REGISTERED NUMBER: 11705420 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

YOU TEC LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr Vimal Vrajlal Pau

Mr Jignesh Pau

REGISTERED OFFICE:

Santok House

Unit L, Braintree Industrial Estate

Braintree Road

South Ruislip

Middlesex

HA4 0EJ

REGISTERED NUMBER:

11705420 (England and Wales)

SENIOR STATUTORY AUDITOR:

Prakash Jariwala FCA FCCA

AUDITORS:

STGCA LLP t/a Sterling

Chartered Accountants

& Statutory Auditors

505 Pinner Road

Harrow

Middlesex

HA2 6EH

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

PRINCIPAL RISKS AND UNCERTAINTIES

Market and Demand Risk

The business operates in the wholesale trade of consumer electronics, which is subject to rapid technological change and evolving customer preferences. A downturn in demand, or a shift in consumer behaviour, could adversely impact revenue.

Mitigation: Continuously monitor market trends, customer preferences, and competitor activity.

Supply Chain and Procurement Risk

The company relies on global supply chains for sourcing products. Disruption due to geopolitical tensions, shipping delays, currency fluctuations, or supplier insolvency may affect product availability, cost, and margins.

Mitigation: Diversify supplier base across multiple regions to reduce dependency on any one source.

Competition Risk

The consumer electronics market is highly competitive, with pricing pressures from established manufacturers and new entrants. The risk of reduced margins or loss of market share is significant.

Mitigation: Focus on product differentiation and innovation and strengthen brand loyalty through marketing and customer engagement.

Credit and Liquidity Risk

The company extends credit to customers, exposing it to the risk of non-payment. Liquidity pressures could also arise from fluctuations in working capital requirements.

Mitigation: Conduct regular credit checks and set appropriate credit limits. Offer early payment incentives and enforce timely collections.

Regulatory and Compliance Risk

Compliance with import/export regulations, product safety standards, and data protection laws is essential. Breaches could result in fines, reputations damage, or restrictions on trading.

Mitigation: Maintain a compliance management framework and regularly update policies. Engage with legal and regulatory experts to stay updated on changes.

Technological Risk

Obsolescence of products and failure to adapt to new technologies could reduce the relevance of the company's product offering.

Mitigation: Invest in R&D to stay ahead of market trends.

Economic and Inflationary Pressures

Wider macroeconomic factors, including inflation, interest rate changes, and reduced consumer spending, could affect sales volumes and profitability.

Mitigation: Focus on cost efficiency and lean operations to protect margins and diversify product mix to include more affordable options.

Foreign Exchange Risk

Purchases are often denominated in foreign currencies, exposing the company to exchange rate volatility that may impact costs and margins.

Mitigation: Use hedging instruments (forward contracts, options) to manage currency exposure.

DEVELOPMENT AND PERFORMANCE

The company earned net profit before tax of £99,432 (2023: £732,772) on revenue of £11,054,898 (2023: £18,974,700). Revenue has decreased by £7.9 million (approximately 42%). This decline reflects demand-side pressure, the Company operates in a dynamic distribution model (ie, mobile accessories and low-cost electronics), hence fluctuations in customer demand or supplier delays from overseas markets (especially China) can significantly impact sales volume. Despite the lower revenue, tight control over purchases has resulted in an increase in gross profit margin which has increased from 23% to 30%. At the year end the Company had net current assets of £2,893,611 (2023: £2,609,256) which are sufficient for the Company to fulfil its working capital requirements. An increase in amounts owed by connected companies and an increase in stocks has helped to improve the net asset position of the company, which stood at £3,065,859 (2023: £2,991,945).

KEY PERFORMANCE INDICATORS ('KPIS')

In the opinion of the directors, key performance indicators of the Company include profit before interest and tax and net profit margin. Both performance indicators worsened during the year mainly due to a significant decrease in turnover but a relatively lower decrease in costs. The key performance indicators are closely monitored by the directors on regular basis.

ON BEHALF OF THE BOARD:

Mr Vimal Vrajlal Pau - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of sale and refurbishment of mobile phones, accessories and other gadgets.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024 (2023: £Nil).

FUTURE DEVELOPMENTS

The Company continues to pursue opportunities to improve its performance and financial position.

DIRECTORS

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

Mr Vimal Vrajlal Pau

Mr Jignesh Pau

DONATIONS

No political or charitable donations were made in the current or prior year.

FINANCIAL RISK MANAGEMENT

The Directors have considered the Company's exposure to price risk, credit risk, liquidity risk and cash flow risk. The Company's principal financial assets are trade and other receivables, group balances and cash at bank, which are considered to have low credit risk due to the nature of counterparties and historical experience of recoverability.

The Company maintains sufficient cash resources and has access to adequate funding to meet its obligations as they fall due. Liquidity is monitored regularly to ensure that the Company is able to meet its short-term and long-term commitments.

Based on this assessment, the Directors are satisfied that the Company's exposure to price risk, credit risk, liquidity risk and cash flow risk is not material and does not present a significant threat to the Company's ability to continue as a going concern.

