The director presents the strategic report for the year ended 28 February 2025.

Paragon Quality Foods Ltd manufactures beefburgers, doner kebabs, and other meat products for the UK foodservice sector and selected export markets. We are proud to maintain our position as a trusted supplier, with a reputation for consistent quality, technical compliance, and customer focus.

The company operates to the highest industry standards, holding AA+ certification under the BRCGS Global Standard for Food Safety. Throughout the year, we continued to invest in modernisation, including new machinery and improved process controls aimed at increasing efficiency, reducing downtime, and enhancing food safety assurance.

All finished goods are sold to our distribution partner, Paragon Foodservice Ltd. This integrated model ensures a streamlined route to market and allows both businesses to remain agile and customer focused.

During the year, cost inflation in key inputs such as beef and packaging presented ongoing challenges. Nonetheless, the business delivered strong results through operational discipline, efficiency improvements, and strategic procurement. Turnover declined by 8.5%, while gross and net profits increased significantly.

Key Performance Indicators

The company's key performance metrics are as follows:

FY25    FY24        %Change    

Turnover            £46,221,412    £50,498,169    8.5% decrease

Gross Profit        £7,264,104    £5,824,876    24.7% increase

Net Profit Before Tax    £3,267,417    £2,217,486    47.3% increase

Following the stabilisation of raw material costs and a review of the company's pricing structure both gross profit and gross profit have increased.

The growing demand for our branded products reflects the commercial strength and trusted reputation of the Paragon name, this also has had an impact on gross profit.

The company's strategy continues to focus on strengthening branded product visibility, building direct recognition among operators, and expanding European distribution, reinforcing our position as the industry’s go-to name for quality, consistency, and trust.

Looking ahead, the business remains committed to continuous improvement, ongoing capital investment, and close collaboration with Paragon Foodservice to deliver long-term resilience and value.

The company operates in a competitive market, which presents several principal risks and uncertainties. Key risks include fluctuations in raw material prices, which can impact production costs and profit margins. Regulatory risks also pose challenges, as changes in food safety and manufacturing standards may necessitate significant adjustments to processes and products. Additionally, increasing consumer awareness and regulatory pressure on sustainability practices require continuous efforts towards environmentally friendly operations.

To mitigate these risks, the company employs strategic sourcing, maintains high standards of quality control, invests in technology to improve efficiencies, and continuously monitors market trends to adapt its product offerings.

Reliance on a network of distributors introduces the risk of dependency on third-party performance, which the company addresses through robust relationship management and diversification of its distribution channels.

Overall, while these risks present challenges, the company remains proactive in its risk management strategies to ensure resilience and sustained growth.

The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

A director of a Company must act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

1. The likely consequences of any decisions in the long term:

• The Company's main strategic decisions in the year where those that resulted in decisions to continue to invest in automating and upgrading equipment and machinery and develop its people and processes to enable it to be competitive for the short, medium and long term.

2. The interest of the Company's employees:

• Investment is not only in machinery but also in its people and processes to ensure staff's training and development needs are met.

3. The need to foster the Company's business relationships with suppliers' customers and others business relationships:

• The Company continues to develop new automated packaging processes for packing goods. This will help consolidate relationships with the entire supply chain.

4. The impact of the Company's operations on the community and the environment:.

• Investment in equipment, and processes will lead to increased efficiencies in the use of energy which will reduce our impact on the environment both locally and on a nationally.

5. The desirability of the Company maintaining a reputation for high standards of business conduct:

• The Group prides itself on its professional reputation. We are regularly audited by external bodies to ensure compliance with all relevant food hygiene legislation.

6. The need to act fairly as between stakeholders of the Company:

• Fairness and equality are important to the company, we work with members at all levels and promote a good working relationship between all colleagues

On behalf of the board

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is 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; and

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

The director is 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. He is 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.

The director presents his annual report and financial statements for the year ended 28 February 2025.

The principal activity of the company continued to be that of the manufacture of beef burgers and other meat products.

The results for the year are set out on page 10.

No ordinary dividends were paid (2023: £Nil). The director does not recommend payment of a final dividend.

