REGISTERED NUMBER: 00494617 (England and Wales)

CHICKEN CYCLEKIT LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

M Catlin

G R Turner

D G Nixon

SECRETARY:

Indigo Secretaries Limited

REGISTERED OFFICE:

Unit B2

Cherrycourt Way

Leighton Buzzard

Bedfordshire

LU7 4UH

REGISTERED NUMBER:

00494617 (England and Wales)

SENIOR STATUTORY AUDITOR:

Donald M Brown FCA

AUDITORS:

Higginson & Co (UK) Ltd

Statutory Auditors

3 Kensworth Gate

200 - 204 High Street South

Dunstable

Bedfordshire

LU6 3HS

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

REVIEW OF BUSINESS

The companies principal activity in the year continued to be the importation and sale of frames of bicycle assembly, sale of complete bicycles, and the sale of bicycle spares and accessories primarily from European sources.

The key financial and other performance indicators in the year were as follows:

All amounts are denoted in £ 000's

31 December

31 December

2024

2023

Turnover

16,801

13,645

Total Operating Profit

403

466

Profit after tax

158

349

Other comprehensive Income

Revaluation of freehold

495

Shareholders funds

9,385

8,883

Exceeding expectations, the company's turnover increased by 23%, reaching £16.8 million for this period, compared to 2023. Despite the ongoing challenges in the cycling market, including persistent industry-wide overstocks, the company has demonstrated resilience. Although these market conditions have affected turnover and gross margins, they also reveal significant potential for future growth and improvement.

The company has proactively reduced stock levels, strategically reinvesting the cash generated into key areas of the business. A notable investment, £850K, is the outright purchase of an additional 10,000 sqft warehouse, previously leased, which will further enhance net margins and strengthen cash flow moving forward.

As a leading cycling distributor, the company continues to solidify its market position. Year-to-date sales and profits for 2025 have shown a year-on-year increase, reinforcing the company's strength and potential for sustained long-term success.

PRINCIPAL RISKS AND UNCERTAINTIES

Although overall the UK economy was sluggish in the year, the bicycle industry held relatively strong.

Failure by customers to pay debts due is a risk to the company, however credit terms are strictly enforced and overdue accounts chased rigorously. The directors are of the view that the risk is at an acceptable low level.

Environmental and Health and safety are carefully monitored by directors and management team and during the year signed up to the Ecovadis Sustainable Certification programme. The company fully adhere to UK regulations.

Supplier deliveries were, on occasions, delayed by difficulties in their supply chains, however the impact on the customer was minimised due to selective inventory control.#. The company has excellent long term relationships with the brands it represents and continues to look for opportunities with complimentary brands to increase its offering to the market.

ON BEHALF OF THE BOARD:

M Catlin - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of importation and sale of frames of bicycle assembly, sale of complete bicycles, and the sale of bicycle spares and accessories primarily from European sources.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 152,000 .

DIRECTORS

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

M Catlin

G R Turner

D G Nixon

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, Higginson & Co (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Catlin - Director

29 September 2025

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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.

Opinion

We have audited the financial statements of Chicken Cyclekit Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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:

Audit response to risks identified

-the nature of the industry and sector, control environment and business performance including the design of the remuneration policy;

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

-any matters we identified having obtained and reviewed the Company 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 noncompliance;

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

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

- the matters discussed among the audit engagement team, including tax 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 relation to revenue deferrals. 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 frameworks 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, UK Corporate Governance Code and local 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 compliance with Financial Conduct Authority regulation for the UK operating segment and compliance with local legislation.

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.

Donald M Brown FCA (Senior Statutory Auditor)

for and on behalf of Higginson & Co (UK) Ltd

Statutory Auditors

3 Kensworth Gate

200 - 204 High Street South

Dunstable

Bedfordshire

LU6 3HS

29 September 2025

TURNOVER

16,800,849

13,645,314

Cost of sales

12,290,416

10,214,631

GROSS PROFIT

4,510,433

3,430,683

Administrative expenses

4,036,168

2,865,138

474,265

565,545

Other operating income

24,840

13,150

OPERATING PROFIT

5

499,105

578,695

Interest payable and similar expenses

6

95,584

112,589

PROFIT BEFORE TAXATION

403,521

466,106

Tax on profit

7

245,504

116,416

PROFIT FOR THE FINANCIAL YEAR

158,017

349,690

OTHER COMPREHENSIVE INCOME

Revaluation of freehold

495,000

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

495,000

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

653,017

349,690

FIXED ASSETS

Tangible assets

9

3,573,375

2,275,957

CURRENT ASSETS

Stocks

10

5,798,745

6,576,263

Debtors

11

2,875,625

2,068,757

Prepayments and accrued income

117,967

61,207

Cash at bank and in hand

569,989

1,158,452

9,362,326

9,864,679

CREDITORS

Amounts falling due within one year

12

3,225,193

2,421,878

NET CURRENT ASSETS

6,137,133

7,442,801

TOTAL ASSETS LESS CURRENT LIABILITIES

9,710,508

9,718,758

CREDITORS

Amounts falling due after more than one year

13

-

(633,333

)

