ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: 07783306

REES TRADING UK LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

REES TRADING UK LTD

COMPANY INFORMATION

Director	E G Rees


Company secretary	C Rees


Registered number	07783306


Registered office	Unit C
	Mochdre Industrial Estate
	Newtown
	Powys
	SY16 4LE


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Unit 10
	St Giles Business Park
	Newtown
	Powys
	SY16 3AJ

REES TRADING UK LTD

CONTENTS

	Page
Group strategic report	1 - 2
Director's report	3 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated balance sheet	10 - 11
Company balance sheet	12 - 13
Consolidated statement of changes in equity	14
Company statement of changes in equity	15
Consolidated statement of cash flows	16 - 17
Notes to the financial statements	18 - 43

REES TRADING UK LTD

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The shareholders and company directors are pleased to present the strategic report for the year ended 31st December 2024.

Business review

The main business activity of Rees Trading UK Ltd is contract packing and agricultural contracting. It is parent to Rees Machinery Group Ltd (RMGroup), a company that specialises in material handling, process, packaging and robotic automation.
The directors within the group have a shared commitment to delivering high quality, innovative projects to customer specification whilst continuing to develop business processes and operation methods to deliver increased performance and profitability.

In 2024 the total turnover finished up at £9,592,452 near to what was forecasted within the Companys planned revenue growth. That scale up remains consistent with the increased net asset figure of £6,305,609.
Cost of sales stabilised from previous uncertainty seen with the global supply chain, allowing the business to focus on efficiency improvements throughout the core business areas.
Within bespoke projects, there were challenges and uncertainties to overcome to achieve innovative design and deliver projects to customer specification.
The financial position of the Company remains strong with a healthy balance sheet and over £2,237,045 in tangible assets.
Based on the level of trading, a healthy cash reserve is maintained to meet working capital requirements. For year end 2024 at £2,774,541.

Principal risks and uncertainties

The business has a growing export range, predominantly to North America, it is therefore at risk within this market due to ongoing uncertainty with the tariff agreements between the UK and USA. Ongoing Brexit trade agreements also pose a secondary risk to the business export growth.
Regulatory risk comes in the form of the UK NIS Regulations, which create a legal duty to protect critical digital and operational infrastructure. The forthcoming “NIS2-style” reforms will widen coverage and raise the bar, so adopting best-practice cybersecurity and resilience planning now something the business is having to act upon.
To mitigate these risks, the business is continuing to focus on a partnership approach with its clients, whilst building its relationship with its supply chain partners, namely ABB Robotics & Siemens. Development of these relationship, enable the business to introduce and widen it’s sales channels, and utilise its partners technologies to develop its staff and approach changes dynamically.

Page 1

REES TRADING UK LTD

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Financial and other key performance indicators

The board of directors will measure performance on the supply of systems, cost of sales and stakeholder satisfaction.
The business outlook includes evaluation of market strategy, well formulated budget and clear leadership directive.

This report was approved by the board and signed on its behalf.

................................................

E G Rees

Director

Date: 30 September 2025

Page 2

REES TRADING UK LTD

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

∙select suitable accounting policies for the Group's financial statements 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £983,846 (2023 - £1,016,996).

During the year the Company declared dividends totalling £150,000 (2023 - £Nil).

Director

The director who served during the year was:

E G Rees

Future developments

The business enters 2025 with a healthy pipeline, with some new key accounts developing, and retention of its extensive existing customer base. The business intends to focus on staff development and customer retention into 2025, whilst simultaneously building its reputation as a Tier 1 automation supplier to major multi-site manufacturers across the intralogistics and F&B markets.
Finally, the business has developed its sustainability plan in 2024, building on our Combined Heat & Power Plant, by introducing a solar system to our premises to deliver nearly self sufficient energy production. Furthermore, introducing carbon footprint monitoring to our QMS system, with a plan to join the SME Climate Hub in 2025.

Page 3

REES TRADING UK LTD

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

E G Rees

Director

Date: 30 September 2025

Page 4

REES TRADING UK LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD

Opinion

We have audited the financial statements of Rees Trading UK LTD (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 December 2024 and of the Group's profit for the year then ended;

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

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

Basis for 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Page 5

REES TRADING UK LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the 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 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.

