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

The founders of Cansford Laboratories Ltd are the original pioneers of hair testing in the UK, having introduced this science to the UK 30 years ago, we continue to drive improvements to the processes and accuracies of drug and alcohol testing at our Cardiff Laboratory, meaning faster results, the ability to prove abstinence from alcohol as well as being accredited to UKAS ISO17025:2017 for the widest range of drugs tested in-house in the UK.

As with any other business operating within the UK, we are at the mercy of economic fluctuations be those changes to fiscal policies, changes in public perception and or changes to the Laws that we are governed by. Political Changes particularly affecting the public purse including Local Authority budgetary constraints and the attitude of government in areas such as child protection, the deregulation of drug and alcohol use and the availability of legal aid can have serious effects on our financial performance.

We also have Physical Risks such as fire and flood that could well disrupt our business. The availability of suitably qualified scientific staff to produce our products would be another risk.

Competition from other companies or providers of drug and alcohol testing who can undercut us by virtue of not having the overheads of their own laboratory and costs of accreditation, but who can claim to have these capabilities without recourse from the accreditation issuing authorities are always present.

Cansford Laboratories refrain from undervaluing our products and the processes and methods used to produce the required results at the highest quality possible whilst using the most efficient and accurate methods to do so. We are not prepared to race to the bottom and destroy the market and devalue the science developed over many decades.

During 2024 Cansford Laboratories continued to build on the foundations developed over the past decade or more, by persistently producing results high in quality, on a timely basis and reporting those results in plain English so that they were easily understandable by non-scientifically trained customers.

Unfortunately during 2024 our overall revenue reduced in comparison to what was achieved in 2023, the main cause of this reduction was the loss of two large customers , Atkinson Lewis a company we had been trading with for over a decade ceased trading in 2024 and as a result our revenue fell by £542,000 and the other was Lextox a competitor of ours who resolved the issues they had in their own laboratory and commenced processing their own results , although this was anticipated in our budgets it occurred much quicker than expected which caused another reduction in our revenue of £1,030,000. To compensate for these losses, we pushed harder in the legal sectors and increased our revenue in these sectors by £436,000 combine this with increases from the Sports sector, Export Markets as well as other sales resulted in our revenue overall decreased in the year by £997,000.

Cansford Laboratories ended 2024 in a solid financial position, our turnover was £ 7,473,890 (2023: 8,474,821) and our Net Operating Profit was £3,239,326 (2023: 3,872,164), this reduction in operating profit was mainly due to us loosing two large customers who left us suddenly the first was budgeted for but came earlier than anticipated whilst the second was somewhat disappointing because this customer had been with Cansford since our beginning. However, we have persevered and increased our other clients to replace most of the income lost.

Our Gross Margin in the year was 68.11% whilst our Net Margin was 43.69%

As with any company operating in a competitive market, we are subject to the ability of competitors to undercut and devalue the products that we offer, in many cases winning work based on lower prices but then loosing that work due to the turn around times, quality of service provided and ability to analyse the range of drugs required.

Our LIMS (Laboratory Information Management system, “RedRock”) is continually in development, and this will be an ongoing process if our staff continue to think outside of the BOX and maintain their need to find ways to improve our methods. We have a team of developers who are working through a list of projects. This list is being added to, at regular intervals from all members of the Cansford team. The projects range from small tweaks to the system to larger projects. All projects will assist with the improvements to efficiencies and quality in all departments within Cansford.

Our Sales and Marketing department will soon be required to restructure as the former head retired in October 2024 with a new head being in situ since September 2024. To continue our growth in various sectors of our business, there will be more attention and focus given to hunting potential new clients as the team develops and grows, it is envisaged that our larger legal clients will have a dedicated client manager to provide a first point of contact and a more personal relationship for those clients and their staff.

Influencing choice via marketing campaigns and the persuading and education of the legal fraternity that the option of our new product of EtG in blood (alcohol marker) provides additional evidence for alcohol results can pay dividends. We already dominate the market that would benefit the most from this additional alcohol marker. Our main aim would be to get in front of the judges, barristers, and solicitors to get this additional product written into court orders or instructions. As we are currently the only UK lab to offer this, so the development of this strategy it will be high on our priority list to develop this market to incorporate Blood EtG.

