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REGISTERED NUMBER: 03113281 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

TARGET COMPONENTS LIMITED

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page |

| Company Information | 1 |

| Strategic Report | 2 |

| Report of the Directors | 4 |

| Report of the Independent Auditors | 6 |

| Profit and Loss Account | 10 |

| Other Comprehensive Income | 11 |

| Balance Sheet | 12 |

| Statement of Changes in Equity | 13 |

| Notes to the Financial Statements | 14 |

| TARGET COMPONENTS LIMITED |

COMPANY INFORMATION

FOR THE YEAR ENDED 31 MARCH 2025

| DIRECTORS: | Paul Cubbage

| Ian David Prescott

| Martin Thompson

| SECRETARY: | Rachael Louise Jubb

| REGISTERED OFFICE: | Unit 5 Pioneer Way

| Pioneer Business Park

| Castleford

| West Yorkshire

| WF10 5QU

| REGISTERED NUMBER: | 03113281 (England and Wales)

| AUDITORS: | Walter Dawson & Son

| Chartered Accountants

| First Floor, Unit 12

| Pennine Business Park

| Longbow Close, Bradley

| Huddersfield

| West Yorkshire

| HD2 1GQ

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The directors present their strategic report for the year ended 31 March 2025.

PRINCIPAL ACTIVITIES

The Company's principal business activity is the trade only distribution of IT related components and equipment. As such, its key performance indicators are turnover and gross profit margins.

The Company's ethos continues to be built upon helping its' customers to succeed through offering value added services such as custom PC builds; an interactive in store PC builder; customisable data feeds; events and access to technical support and updates.

This is in addition to providing a competitively priced and broad product range from leading and emerging technology brands including a developing range of own brand products. The customer service ethos serves the business well and differentiates the Company in a challenging sector.

KEY PERFORMANCE INDICATORS

| 2025 |  |  | 2024 |  |

Turnover |  | £39,756,435 |  |  | £36,422,430 |  |

Gross Profit |  | £3,441,980 |  |  | £3,048,274 |  |

Gross Profit % |  | 8.7% |  |  | 8.4% |  |

The gross profit calculation includes distribution costs.

Sales and gross profit margins are monitored daily across the entire business and also by customer and product, to ensure that that Company remains price competitive and maximises sales potential.

Although not a key performance indicator, the Company continues to keep a tight control over overhead expenditure whilst ensuring that customers experience the highest possible level of service.

FAIR REVIEW OF THE BUSINESS

This year's financial performance represents further progress in the company's transition since becoming an employee-owned business in 2022.

Strategic focus remains on the growth and development of exclusive brands and our PC build business. We continue to develop our own brands, including Logix PCs, piXL and Prevo while also continuing to develop relationships with existing vendors and launching new partnerships that align with our brand development plans.

Sales growth was achieved against the backdrop of difficult underlying trading conditions both market wide and sector specific. We continue to improve our stock holdings with a much healthier position and quantum of stock and a stronger cash and balance sheet position.

We continue to improve customer experience online while also keeping and developing relationships with customers through our experienced sales team. We continue to see expansions in our customer base in both new and existing markets, highlighting the improved reach of our offering.

The company ends FY25 strongly placed for sales and more importantly EBITDA growth from core trading.

GOING CONCERN

The Directors have made a positive going concern assessment based on the latest audited accounts and the financial projection for the next twelve months. The company trading performance and profitability continue to improve. Aligned to a balance sheet that continues to improve there are no concerns around the company's ongoing trading for the foreseeable future.

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The Company operates as a wholesale distributor in a fast-moving technology environment and is therefore exposed to the principal risks and uncertainties of stock obsolescence, customer bad debts and foreign currency exchange rate fluctuations relating to goods purchased outside of the United Kingdom.

Stock levels are managed and controlled on a daily basis by a dedicated purchasing function. Any slow-moving, inactive and obsolete stock is identified and its' pricing reviewed to minimise the risk of it becoming unsaleable.

Trade debtors are managed closely with continual review of any credit terms offered to customers, strict adherence to Company policies on debtor collections, and the use of credit insurance.

Foreign currency exchange risk is managed by forward booking currency at the same time the stock order is committed.

ON BEHALF OF THE BOARD:

Martin Thompson - Director

26 September 2025

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the trade only distribution of IT related components and equipment.