Opinion 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Director's report 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 Director's report.

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

∙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 director's remuneration specified by law are not made; or

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

Page 6

REES TRADING UK LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or has 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 an Auditors' 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Page 7

REES TRADING UK LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)

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 Auditors' 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.

John Fletcher BA (Hons) FCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Unit 10

St Giles Business Park

Newtown

Powys

SY16 3AJ

30 September 2025

Page 8

REES TRADING UK LTD

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	9,592,452	9,645,504
Cost of sales		(5,272,898)	(6,056,066)
Gross profit		4,319,554	3,589,438
Administrative expenses		(3,148,641)	(3,102,083)
Operating profit	5	1,170,913	487,355
Interest receivable and similar income	8	13	-
Interest payable and similar expenses	9	(72,746)	(81,893)
Investment property revaluation		-	840,000
Profit before taxation		1,098,180	1,245,462
Tax on profit	10	(114,334)	(228,466)
Profit for the financial year		983,846	1,016,996


Currency translation differences	(16,417)	12,582
Other comprehensive income for the year	(16,417)	12,582
Total comprehensive income for the year	967,429	1,029,578

Profit for the year attributable to:
Owners of the parent Company	983,846	1,016,996
	983,846	1,016,996

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 18 to 43 form part of these financial statements.

Page 9

REES TRADING UK LTD

REGISTERED NUMBER: 07783306

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	12		42,428		51,465
Tangible assets	13		2,237,045		2,333,090
Investment property	15		1,200,000		1,200,000
			3,479,473		3,584,555
Current assets
Stocks	16	1,464,013		1,779,776
Debtors: amounts falling due within one year	17	2,277,089		3,684,521
Cash at bank and in hand	18	2,774,541		694,784
		6,515,643		6,159,081
Creditors: amounts falling due within one year	19	(2,751,248)		(3,058,982)
Net current assets			3,764,395		3,100,099
Total assets less current liabilities			7,243,868		6,684,654
Creditors: amounts falling due after more than one year	20		(575,016)		(793,935)
Provisions for liabilities
Deferred taxation	23	(363,243)		(402,539)
			(363,243)		(402,539)
Net assets			6,305,609		5,488,180

Page 10

REES TRADING UK LTD

REGISTERED NUMBER: 07783306

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Capital and reserves
Called up share capital	24	300	300
Capital redemption reserve	25	6	6
Investment property reserve	25	635,004	635,004
Profit and loss account	25	5,670,299	4,852,870
		6,305,609	5,488,180

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

E G Rees

Director

Date: 30 September 2025

The notes on pages 18 to 43 form part of these financial statements.

Page 11

REES TRADING UK LTD

REGISTERED NUMBER: 07783306

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	13		697,670		662,402
Investments	14		200		200
Investment property			1,200,000		1,200,000
			1,897,870		1,862,602
Current assets
Stocks	16	63,812		119,504
Debtors: amounts falling due within one year	17	443,855		506,281
Cash at bank and in hand	18	98,003		17,490
		605,670		643,275
Creditors: amounts falling due within one year	19	(475,303)		(435,519)
Net current assets			130,367		207,756
Total assets less current liabilities			2,028,237		2,070,358

Creditors: amounts falling due after more than one year	20		(101,702)		(120,091)
Provisions for liabilities
Deferred taxation	23	(302,529)		(298,060)
			(302,529)		(298,060)
Net assets			1,624,006		1,652,207

Page 12

REES TRADING UK LTD

REGISTERED NUMBER: 07783306

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

	2024	2023
Note	£	£

Capital and reserves
Called up share capital	24		300		300
Investment property reserve	25		635,004		635,004
Profit and loss account brought forward		1,016,903		1,024,264
Profit for the year		121,799		622,639
Other changes in the profit and loss account		(150,000)		(630,000)
Profit and loss account carried forward			988,702		1,016,903
			1,624,006		1,652,207

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

E G Rees

Director

Date: 30 September 2025

The notes on pages 18 to 43 form part of these financial statements.

