Company registration number 01394171 (England and Wales)
EUROSONIC GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
EUROSONIC GROUP LIMITED
COMPANY INFORMATION
Directors
H S Chadha
A F Dorgan
Secretary
J Prendergast
Company number
01394171
Registered office
Brightgate House
1 Brightgate Way
Stretford
Manchester
United Kingdom
M32 0TB
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
EUROSONIC GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 35
EUROSONIC GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

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

Principal activity

The principal activity of the Group during the period was the sourcing, importation, and distribution of electrical accessories, housewares, and small domestic appliances. The Group is a leading supplier to the retail sector in the UK and Ireland and works closely with customers and manufacturers to design and develop products, principally sourced from China.

Financial results

The consolidated result for the period and the closing net asset position are set out in the accompanying financial statements.

Business review

The Group continues to develop brands and add new product ranges to the existing categories and seek opportunities in other compatible categories. We have successfully won new category business from existing customers and have been successful again in adding new customers to our portfolio.

From a supply chain perspective, major shipping lines continue to divert vessels away from the Red Sea and Suez Canal, opting instead to sail around the Cape of Good Hope in Africa. While freight pricing and service reliability have remained relatively stable, the extended route increases transit times. As a result, lead times continue to be longer than usual, which have to be factored into planning and inventory management.

The Group continues to manage its way successfully through current challenges, utilising cash management controls, careful control of inventory, monitoring of margins, constantly reviewing our forecasts and throughout this period excellent relationships have been maintained with key stakeholders including employees, customers, suppliers, licensors, and our banking partner.

We are committed to investing in IT to improve efficiency and capitalize on new technological advancements.

Despite a decline in revenue in the year, the Directors feel overall results have continued to improve in line with expectations.

Revenue dropped by c£5m against the prior year. Direct container business accounted for c£3.8m of this, primarily as a result of a one-off contract (c£2m) in FY24, which as expected, was not repeated in FY25. Customer credit issues contributed to a further reduction compared to the prior year (c£1.3m) and the discontinued business (see below) resulted in a £0.9m decrease. The remaining shortfall was due to the poor summer weather in 2024, which negatively impacted sales of our cooling range resulting in a deficit of c£2.7m compared with FY24. These reductions were partially offset by improved performance within our heating and floorcare categories.

The Gross Margin for the current reporting period is 24.2%, a significant improvement compared to 21.0% in the prior year. This improvement was supported by stable sea freight costs and a more favourable USD/GBP exchange rate. In addition, the Group's continued focus on product costing and pricing strategies has further contributed to the margin enhancement. Notably, despite a 10% decline in revenue, gross profit increased by 3.7%, reflecting the effectiveness of these strategic initiatives.

We remain confident that the ongoing margin initiatives in addition to the adoption of the product and brand strategy will continue to benefit the business into next year and beyond.

Operational improvements and cost controls have helped to lessen the impact of inflationary pressures. Distribution costs were 5.6% of sales (2024: 4.6%) with the increase mainly as a result of additional Ecom fees, which were offset by extra gross margin.

Administration costs reduced in absolute terms but represented 15.3% of sales (2024: 14.0%). There was an increase in overall payroll expenses of 5.0%, due in part to the national living wage increase (9.8%). These increases were offset by savings elsewhere such as reduced travel costs.

The Directors considered this to be a good result given current trading conditions.

EUROSONIC GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Principal risks and uncertainties

The principal risks identified by the Directors relate to fluctuations in exchange rates (as goods are predominantly sourced from Asia), possible dependence on a number of large customers, credit risk, availability of product, cash flow and consumer confidence and demand.

The Group purchases the majority of its stock from Asia in US dollars. It uses US Dollar forward exchange instruments to mitigate the impact of exchange rate movements and to provide certainty in the future cost of products. We operate a layered approach to hedging which gives us a high degree of certainty over the short-term exchange rates and allows time to manage any longer-term fluctuations. The Group also invoices a sizeable proportion of its turnover in US Dollars and is thus able to largely mitigate the fluctuations of exchange rate movements.