DIVIDENDS

The directors paid interim 'A' Ordinary dividends amounting to £Nil (2024: £Nil) and interim Ordinary dividends of £Nil (2024: £Nil). The directors do not recommend payment of any final dividends.

The directors recommend that the retained profit before dividends of £446,267 (2024: £51,262) be taken to reserves.

DIRECTORS

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

Paul Cubbage

Ian David Prescott

Other changes in directors holding office are as follows:

Michael James Lawrence - resigned 28 February 2025

Pete Johnson - appointed 28 March 2025

Martin Thompson was appointed as a director after 31 March 2025 but prior to the date of this report.

Pete Johnson ceased to be a director after 31 March 2025 but prior to the date of this report.

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 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- | select suitable accounting policies and then apply them consistently;

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

- | 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.

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 MARCH 2025

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, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Martin Thompson - Director

26 September 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

TARGET COMPONENTS LIMITED

Opinion

We have audited the financial statements of Target Components Limited (the 'company') for the year ended 31 March 2025 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, 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 March 2025 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

TARGET COMPONENTS LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

- | the information given in the 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

TARGET COMPONENTS LIMITED

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 identifying and assessing the risk of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, was as follows:

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

- we identified the laws and regulations applicable to the company through discussion with directors and other management, and form our commercial knowledge and experience of the sector;

- we focussed on specific laws and regulations which considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

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

To address the risk of fraud through management bias and overide of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 and where indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and

regulations are from financial transactions, the less likely it is that we would become aware of

non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance

with laws and regulations to enquiry of the directors and other management and the inspection of

regulatory and legal correspondence, if any.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

TARGET COMPONENTS LIMITED

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as

they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

John Richard Hall FCA (Senior Statutory Auditor)

for and on behalf of Walter Dawson & Son

Chartered Accountants

First Floor, Unit 12

Pennine Business Park

Longbow Close, Bradley

Huddersfield

West Yorkshire

HD2 1GQ

26 September 2025

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 39,756,435 |  | 36,422,430 |  |

Cost of sales | 36,314,455 |  | 33,374,156 |  |

GROSS PROFIT | 3,441,980 |  | 3,048,274 |  |

Administrative expenses | 2,995,713 |  | 2,999,143 |  |

446,267 |  | 49,131 |  |

Other operating income | - |  | 2,131 |  |

OPERATING PROFIT and |

PROFIT BEFORE TAXATION | 446,267 |  | 51,262 |  |

Tax on profit | 6 | 125,606 |  | - |  |

PROFIT FOR THE FINANCIAL YEAR | 320,661 |  | 51,262 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

| 2025 |  | 2024

| Notes | £ | £ |

PROFIT FOR THE YEAR | 320,661 |  | 51,262 |  |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 320,661 |  | 51,262 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

BALANCE SHEET

31 MARCH 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Intangible assets | 7 | 6,828 |  | 11,160 |  |

Tangible assets | 8 | 66,257 |  | 118,192 |  |

73,085 |  | 129,352 |  |

CURRENT ASSETS

Stocks | 9 | 4,062,934 |  | 3,815,669 |  |

Debtors | 10 | 6,742,556 |  | 5,937,229 |  |

Cash at bank and in hand | 2,446,899 |  | 1,380,340 |  |

13,252,389 |  | 11,133,238 |  |

CREDITORS

Amounts falling due within one year | 11 | 8,196,235 |  | 6,454,012 |  |

NET CURRENT ASSETS | 5,056,154 |  | 4,679,226 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 5,129,239 |  | 4,808,578 |  |

CAPITAL AND RESERVES

Called up share capital | 12 | 266,666 |  | 266,666 |  |

Profit and loss account | 13 | 4,862,573 |  | 4,541,912 |  |

SHAREHOLDERS' FUNDS | 5,129,239 |  | 4,808,578 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