Page 13

REES TRADING UK LTD

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital redemption reserve	Investment property revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2023	300	6	5,004	4,453,292	4,458,602
Comprehensive income for the year
Profit for the year	-	-	-	1,016,996	1,016,996
Currency translation differences	-	-	-	12,582	12,582
Total comprehensive income for the year	-	-	-	1,029,578	1,029,578
Investment property revaluation net of deferred tax	-	-	630,000	(630,000)	-
Total transactions with owners	-	-	630,000	(630,000)	-

At 1 January 2024	300	6	635,004	4,852,870	5,488,180
Comprehensive income for the year
Profit for the year	-	-	-	983,846	983,846
Currency translation differences	-	-	-	(16,417)	(16,417)
Total comprehensive income for the year	-	-	-	967,429	967,429
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(150,000)	(150,000)
Total transactions with owners	-	-	-	(150,000)	(150,000)
At 31 December 2024	300	6	635,004	5,670,299	6,305,609

The notes on pages 18 to 43 form part of these financial statements.

Page 14

REES TRADING UK LTD

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Investment property revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	300	5,004	1,024,264	1,029,568
Comprehensive income for the year
Profit for the year	-	-	622,639	622,639
Total comprehensive income for the year	-	-	622,639	622,639
Investment property revaluation net of deferred tax	-	630,000	(630,000)	-
Total transactions with owners	-	630,000	(630,000)	-

At 1 January 2024	300	635,004	1,016,903	1,652,207
Comprehensive income for the year
Profit for the year	-	-	121,799	121,799
Total comprehensive income for the year	-	-	121,799	121,799
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(150,000)	(150,000)
Total transactions with owners	-	-	(150,000)	(150,000)
At 31 December 2024	300	635,004	988,702	1,624,006

The notes on pages 18 to 43 form part of these financial statements.

Page 15

REES TRADING UK LTD

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	983,846	1,016,996
Adjustments for:
Amortisation of intangible assets	12,987	16,887
Depreciation of tangible assets	257,262	266,320
Loss on disposal of tangible assets	(12,996)	(27,863)
Interest paid	72,746	81,893
Interest received	(13)	-
Taxation charge	114,334	228,466
Decrease/(increase) in stocks	315,763	(773,215)
Decrease in debtors	1,407,432	193,556
(Decrease)/increase in creditors	(360,133)	225,613
Corporation tax received/(paid)	41,099	(109,310)
Foreign exchange differences	(19,072)	22,334
Investment property revaluations	-	(840,000)
Net cash generated from operating activities	2,813,255	301,677

Cash flows from investing activities
Purchase of intangible fixed assets	(3,950)	(10,240)
Purchase of tangible fixed assets	(242,826)	(159,534)
Sale of tangible fixed assets	97,260	-
Purchase of investment properties	-	124,515
Interest received	13	-
HP interest paid	(13,055)	(18,661)
Net cash from investing activities	(162,558)	(63,920)

Page 16

REES TRADING UK LTD

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£


Cash flows from financing activities
Repayment of loans	(159,165)	(164,086)
Repayment of/new finance leases	(202,084)	(204,673)
Dividends paid	(150,000)	-
Interest paid	(59,691)	(63,232)
Net cash used in financing activities	(570,940)	(431,991)
Net increase/(decrease) in cash and cash equivalents	2,079,757	(194,234)
Cash and cash equivalents at beginning of year	694,784	889,018
Cash and cash equivalents at the end of year	2,774,541	694,784

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,774,541	694,784
	2,774,541	694,784

Page 17

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Rees Trading UK Limited, 07783306, is a private company limited by shares, incorporated in England and Wales, with its registered office and principal place of business at Unit C, Mochdre Industrial Estate, Newtown, Powys, SY16 4LE.
The principal activity of the Company is contract packaging in the agricultural industry and property development.
The principal activities of the Group is the supply of a wide range of manual and automated packaging machinery and systems.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent Company disclosure exemptions

In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:

∙No disclosures have been given for the aggregate remuneration of the key management personnel of the parent Company as their remuneration is included in the totals for the Company as a whole.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 September 2015.

Page 18

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Going concern

After reviewing budgets and forecasts the directors are confident that the company can continue trading for at least the next 12 months and that therefore the going concern basis is appropriate.