GOING CONCERN

The Company has net assets at 31 December 2024 of £3,065,859 (2023: £2,991,945). The Directors are required to consider the going concern status of the business and accordingly, have prepared financial forecasts for a period of at least 12 months from the date of approval of these financial statements, taking into account anticipated economic and trading conditions. The forecasts indicate that, for the foreseeable future, the business is expected to generate positive cash flows after capital expenditure and to be able to meet its liabilities as they fall due. Notwithstanding this, the company is part of a group with funding and treasury controlled by its ultimate parent company, Santok (UK) Limited, and as such, is dependent on sufficient funds remaining in the business to enable it to operate.

The Group directors have prepared financial forecasts for a period of at least 12 months from the date of approval of these financial statements for the entire group, taking into account anticipated economic and trading conditions. These forecasts have been sensitised to take account of a range of potential trading and operating risks, together with actions, within the control of the business, that would be the mitigating response to those downside risks. The ultimate parent company has provided written assurance that it will ensure adequate funding remains within the company and the Directors are therefore satisfied that the business is a going concern and have prepared these

financial statements on that basis

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

- select suitable accounting policies and then apply them consistently;

- state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, STGCA LLP t/a Sterling, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Vimal Vrajlal Pau - Director

29 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Other Companies Act 2006 reporting

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to assessing the risk of material misstatement due to irregularities including Fraud:

- we identified the laws and regulations applicable to the company through discussions with management and also used our commercial and sector experience of the industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, UK General Data Protection Regulation, the Companies Act 2006, the Corporation Tax Act, UK anti-money laundering regime, employment and health & safety legislation;

- we ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- identified laws and regulations were communicated within our team and remained alert to any indications of non-compliance throughout the audit;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries with

Directors and management;

- considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- we also made enquiries with Directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

Responding to the risk of material misstatement due to Fraud

To respond to the identified risk of material misstatement due to fraud we assessed events and conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. We implemented the following risk assessment procedures:

- enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

- discussion amongst the engagement team as to how and where fraud might occur in the financial statements;

- tested journal entries to identify significant or unusual transactions and investigated the rationale behind those

transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of

potential bias; and

- performed analytical procedures to identify any unusual or unexpected relationship.

Responding to the risk of material misstatement due to non-compliance with Laws and Regulations

We implemented following risk assessment procedures:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading Board minutes; and

- enquiring of management as to actual and potential litigation and claims.

Ability of the audit to detect fraud or breaches of the Laws and Regulations

Owing to the inherent limitations in an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have planned and performed the audit in accordance with the auditing standards. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, misrepresentation, or intentional omission.

Our audit procedures are planned to detect material misstatements. We are not responsible for preventing fraud or

non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the measures management has in place to prevent and detect fraud, Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process.

Challenging assumptions and judgements made by management in its significant estimates, and

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

Due to 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 regulations. 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other 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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Prakash Jariwala FCA FCCA (Senior Statutory Auditor)

for and on behalf of STGCA LLP t/a Sterling

Chartered Accountants

& Statutory Auditors

505 Pinner Road

Harrow

Middlesex

HA2 6EH

29 September 2025

TURNOVER

3

11,054,898

18,974,700

Cost of sales

(7,717,656

)

(14,619,613

)

GROSS PROFIT

3,337,242

4,355,087

Administrative expenses

(3,236,982

)

(3,621,554

)

OPERATING PROFIT

5

100,260

733,533

Interest receivable and similar income

-

200

100,260

733,733

Interest payable and similar expenses

6

(828

)

(961

)

PROFIT BEFORE TAXATION

99,432

732,772

Tax on profit

7

(25,518

)

(60,890

)

PROFIT FOR THE FINANCIAL YEAR

73,914

671,882

PROFIT FOR THE YEAR

73,914

671,882

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

73,914

671,882

FIXED ASSETS

Intangible assets

8

196,706

410,062

Tangible assets

9

80

2,720

196,786

412,782

CURRENT ASSETS

Stocks

10

850,049

153,026

Debtors

11

6,714,125

6,063,595

Cash at bank and in hand

325,321

259,291

7,889,495

6,475,912

CREDITORS

Amounts falling due within one year

12

(4,995,884

)

(3,866,656

)

NET CURRENT ASSETS

2,893,611

2,609,256

TOTAL ASSETS LESS CURRENT LIABILITIES

3,090,397

3,022,038

CREDITORS

Amounts falling due after more than one year

13

(24,538

)

(30,093

)

NET ASSETS

3,065,859

2,991,945

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

3,065,759

2,991,845

SHAREHOLDERS' FUNDS

3,065,859

2,991,945

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr Vimal Vrajlal Pau - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

2,319,963

2,320,063

Changes in equity

Total comprehensive income

-

671,882

671,882

Balance at 31 December 2023

100

2,991,845

2,991,945

Changes in equity

Total comprehensive income

-

73,914

73,914

Balance at 31 December 2024

100

3,065,759

3,065,859

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

These financial statements are prepared on a going concern basis.

