to have a material effect on the financial statements through discussion with management and those charged with governance, including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. We remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override by reviewing the appropriateness of a sample of journal entries and other adjustments; assessing whether the judgements made in making key 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 that we come across throughout the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

Because of the 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.

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 S Rhodes FCA (Senior Statutory Auditor)

for and on behalf of Feltons Chartered Accountants & Statutory Auditor

1, The Green

Richmond

TW9 1PL

29 September 2025

Continuing operations

Revenue

4

2,162,833

2,908,016

Cost of sales

(991,796

)

(1,189,375

)

Gross profit

1,171,037

1,718,641

Other operating income

1,485,329

3,790,627

Distribution costs

(282,045

)

(559,018

)

Administrative expenses

(2,514,166

)

(4,780,056

)

Operating (loss)/profit

(139,845

)

170,194

Finance costs

6

(551

)

(133

)

(Loss)/profit before income tax

7

(140,396

)

170,061

Income tax

8

(3,329

)

(85,529

)

(Loss)/profit for the year

(143,725

)

84,532

(Loss)/profit for the year

(143,725

)

84,532

Other comprehensive income

-

-

Total comprehensive income for the year

(143,725

)

84,532

Assets

Non-current assets

Owned

Intangible assets

9

-

-

Property, plant and equipment

10

452,600

587,538

Right-of-use

Deferred tax

19

286,821

290,150

739,421

877,688

Current assets

Inventories

11

368,612

818,042

Trade and other receivables

12

1,507,846

1,162,685

Cash and cash equivalents

13

186,104

143,003

2,062,562

2,123,730

Total assets

2,801,983

3,001,418

Equity

Shareholders' equity

Called up share capital

14

100

100

Retained earnings

15

(1,700,211

)

(1,556,486

)

Total equity

(1,700,111

)

(1,556,386

)

Liabilities

Non-current liabilities

Financial liabilities - borrowings

Lease liabilities

17, 18

188,714

281,399

Current liabilities

Trade and other payables

16

4,212,114

4,176,774

Financial liabilities - borrowings

Lease liabilities

17, 18

101,266

99,631

4,313,380

4,276,405

Total liabilities

4,502,094

4,557,804

Total equity and liabilities

2,801,983

3,001,418

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:

L E Urdaneta Fuenmayor - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2022

100

(1,641,018

)

(1,640,918

)

Changes in equity

Total comprehensive income

-

84,532

84,532

Balance at 31 December 2022

100

(1,556,486

)

(1,556,386

)

Changes in equity

Total comprehensive income

-

(143,725

)

(143,725

)

Balance at 31 December 2023

100

(1,700,211

)

(1,700,111

)

Cash flows from operating activities

Cash generated from operations

1

146,849

53,193

Interest paid

(551

)

(133

)

Net cash from operating activities

146,298

53,060

Cash flows from investing activities

Purchase of tangible fixed assets

(12,147

)

(624,110

)

Net cash from investing activities

(12,147

)

(624,110

)

Cash flows from financing activities

Payment of lease liabilities

(91,050

)

-

Net cash from financing activities

(91,050

)

-

Increase/(decrease) in cash and cash equivalents

43,101

(571,050

)

Cash and cash equivalents at beginning of year

2

143,003

714,053

Cash and cash equivalents at end of year

2

186,104

143,003

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

(Loss)/profit before income tax

(140,396

)

170,061

Depreciation charges

150,631

36,572

Finance costs

551

133

10,786

206,766

Decrease in inventories

449,430

755,143

(Increase)/decrease in trade and other receivables

(345,161

)

129,702

Increase/(decrease) in trade and other payables

31,794

(1,038,418

)

Cash generated from operations

146,849

53,193

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

186,104

143,003

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

143,003

714,053

1.	STATUTORY INFORMATION

Monat Global UK Ltd 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.	ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared in accordance with UK-adopted international accounting standards (IFRSs) and the Companies Act 2006.