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 19

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 20

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 22

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery	-	25%
Motor vehicles	-	25%
Fixtures and fittings	-	25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

The director believes the residual value of the freehold property is similar to that of the cost and therefore deprecation is not applied.

2.13

Investment property

Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 23

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 24

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 25

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.20

Financial instruments (continued)

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company and Group's accounting policies.
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.
The Company and Group make estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Long Term Contracts
Judgement is particularly applied in estimating the completion stage and expected outcomes of long term contracts.

Turnover

The whole of the turnover is attributable to the principal activities of the Group.

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	7,655,573	7,192,972
Rest of Europe	42,216	38,620
Rest of the world	1,894,663	2,413,912
	9,592,452	9,645,504

Fees payable to the Group's auditors for the audit of the financial statements	18,900	15,550
Exchange differences	981	(6,345)
(Profit)/loss on sale of tangible assets	(12,996)	(27,863)

Page 27

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Employees
	Staff costs, including director's remuneration, were as follows:

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Wages and salaries	2,664,018	2,630,880	105,578	98,098
Social security costs	280,271	262,050	8,981	7,954
Cost of defined contribution scheme	50,036	55,960	1,509	2,018
	2,994,325	2,948,890	116,068	108,070

The average monthly number of employees, including the director, during the year was as follows:

	Group	Group	Company	Company
	2024	2023	2024	2023
	No.	No.	No.	No.

Directors	1	1	1	1
Staff	50	70	4	4

	51	71	5	5

7.	Director's remuneration
		2024	2023
		£	£

Director's emoluments	30,450	30,000
Group contributions to defined contribution pension schemes	726	713
	31,176	30,713

During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

8.	Interest receivable
		2024	2023
		£	£

	Other interest receivable	13	-
		13	-

Page 28

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	58,966	62,650
Finance leases and hire purchase contracts	13,055	18,661
Other interest payable	725	582
	72,746	81,893

Corporation tax
Current tax on profits for the year	248,413	79,214
Adjustments in respect of previous periods	(94,783)	-
	153,630	79,214

Total current tax	153,630	79,214

Deferred tax
Origination and reversal of timing differences	(39,296)	149,252
Total deferred tax	(39,296)	149,252


	Tax on profit	114,334	228,466

Page 29

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.Taxation (continued)

Profit on ordinary activities before tax

1,162,368

1,245,462

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)	274,545	292,684
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,044	-
Utilisation of tax losses	(3,721)	(49,223)
Adjustments to tax charge in respect of prior periods	(94,783)	-
Short-term timing difference leading to an increase (decrease) in taxation	(12,993)	198,155
Other timing differences leading to an increase (decrease) in taxation	5,976	(4,053)
Fair value gains	-	(197,400)
Book profit on chargeable assets	(8,009)	(6,548)
Overseas tax adjustments	(48,725)	(5,149)
Total tax charge for the year	114,334	228,466

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Dividends
		2024	2023
		£	£

	Ordinary dividends	150,000	-
		150,000	-

Page 30

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Intangible assets
	Group and Company

	Patents	Computer software	Goodwill	Total
	£	£	£	£
Cost
At 1 January 2024	2,325	136,715	350,000	489,040
Additions	-	3,950	-	3,950
At 31 December 2024	2,325	140,665	350,000	492,990
Amortisation
At 1 January 2024	1,821	85,754	350,000	437,575
Charge for the year on owned assets	-	12,987	-	12,987
At 31 December 2024	1,821	98,741	350,000	450,562
Net book value
At 31 December 2024	504	41,924	-	42,428
At 31 December 2023	504	50,961	-	51,465

Page 31

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	1,134,758	1,912,233	652,461	245,882	3,945,334
Additions	-	150,604	18,500	73,722	242,826
Disposals	-	(84,941)	(44,187)	(20,742)	(149,870)
Exchange adjustments	-	2,826	-	305	3,131
At 31 December 2024	1,134,758	1,980,722	626,774	299,167	4,041,421
Depreciation
At 1 January 2024	-	1,107,803	369,102	135,339	1,612,244
Charge for the year on owned assets	-	162,686	67,030	27,546	257,262
Disposals	-	(37,549)	(26,761)	(1,296)	(65,606)
Exchange adjustments	-	458	-	18	476
At 31 December 2024	-	1,233,398	409,371	161,607	1,804,376
Net book value
At 31 December 2024	1,134,758	747,324	217,403	137,560	2,237,045
At 31 December 2023	1,134,758	804,430	283,359	110,543	2,333,090

