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

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.

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

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.

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.

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

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.

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 issues 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.

On behalf of the board

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

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.

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

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

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

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

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.

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

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.

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

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.

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.

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' report 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.

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 identified material misstatements in the strategic report or the directors' report.

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

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

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, 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.

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.

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.

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

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.

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

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

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.

The consolidated financial statements incorporate those of Eurosonic Group Limited and all of its subsidiaries (ie entities that the group 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 group.

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

The facilities are agreed until October 2025 and the projections cover the period to March 2027. The 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 2027 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.

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.

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.

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.

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:

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

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

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

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 at the reporting end date. Changes in fair value are recognised in profit or loss.

Investments in subsidiaries are measured at cost less accumulated impairment.

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.

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

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, 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. Financial assets classified as receivable within one year are not amortised.

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.

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, 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.

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

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 liability.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 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 tax authority.

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

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 leased 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.

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

In the application of the 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.

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

Their aggregate remuneration comprised:

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

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:

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

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.

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

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.

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.

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.

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

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.

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

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

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.

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.

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:

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

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 (2024: £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.

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