Martin Thompson - Director

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

| Called up |  | Profit |

| share |  | and loss |  | Total

| capital |  | account |  | equity

£ | £ | £ |

Balance at 1 April 2023 | 266,666 |  | 4,490,650 |  | 4,757,316 |  |

Changes in equity

Profit for the year | - |  | 51,262 |  | 51,262 |  |

Total comprehensive income | - |  | 51,262 |  | 51,262 |  |

Balance at 31 March 2024 | 266,666 |  | 4,541,912 |  | 4,808,578 |  |

Changes in equity

Profit for the year | - |  | 320,661 |  | 320,661 |  |

Total comprehensive income | - |  | 320,661 |  | 320,661 |  |

Balance at 31 March 2025 | 266,666 |  | 4,862,573 |  | 5,129,239 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1. | STATUTORY INFORMATION

| Target Components Limited 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 financial statements have been prepared under the historical cost convention.

| The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

| Financial Reporting Standard 102 - reduced disclosure exemptions

| The company has taken advantage of the following disclosure exemption 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.

| Turnover

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

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

| Intangible assets other than goodwill

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

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

| Computer software - 25% reducing balance

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

2. | ACCOUNTING POLICIES - continued

| Tangible fixed assets

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

| Improvements to leasehold property | - | Over 15 years

| Plant and machinery | - | 25% on reducing balance

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

| IMPAIRMENT OF FIXED ASSETS

| At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

| Stocks

| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

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

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

2. | ACCOUNTING POLICIES - continued

| Financial instruments

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

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

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

| BASIC FINANCIAL ASSETS

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

| OTHER FINANCIAL ASSETS

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

| IMPAIRMENT OF FINANCIAL ASSETS

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

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

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

| DERECOGNITION OF FINANCIAL ASSETS

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

| CLASSIFICATION OF FINANCIAL ASSETS

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

| BASIC FINANCIAL LIABILITIES

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

2. | ACCOUNTING POLICIES - continued

| Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

| OTHER FINANCIAL LIABILITIES

| Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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

| DERECOGNITION OF FINANCIAL LIABILITIES

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

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

2. | ACCOUNTING POLICIES - continued

| Employee benefits

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

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

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

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Hire purchase and leasing commitments

| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

| Pension costs and other post-retirement benefits

| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

| Cash and cash equivalents

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

| Equity instruments

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

| Assets and liabilities of intermediary

| The assets and liabilities of the Target Components Employee Benefit Trust are recognised in the balance sheet of the sponsoring entity, Target Components Limited, until such time as the assets vest unconditionally in identified beneficiaries or the liabilities are extinguished. This is on the basis that Target Components Limited has de facto control over the assets held by the trust. Shares in Target Components Limited held by the Target Components Employee Benefit Trust are shown as a deduction from shareholders funds as ' Other Reserve'.

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

| In the application of the company’s accounting policies, the directors are required to make judgements,estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

| CRITICAL JUDGEMENTS

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

| BAD DEBT PROVISION

| Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

4. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | 1,886,254 |  | 1,884,658 |  |

| Social security costs | 183,576 |  | 172,679 |  |

| Other pension costs | 65,756 |  | 62,951 |  |

2,135,586 |  | 2,120,288 |  |

| The average number of employees during the year was as follows:

| 2025 |  | 2024

| Sales | 12 |  | 12 |  |

| Distribution | 22 |  | 20 |  |

| Administration/Support | 18 |  | 21 |  |

| Directors | 1 |  | 1 |  |

53 |  | 54 |  |

| 2025 |  | 2024

£ | £ |

| Directors' remuneration | 219,708 |  | 150,887 |  |

| Directors' pension contributions to money purchase schemes | 7,964 |  | 5,698 |  |

| The number of directors to whom retirement benefits were accruing was as follows:

| Money purchase schemes | 1 |  | 1 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

4. | EMPLOYEES AND DIRECTORS - continued

| Information regarding the highest paid director for the year ended 31 March 2025 is as follows:

| 2025 |

£ |  |

| Emoluments etc | 219,708 |  |

| Pension contributions to money purchase schemes | 7,964 |  |

5. | OPERATING PROFIT

| The operating profit is stated after charging/(crediting):

| 2025 |  | 2024

£ | £ |

| Other operating leases | 131,412 |  | 87,000 |  |

| Depreciation - owned assets | 52,565 |  | 34,475 |  |

| Computer software amortisation | 4,332 |  | 4,332 |  |

| Auditors' remuneration | - |  | 12,000 |  |

| Exchange rate variances | (252,292 | ) | (201,608 | ) |

6. | TAXATION

| Analysis of the tax charge

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

| 2025 |  | 2024

£ | £ |

| Current tax:

| UK corporation tax | 125,606 |  | - |  |

| Tax on profit | 125,606 |  | - |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

