REGISTERED NUMBER: 03513150 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Unitex UK. Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

L M Repetto

R G Ellis

SECRETARY:

L M Repetto

REGISTERED OFFICE:

Marling Mills

Nelson Street

Leek

Staffordshire

ST13 6BB

REGISTERED NUMBER:

03513150 (England and Wales)

AUDITORS:

Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

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

REVIEW OF BUSINESS

The results for the year are shown on page 8.

The Group has reported a loss for the year of £1,030,470 (2023: £396,424 loss).

The year ended 31 December 2024 saw an increase in revenues for all companies, especially Miller Weblift Limited and Ridgegear Limited. Margins however were hit by higher costs on multiple fronts including labour and freight costs. The start of 2025 has been very strong, particularly for Ridgegear Limited.

PRINCIPAL RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties, which could have a material impact on the business. The Group operates globally in varied markets and manages the risks inherent in its activities.

There are risk factors both external and internal to the business.

External risks include global, political and economic conditions, actions of competitors, the effect of legislation or other regulatory change, foreign exchange exposure, interest rate exposure, credit risk, business continuity, environmental risks and potential litigation.

The Group has a significant exposure to foreign currency fluctuations, due to both sales and purchases, both external and inter company being denominated in foreign currency. The Group maintains foreign currency accounts and best endeavours are made to ensure pricing and purchasing relationships reflect up to date exchange rates.

Internal risks include capacity constraints and the loss of key staff.

The Group tries to mitigate exposure to all forms of risk, where practicable, and to transfer risk to insurers where cost effective.

GOING CONCERN

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance show that the Group continues to be cash-generative and should be able to operate within the level of its current cash resources for a period of at least 12 months following approval of the financial statements.

The Group has net liabilities of £5,563,045 (Company: £10,683,865) at 31 December 2024, including loans and accrued interest due to the parent company, Unitex Holding BV of £10,622,232 (Company: £9,739,871). The directors have received written confirmation that, for the 12 months following the date the financial statements are approved, Unitex Holding BV will not request the repayment of any debt due from the Group or Company and will provide additional funding, if required, to enable the Group and Company to continue to trade normally.

However due to the current global economic environment and the trading activity of the wider group, and the requirement for the parent company to continue to be supported by its shareholder, uncertainty exists over the parent company's ability to continue as a going concern and whether repayment of these loans will not be requested. This constitutes a material uncertainty which may cast significant doubt over the Group and Company's ability to continue as a going concern for the foreseeable future and, therefore, the Company and Group might be unable to realise its assets and discharge its liabilities in the normal course of business.

FINANCIAL INSTRUMENTS

At any time the Group has significant amounts owing from trade debtors. A comprehensive debtor control system is in place to ensure debtor finance is kept within the policy terms.

Cash flow forecasts are compiled weekly on a rolling three-month basis and the Group policy is to have internally generated funds with no reliance on external funding.

KEY PERFORMANCE INDICATORS

The board recognises key performance indicators as an integral part of monitoring the performance of the business.

It is the responsibility of management to regularly monitor and review these indicators and report the results and any corrective actions to the board. These include analysis of sales to raw material and production per machine. Labour output trends are also monitored.

FUTURE DEVELOPMENTS

As per the previous review, we continue to target growth for all three companies in the group, as listed in Note 13. Export sales continue to grow and be our key focus.

ON BEHALF OF THE BOARD:

R G Ellis - Director

30 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of weaving and dyeing of webbing products together with the production of seatbelts, design and manufacture of lifting and loading equipment and height safety equipment.

The principal activity of the Company is that of a holding company.

RESULTS

The Group's loss for the year was £1,030,470 (2023: £396,424).

DIVIDENDS

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

DIRECTORS

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

L M Repetto

R G Ellis

FUTURE DEVELOPMENTS

An indication of the future developments in the group's business can be found in the strategic report.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Bennett Brooks & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R G Ellis - Director

30 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Material uncertainty related to going concern

We draw attention to the going concern paragraph in Note 2 in the financial statements which states that the group and parent company have net liabilities, including significant intercompany loans and as a result is dependent upon the financial support of its parent company, Unitex Holding BV.

As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the group and parent company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's

incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included:

- Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;

- Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business;

- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations; and

- Review of board meeting minutes.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.

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.