We have an extensive R & D wish list that we have to prioritise diligently. We are currently working on a faster method of extracting the drug from the hair sample, if we are successful in this research there will be several benefits that will materialise, this new process will generate considerable cost reductions in comparison to the materials currently being used. In addition to this, the processes involved will be quicker and easier to educate so that other staff can use efficiently and ultimately this will result in less staff recruitment in the lab areas and the option of recruiting non-scientific graduates.

In addition to the specified or scheduled R&D projects, there will be ongoing improvements with the current methods as always, for example the use of new columns for our instruments to allow clearer results or to provide new drugs to add to the range that we currently offer for upcoming trends. Creating our own Incurred Quality Controls (IQCs). IQCs are samples to prove that you can extract drug from real hair samples. This is required for ISO17025 to prove that our extraction process is what we expect it to be. To maintain the accreditation for every accredited analyte that we test will require this step. It is difficult to have real hair samples with certain drug groups as they are not all commonly used. We will be making our own IQC.

Blood drugs on DBS cards. Drug testing using a short window of time is not used in the family court field but there is the ability to test for this. There is a plan as stated above to fully validate the method once we have the clientele. The above are some examples of what has been prioritised.

Currently there are no branches of Cansford Laboratories Ltd based outside of the UK or more accurately outside Cardiff, however we do work closely with other companies who send us samples on a regular basis, and some of those companies are based overseas. The development of satellite laboratories in other regions and or other countries is extremely costly and well as fraught with problems and risky. The companies that we deal with range from schools to companies offering drug and alcohol services who do not have their own laboratory. We will continue to offer our existing and new product range to these and grow the foreign market. If the potential of any of these markets increases significantly and we have a presence in those markets already, we may consider setting up laboratories or other arrangements with suitable partners if these ventures would be financially viable.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of medical research.

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

Ordinary dividends were paid amounting to £5,180,650. The directors do not recommend payment of a further dividend.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

The company has various financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

We have an extensive R&D wish list that we have to prioritise diligently. We are currently working on a faster method of extracting the drug from the hair sample. If we are successful in this research there will be several benefits that will materialise, including considerable cost reductions in comparison to the materials currently being used. In addition to this, the processes involved will be quicker and easier to educate so that other staff should be able to use them efficiently. This will ultimately result in less staff recruitment in the lab areas and the option of recruiting non-scientific graduates.

In addition to the specified or scheduled R&D projects, there will be ongoing improvements with the current methods. For example, the use of new columns for our instruments to allow clearer results, or to provide new drugs to add to the range that we currently offer for upcoming trends.

Creating our own Incurred Quality Controls (IQCs)

IQCs are samples to prove that you can extract drugs from real hair samples. This is required for ISO17025 to prove that our extraction process is what we expect it to be. To maintain the accreditation, every analyte subject to accreditation that we test will require this step. It is difficult to have real hair samples with certain drug groups as they are not all commonly used. Therefore, we will be making our own IQC.

Blood drugs on DBS cards

Drug testing using a short window of time is not used in the family court field, but there is the ability to test for this. There is a plan as stated above to fully validate the method once we have the clientele. The above are some examples of what has been prioritised.

Currently there are no branches of Cansford Laboratories Ltd based outside of the UK, or more accurately outside of Cardiff. However, we do work closely with other companies who send us samples on a regular basis, and some of those companies are based overseas. The development of satellite laboratories in other regions and/or other countries is not only extremely costly but is fraught with problems and risk. The companies that we deal with range from schools to companies offering drug and alcohol services who do not have their own laboratory. We will continue to offer our existing and new product range to these and grow the foreign market. If the potential of any of these markets increases significantly and we have a presence in those markets already, we may consider setting up laboratories or other arrangements with suitable partners if these ventures would be financially viable.

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.

The directors are responsible for preparing the Strategic Report, the Directors’ 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

• use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

We have audited the financial statements of Cansford Laboratories Limited (“the Company”) for the year ended 31 December 2024 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

• give a true and fair view of the state of the Company’s affairs as at 31st December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going Concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

• we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;

• we have not identified and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of directors as to the Company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.