TURNOVER

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

-The company has transferred the significant risk and rewards of ownership to the buyer;

-the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-the amount of revenue can be measured reliably;

-it is probable that the company will receive the consideration due under the transaction; and

-the cost incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from contract to provide services is recognized in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-The amount of revenue can be measured reliably;

- It is probable that their Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the cost incurred and the costs to complete the contract can be measured reliably.

CASH AND CASH EQUIVALENTS

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

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.

Amortisation is provided on following basis:

Software licenses - over 3 years

PROPERTY, PLANT AND EQUIPMENT

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold Improvements - over 17 months

At each balance sheet date, the company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instruments.

Financial assets are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity financial assets and available-for-sale financial assets, as appropriate. The classification depends on the nature and purpose of the financial assets. The Company determines the classification of its financial assets at initial recognition.

All purchases and sales of financial assets are recognised on the date on which the Company commits to purchase or sell the asset. Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset expire or the Company transfers substantially all risks and rewards of ownership.

Financial liabilities are classified as either financial liabilities at fair value through profit or loss (i.e. derivatives) or other liabilities, as appropriate. All loans and borrowings and trade and other payables are classified as other liabilities.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

TAXATION

Taxation for the year 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 except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, alongwith continued operational and financial support from its ultimate parent company, Alcora Corp. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

At 31 December 2023 the company's had net current liability of £2,250,818 (2022: £2,152,675 net liability) and net loss after tax of £143,725 (2022: £84,532 Profit), however the financial statements have been prepared on a going concern basis.

TRADE AND OTHER DEBTORS

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

TRADE AND OTHER CREDITORS

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

INVENTORY

Inventory is stated at the lower of cost and estimated selling price less costs to complete and sell. Costs is based on the cost of purchase on an average cost basis.

When inventory is sold, the carrying amount of those inventory is recognised as an expense in the period in which the related revenue is recognised. The amount of any write -down of inventory to net realisable value and all losses of inventory is recognised as an expense in the period in which the written - down or loss occurs. The amount of any reversal of any write -down of inventory is recognised as are deduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

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.

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are considered to be key areas of estimation & uncertainities:

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Further details on taxes are disclosed in note 8.

4.

REVENUE

REVENUE ANALYSIS

2023

2022

£

£

Product Revenue

2,118,362

2,863,471

Revenue from services

44,471

44,545

2,162,833

2,908,016

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:

2023

2022

£

£

United Kingdom

2,146,775

2,890,048

Europe

16,058

17,968

2,162,833

2,908,016

5.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

1,353,638

1,668,412

Social security costs

145,371

193,880

Other pension costs

44,521

49,294

1,543,530

1,911,586

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

2023

2022

Employees

29

35

2023

2022

£

£

Directors' remuneration

-

-

Directors received no remuneration from the company during the year (2022: nil). Remuneration borne by parent company.

6.	NET FINANCE COSTS

2023

2022

£

£

Finance costs:

Bank loan interest

551

133

7.	(LOSS)/PROFIT BEFORE INCOME TAX

The loss before income tax (2022 - profit before income tax) is stated after charging/(crediting):

2023

2022

£

£

Cost of inventories recognised as expense

991,796

1,189,375

Depreciation - owned assets

145,144

36,572

Foreign exchange differences

(302,554

)

766,786

8.	INCOME TAX

Analysis of tax expense

2023

2022

£

£

Deferred tax

3,329

85,529

Total tax expense in statement of profit or loss

3,329

85,529

FACTORS AFFECTING THE TAX EXPENSE

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

2023

2022

£

£

(Loss)/profit before income tax

(140,396

)

170,061

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(26,675

)

32,312

Effects of:

Depreciation in excess of Capital Allowance

27,328

(38,848

)

Expenses not deductible for tax purpose

13,429

50,743

Deferred Tax

3,329

85,529

Losses utilized in the year

(14,082

)

(44,207

)

Tax expense

3,329

85,529

The company has carried forward tax losses of £1,670,476