Matthew Bailey BSc (Hons) ACA (Senior Statutory Auditor)

for and on behalf of Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

30 September 2025

TURNOVER

4

11,911,456

10,775,894

Cost of sales

(9,913,860

)

(8,593,328

)

GROSS PROFIT

1,997,596

2,182,566

Distribution costs

(833,946

)

(799,835

)

Administrative expenses

(1,621,099

)

(1,201,117

)

OPERATING (LOSS)/PROFIT

7

(457,449

)

181,614

Interest payable and similar expenses

9

(573,021

)

(578,038

)

LOSS BEFORE TAXATION

(1,030,470

)

(396,424

)

Tax on loss

10

-

-

LOSS FOR THE FINANCIAL YEAR

(1,030,470

)

(396,424

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(1,030,470

)

(396,424

)

Loss attributable to:

Owners of the parent

(1,030,470

)

(396,424

)

Total comprehensive loss attributable to:

Owners of the parent

(1,030,470

)

(396,424

)

FIXED ASSETS

Tangible assets

12

244,142

225,922

Investments

13

-

-

244,142

225,922

CURRENT ASSETS

Stocks

14

4,203,122

3,241,656

Debtors

15

3,497,392

3,230,893

Cash at bank and in hand

316,421

664,672

8,016,935

7,137,221

CREDITORS

Amounts falling due within one year

16

(13,824,122

)

(11,895,718

)

NET CURRENT LIABILITIES

(5,807,187

)

(4,758,497

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(5,563,045

)

(4,532,575

)

CAPITAL AND RESERVES

Called up share capital

18

2,875,028

2,875,028

Other reserves

19

6,004

6,004

Retained earnings

19

(8,444,077

)

(7,413,607

)

SHAREHOLDERS' FUNDS

(5,563,045

)

(4,532,575

)

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

R G Ellis - Director

FIXED ASSETS

Tangible assets

12

-

-

Investments

13

350,100

350,100

350,100

350,100

CURRENT ASSETS

Debtors

15

69,971

70,810

CREDITORS

Amounts falling due within one year

16

(11,103,936

)

(11,616,765

)

NET CURRENT LIABILITIES

(11,033,965

)

(11,545,955

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(10,683,865

)

(11,195,855

)

CAPITAL AND RESERVES

Called up share capital

18

2,875,028

2,875,028

Retained earnings

(13,558,893

)

(14,070,883

)

SHAREHOLDERS' FUNDS

(10,683,865

)

(11,195,855

)

Company's profit for the financial year

511,990

837,310

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

R G Ellis - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

2,875,028

(7,017,183

)

6,004

(4,136,151

)

Changes in equity

Total comprehensive loss

-

(396,424

)

-

(396,424

)

Balance at 31 December 2023

2,875,028

(7,413,607

)

6,004

(4,532,575

)

Changes in equity

Total comprehensive loss

-

(1,030,470

)

-

(1,030,470

)

Balance at 31 December 2024

2,875,028

(8,444,077

)

6,004

(5,563,045

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

2,875,028

(14,908,193

)

(12,033,165

)

Changes in equity

Total comprehensive income

-

837,310

837,310

Balance at 31 December 2023

2,875,028

(14,070,883

)

(11,195,855

)

Changes in equity

Total comprehensive income

-

511,990

511,990

Balance at 31 December 2024

2,875,028

(13,558,893

)

(10,683,865

)

Cash flows from operating activities

Cash generated from operations

1

297,004

1,026,068

Interest paid

(573,021

)

(578,038

)

Tax paid

-

(36,440

)

Net cash from operating activities

(276,017

)

411,590

Cash flows from investing activities

Purchase of tangible fixed assets

(72,234

)

(80,935

)

Net cash from investing activities

(72,234

)

(80,935

)

(Decrease)/increase in cash and cash equivalents

(348,251

)

330,655

Cash and cash equivalents at beginning of year

2

664,672

334,017

Cash and cash equivalents at end of year

2

316,421

664,672

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

2024

2023

£

£

Loss before taxation

(1,030,470

)

(396,424

)

Depreciation charges

54,014

40,480

Finance costs

573,021

578,038

(403,435

)

222,094

(Increase)/decrease in stocks

(961,466

)

222,404

(Increase)/decrease in trade and other debtors

(266,499

)

482,792

Increase in trade and other creditors

1,928,404

98,778

Cash generated from operations

297,004

1,026,068

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

316,421

664,672

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

664,672

334,017

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

664,672

(348,251

)

316,421

664,672

(348,251

)

316,421

Total

664,672

(348,251

)

316,421

1.	STATUTORY INFORMATION

Unitex UK. Limited is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office address can be found on the General Information page. The principle activity of the company can be found in the Report of the Directors.

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

Transactions are rounded to the nearest £.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102) and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and under the historical cost convention.

