The directors present the strategic report for the year ended 30 September 2024.

Bedfont Scientific Limited ("the Company"), established in 1976, is a medical device manufacturer with a global distribution network. The business currently generates annual revenue of approximately £10 million with an EBIT of circa £2 million. The company holds 6 granted patents with a further 5 pending, more than 15 registered trademarks, and has an active R&D pipeline, including a forthcoming low-cost FENO homecare device.

The company’s financial position remains strong, with steady profitability, solid IP protection, and recurring demand through global distribution. However, risks exist in cash flow timing, international reliance, and upcoming capital requirements (site expansion, R&D funding).

Competition

The market for FeNO and breath analysis technologies is becoming increasingly competitive, with both established players and new entrants seeking to gain market share. NObreath remains highly differentiated as the most affordable and widely adopted solution in primary care, and the Company continues to protect its position through strong IP, trademark coverage, and ongoing clinical validation. By focusing on affordability, usability, and reliability, NObreath has established a loyal customer base that is difficult for competitors to displace.

Regulatory Requirements

The global regulatory landscape for medical devices continues to evolve, particularly in Europe with the introduction of the Medical Device Regulation (MDR). Compliance with these requirements can be complex and resource intensive. The Company has successfully secured its MDR certification, providing both reassurance to customers and a clear competitive advantage over less well-prepared peers. This achievement not only demonstrates the robustness of our quality systems but also significantly reduces regulatory risk in one of our most important markets.

Budget Constraints for R&D

Sustaining innovation in a competitive sector requires significant investment in research and development, which can place pressure on budgets. To support our pipeline and reduce financial strain, the Company was awarded a major Innovate UK grant. This funding has enabled us to accelerate product development and expand our technological capabilities without compromising financial stability. Combined with our disciplined R&D prioritisation, this ensures resources are channelled towards projects with the highest clinical and commercial impact.

Despite a small reduction in overall revenue of 1.7%, 2024 was in many respects a year of growth across all markets with the exception of the UK. The slowdown in the UK was largely the result of distributors having overstocked in 2023, combined with the market pausing in anticipation of the updated NICE/BTS/SIGN asthma guidelines, which were announced in 2023 but only published in November 2024.

As anticipated, the new guidelines explicitly recommend FeNO testing as a first-line, objective measure for asthma diagnosis. This endorsement has already had a transformative impact: demand for devices surged at the start of 2025, and the significant installed base of instruments placed in 2023/24 is now being used far more actively. This increased utilisation has not only expanded patient access to FeNO testing but also generated a substantial uplift in consumables sales.

Asthma remains one of the most significant healthcare challenges globally, with over 340 million sufferers, a figure expected to rise sharply as urbanisation continues. The condition claims around 1,000 lives every day, while countless others endure asthma attacks that require emergency interventions and hospital admissions.

FeNO testing, using NObreath, provides a precise biomarker for Type 2 inflammation and is already well established in the diagnosis and management of asthma. Increasingly, there is also growing evidence that FeNO testing could play an important role in diagnosing, monitoring, and managing COPD patients with Type 2 inflammation. This represents an emerging opportunity for NObreath, and the Company has refined its key messages and promotional strategy to reflect this development.

Over the past year, the management team has refined the NObreath business model to focus squarely on the largest core market, primary care. By delivering the most affordable and accessible solution for healthcare professionals, NObreath has established itself as the most popular FeNO testing device in primary care markets worldwide. This strategic alignment has created a highly robust, cash-generative, and scalable business model with a clear path to sustainable long-term growth.

NObreath technology continues to set the benchmark in its field, combining accuracy, ease of use, and cost-effectiveness to meet the needs of busy clinical environments. Its growing adoption across primary care globally not only validates its technical superiority but also reinforces its position as the leading choice for FeNO testing in frontline healthcare.

While NObreath has been the clear driver of accelerated growth, sales of our other product lines, including Smokerlyzer and Gastrolyzer, have remained stable with steady upward trends. Although the rate of growth for these devices has been less pronounced compared to NObreath, their continued resilience and adoption are encouraging. As we expand into new global markets, this steady performance provides a strong foundation, ensuring balanced growth across the portfolio and reinforcing our reputation as a trusted partner in breath analysis technologies.