• Reading Board minutes.

• Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because it consists entirely of

routine, non-complex transactions that are subject to systematic processing and pricing..

We did not identify any additional fraud risks.

We performed procedures including:

• Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to revenue or cash or EBITDA (defined as Earnings Before Interest, Taxation, Depreciation and Amortisation) with an unexpected corresponding entry, and all material post-closing entries.

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), and discussed with the directors the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is 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, data protection laws, anti-bribery, employment law, regulatory capital and liquidity recognising the nature of the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The directors are responsible for the other information, which comprises the strategic report and the directors’ report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

• we have not identified material misstatements in the other information;

• in our opinion the information given in the strategic report and the directors’ report for the financial year is consistent with the financial statements; and

• in our opinion those reports have been prepared in accordance with the Companies Act 2006.

Under the Companies Act 2006 we are required 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.

We have nothing to report in these respects.

As explained more fully in their statement set out on page 5, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they 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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

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.

Gareth Woods (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

7th floor, EastWest,

Tollhouse Hill, Nottingham,

NG1 5FS

Date: 25 September 2025

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The accompanying notes form part of these financial statements

The accompanying notes form part of these financial statements

The accompanying notes form part of these financial statements

The accompanying notes form part of these financial statements

Cansford Laboratories Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1a Pentwyn Business Centre, Wharfdale Road, Cardiff, United Kingdom, CF23 7HB.

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 pound.

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

Cansford Laboratories Limited is a wholly owned subsidiary of Cansford Associates Limited and the results of Cansford Laboratories Limited are included in the consolidated financial statements of TIC Holdco Limited which are available from 3 Cadogan Gate, London, United Kingdom, SW1X 0AS.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

• Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

The smallest and largest group of undertakings for which group accounts are drawn up are TIC Holdco Limited.

Cansford Laboratories Limited ("the Company") is part of, and integrated into, the TIC Holdco Limited group ("the Group") and, in making their going concern assessment, the directors have considered the financial performance and position of the Company and the Group as a whole.true

The directors have prepared cash flow forecasts in order to assess going concern which indicates that, taking account of reasonably possible downsides, the Company will have sufficient funds, to meet its liabilities as they fall due during the going concern assessment period and no group support is required in either base case or downside scenarios. The directors also considered the Group performance in assessing the going concern. The Group meets its day-to-day working capital requirements through its banking facilities and has prepared detailed forecasts which indicate that it has sufficient resources available in order to settle its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements. The forecast shows that there is sufficient cash headroom to absorb a reasonable assessment of potential downsides against the forecast, should they occur.

Having reviewed the forecast information and current trading levels, the directors are confident that the Group and the Company can pay its debts as they fall due over the next 12 months. Accordingly, the directors have concluded that no material uncertainty in relation to going concern exists and have prepared the financial statements on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Management recognised an internally generated asset, which is based on ICT staff time spent on developing software and is recognised on this basis.

Amortisation 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:

Amortisation is recognised in the amortisation line of the profit and loss account.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 periods. 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 net realiseable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been 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’ and Section 12 ‘Other Financial Instruments Issues’ 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.

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

Equity instruments issued by the company are recorded at the 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 company.

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 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stocks are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the economic environment and stock loss trends.

Management recognised an internally generated asset, which is based on ICT staff time spent on developing software and is recognised on this basis.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

The actual (credit)/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:

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

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.

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:

The company is party to an agreement to secure borrowing facilities held by the wider group headed by TIC

Holdco Limited. Under this agreement, the company has provided fixed and floating charges over its assets

present and future.

The company has taken the exemption set out in FRS 102 from disclosing transactions with other members

of the group

The immediate parent company is Cansford Associates Limited. The registered office is 1a Pentwyn Business Centre, Cardiff, CF23 7HB.

The ultimate controlling party of the company is TIC Holdco Limited. The consolidated accounts may be obtained within TIC Holdco Limited statutory accounts and their registered office address is 3 Cadogan Gate, London, United Kingdom, SW1X 0AS.

The directors are of the opinion that Mr Peter Dubens is the ultimate controlling party of TIC Holdco Limited,

exercising his control through voting rights with a controlling percentage of greater than 50%.