G Mitchell Limited Company accounts

COMPANY REGISTRATION NUMBER: 05165435

G MITCHELL LIMITED

FINANCIAL STATEMENTS

30 June 2025

G MITCHELL LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2025

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	12

Notes to the financial statements	13

G MITCHELL LIMITED

STRATEGIC REPORT

YEAR ENDED 30 JUNE 2025

Fair review of the business The company made a pre-tax profit of £36,062 (2024: £260,037) for the year on a turnover of £14,013,366 (2024: £14,808,990). At 30 June 2025 the company had net assets of £ 1,754,786 (2024; £1,727,678). The directors are satisfied that the business continues to trade profitably. Both the level of business and the year-end financial position were as expected in light of the current trading conditions and the directors are satisfied with the results. The directors continue to drive forward with digital processing systems to improve our and our customers' efficiency and profitability. The refinish distribution market remains extremely competitive and our first to market approach with new digital technologies will hopefully give us a competitive advantage. Principal risks and uncertainties The principal risks and uncertainties facing the company are as follows; Credit Risk - The company's principal credit risk arises from the company's trade debtors being the primary financial asset. In order to manage credit risk a strong credit control department is in place, who regularly monitor credit terms. Liquidity Risk - The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The company's policy throughout the year has been to ensure continuity of funding by using the company's bankers, the banks have been very supportive. Short term flexibility is achieved by invoice discounting facilities. Debt is structured so repayments can be made out of cash generated though operations. Key performance indicators In the opinion of the directors the Key Performance Indicators whose disclosure is necessary for an understanding of the development, performance or position of the business are described above in the review of the business.

This report was approved by the board of directors on 13 October 2025 and signed on behalf of the board by:

Mr B A J Dodson

Director

Registered office:

22 Victoria Way

Burgess Hill

West Sussex

RH15 9NF

G MITCHELL LIMITED

DIRECTORS' REPORT

YEAR ENDED 30 JUNE 2025

The directors present their report and the financial statements of the company for the year ended 30 June 2025 .

Principal activities

The principal activity of the company during the year was distributors of automotive paint and equipment.

Directors

The directors who served the company during the year were as follows:

Mr P H Newman
Mr G R Sutcliffe
Mr B A J Dodson
Mr R B Richards
Mr A J Thorpe
Mr D R Sutcliffe

Mrs P J Richards	(Appointed 9 December 2024)

Dividends

Particulars of recommended dividends are detailed in note 10 to the financial statements.

Events after the end of the reporting period

Particulars of events after the reporting date are detailed in note 23 to the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' 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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 13 October 2025 and signed on behalf of the board by:

Mr B A J Dodson

Director

Registered office:

22 Victoria Way

Burgess Hill

West Sussex

RH15 9NF

G MITCHELL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G MITCHELL LIMITED

YEAR ENDED 30 JUNE 2025

Opinion

We have audited the financial statements of G Mitchell Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company which were contrary to applicable laws and regulations including fraud and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit. Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, review of correspondence with legal advisors, enquiries of management and in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Charles Homan

(Senior Statutory Auditor)

For and on behalf of

UHY Hacker Young (S.E.) Limited

Chartered accountants & statutory auditor

168 Church Road

Hove

East Sussex

BN3 2DL

13 October 2025

G MITCHELL LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

YEAR ENDED 30 JUNE 2025

		2025	2024
Note		£	£
Turnover	4	14,013,366	14,808,990

Cost of sales	9,751,045	10,276,376
	---------------	---------------
Gross profit	4,262,321	4,532,614

Administrative expenses		4,204,769	4,246,279
		-------------	-------------
Operating profit	5	57,552	286,335

Interest payable and similar expenses	8	21,490	26,298
		-------------	-------------
Profit before taxation		36,062	260,037

Tax on profit	9	8,954	65,221
		---------	----------
Profit for the financial year and total comprehensive income		27,108	194,816
		---------	----------

Dividends paid and payable	10	–	( 80,000)

Retained earnings at the start of the year	1,726,678	1,611,862
	-------------	-------------
Retained earnings at the end of the year	1,753,786	1,726,678
	-------------	-------------

All the activities of the company are from continuing operations.

G MITCHELL LIMITED

STATEMENT OF FINANCIAL POSITION

30 June 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	12	264,241	266,329

Current assets

Stocks	13	1,730,167	1,788,734
Debtors	14	2,742,991	2,728,055
Cash at bank and in hand		237,420	105,390
		-------------	-------------
		4,710,578	4,622,179

Creditors: amounts falling due within one year	15	3,182,197	3,102,432
		-------------	-------------
Net current assets		1,528,381	1,519,747
		-------------	-------------
Total assets less current liabilities		1,792,622	1,786,076

Creditors: amounts falling due after more than one year	16	35,972	56,129

Provisions	17	1,864	2,269
		-------------	-------------
Net assets		1,754,786	1,727,678
		-------------	-------------

