The results for the year ended 28 February 2025 reflect a challenging trading period for the business, with a reported EBITDA loss of £176k (2024: profit of £87k) and a formal loss after tax of £225k. These figures are disappointing and mark a departure from our previously consistent track record of profitability. However, it is important to place these results in context and outline the specific factors that contributed to this outcome.
The loss is primarily a result of a strategic decision to invest heavily in our team and advertising to drive growth. While this investment was ambitious, it provided valuable learnings and a number of clear successes. During the quieter off-season, we scaled back this investment to stabilise the business and returned to profitability during that period.
Importantly, the investment was not wasted. We significantly strengthened our operational capabilities, streamlined manufacturing, and advanced product development — introducing more effective and efficient products that will support future profitability. During this time, we were slower than ideal to implement necessary price increases in response to inflationary pressures. This was addressed in September 2024, and pricing is now more closely aligned with our cost base, supporting a more stable profit margin going forward.
We have since adopted a more focused approach to pricing, profitability, and cost control, while continuing to improve product quality. These adjustments have positioned us more strongly for the year ahead.
In addition to the above, a number of one-off or non-recurring events materially impacted profitability in FY24/25. These are not expected to repeat in the future. With operational performance improving and key strategic initiatives underway, we are confident that the business will return to profitability in FY25/26.
We continue to benefit from HMRC support for our research and development activity, which remains a cornerstone of our long-term growth strategy. We also made significant capital investments in both FY24 and FY25 to modernise operations, enhance efficiency, and support future capacity. Notably, this investment has helped us open new markets — including securing white label contracts, with production commencing in early 2025.
As part of our ongoing financial review, we revised our depreciation policy to better reflect the extended useful lives of key assets. This change aligns our accounting treatment more closely with economic reality and will begin to impact reported results in FY25.
Operationally, we have found that a February year-end has become increasingly disruptive due to seasonal demands. To
improve planning and reduce operational strain, the company will adopt an earlier year-end this forthcoming year.
Finally, we have reviewed and partially released our stock provision, with £10k of the £52k provision released in this period.
This reflects improvements in inventory visibility and stability. After a full stock assessment we expect to release the remainder during our next accounting period.
Despite a difficult year, the business remains fundamentally strong. Our investment in operations, product quality, and market expansion — supported by a sharper focus on profitability — lays the foundation for sustainable growth and a return to profitability in the year ahead.