Initial indications for 2025 financial performance are highly positive, with forecasts pointing to an increase in revenue in the region of 30% with Net profit forecasted at >30%. This growth is being driven predominantly by NObreath consumables, where margins remain particularly strong. The combination of a rapidly expanding installed base and increased utilisation of devices already in the market is fuelling a robust and sustainable uplift in recurring revenues

Profit experienced a reduction of 38% from 2023 largely due to increased costs of wages and increased head count needed to support the growth of the business, however, the company’s strong reserves, robust net asset position, and low gearing meant the distribution did not compromise liquidity or investment capacity. The company remains well funded to pursue its strategic growth priorities.

The balance sheet shows strong current assets of £4.9m but have fallen from £5.9m, largely made up of stock and receivables. Cash balances ended the year at £1.2m, a reduction from £1.9m in the prior year, reflecting the impact of dividend payments during the period. Net assets stood at £3.95m, the majority of which are retained profits, underlining the company’s consistent profitability. Long-term liabilities remain very low, limited to just £11k of deferred income and a £75k deferred tax provision.

The Company is well positioned to capture a number of significant opportunities. The homecare asthma device market is expanding rapidly, driven by increasing consumer adoption of digital health solutions. With the recent update to the UK asthma guidelines in November 2024, which now include FeNO testing (using NObreath) as a first-line diagnostic tool, the momentum behind adoption has never been stronger. This endorsement is expected to accelerate both device and consumable sales in the UK and to provide a strong reference point for other international markets.

At the same time, we remain conscious of the external threats shaping the sector. Larger MedTech firms are increasingly turning their attention to FeNO testing, particularly in the home market, and we must remain agile in our innovation to defend our leadership position. Regulatory tightening across multiple geographies—including UKCA, FDA, and MDR in the EU—also represents an ongoing challenge, requiring both investment and operational discipline to maintain compliance and market access.

To mitigate these risks and capitalise on emerging opportunities, the Company has adopted a focused set of strategic priorities. Cash management is being reinforced through strengthened working capital forecasting and consideration of credit insurance for key distributors. R&D remains central to our long-term growth, and we are pursuing further Innovate UK and Horizon Europe grants, alongside exploring joint ventures and strategic partnerships to co-fund clinical trials. Finally, we continue to enhance governance by strengthening both board composition and the C-Suite, ensuring the right leadership is in place to steer the Company through its next phase of growth.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 September 2024.

The principal activity of the company continued to be that of manufacture of gas detection equipment for the medical industry.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £1,749,999. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Since the Balance Sheet date, the directors have declared a dividend of £1,000,000 on 8th April 2025. This dividend has not been provided for in the financial statements for the year ended 30th September 2024 but will be accounted for in the next financial year.

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

The auditor, Grant Thornton UK LLP, is will be proposed to be reappointed in accordance with section 485 of the Companies Act 2006.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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 throughout the going concern assessment period to 30 September 2026. The Company's forecasts and projections through to 30 September 2026, taking account of reasonably possible downside changes in trading performance, show that the company will maintain liquidity headroom throughout the going concern assessment period. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Risk management objectives and policies

The company is exposed to various risks in relation to financial instruments. The company has exposures to two main areas of risk - liquidity risk and customer credit exposure.

The most significant financial risks to which the company is exposed are described below.

Liquidity risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows.

Customer credit exposure

The company may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Bedfont Scientific Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 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 30 September 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 qualified opinion

We were not appointed as auditor of the company until 19 August 2025 which is after the company’s year end of 30 September 2024 and therefore we did not observe the counting of physical inventories at the end of the year. In addition, as described in the other matter section of our report, the company was not required to have an audit for the year ended 30 September 2023, therefore we did not observe the counting of physical inventories for the corresponding figures either. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 September 2024 and 2023, which are included in the balance sheet at £1,848,485 and £1,708,052, respectively, by using other audit procedures. Consequently, we were unable to determine whether any adjustments to this amount was necessary or whether there was any consequential effect on the cost of sales for the year ended 30 September 2024 and 2023. In addition, were any adjustment to the inventory balance to be required, the strategic and directors report would also need to be amended.

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 ‘Auditor’s 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

We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company’s exposure to international markets and tariff-related risks, particularly through sales to regions such as Asia and South America. We assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company’s financial resources or ability to continue operations over the going concern period.

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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 there is 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 inventories of £1,848,485 and £1,708,052 held at 30 September 2024 and 2023, respectively or whether there was any consequential effect on the cost of sales for the year ended 30 September 2024 and 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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

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 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.

As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, 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 is 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.