The Group maintains close contact with all its major customers and is confident that it has good working relationships with them, allowing trade to continue on a satisfactory basis. It also actively seeks new customers to expand the customer base.

The Group makes sales primarily on credit terms. To manage the risk of non-payment by customers the Group closely monitors its debtor position, undertakes credit checks on potential customers, and operates a system of credit limits. It also maintains credit insurance against its debtor book.

In order to maintain liquidity and ensure that sufficient funds are available for the expansion of the business the Group closely monitors its funding requirements and maintains a strong relationship with its bankers.

To mitigate the inflation impact on consumer demand, the Group target high volume competitive pricing positions and refresh product ranges to ensure we are on trend. We have also invested in more energy efficient products, such as heated airers and air-fryers, for which demand remains very strong.

During the year, our warehouse space provider entered administration. However, due to the specific terms of our legal agreement, we were able to retain occupation of the warehouse on existing terms through to the end of April 2025. Following this period, we successfully negotiated a new agreement directly with the landlord to continue occupying the premises.

As part of the Group’s continued commitment to strong financial governance and strategic focus, a proactive decision has been made to provide for aged stock and debtor balances associated with a non-core and now discontinued business activity. This forward-looking measure, reflected as an exceptional cost of £731k, ensures a clean break and positions the Group for future growth.

Key performance indicators

The Group monitors performance using a range of financial and non-financial key performance indicators, measured against both budget and prior year figures. The primary indicators include sales, EBITDA (before exceptional costs), gross margin - which increased to 24.2% (2024: 21.0%) - and key working capital components.

Sales and EBITDA performance for the past two financial years are presented below. Although there was a reduction in sales during the year, the Directors are satisfied with the overall outcome and remain confident of further improvements in the current financial year (2025-26).

The Group’s net asset position also improved significantly during the year.

Mar-25 Mar-24

Sales £43.954m £48.828m

EBITDA (before exceptionals) £1.813m £1.517m

Net Assets £7.896m £6.816m

EUROSONIC GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Outlook and future developments

While the business experienced a slight slowdown in sales and profitability during the fourth quarter of FY25, the current order book remains robust, and performance in the first quarter of FY26 is ahead of budget.

The Group remains committed to its strategy of actively acquiring new customers while continuing to strengthen and expand relationships with its existing customer base. The Daewoo brand remains central to our offering, providing strong value and brand recognition. In addition, we have diversified our portfolio through strategic brand partnerships, most notably a five-year agreement with Electrolux covering small domestic appliances (SDA), as well as heating and cooling categories. Further brand partnership announcements are expected in the coming months, reinforcing our commitment to growth and market relevance.

The Group continues to maintain a strong partnership with its established supplier base in Asia. With travel now significantly easier, face-to-face meetings are supporting more effective price negotiations and facilitating the introduction of new and improved product ranges to market.

Section 172 statement

The following disclosure describes how the directors have had regard to the matters set out in section 172(1a) – (f) and forms the directors’ statement required under section 414CZA of the Companies Act 2006.

Promoting the success of the company

The Directors believe that, individually and collectively, they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172(1) (a-f) of the Companies Act 2006, as detailed below, in the decisions taken during the year ended 31 March 2025, when performing their duty to promote the success of the company:

a) the likely consequences of any decision in the long term;

b) the interests of the company's employees;

c) the need to foster the company's business relationships with suppliers, customers and others;

d) the impact of the company's operations on the community and the environment;

e) the desirability of the company maintaining a reputation for high standards of business conduct; and

f) the need to act fairly as between members of the company.

The company's stakeholder engagement aims to create trusted relationships to understand the needs of all of the stakeholders so that the Directors can deliver value and build a resilient business.

