REGISTERED NUMBER: 14123383 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

GFE Holdings Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mrs M D Green

Mr F E Green

Mr D C Green

Mr R S Green

REGISTERED OFFICE:

69 High Street

Bideford

Devon

EX39 2AT

REGISTERED NUMBER:

14123383 (England and Wales)

AUDITORS:

Sumer Auditco Ltd

Statutory Auditors

69 High Street

Bideford

Devon

EX39 2AT

BUSINESS ADDRESS:

Neet Way

Holsworthy Industrial Estate

Holsworthy

Devon

EX22 6ES

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

The principal activity of the group is the manufacture and fabrication of sheet metal components.

The registered office is 69 High Street, Bideford, EX39 2AT.

Greenfield Engineering (Sheet Metal) Ltd is a subsidiary of GFE Holdings Ltd.

The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.

REVIEW OF BUSINESS

The key financial performance indicators are those that communicate the financial performance and strength of the group as a whole. These being turnover and gross margin.

Turnover has increased from £6,182,920 in 2023 to £7,575,551 in 2024. The increase was due to the addition of new customers and a general upturn in most sectors.

The gross profit percentage has increased marginally from 30.4% in 2023 to 33.6% in 2024.

The directors have been seeking to maintain margin, contain operating costs, increase the number of customers and improve product quality to achieve the business targets. Greenfield Engineering continues to invest in new machinery and production processes in order to enhance the quality and on time delivery of customer products, whilst controlling costs. To this end fixed assets have increased to a total of £6,283,406.

It has always been the business strategy to retain skill and develop staff. The business has a strong apprenticeship program, which is a key moving forwards.

Both management and executive board meetings are held monthly where performance is compared to forecast budgets and any variance is investigated, if required strategic action is taken.

With the risks and uncertainties of the current economic climate, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control.

Shareholders funds as at 31 December 2024 amounted to £2,886,195.

PRINCIPAL RISKS AND UNCERTAINTIES

The market conditions in which the group operates are still extremely challenging due to the global economic climate and the competitive pressures within the industry.

Financial risk

The group's operations expose it to a variety of financial risks that include the effect of changes in credit liquidity and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt financed and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied.

Credit risk

The group has implemented policies that require appropriate credit checks on customers before sales are made. In addition to this the company ensures the recoverability of all commercial sales through an outside credit agency.

Liquidity risk

The directors believe that the group has sufficient funds available to support its activities in the future.

DIRECTORS STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP

The directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts of supply with our customers. The group actually plays a part within the local community as it aims to employ local people and utilise the services of local companies as far as is possible. The directors are committed to employees' health, well-being and training, engaging with specialists for external training and providing in-house sessions where required.

FUTURE DEVELOPMENTS

The parent company has purchased property which is adjacent to the sites from which the group trades in order to secure the long term sustainability and future of the business.

SIGNED ON BEHALF OF THE BOARD:

Mr F E Green - Director

26 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

The total distribution of dividends for the year ended 31 December 2024 will be £ 71,000 .

EVENTS SINCE THE END OF THE YEAR

Since the balance sheet date the parent company has purchased freehold property for £650,000.

DIRECTORS

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

Mrs M D Green

Mr F E Green

Other changes in directors holding office are as follows:

Mr D C Green - appointed 25 October 2024

Mr R S Green - appointed 25 October 2024

DISCLOSURE IN THE STRATEGIC REPORT

Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report.

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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.

SIGNED ON BEHALF OF THE BOARD:

Mr F E Green - Director

26 September 2025

Qualified opinion

We have audited the financial statements of GFE Holdings Ltd (the 'parent company') and its subsidiary (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of 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 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, except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements:

- give a true and fair view of the state of the group's and of the parent company's 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 qualified 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. We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical inventories at the beginning of the comparative period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2022, which are included in the balance sheet at £493,252, by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 December 2023. Our audit opinion on the group financial statements for the year ended 31 December 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.

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 and parent 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 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.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our 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.

As described in the basis for qualified opinion of our report, we were unable to satisfy ourselves concerning the inventory quantities held at 31 December 2022, which were included in the balance sheet at £493,252. 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

We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical inventories at 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2022, which were included in the balance sheet at £493,252, by using other audit procedures.

Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023. In addition, were any adjustments to the inventories balance to be required, the group strategic report would also need to be amended.

Except for the possible effects of the matters 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 the Group Strategic Report and Report of the Directors for the financial period 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

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and the parent company and their 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.

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

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

- we were unable to determine whether adequate accounting records have 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 by 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included 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 gained an understanding of the legal and regulatory framework applicable to the parent company and the group and the industry in which they operate, and considered the risk of acts by the parent company and the group that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the Group's legal advisors.

We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Edward Meardon FCA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Ltd

Statutory Auditors

69 High Street

Bideford

Devon

EX39 2AT

29 September 2025

TURNOVER

4

7,575,551

6,182,920

Cost of sales

5,026,685

4,303,088

GROSS PROFIT

2,548,866

1,879,832

Administrative expenses

2,175,854

2,131,211

373,012

(251,379

)

Other operating income

59,246

14,209

OPERATING PROFIT/(LOSS)

7

432,258

(237,170

)

Interest receivable and similar income

27,741

24,939

459,999

(212,231

)

Gain/loss on revaluation of investment property

(23,035

)

300,611

436,964

88,380

Interest payable and similar expenses

9

140,798

135,257

PROFIT/(LOSS) BEFORE TAXATION

296,166

(46,877

)

Tax on profit/(loss)

10

73,168

3,811

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

222,998

(50,688

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

222,998

(50,688

)

Profit/(loss) attributable to:

Owners of the parent

222,998

(50,688

)

Total comprehensive income attributable to:

Owners of the parent

222,998

(50,688

)

FIXED ASSETS

Tangible assets

14

5,595,757

2,319,632

Investments

15

-

-

Investment property

16

687,649

1,066,368

6,283,406

3,386,000

CURRENT ASSETS

Stocks

17

267,896

264,954

Debtors

18

1,858,969

1,173,404

Cash at bank

953,103

1,287,692

3,079,968

2,726,050

CREDITORS

Amounts falling due within one year

19

4,038,009

1,508,436

NET CURRENT (LIABILITIES)/ASSETS

(958,041

)

1,217,614

TOTAL ASSETS LESS CURRENT LIABILITIES

5,325,365

4,603,614

CREDITORS

Amounts falling due after more than one year

20

(2,088,937

)

(1,482,352

)

PROVISIONS FOR LIABILITIES

24

(350,233

)

(304,565

)

NET ASSETS

2,886,195

2,816,697

CAPITAL AND RESERVES

Called up share capital

25

100

100

Retained earnings

26

2,886,095

2,816,597

SHAREHOLDERS' FUNDS

2,886,195

2,816,697

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Mr F E Green - Director

Mrs M D Green - Director

FIXED ASSETS

Tangible assets

14

3,340,278

989,475

Investments

15

100

100

Investment property

16

687,649

1,066,368

4,028,027

2,055,943

CURRENT ASSETS

Debtors

18

18,428

35,128

Cash at bank

624,831

876,205

643,259

911,333

CREDITORS

Amounts falling due within one year

19

2,327,951

428,497

NET CURRENT (LIABILITIES)/ASSETS

(1,684,692

)

482,836

TOTAL ASSETS LESS CURRENT LIABILITIES

2,343,335

2,538,779

CREDITORS

Amounts falling due after more than one year

20

(952,025

)

(1,000,226

)

PROVISIONS FOR LIABILITIES

24

(21,827

)

(45,016

)

NET ASSETS

1,369,483

1,493,537

CAPITAL AND RESERVES

Called up share capital

25

100

100

Retained earnings

26

1,369,383

1,493,437

SHAREHOLDERS' FUNDS

1,369,483

1,493,537

Company's profit for the financial year

29,446

870,711

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Mrs M D Green - Director

Mr F E Green - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

2,871,285

2,871,385

Changes in equity

Dividends

-

(4,000

)

(4,000

)

Total comprehensive income

-

(50,688

)

(50,688

)

Balance at 31 December 2023

100

2,816,597

2,816,697

Changes in equity

Dividends

-

(71,000

)

(71,000

)

Total comprehensive income

-

222,998

222,998

Reversal of revaluation on transfer of investment property to freehold property

-

(110,000

)