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

Going concern

The Group has net liabilities of £5,563,045 (2023: £4,532,575) and the Company has net liabilities of £10,683,865 (2023: £11,195,855). The directors have assessed the Group and Company's forecasts for future profitability and have concluded that the Group and Company are reliant on the support of its parent company, Unitex Holding BV.

The parent company has confirmed that, for a period of at least 12 months from the date of approving the financial statements:

- financial support will continue to be provided in order for the Group and Company to trade normally; and

- repayment of the intercompany loans due to the parent and other group companies will not be requested.

However, due to the current global economic environment and the trading activity of the wider group, and the requirement for the parent company to continue to be supported by it's shareholder, uncertainty exists over the parent company's ability to continue as a going concern and whether repayment of the loans will not be requested. This constitutes a material uncertainty which may cast significant doubt over the group and company's ability to continue as a going concern, and therefore the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business.

Financial Reporting Standard 102 - reduced disclosure exemptions

In accordance with FRS 102, the Company has taken advantage of the exemptions from the following disclosure requirements:

- Section 11 ‘Basic Financial Instruments’ - Carrying amounts of financial instruments held at amortised cost or cost

- Section 33 ‘Related Party Disclosures’ - Compensation for key management personnel

In accordance with FRS 102, the Group has taken advantage of the exemptions from the following disclosure requirements:

- Section 33 ‘Related Party Disclosures’ - Compensation for key management personnel

Company statement of comprehensive income

As permitted by s408 Companies Act 2006, the Company has not presented its own statement of comprehensive income as it prepares group accounts and the Company’s individual statement of financial position shows the Company’s profit or loss for the year.

Basis of consolidation

The consolidated financial statements incorporate those of Unitex UK. Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the acquisition method.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable and represents the invoiced value, net of Value Added Tax of goods and services provided to customers. Turnover is derived entirely from the Group’s principal activities and is recognised upon the date of despatch.

Other operating income is derived from monies received not from the company's principal activities.

Interest payable and similar expenses

Interest payable is arising from borrowings with finance costs recognised in the profit or loss as they accrue, using the effective interest method.

Tangible fixed assets

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:

Plant and machinery

10% - 20% per annum straight line

Fixtures, fittings, tools and equipment

10% - 33.3% per annum straight line

Motor vehicles

33.3% per annum straight line

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.

Residual value is calculated on prices prevailing at the reported date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value. In determining the cost of raw materials, consumables and goods purchased for resale the average cost method is used. For work in progress and finished goods, cost is taken as production cost, which includes an appropriate proportion of attributable overheads. Net realisable value is the estimated selling price, less further costs to completion. Provision is made where necessary for obsolete, slow moving stock or work in progress.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments 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.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

Current and deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.

All other leases are classified as operating leases and the annual rentals are charged to profit or loss on a straight line basis over the lease term.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

The Group operates a group personal pension plan and makes contributions to this together with contributions to individual personal pension plans. The amount charged to profit or loss in respect of pension costs and other post retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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

Basic financial assets, which include trade, group and other 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets

Other financial assets, including trade investments, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade, group and other creditors, bank loans and loans from fellow group companies, 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.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the group's contractual obligations are

discharged, cancelled, or they expire.

Equity instruments

Equity instruments issued by the group are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Fixed asset investments

In the separate accounts of the Company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Interests in subsidiaries are assessed for impairment at each reporting date. Any impairments losses or reversals of impairment losses are recognised immediately in profit or loss.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The directors consider that accounting estimates, assumptions and judgements made do not have a significant risk of causing a material difference to the carrying amounts of assets and liabilities within the next financial year.

Critical areas of judgement

There are procedures in place to monitor stock items considered to be slow moving to ensure that the carrying value of these items is still recoverable. Where necessary, a provision is made for items where the recoverable amount is lower than the carrying value.

The Group also makes judgement regarding the recoverability of debt from group companies. If these companies are not currently profitable and are being supported by other group entities then these amounts will be provided for in the accounts of the Company.

The directors exercise significant judgement in applying the going concern basis in preparing the financial statements. This judgement being the assumption that the parent company and ultimate shareholder are able to fund the business for a period of 12 months from the approval of the accounts. As stated in the strategic report, the directors have judged that this constitutes a material uncertainty which may cast significant doubt over the Group and Company's ability to continue as a going concern for the foreseeable future and, therefore, the Group and Company might be unable to realise its assets and discharge its liabilities in the normal course of business.

4.

TURNOVER

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

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

2024

2023

£

£

Sale of goods

11,911,456

10,775,894

11,911,456

10,775,894

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

9,864,404

9,221,552

Europe

1,164,555

992,401

Rest of World

882,497

561,941

11,911,456

10,775,894