The Directors hold regular and timely discussions to discuss strategic, governance, legal and performance issue s and to discuss the results of the Company, as well as setting and approving key financial targets and measures, including annual budgets and expenditure on capital investments. The directors ensure that employees are kept informed regarding the company’s affairs through regular communications.

The Company maintains strong relationships with customers and suppliers and have diversified their portfolio, reinforcing the commitment to growth and market relevance. The Company encourage communication from customers and suppliers, and the established supplier base ensures continuity of supply of materials at the most competitive prices.

The strategic decisions of the Directors are driven by the wider Group strategy and pay due regard to the consequences of such decisions in the long-term interests of the stakeholders, the impact on the community and environment in which the Company operates, the need to maintain high standards of business conduct and to treat all stakeholders fairly.

The Directors recognise that the implications of their decisions can have a lasting effect on the Company’s reputation as an employer, a reliable supplier, customer and local stakeholder in the community and strives to ensure that it engages constructively with all parties.

EUROSONIC GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -

On behalf of the board

H S Chadha
Director
26 September 2025
EUROSONIC GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

H S Chadha
A F Dorgan
Qualifying third party indemnity provisions

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

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

During the year ended 31 March 2025 the group consumed the following amounts of energy.

2025
2024
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased*
89,424
84,037
- Fuel consumed for transport
11,790
89,330
101,214
173,367
2025
2024
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
2.59
20.98
2.59
20.98
Scope 2 - indirect emissions
- Electricity purchased
15.83
17.40
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
1.66
1.54
Total gross emissions
20.08
39.92
Intensity ratio
Tonnes CO2e per employee
0.24
0.44
EUROSONIC GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 6 -
Quantification and reporting methodology

We have used the 2024 Government Greenhouse Gas Conversion Factors for Company Reporting and the corresponding Methodology Paper to calculate our emissions, along with data gathered from our own operations. Using the SECR framework, we have reported on all emissions sources that are required, as well as additional voluntary elements of Scope 3.

As we use no fuel directly in the operation of our facilities, Scope 1 emissions are those generated by the use of our company cars. Scope 2 emissions are those generated by electricity purchased for use.

Scope 3 emissions currently only cover Transmission and Distribution losses. However, this is an area we are looking to expand on, and we hope to report on further elements of Scope 3 during the next financial year.

*Please note the prior year figure has been corrected since the last report, based on additional data.

Intensity measurement

The intensity ratio is calculated using the average number of employees across the group during the year.

Measures taken to improve energy efficiency

The Group is continuing to improve the collection of data for future reporting, and aims to include additional elements of Scope 3 next year, including emissions from Waste and Water. We continue to implement changes to reduce emissions where possible.

Examples include:

- Continuing with the use of virtual meetings to reduce travel emissions.

- Changing company vehicles to hybrid or electric vehicles at renewal.

- The disposal of our company van.

Other information

The Group took ownership of a new warehouse facility in May 2025 so the direct usage will significantly increase next year.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EUROSONIC GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
H S Chadha
Director
26 September 2025
EUROSONIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROSONIC GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of Eurosonic Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 March 2025 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

EUROSONIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROSONIC GROUP LIMITED
- 9 -
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 their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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 directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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 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 directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

EUROSONIC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROSONIC GROUP LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