6. | TAXATION - continued

| 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:

| 2025 |  | 2024

£ | £ |

| Profit before tax | 446,267 |  | 51,262 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 19%) | 111,567 |  | 9,740 |  |

| Effects of:

| Capital allowances in excess of depreciation | - |  | (7,290 | ) |

| Depreciation in excess of capital allowances | 14,067 |  | - |  |

| Utilisation of tax losses | (28 | ) | - |  |

| assets |

| assets |

| Claim for R & D | - |  | (2,450 | ) |

| Total tax charge | 125,606 |  | - |  |

7. | INTANGIBLE FIXED ASSETS

| Computer

| software

£ |

| COST

| At 1 April 2024

| and 31 March 2025 | 98,121 |  |

| AMORTISATION

| At 1 April 2024 | 86,961 |  |

| Amortisation for year | 4,332 |  |

| At 31 March 2025 | 91,293 |  |

| NET BOOK VALUE

| At 31 March 2025 | 6,828 |  |

| At 31 March 2024 | 11,160 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

8. | TANGIBLE FIXED ASSETS

| Improvements |

| to |

| leasehold |  | Plant and |

| property |  | machinery |  | Totals

£ | £ | £ |

| COST

| At 1 April 2024 | 193,491 |  | 329,987 |  | 523,478 |  |

| Additions | - |  | 630 |  | 630 |  |

| At 31 March 2025 | 193,491 |  | 330,617 |  | 524,108 |  |

| DEPRECIATION

| At 1 April 2024 | 154,196 |  | 251,090 |  | 405,286 |  |

| Charge for year | 9,018 |  | 43,547 |  | 52,565 |  |

| At 31 March 2025 | 163,214 |  | 294,637 |  | 457,851 |  |

| NET BOOK VALUE

| At 31 March 2025 | 30,277 |  | 35,980 |  | 66,257 |  |

| At 31 March 2024 | 39,295 |  | 78,897 |  | 118,192 |  |

9. | STOCKS

2025 | 2024 |

£ | £ |

| Finished goods and goods for resale | 4,062,934 |  | 3,815,669 |  |

10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 3,611,158 |  | 2,892,431 |  |

| Amounts owed by participating interests | 2,729,900 |  | 2,569,900 |  |

| Other debtors | 7,508 |  | 4,223 |  |

| Prepayments and accrued income | 393,990 |  | 470,675 |  |

6,742,556 |  | 5,937,229 |  |

11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade creditors | 5,135,564 |  | 4,040,797 |  |

| Invoice financing | 1,731,452 |  | 1,814,531 |  |

| Tax | 157,707 |  | 32,101 |  |

| Social security and other taxes | 39,371 |  | 53,010 |  |

| VAT | 902,874 |  | 430,412 |  |

| Other creditors | 6,708 |  | 538 |  |

| Accruals and deferred income | 222,559 |  | 82,623 |  |

8,196,235 |  | 6,454,012 |  |

TARGET COMPONENTS LIMITED (REGISTERED NUMBER: 03113281) |

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 MARCH 2025

12. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 266,666 | Ordinary | £1 | 266,666 |  | 266,666 |  |

| As at 31 March 2023 200,000 shares (2022: No shares) of £1 each were held by Target Components EOT Limited, which was established to provide benefits to the company's employees.

| The ‘A’ Ordinary shares rank pari passu with Ordinary shares.

13. | RESERVES

| Profit

| and loss

| account

£ |

| At 1 April 2024 | 4,541,912 |  |

| Profit for the year | 320,661 |  |

| At 31 March 2025 | 4,862,573 |  |

| Other reserves was the consideration for company own shares paid for by the company on behalf of Target Components Limited Employee Benefit Trust (EBT). In accordance with FRS 102 S9.33-38, the consideration paid was deducted from equity until such time that the equity instruments vest unconditionally with employees.

14. | PENSION COMMITMENTS

| The company operates a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension cost represents contributions payable by the company to the fund and amounted to £65,756 (2024: £62,951). Contributions totalling £9,267 (2024: £11,289) were payable to the fund at the year end and are included in creditors.

15. | ULTIMATE CONTROLLING PARTY

| The ultimate controlling party is Target Components EOT Limited.