These financial statements are prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in a separate policy below.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

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

•

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

•

the requirement of paragraph 33.7.

The information requirements above are included in the consolidated financial statements of Santok (UK) Limited (incorporated in the United Kingdom) as at 31 December 2024 and these financial statements may be obtained from Companies House or from the registered office at Santok House Unit L, Braintree Industrial Estate, Braintree Road, South Ruislip, HA4 0EJ.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

The preparation of the financial statements under FRS 102 requires the use of estimates and assumption. The following areas involve significant estimation uncertainty that could result in a material adjustment to the carrying amounts of assets or liabilities.

The company has brands, patents and licenses. Management exercises judgement in assessing the useful life of these assets and reviews this on an ongoing basis.

The Company has also made assumptions regarding the useful life of tangible fixed assets and these too are reviewed on an ongoing basis.

The Company assesses the recoverability of trade receivables based on historical experience, the age of balances and specific knowledge of counterparties' financial positions. Provisions for impairment are made where there is evidence that receivables may not be fully recoverable.

Turnover and revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the Company and value added taxes.

The Company recognises revenue when:

(a) the significant risks and rewards of ownership have been transferred to the buyer

(b) the company retains no continuing involvement or control over the goods

(c) the amount of revenue can be measured reliably

(d) it is probable that future economic benefits will flow to the entity

The Company sells goods through internet based transactions. Revenue is recognised when the risks and rewards of the stock is passed to the customer. For deliveries to the customer this is the point of acceptance of the goods by the customer.

Intangible assets

The brand is being amortised using the straight-line method over its estimated useful life of four years.

The brand value is initially recognised at cost.

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

33% on reducing balance

Fixtures and fittings

-

33% on reducing balance

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs

The assets’ useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss and included in ‘Other operating (losses)/gains'

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Stocks are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account.

Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the year end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference

Research and development

Research and development expenditure is written off in the year it was incurred. Development expenditure is also written off, except where the directors are confident of the technical, commercial and financial viability of individual research projects. ln these cases the development expenditure is deferred - to be amortised over the period during which the company is expected to be benefit from the research.

Foreign currencies

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each year 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 year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account

Interest receivable and interest payable

Interest receivable and interest payable are recognised in profit or loss as they accrue, using the effective interest method.

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

Related party transactions

The Company discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the financial statements.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

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

31/12/24

31/12/23

£

£

Direct sales

5,121,047

14,251,807

Magnum brand sales

5,933,851

4,722,893

11,054,898

18,974,700

4.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2024 nor for the year ended 31 December 2023.

The average number of employees during the year was NIL (2023 - NIL).

31/12/24

31/12/23

£

£

Directors' remuneration

-

-

The directors of the Company are employees of Santok (UK) Limited whose remuneration is borne by that Company. A portion of their total compensation has been allocated to the entity accordingly via the management charge.

5.	OPERATING PROFIT

The operating profit is stated after charging:

31/12/24

31/12/23

£

£

Depreciation - owned assets

2,640

2,640

Brand amortisation

70,600

70,600

Patents and licences amortisation

142,756

142,756

Foreign exchange differences

11,244

4,654

Auditors' remuneration - audit

12,000

12,000

Auditors' remuneration - other services

4,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31/12/24

31/12/23

£

£

Bank loan interest

828

961

7.

TAXATION

Analysis of the tax charge

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

31/12/24

31/12/23

£

£

Current tax:

UK corporation tax

25,518

60,890

Tax on profit

25,518

60,890

UK corporation tax has been charged at 25% (2023 - 23.50%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/24

31/12/23

£

£

Profit before tax

99,432

732,772

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

24,858

183,193

Effects of:

Depreciation in excess of capital allowances

660

660

Adjustments to tax charge in respect of previous periods

-

(8,184

)

Research & development claim

-

(110,434

)

Effect of lower tax rate

-

(4,345

)

Total tax charge

25,518

60,890

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). There has been no change to corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the weighted average tax rate is 25% (31 December 2023 weighted average tax rate was 23.5%).

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

8.	INTANGIBLE FIXED ASSETS

Patents and

Brand

licences

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

353,000

571,024

924,024

AMORTISATION

At 1 January 2024

141,200

372,762

513,962

Amortisation for year

70,600

142,756

213,356

At 31 December 2024

211,800

515,518

727,318

NET BOOK VALUE

At 31 December 2024

141,200

55,506

196,706

At 31 December 2023

211,800

198,262

410,062

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 January 2024

and 31 December 2024

6,000

2,000

8,000

DEPRECIATION

At 1 January 2024

3,960

1,320

5,280

Charge for year

1,980

660

2,640

At 31 December 2024

5,940

1,980

7,920

NET BOOK VALUE

At 31 December 2024

60

20

80

At 31 December 2023

2,040

680

2,720

10.

STOCKS

31/12/24

31/12/23

£

£

Finished goods

-

153,026

Finished goods

850,049

-

850,049

153,026