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

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ashley Conway (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 September 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
EUROSONIC GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
2025
2024
Notes
£
£
Turnover
3
43,954,299
48,827,556
Cost of sales
(33,303,856)
(38,555,406)
Gross profit
10,650,443
10,272,150
Distribution costs
(2,447,903)
(2,253,215)
Administrative expenses
(6,740,447)
(6,860,084)
Other operating income
163,912
162,806
Exceptional item
4
(839,179)
(833,810)
Operating profit
5
786,826
487,847
Interest payable and similar expenses
9
(487,360)
(595,841)
Fair value gains and losses on investment properties
13
950,000
-
0
Fair value gains and losses on foreign exchange contracts
11,013
486,970
Profit before taxation
1,260,479
378,976
Tax on profit
10
(180,395)
10,839
Profit for the financial year
1,080,084
389,815
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
EUROSONIC GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 12 -
2025
2024
as restated (Note 25)
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,800
2,700
Other intangible assets
11
148,656
68,739
Total intangible assets
150,456
71,439
Tangible assets
12
480,009
572,898
Investment property
13
3,200,000
2,250,000
3,830,465
2,894,337
Current assets
Stocks
16
8,326,386
7,537,284
Debtors
17
6,667,617
8,767,425
Cash at bank and in hand
956,080
731,812
15,950,083
17,036,521
Creditors: amounts falling due within one year
18
(10,964,564)
(11,852,682)
Net current assets
4,985,519
5,183,839
Total assets less current liabilities
8,815,984
8,078,176
Creditors: amounts falling due after more than one year
19
(834,649)
(1,262,318)
Provisions for liabilities
Deferred tax liability
22
85,393
-
0
(85,393)
-
Net assets
7,895,942
6,815,858
Capital and reserves
Called up share capital
23
313,775
313,775
Revaluation reserve
1,296,558
1,296,558
Capital redemption reserve
126,225
126,225
Profit and loss reserves
6,159,384
5,079,300
Total equity
7,895,942
6,815,858
The financial statements were approved by the board of directors and authorised for issue on 26 September 2025 and are signed on its behalf by:
26 September 2025
H S Chadha
Director
Company registration number 01394171 (England and Wales)
EUROSONIC GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 13 -
2025
2024
as restated (Note 25)
Notes
£
£
£
£
Fixed assets
Intangible assets
11
148,656
68,739
Tangible assets
12
480,009
572,898
Investment property
13
3,200,000
2,250,000
Investments
14
318,000
318,000
4,146,665
3,209,637
Current assets
Stocks
16
8,326,386
7,537,284
Debtors
17
6,667,617
8,767,425
Cash at bank and in hand
956,080
731,812
15,950,083
17,036,521
Creditors: amounts falling due within one year
18
(11,919,565)
(12,807,683)
Net current assets
4,030,518
4,228,838
Total assets less current liabilities
8,177,183
7,438,475
Creditors: amounts falling due after more than one year
19
(834,649)
(1,262,318)
Provisions for liabilities
Deferred tax liability
22
85,393
-
0
(85,393)
-
Net assets
7,257,141
6,176,157
Capital and reserves
Called up share capital
23
313,775
313,775
Revaluation reserve
1,296,558
1,296,558
Capital redemption reserve
126,225
126,225
Profit and loss reserves
5,520,583
4,439,599
Total equity
7,257,141
6,176,157

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £1,080,984 (2024: £390,715).

EUROSONIC GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
31 March 2025
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 26 September 2025 and are signed on its behalf by:
26 September 2025
H S Chadha
Director
Company registration number 01394171 (England and Wales)
EUROSONIC GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2023
313,775
1,296,558
126,225
4,689,485
6,426,043
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
389,815
389,815
Balance at 31 March 2024
313,775
1,296,558
126,225
5,079,300
6,815,858
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
1,080,084
1,080,084
Balance at 31 March 2025
313,775
1,296,558
126,225
6,159,384
7,895,942
EUROSONIC GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2023
313,775
1,296,558
126,225
4,048,884
5,785,442
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
390,715
390,715
Balance at 31 March 2024
313,775
1,296,558
126,225
4,439,599
6,176,157
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
1,080,984
1,080,984
Balance at 31 March 2025
313,775
1,296,558
126,225
5,520,583
7,257,141
EUROSONIC GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(229,160)
2,388,597
Income taxes paid
(2,850)
(447,695)
Net cash (outflow)/inflow from operating activities
(232,010)
1,940,902
Investing activities
Purchase of intangible assets
(106,206)
(53,890)
Proceeds from disposal of intangibles
-
18,409
Purchase of tangible fixed assets
(72,326)
(20,165)
Proceeds from disposal of tangible fixed assets
14,750
20,395
Net cash used in investing activities
(163,782)
(35,251)
Financing activities
Net movement of invoice finance facilities
1,557,367
(940,060)
Net (repayments)/advances of borrowings
(334,023)
58,109
Net movement of finance leases obligations
(115,924)
(109,653)
Interest paid
(487,360)
(595,841)
Net cash generated from/(used in) financing activities
620,060
(1,587,445)
Net increase in cash and cash equivalents
224,268
318,206
Cash and cash equivalents at beginning of year
731,812
413,606
Cash and cash equivalents at end of year
956,080
731,812
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
1
Accounting policies
Company information