Page 32

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Plant and machinery	277,019	324,754
Motor vehicles	75,748	110,877
Furniture, fittings and equipment	7,979	10,195
	360,746	445,826

Page 33

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.Tangible fixed assets (continued)

	Company

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	310,164	741,505	14,000	5,439	1,071,108
Additions	-	146,114	18,500	-	164,614
Disposals	-	(84,941)	-	-	(84,941)
At 31 December 2024	310,164	802,678	32,500	5,439	1,150,781
Depreciation
At 1 January 2024	-	399,194	7,146	2,366	408,706
Charge for the year on owned assets	-	79,525	1,964	465	81,954
Disposals	-	(37,549)	-	-	(37,549)
At 31 December 2024	-	441,170	9,110	2,831	453,111
Net book value
At 31 December 2024	310,164	361,508	23,390	2,608	697,670
At 31 December 2023	310,164	342,311	6,854	3,073	662,402

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Plant and machinery	154,064	167,645
	154,064	167,645

Page 34

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	200
	At 31 December 2024	200

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

Rees Machinery Group Limited	Unit C, Mochdre Industrial Estate, Newtown, Powys, SY16 4LE	Ordinary	100%
Rees Contract Maintenance Limited (Dormant)	Unit C, Mochdre Industrial Estate, Newtown, Powys, SY16 4LE	Ordinary	100%
RMGroup LLC	1209 Orange Street, Wilmington, 19081. U.S.A.	Ordinary	100%

Rees Contract Maintenance Limited was dormant throughout the period and is therefore not included in the consolidated financial statements.
RMGroup LLC is an indirect subsidiary of the Company.

Page 35

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Investment property
	Group and Company

		Freehold investment property
		£
	Valuation
	At 1 January 2024	1,200,000
	At 31 December 2024	1,200,000

	Comprising
	Cost	360,000
	Annual revaluation surplus/(deficit):
	2023	840,000
	At 31 December 2024	1,200,000

The 2024 valuations were made by the Director, on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2024	2023
	£	£

	Historic cost	360,000	360,000
		360,000	360,000

16.	Stocks
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Raw materials and consumables	1,365,529	1,660,272	(34,672)	-
Finished goods and goods for resale	98,484	119,504	98,484	119,504
	1,464,013	1,779,776	63,812	119,504

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 36

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.

Debtors

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Trade debtors	832,885	1,661,350	173,401	86,000
Other debtors	700,928	1,296,014	145,358	329,268
Prepayments and accrued income	611,380	644,857	10,750	8,713
Tax recoverable	131,896	82,300	114,346	82,300
	2,277,089	3,684,521	443,855	506,281

18.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Cash at bank and in hand	2,774,541	694,784	98,003	17,490
	2,774,541	694,784	98,003	17,490

Page 37

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	153,303	144,318	24,238	34,089
Trade creditors	605,579	1,414,751	7,152	14,312
Amounts owed to group undertakings	-	-	294,098	289,070
Corporation tax	401,369	206,640	87,009	44,304
Other taxation and social security	310,696	174,098	21,549	-
Obligations under finance lease and hire purchase contracts	76,337	227,652	24,913	45,077
Other creditors	9,982	12,200	3,454	1,622
Accruals and deferred income	1,193,982	879,323	12,890	7,045
	2,751,248	3,058,982	475,303	435,519

Bank loans are secured upon the freehold property, stock and investment property of the Group. Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate.
The amount of £10,000 (2023: £10,000) included in creditors due within one year is subject to a UK Government guarantee. The facility is provided through the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The BBLS guarantee is provided to the lender.