Capital and reserves

Called up share capital	20	1,000	1,000
Profit and loss account		1,753,786	1,726,678
		-------------	-------------
Shareholders funds		1,754,786	1,727,678
		-------------	-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 13 October 2025 , and are signed on behalf of the board by:

Mr B A J Dodson

Director

Company registration number: 05165435

G MITCHELL LIMITED

STATEMENT OF CASH FLOWS

YEAR ENDED 30 JUNE 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	27,108	194,816

Adjustments for:
Depreciation of tangible assets	3,207	3,893
Interest payable and similar expenses	21,490	26,298
Loss on disposal of tangible assets	150	–
Tax on profit	8,954	65,221
Accrued (income)/expenses	( 11,918)	13,076

Changes in:
Stocks	58,567	( 43,773)
Trade and other debtors	( 14,936)	236,233
Trade and other creditors	( 266,722)	39,418
	----------	----------
Cash generated from operations	( 174,100)	535,182

Interest paid	( 21,490)	( 26,298)
Tax paid	( 72,540)	( 78,593)
	----------	----------
Net cash (used in)/from operating activities	( 268,130)	430,291
	----------	----------

Cash flows from investing activities

Purchase of tangible assets	( 1,269)	–
	----------	----------
Net cash used in investing activities	( 1,269)	–
	----------	----------

Cash flows from financing activities

Proceeds from borrowings	401,429	( 292,638)
Dividends paid	–	( 80,000)
	----------	----------
Net cash from/(used in) financing activities	401,429	( 372,638)
	----------	----------

Net increase in cash and cash equivalents	132,030	57,653
Cash and cash equivalents at beginning of year	105,390	47,737
	----------	----------
Cash and cash equivalents at end of year	237,420	105,390
	----------	----------

G MITCHELL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 JUNE 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 22 Victoria Way, Burgess Hill, West Sussex, RH15 9NF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future.

Judgements and key sources of estimation uncertainty

In preparation of the financial statements the directors undertake a number of accounting estimates and assessments, and make assumptions which provide the basis for the recognition and measurements of the asset, liabilities, revenue and expenses of the company. These estimates, assessments and assumptions are based on historical experience and other factors which management consider reasonable under the circumstances. In the opinion of management the following accounting estimates and assessment are significant in the preparation of the annual financial statements: Impairment of debtors The company makes an estimate of the recoverable amount of trade debtors. The bad debt provision included in trade debtors is £11,269 (2024: £25,395). Intangible Asset Amortisation is provided at rates calculated to write off the cost of goodwill over its estimated useful economic life. Inventory provisions Stocks are valued at the lower of cost and net realisable value includes, where necessary, provisions for slow moving stocks. Calculations of these provisions require judgements to be made, which include forecasting consumer demand and looking at the ageing of the stock. The total provision included within stock is £196,507 (2024: £169,624). In preparation of the financial statements the directors undertake a number of accounting estimates and assessments, and make assumptions which provide the basis for the recognition and measurements of the asset, liabilities, revenue and expenses of the company. These estimates, assessments and assumptions are based on historical experience and other factors which management consider reasonable under the circumstances.

Research and development

Research expenditure is written off in the period in which it is incurred.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

- It is technically feasible to complete the intangible asset so that it will be available for use or sale;

- There is the intention to complete the intangible asset and use or sell it;

- There is the ability to use or sell the intangible asset;

- The use or sale of the intangible asset will generate probable future economic benefits;

- There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

- The expenditure attributable to the intangible asset during its development can be measured reliably.

Expenditure that does not meet the above criteria is expensed as incurred.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	Acquired goodwill is written off over its estimated useful economic life.

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property	-	10% straight line
Fixtures and fittings	-	25% reducing balance

No depreciation has been provided on the company's freehold property on the basis that it will be maintained in a state of good repair and, as a result, the directors consider that it's market value is not expected to decrease.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	14,013,366	14,808,990
	---------------	---------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	3,207	3,893
Loss on disposal of tangible assets	150	–
Impairment of trade debtors	3,655	(20,033)
Operating lease rentals	282,429	266,929
	----------	----------

6. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Number of drivers	18	18
Number of admin & sales staff	24	25
Number of warehouse staff	28	29
	----	----
	70	72
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	2,272,961	2,346,344
Social security costs	225,435	212,729
Other pension costs	67,151	64,063
	-------------	-------------
	2,565,547	2,623,136
	-------------	-------------

7. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	410,455	455,906
Company contributions to defined contribution pension plans	21,442	21,022
	----------	----------
	431,897	476,928
	----------	----------

Remuneration of the highest paid director in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	113,271	114,128
Company contributions to defined contribution pension plans	11,376	11,376
	----------	----------
	124,647	125,504
	----------	----------

8. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	21,490	25,095
Other interest payable and similar charges	–	1,203
	---------	---------
	21,490	26,298
	---------	---------

9. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	9,359	71,237
Adjustments in respect of prior periods	–	( 5,186)
	-------	---------
Total current tax	9,359	66,051
	-------	---------

Deferred tax:

Origination and reversal of timing differences	( 405)	( 830)
	-------	---------
Tax on profit	8,954	65,221
	-------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	36,062	260,037
	---------	----------
Profit on ordinary activities by rate of tax	9,016	65,009
Adjustment to tax charge in respect of prior periods	–	( 5,186)
Effect of expenses not deductible for tax purposes	2,932	5,397
Effect of capital allowances and depreciation	367	831
Adjustment to decrease deferred tax provision	( 405)	( 830)
Marginal relief	(2,956)	–
	---------	----------
Tax on profit	8,954	65,221
	---------	----------

10. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	–	80,000
	----	---------

11. Intangible assets

	Goodwill
	£
Cost
At 1 July 2024 and 30 June 2025	1,749,934
	-------------
Amortisation
At 1 July 2024 and 30 June 2025	1,749,934
	-------------
Carrying amount
At 30 June 2025	–
	-------------
At 30 June 2024	–
	-------------

12. Tangible assets

	Freehold property	Short leasehold property	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 July 2024	254,650	38,123	167,284	460,057
Additions	–	–	1,269	1,269
Disposals	–	–	( 2,337)	( 2,337)
	----------	---------	----------	----------
At 30 June 2025	254,650	38,123	166,216	458,989
	----------	---------	----------	----------
Depreciation
At 1 July 2024	–	38,123	155,605	193,728
Charge for the year	–	–	3,207	3,207
Disposals	–	–	( 2,187)	( 2,187)
	----------	---------	----------	----------
At 30 June 2025	–	38,123	156,625	194,748
	----------	---------	----------	----------
Carrying amount
At 30 June 2025	254,650	–	9,591	264,241
	----------	---------	----------	----------
At 30 June 2024	254,650	–	11,679	266,329
	----------	---------	----------	----------

13. Stocks

	2025	2024
	£	£
Finished goods and goods for resale	1,730,167	1,788,734
	-------------	-------------

14. Debtors

	2025	2024
	£	£
Trade debtors	2,329,621	2,419,077
Prepayments and accrued income	119,188	134,449
Other debtors	294,182	174,529
	-------------	-------------
	2,742,991	2,728,055
	-------------	-------------

15. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	740,227	318,641
Trade creditors	1,574,457	1,869,333
Accruals and deferred income	96,341	108,259
Corporation tax	9,359	72,540
Social security and other taxes	228,128	231,286
Other creditors	533,685	502,373
	-------------	-------------
	3,182,197	3,102,432
	-------------	-------------

The bank loans and overdrafts are secured by fixed and floating charges over the company's assets.

16. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Director loan accounts	35,972	56,129
	---------	---------

17. Provisions

	Deferred tax (note 18)
	£
At 1 July 2024	2,269
Charge against provision	( 405)
	-------
At 30 June 2025	1,864
	-------

18. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in provisions (note 17)	1,864	2,269
	-------	-------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	1,864	2,269
	-------	-------

19. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 67,151 (2024: £ 64,063 ).

20. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	1,000	1,000	1,000	1,000
	-------	-------	-------	-------

21. Analysis of changes in net debt

	At 1 Jul 2024	Cash flows	At 30 Jun 2025
	£	£	£
Cash at bank and in hand	105,390	132,030	237,420
Debt due within one year	(318,641)	(421,586)	(740,227)
Debt due after one year	(56,129)	20,157	(35,972)
	----------	----------	----------
	( 269,380)	( 269,399)	( 538,779)
	----------	----------	----------

22. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2025	2024
	£	£
Not later than 1 year	412,067	404,157
Later than 1 year and not later than 5 years	838,176	491,885
Later than 5 years	–	62,000
	-------------	----------
	1,250,243	958,042
	-------------	----------

Rentals under operating leases are charged to the statement of Comprehensive Income on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. Within non-cancellable operating lease commitments is an amount relating to Land and buildings, less than 1 year £250,641 (2024: £172,039), between 1 and 5 years £737,500 (2024: £358,012) and over 5 years £nil (2024: £62,000). Relating to Motor vehicles & Other, less than 1 year £140,692 (2024: £232,118) between 1 and 5 years £86,634 (2024: £133,873).

23. Events after the end of the reporting period

On 25 July 2025, as part of a share buy-back agreement, with Mr P Newman, the company purchased 175 ordinary shares of £1 each, at a cost of £225,000.

G MITCHELL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30 JUNE 2025

24. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2025
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R B Richards	( 56,129)	20,157	( 35,972)
	---------	---------	---------

	2024
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R B Richards	( 100,000)	43,871	( 56,129)
	----------	---------	---------

25. Related party transactions

During the year the company paid rent totalling £62,000 to its director, Mr G Sutcliffe, on an arm's length basis (2024: £62,000). During the year, the company advanced a loan of £100,000 to one of the directors, Mr P Newman (2024: £Nil). The director, Mr A Thorpe, owed the company £24,195 at the year end (2024:£36,195). At the year end, the company owed £35,972 to the director, Mr R Richards (2024: £56,129). No loan interest was paid to Mr R Richards during the year (2024: £Nil).