Eurosonic Group Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Brightgate House, 1 Brightgate Way, Stretford, Manchester, United Kingdom, M32 0TB.

The group consists of Eurosonic Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Eurosonic Group Limited and all of its subsidiaries (ie entities that the g roup controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and gains/losses on transactions between group companies are eliminated on consolidation.

1.3
Going concern

The facilities are agreed until October 2025 and the projections cover the period to March 2027. T he Directors have entered into discussions in advance of this date to extend the term of the facilities and expect a renewal to be forthcoming.

The Directors have prepared profit and cashflow projections covering the period to 31 March 202 7 taking account of recent trading performance, the current and anticipated level of the order book and their expectation of the impact of economic challenges. Taking these assumptions into account the financial projections indicate that the Group can continue to operate within its existing working capital facilities.

In taking these and all other factors into account, at the time of approving the financial statements, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and thus continue to adopt the going concern basis of accounting in preparing the annual financial statements. The accounts do not include any adjustments that would arise if this concept turned out not to be appropriate.

1.4
Turnover

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

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it 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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

1.6
Intangible fixed assets other than goodwill

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.

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

Software
5 years
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Fixtures and fittings
10% - 20% per annum
Motor vehicles
25% per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost to purchase on a first in, first out basis.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include 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 m ethod. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. 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.

Derecognition of financial liabilities

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

1.13
Derivatives

The group enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately. The Group does not currently apply hedge accounting for derivatives.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial lia bility.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same t ax authority.

1.15
Retirement benefits

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

1.16
Leases

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Foreign exchange

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

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 and are reviewed on an ongoing basis.

The items in the financial statements where judgments and estimates have been made include:

- The realisable value of stock;

- The fair value of investment property.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
40,634,517
45,789,453
Overseas
3,319,782
3,038,103
43,954,299
48,827,556
4
Exceptional items
2025
2024
£
£
Expenditure
Other settlements
731,017
70,645
Stock clearance
108,162
763,165
839,179
833,810
5
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
56,605
63,860
Depreciation of tangible fixed assets held under finance leases
103,995
104,280
Profit on disposal of tangible fixed assets
(10,135)
(3,368)
Amortisation of intangible assets
26,289
27,148
Profit on disposal of intangible assets
-
(9,895)
Other operating lease charges
19,123
15,112
Property operating lease charges
789,877
842,760
6
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
34,152
33,000
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
6
Auditor's remuneration
(Continued)
- 23 -
For other services
Taxation compliance services
3,848
3,750
7
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Distribution staff
67
71
67
71
Management staff
16
16
16
16
Total
83
87
83
87

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
3,685,447
3,553,165
3,685,447
3,553,165
Social security costs
417,698
377,601
417,698
377,601
Pension costs
159,324
146,575
159,324
146,575
4,262,469
4,077,341
4,262,469
4,077,341
8
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
451,975
266,213
Company pension contributions to defined contribution schemes
18,448
11,159
470,423
277,372