(110,000

)

Deferred tax provision reversed on transfer of property

-

27,500

27,500

Balance at 31 December 2024

100

2,886,095

2,886,195

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

626,726

626,826

Changes in equity

Dividends

-

(4,000

)

(4,000

)

Total comprehensive income

-

870,711

870,711

Balance at 31 December 2023

100

1,493,437

1,493,537

Changes in equity

Dividends

-

(71,000

)

(71,000

)

Total comprehensive income

-

29,446

29,446

Reversal of revaluation on transfer of investment property to freehold property

-

(110,000

)

(110,000

)

Deferred tax provision reversed on transfer of property

-

27,500

27,500

Balance at 31 December 2024

100

1,369,383

1,369,483

Cash flows from operating activities

Cash generated from operations

31

603,739

200,608

Interest paid

(73,452

)

(73,686

)

Interest element of hire purchase payments paid

(40,746

)

(27,930

)

Taxation refund

113,467

24,613

Net cash from operating activities

603,008

123,605

Cash flows from investing activities

Purchase of tangible fixed assets

(347,774

)

(28,503

)

Purchase of investment property

(28,154

)

(52,883

)

Sale of tangible fixed assets

111

-

Interest received

27,068

24,939

Net cash from investing activities

(348,749

)

(56,447

)

Cash flows from financing activities

Bank loan repayments in year

(46,648

)

(43,577

)

HP capital repayments in year

(317,274

)

(228,439

)

Amount introduced by directors

36,012

64,790

Amount withdrawn by directors

(189,938

)

(93,268

)

Equity dividends paid

(71,000

)

(4,000

)

Net cash from financing activities

(588,848

)

(304,494

)

Decrease in cash and cash equivalents

(334,589

)

(237,336

)

Cash and cash equivalents at beginning of year

32

1,287,692

1,525,028

Cash and cash equivalents at end of year

32

953,103

1,287,692

1.	STATUTORY INFORMATION

GFE Holdings 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 General Information page.

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

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts.

Basis of consolidation

The consolidated accounts have been prepared under the merger basis of accounting. The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertaking. As a consolidated group profit and loss account is published, a separate profit and loss account for the parent is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. As a result of the judgements made 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimated useful lives

In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets.The depreciation charge for the year ended 31 December 2024 was £364,879 (2023 - £317,633).

Stock provision

Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values.There were no stock provisions at 31 December 2024 (2023 - £nil).

Provision for doubtful debts

Where estimated amounts receivable is less than the value of the debt included in the accounts, a provision for doubtful debts will be recorded. There were no provision for bad debts at 31 December 2024 (2023 - £nil).

Turnover

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

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.

Freehold property

-

nil on land and Straight line over 100 years

Short leasehold

-

Over period of the lease

Improvements to property

-

Straight line over 10 years

Plant and machinery

-

Straight line between 3 and 10 years and Straight line over 20 years

Fixtures and fittings

-

Straight line over 5 years and Straight line over 3 years

Motor vehicles

-

Straight line over 4 years

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. No depreciation is provided in respect of investment properties.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, 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.

Financial instruments

Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.

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

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 under operating leases are charged to the profit and loss account as they fall due.

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.

Going concern

The group has net current liabilities of £958,041 (2023 - net current assets of £1,217,614). These net current liabilities include an amount of £2,123,702 due to the directors.

The group is reliant on the continuing financial support of its creditors and while there are no reasons to doubt that this support will continue, inherently there can be no certainty in relation to these matters. On this basis, and having regard to the group's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from an inability to meet obligations as they fall due.

Investments in subsidiaries

Investments in subsidiaries are valued at cost less impairment.

4.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2024

2023

as restated

£

£

Manufacturing

7,477,476

6,083,720

Property letting

98,075

99,200

7,575,551

6,182,920

An analysis of turnover by geographical market is given below:

2024

2023

as restated

£

£

United Kingdom

7,575,551

6,182,308

Other

-

612

7,575,551

6,182,920

5.	EMPLOYEES AND DIRECTORS

2024

2023

as restated

£

£

Wages and salaries

2,291,559

1,956,847

Social security costs

202,558

181,333

Other pension costs

204,166

137,272

2,698,283

2,275,452