Page 38

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	547,710	715,860	83,491	108,460
Net obligations under finance leases and hire purchase contracts	27,306	78,075	18,211	11,631
	575,016	793,935	101,702	120,091

Bank loans are secured upon the freehold property, stock and investment property of the Group. Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate.
The amount of £5,000 (2023: £15,000) included in creditors falling due after one year is subject to a UK Government guarantee. The facility is provided through the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The BBLS guarantee is provided to the lender.

Page 39

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Loans
	Group Included within bank loans is a mortgage balance repayable by monthly instalnents, which is expected to be repaid in full by March 2035. Interest is charged on the loan at a rate of 4.3% per annum. Also included within bank loans is a business loan balance repayable by monthly instalments, which is expected to be repaid in full by March 2035. Interest is charged on the loan at a rate of 4.7% per annum Within bank loans is a Coronavirus Business Interruption Loan Scheme (CBILS) loan which is repayable by monthly instalments and expected to be repaid in full by December 2026. Interest is charged on the loan at a rate of 3.4% per annum Company Included within bank loans is a balance repayable by monthly instalments, which is expected to be repaid in full by May 2030. Interest is charged on the loan at 2.5% above the base rate per annum. Within bank loans is a Bounce Back Loan which is repayable by monthly instalments and expected to be repaid in full by June 2026. Interest is charged on the loan at a rate of 2.5% per annum.
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Amounts falling due within one year
Bank loans	153,303	144,318	24,238	34,089
	153,303	144,318	24,238	34,089
Amounts falling due 1-2 years
Bank loans	150,339	134,329	20,305	23,333
	150,339	134,329	20,305	23,333
Amounts falling due 2-5 years
Bank loans	155,346	192,376	53,148	51,776
	155,346	192,376	53,148	51,776
Amounts falling due after more than 5 years
Bank loans	242,025	389,155	10,038	33,351
	242,025	389,155	10,038	33,351
	701,013	860,178	107,729	142,549

Page 40

REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Within one year	76,337	227,652	24,913	57,783
Between 1-5 years	27,306	78,075	18,211	71,099
	103,643	305,727	43,124	128,882

23.	Deferred taxation
	Group

		2024
		£

	At beginning of year	(402,539)
	Charged to profit or loss	39,296
	At end of year	(363,243)

Company

		2024
		£

	At beginning of year	(298,060)
	Charged to profit or loss	(4,469)
	At end of year	(302,529)

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£

Accelerated capital allowances	(182,683)	(215,507)	(92,529)	(88,060)
Investment property revaluations	(210,000)	(210,000)	(210,000)	(210,000)
Short term timing differences	29,440	22,968	-	-
	(363,243)	(402,539)	(302,529)	(298,060)

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REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

24.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

300 (2023 - 300) Ordinary shares of £1.00 each	300	300

25.

Reserves

Investment property revaluation reserve

The investment property revaluation reserve represents the accumulated surplus on the revaluation of the Company's investment property, less related deferred tax.

Profit and loss account

The profit and loss account represents the accumulated profit of the Company since incorporation less distributions made to shareholders.

26.	Analysis of net debt

		At 1 January 2024	Cash flows	At 31 December 2024
		£	£	£

Cash at bank and in hand	694,784	2,079,757	2,774,541
Debt due after 1 year	(715,860)	632,369	(83,491)
Debt due within 1 year	(145,939)	(472,153)	(618,092)
Finance leases	(305,727)	202,084	(103,643)
	(472,742)	2,442,057	1,969,315

27.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £50,036 (2023: £55,761).
Contributions totalling £9,060 (2023: £11,045) were payable to the fund at the balance sheet date and are included in creditors.

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REES TRADING UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

28.

Related party transactions

The Company has taken exemption available under FRS 102 in not disclosing related party transactions with wholly owned group companies.
At the year end the Group was owed £314,999 (2023: £915,000) from Base 24 Limited, of which E Rees is a Director.
During the year the Company made purchases of £Nil (2023: £35,995) from Globalpak Limited, of which E Rees and J E Pugh is a Director. At the year end £100,000 (2023: £100,000) was due to the Company.
At the year end the Company was owed £50,000 (2023: £50,000) from Woozy Fabrications & Son Ltd, of which E Rees is a Director.

29.	Controlling party

The Company has no ultimate controlling party.

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