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
324,864
140,200
Company pension contributions to defined contribution schemes
15,000
7,298
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
399,585
439,135
Interest payable on loan to shareholder
48,521
49,205
Other interest on financial liabilities
337
56,123
448,443
544,463
Other finance costs:
Interest on finance leases and hire purchase contracts
38,917
51,378
Total finance costs
487,360
595,841
10
Taxation
2025
2024
£
£
Current tax
Adjustments in respect of prior periods
-
0
(5,991)
Deferred tax
Origination and reversal of timing differences
180,395
(11,400)
Adjustment in respect of prior periods
-
0
6,552
Total deferred tax
180,395
(4,848)
Total tax charge/(credit)
180,395
(10,839)
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Taxation
(Continued)
- 25 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
1,260,479
378,976
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
315,120
94,744
Tax effect of expenses that are not deductible in determining taxable profit
11,583
15,858
Gains not taxable
(240,253)
(121,743)
Permanent capital allowances in excess of depreciation
92,641
-
0
Other permanent differences
1,304
-
0
Under/(over) provided in prior years
-
0
(5,991)
Deferred tax adjustments in respect of prior years
-
0
6,552
130% enhanced capital allowances
-
0
(259)
Taxation charge/(credit)
180,395
(10,839)
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2024
18,000
305,664
323,664
Additions
-
0
106,206
106,206
Disposals
-
0
(198,605)
(198,605)
At 31 March 2025
18,000
213,265
231,265
Amortisation and impairment
At 1 April 2024
15,300
236,925
252,225
Amortisation charged for the year
900
26,289
27,189
Disposals
-
0
(198,605)
(198,605)
At 31 March 2025
16,200
64,609
80,809
Carrying amount
At 31 March 2025
1,800
148,656
150,456
At 31 March 2024
2,700
68,739
71,439
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Intangible fixed assets
(Continued)
- 26 -
Company
Software
£
Cost
At 1 April 2024
305,664
Additions
106,206
Disposals
(198,605)
At 31 March 2025
213,265
Amortisation and impairment
At 1 April 2024
236,925
Amortisation charged for the year
26,289
Disposals
(198,605)
At 31 March 2025
64,609
Carrying amount
At 31 March 2025
148,656
At 31 March 2024
68,739
12
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2024
640,217
299,033
939,250
Additions
72,326
-
0
72,326
Disposals
-
0
(83,244)
(83,244)
At 31 March 2025
712,543
215,789
928,332
Depreciation and impairment
At 1 April 2024
197,736
168,616
366,352
Depreciation charged in the year
130,053
30,547
160,600
Eliminated in respect of disposals
-
0
(78,629)
(78,629)
At 31 March 2025
327,789
120,534
448,323
Carrying amount
At 31 March 2025
384,754
95,255
480,009
At 31 March 2024
442,481
130,417
572,898
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
12
Tangible fixed assets
(Continued)
- 27 -
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2024
640,217
299,033
939,250
Additions
72,326
-
0
72,326
Disposals
-
0
(83,244)
(83,244)
At 31 March 2025
712,543
215,789
928,332
Depreciation and impairment
At 1 April 2024
197,736
168,616
366,352
Depreciation charged in the year
130,053
30,547
160,600
Eliminated in respect of disposals
-
0
(78,629)
(78,629)
At 31 March 2025
327,789
120,534
448,323
Carrying amount
At 31 March 2025
384,754
95,255
480,009
At 31 March 2024
442,481
130,417
572,898

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2025
2024
2025
2024
£
£
£
£
Fixtures and fittings
232,460
315,726
232,460
315,726
Motor vehicles
90,653
111,382
90,653
111,382
323,113
427,108
323,113
427,108
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 April 2024
2,250,000
2,250,000
Net gains or losses through fair value adjustments
950,000
950,000
At 31 March 2025
3,200,000
3,200,000
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
13
Investment property
(Continued)
- 28 -