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 an Auditor's Report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the Financial reporting frameworks (FRS102 and Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions in which the company operates. The company is also subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Health and Safety, Medical Devices Regulations 2002, Anti-bribery, Employment and Social Security Legislations and Data Protection;

• We obtained an understanding of the applicable legal and regulatory frameworks and how the company is complying with those frameworks by making enquiries of management and those charged with governance. We corroborated our enquiries through inspection of Board meeting minutes. We considered the results from our audit procedures completed throughout the audit to identify instances of non-compliance;

• We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:

• Identifying and assessing the design and implementation effectiveness of controls management has in place to prevent and detect fraud;

• Challenging assumptions and judgements made by management in its significant accounting estimates; and

• Identifying and testing journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to unusual transactions. This also focused on revenue transactions posted outside the normal business process

Other matter - prior year financial statements unaudited

The company was not required to have a statutory audit for the year ended 30 September 2023 as it was entitled to exemption from the provision of the Companies Act 2006 relating to the audit of the financial statements for the period by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 30 September 2023 are unaudited.

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 an Auditor's Report 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.

All of the profit for the period and other comprehensive income is attributable to the owners of the Company.

The notes on pages 14 to 26 form part of these financial statements.

The notes on pages 14 to 26 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The notes on pages 14 to 26 form part of these financial statements.

The notes on pages 14 to 26 form part of these financial statements.

Bedfont Scientific Limited is a private company limited by shares incorporated in England and Wales. The registered office is Station Yard, Station Road, Harrietsham, Maidstone, Kent, England, ME17 1JA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a parent company and has one dormant subsidiary. Under section 405 of the Companies Act 2006, this subsidiary may be excluded from consolidation as it is immaterial to the group for the purposes of giving a true and fair view. Therefore, in accordance with the exemption permitted by section 402 of the Companies Act 2006, these financial statements are prepared as individual financial statements and not as consolidated financial statements.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence throughout the going concern assessment period to 30 September 2026. The Company's forecasts and projections through to 30 September 2026, taking account of reasonably possible downside changes in trading performance, show that the company will maintain liquidity headroom throughout the going concern assessment period. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Revenue from the sale of medical devices is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Other costs are included only to the extent that they are incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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. 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.

In the process of preparing the financial statements, no significant judgements or estimates were applied.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiary at 30 September 2024 are as follows:

Stock is regularly reviewed for obsolescence and an impairment is provided as necessary if this is deemed to be the case. During the year, as a result of this review, obsolete stock was written off at a value of £17,249 (2023 - £19,041). This was charged to the statement of profit or loss.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above is expected to reverse if assets are sold for their current book values, at which point deferred tax would crystallise into current tax.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The capital redemption reserve balance of £45,000 (2023 - £45,000) relates to a buy-back of 45,000 of the company's own £1 shares. This was achieved in two transactions of 35,000 and 10,000 shares, dated 6 October 2004 and 25 October 2004 respectively.

National Westminster Bank plc held a fixed and floating charge, dated 10 January 2002, over the business undertaking and all property and assets. This was satisfied on 9 September 2025.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Since the Balance Sheet date, the directors have declared a dividend of £1,000,000 on 8th April 2025. This dividend has not been provided for in the financial statements for the year ended 30th September 2024 but will be accounted for in the next financial year.

During the year, amounts owed from NewMed Ltd of £64,623 were written off. NewMed Ltd is linked to the reporting entity by a director in common. This was in accordance with a mutual collaborative marketing support agreement signed by both parties, one as manufacturer and the other as distributor.

During the year, the Company entered into transactions with related parties. Related parties include shareholders, directors, and companies under common control.

Sales to related parties

The Company sold goods to Harada Corporation, a shareholder holding 26% of the company's issued share capital. The total value of these goods sold was £1,911,968.

The Company also sold goods to NewMed Ltd, a company linked to the reporting entity by a director in common. The total value of these goods sold was £208,382.

Receivables outstanding

As at 30 September 2024, trade receivables due from Harada Corporation amounted to £512,142 (2023 - £364,821).

As at the same date, trade receivables due from NewMed Ltd amounted to £81,809 (2023 - £140,312).

Company office lease

The Company leases office space from a pension scheme controlled by multiple directors, who are also directors of the reporting entity. During the year, the Company paid rent of £120,000.

As at 30 September 2024, trade payables due to the pension scheme amounted to £nil.

No individual shareholder holds a majority of voting rights. Therefore, there is no parent entity or ultimate controlling party by virtue of shareholdings.