PROVISIONS FOR LIABILITIES

16

(325,562

)

(201,496

)

NET ASSETS

9,384,946

8,883,929

CAPITAL AND RESERVES

Called up share capital

17

29,500

29,500

Revaluation reserve

18

2,072,483

1,577,483

Capital redemption reserve

18

30,500

30,500

Retained earnings

18

7,252,463

7,246,446

SHAREHOLDERS' FUNDS

9,384,946

8,883,929

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:

M Catlin - Director

G R Turner - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

29,500

7,128,756

1,577,483

30,500

8,766,239

Changes in equity

Dividends

-

(232,000

)

-

-

(232,000

)

Total comprehensive income

-

349,690

-

-

349,690

Balance at 31 December 2023

29,500

7,246,446

1,577,483

30,500

8,883,929

Changes in equity

Dividends

-

(152,000

)

-

-

(152,000

)

Total comprehensive income

-

158,017

495,000

-

653,017

Balance at 31 December 2024

29,500

7,252,463

2,072,483

30,500

9,384,946

Cash flows from operating activities

Cash generated from operations

1

1,489,601

2,324,591

Interest paid

(95,584

)

(112,589

)

Tax paid

(104,473

)

(584,748

)

Net cash from operating activities

1,289,544

1,627,254

Cash flows from investing activities

Purchase of tangible fixed assets

(937,126

)

(33,553

)

Net cash from investing activities

(937,126

)

(33,553

)

Cash flows from financing activities

Loan repayments in year

(761,905

)

(1,025,763

)

Amount withdrawn by directors

(26,976

)

(77,539

)

Equity dividends paid

(152,000

)

(232,000

)

Net cash from financing activities

(940,881

)

(1,335,302

)

(Decrease)/increase in cash and cash equivalents

(588,463

)

258,399

Cash and cash equivalents at beginning of year

2

1,158,452

900,053

Cash and cash equivalents at end of year

2

569,989

1,158,452

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

31.12.24

31.12.23

£

£

Profit before taxation

403,521

466,106

Depreciation charges

89,708

73,512

Finance costs

95,584

112,589

588,813

652,207

Decrease in stocks

777,518

604,133

(Increase)/decrease in trade and other debtors

(841,127

)

1,331,928

Increase/(decrease) in trade and other creditors

964,397

(263,677

)

Cash generated from operations

1,489,601

2,324,591

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

569,989

1,158,452

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,158,452

900,053

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

1,158,452

(588,463

)

569,989

1,158,452

(588,463

)

569,989

Debt

Debts falling due within 1 year

(400,000

)

128,571

(271,429

)

Debts falling due after 1 year

(633,333

)

633,333

-

(1,033,333

)

761,904

(271,429

)

Total

125,119

173,441

298,560

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

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.

Freehold property

-

2% on cost

Improvements to property

-

10% on cost

Plant and machinery

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

Straight line over 3 years

Stocks

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

Taxation

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

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Employer Funded Retirement Benefits Schemes

During the period the company made no payments to 4 employer financed retirement benefits schemes established previously for the benefit of its officers, employees and their wider families.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the process of applying the Company's accounting policies, which are described in Note 2, management has made some judgments that have significant effect on the amounts recognized in the financial statements. These also include key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Accounts receivable

In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance. In making this assessment, management takes into consideration (i) any circumstances of which we are aware regarding a customer's inability to meet its financial obligations; and (ii) our judgments as to potential prevailing economic conditions in the industry and their potential impact on the Company's customers.

Stock

Stock is stated at the lower of cost (first-in-first-out method) or net realizable value. The cost of inventories comprise net prices paid for materials purchased, charges for freight and customs duties. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory provisions are recognized for slow-moving, obsolete or unsalable inventory and are reviewed on a quarterly basis. In determining inventory provisions, we evaluate inventory in excess of our forecasted needs on both technological and economical criteria and make appropriate provisions to reflect the risk of obsolescence. This methodology is significantly affected by our forecasted needs for inventory. If actual demand or usage were to be lower than estimated, additional inventory provisions for excess or obsolete inventory may be required, which could have a material adverse effect on our business, financial condition and results of operations.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,973,807

1,245,696

Social security costs

206,368

113,334

Other pension costs

29,925

28,389

2,210,100

1,387,419

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

31.12.24

31.12.23

Staff including directors

48

46

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

Highest paid director £322900

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Hire of plant and machinery

19,081

14,004

Depreciation - owned assets

89,708

73,513

Audit Fee

40,000

35,000

Amount of stocks recognised as an expense during the period

12,480,354

10,217,329

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

315

104,957

Loan interest

71,852

7,632

Interest on late tax

23,417

-

95,584

112,589

7.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

121,438

118,949

Deferred tax

124,066

(2,533

)

Tax on profit

245,504

116,416