Investment property comprises freehold commercial properties. The fair value of one of the investment properties was arrived at on the basis of an independent valuation carried out on 6 September 2021. The valuation was made on an open market value basis. The fair value of the other investment property has been arrived at based on an external valuation carried out on 23 August 2024 by Cluttons, resulting in a fair value uplift. It is the opinion of the directors that the carrying value stated above remains a fair reflection of the market value of the properties at the balance sheet date.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2025
2024
2025
2024
£
£
£
£
Cost
7,194,794
7,194,794
3,597,397
3,597,397
Accumulated depreciation
(3,510,170)
(3,366,274)
(1,755,085)
(1,683,137)
Carrying amount
3,684,624
3,828,520
1,842,312
1,914,260
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
318,000
318,000
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 April 2024 and 31 March 2025
318,000
Carrying amount
At 31 March 2025
318,000
At 31 March 2024
318,000
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Euro Magppie UK Limited
Brightgate House, 1 Brightgate Way, Stretford, Manchester, M32 0TB
Ordinary
100.00
Eurosonic Magppie (ESM) Limited
15 Main Street, Raheny, Dublin 5, Republic of Ireland
Ordinary
100.00
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
8,326,386
7,537,284
8,326,386
7,537,284

Within cost of sales in the year is a credit of £707,808 (2024: charge of £542,228) in respect of the movement in the provision for slow moving and obsolete stock. Of this movement, £142,537 relates to the standard stock provision, and £565,271 relates to the exceptional stock provision released.

17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
As restated
As restated
Trade debtors
4,317,488
6,217,859
4,317,488
6,217,859
Other debtors
1,588,044
1,948,960
1,588,044
1,948,960
Prepayments and accrued income
610,462
365,560
610,462
365,560
6,515,994
8,532,379
6,515,994
8,532,379
Amounts falling due after more than one year:
Other debtors
151,623
140,044
151,623
140,044
Deferred tax asset (note 22)
-
0
95,002
-
0
95,002
151,623
235,046
151,623
235,046
Total debtors
6,667,617
8,767,425
6,667,617
8,767,425
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
As restated
As restated
Invoice finance facilities
20
3,067,335
1,509,968
3,067,335
1,509,968
Obligations under finance leases
127,669
115,924
127,669
115,924
Bank loans
20
811,078
845,101
811,078
845,101
Trade creditors
4,109,993
5,970,298
4,109,993
5,970,298
Amounts owed to group undertakings
-
0
-
0
955,001
955,001
Corporation tax payable
11,578
14,428
11,578
14,428
Other taxation and social security
1,042,092
1,581,767
1,042,092
1,581,767
Derivative financial instruments
114,100
125,113
114,100
125,113
Other creditors
356,912
371,799
356,912
371,799
Accruals and deferred income
1,323,807
1,318,284
1,323,807
1,318,284
10,964,564
11,852,682
11,919,565
12,807,683

Bank loans are secured by way of a fixed and floating charge over all the Company's assets.

Invoice finance facilities are repayable on demand and are secured by a fixed and floating charge over all the Company's assets.

Obligations under finance lease and hire purchase are secured against the assets to which they relate.

19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
As restated
As restated
Bank loans
20
675,000
975,000
675,000
975,000
Obligations under finance leases
159,649
287,318
159,649
287,318
834,649
1,262,318
834,649
1,262,318

Bank loans are secured by way of a fixed and floating charge over all the Company's assets.

Obligations under finance lease and hire purchase are secured against the assets to which they relate.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 31 -
20
Loans
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans - term
975,000
1,300,000
975,000
1,300,000
Invoice finance facilities
3,067,335
1,509,968
3,067,335
1,509,968
Bank loans - import
511,078
520,101
511,078
520,101
4,553,413
3,330,069
4,553,413
3,330,069
Payable within one year
3,878,413
2,355,069
3,878,413
2,355,069
Payable after one year
675,000
975,000
675,000
975,000

Bank loans are secured by a fixed and floating charge over all the company's assets.

21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,324
146,575

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £26,500 (2024: £28,324) were payable to the fund at the reporting date.

22
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
(2,479)
-
-
(25,960)
Capital gains
92,726
-
-
206,568
Short term timing differences
(4,854)
-
-
(85,606)
85,393
-
-
95,002
EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
22
Deferred taxation
(Continued)
- 32 -
Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Company
£
£
£
£
Accelerated capital allowances
(2,479)
-
-
(12,980)
Capital gains
92,726
-
-
103,284
Short term timing differences
(4,854)
-
-
4,698
85,393
-
-
95,002
Group
Company
2025
2025
Movements in the year:
£
£
Asset at 1 April 2024
(95,002)
(95,002)
Charge to profit or loss
180,395
180,395
Liability at 31 March 2025
85,393
85,393
23
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary of £1 each
298,086
298,086
298,086
298,086
"B" Ordinary of £1 each
15,689
15,689
15,689
15,689
313,775
313,775
313,775
313,775

The A Ordinary shares and B Ordinary shares rank pari passu in all respects.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 33 -
24
Reserves

Revaluation reserve

The balance on the reserve represents the fair value of the freehold property in excess of the depreciated cost. The revaluation reserve arose on properties previously classified as property, plant and equipment, which are now held as investment properties.

The balance on the reserve is stated net of a deferred tax charge of £nil (2024: £nil).

Capital redemption reserve

The balance on the reserve represents the nominal value of shares redeemed following a share buyback.

Profit and loss account

The balance on the reserve represents all current and prior period retained profits and losses.

25
Prior year reclassification

As noted on the balance sheet and the debtors and creditors notes, the prior year financial statements have been restated to reclassify the amount owed to the director HS Chadha (£698,143) as current rather than non-current, as this accurately reflects the nature of the balance. The amount owed by director HS Chadha (£419,535) has also been reclassified from other debtors, to net off against the creditor balance. This restatement has had no impact on the prior year profit or on the brought forward net asset position.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
241,325
779,329
241,325
779,329
Between two and five years
285,128
477,755
285,128
477,755
526,453
1,257,084
526,453
1,257,084
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
162,812
162,812
162,812
162,812
Between two and five years
81,406
244,218
81,406
244,218
244,218
407,030
244,218
407,030
27
Related party transactions

The Company has taken advantage of the exemption available and has not disclosed transactions with wholly owned group companies.

As at the balance sheet date £244,302 (20 2 4: £278,608) was due to H S Chadha, included within other creditors. Included in this balance is a loan advanced in 2020, which is technically payable on demand.The loan is interest bearing from 1 April 2022, at a rate of 2% above base rate. The interest charge for the year was £48,520 (2024: £49,205).

H S Chadha has given a personal guarantee to HSBC UK Bank plc, up to a maximum of £50,000, in respect of the RLS bank loan.

28
Controlling party

The Company is controlled by H S Chadha who owns the majority of the issued voting share capital.

EUROSONIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 35 -
29
Cash (absorbed by)/generated from group operations
2025
2024
£
£
Profit for the year after tax
1,080,084
389,815
Adjustments for:
Taxation charged/(credited)
180,395
(10,839)
Finance costs
487,360
595,841
Gain on disposal of tangible fixed assets
(10,135)
(3,368)
Gain on disposal of intangible assets
-
(9,895)
Fair value gain on foreign exchange contracts
(11,013)
(486,970)
Fair value gain on investment properties
(950,000)
-
0
Amortisation and impairment of intangible assets
27,189
27,148
Depreciation and impairment of tangible fixed assets
160,600
168,140
Movements in working capital:
(Increase)/decrease in stocks
(789,102)
893,583
Decrease in debtors
2,004,806
2,648,052
Decrease in creditors
(2,409,344)
(1,822,910)
Cash (absorbed by)/generated from operations
(229,160)
2,388,597
30
Analysis of changes in net debt - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
731,812
224,268
956,080
Invoice finance facilities
(1,509,968)
(1,557,367)
(3,067,335)
(778,156)
(1,333,099)
(2,111,255)
Borrowings excluding overdrafts
(1,820,101)
334,023
(1,486,078)
Obligations under finance leases
(403,242)
115,924
(287,318)
(3,001,499)
(883,152)
(3,884,651)
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