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

The company has not made qualifying third party indemnity provisions for the benefit of its directors in the year.

The company continues to perform research and development activities in the pursuit of achieving greater efficiencies in the packaging, distribution and logistical management of products.

No events after the reporting date have occurred that require disclosure.

The company anticipates that the turnover will remain consistent during the current financial year to February 2025, but profitability to improve as raw materials prices have stabilised, and prices increases were implemented during the year.

In accordance with the company's articles, a resolution proposing that Sedulo Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Carbon Neutral Britain Limited have provided a Carbon (GHG) Emissions Report for Paragon Quality Foods Limited. As this is the Group's principal consumer of energy and producer of emissions this report has been used for group energy and carbon reporting purposes. Comparative figures for 2024 are not available.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.

In order to further reduce carbon emissions the group is targeting increased energy efficiency measures including, but not limited to, energy efficient lighting and the increased use of renewable energy sources such as solar panels as well as enhancing waste separation processes.

The company has been certified as a Carbon Neutral Business by Carbon Neutral Britain Limited.

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 company’s auditor 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 company’s auditor is aware of that information.

Credit risk

The Company's principal financial assets are bank balances, cash, stock, trade debtors and amounts due from fellow group companies. These represent the Company's maximum exposure to credit risk in relation to financial assets. The credit risk is primarily attributable to its trade debtors. The risk is managed by having a strict credit policy and effective credit rating of prospective customers. The amounts presented in the balance sheet are et of allowances for doubtful debts estimated by the Company's management based on prior experience and their assessment of the current economic environment.

Liquidity and Cash flow risk

The Directors do not consider that the Company is exposed to significant liquidity or cash flow risk due to the diversity of the customer base as well as the liquid reserves of both the Company and Group.

We have audited the financial statements of Paragon Quality Foods Ltd (the 'company') for the year ended 28 February 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 28 February 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 director's 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 director's 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 director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• Enquiring of directors and inspection of policy documentation as to the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.

• Reading Board and sub committee meeting minutes.

• Considering remuneration incentive schemes and performance targets for management, directors and sales staff.

• Using analytical procedures to identify any unusual or unexpected relationships.

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

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Paragon Quality Foods Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Paragon Quality Foods Limited, Yorkshire Way, Armthorpe, Doncaster, South Yorkshire, United Kingdom, DN3 3FB.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Paragon Property Investments Limited. These consolidated financial statements are available from its registered office, Unit D Herons Way, Balby, Doncaster, England, DN4 8WA.

The director has carefully considered the current economic climate, including the effects of inflation and the broader economic conditions on the group's cash flow and forecasts. A detailed assessment of these risks and their potential impact on the company's ability to continue as a going concern is provided in the Strategic Report. Based on this evaluation, the director is confident that company possesses sufficient resources to meet its obligations and operate sustainably for the the foreseeable future. The company's strong net asset position further supports this conclusion. Accordingly, the financial statements have been prepared under the going concern basis.true

Turnover comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax and rate discounts.

Revenue is recognised on despatch of goods.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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 credited or charged to profit or loss.

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

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

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

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

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods included labour and attributable overheads.

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, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

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

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

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

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

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

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

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

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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

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

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

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

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 company’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 when the company has 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.

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

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

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

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

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 leases asset are consumed.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measure at historical cost are translated using the exchange rate at the date of the transaction and non monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

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

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

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

The Directors are required to determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and whether it is component of a larger cash generating unit, the viability and expected future performance of that unit.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Management estimate the proportion of direct wages and overheads to be absorbed into stock cost based on production rates over the year. Stock cost is subsequently considered as to whether any stock provisions are needed based on the age and quality of stock held.

The turnover and profit before taxation are attributable to the one principal activity of the company and substantially arose in the United Kingdom.

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

Their aggregate remuneration comprised:

The March 2021 Budget announced an increase in the corporation tax rate to 25% (from 19%) with effect from 1 April 2023 which was substantively enacted in Finance Act 2021 on 24 May 2021. The Company's deferred tax balances are measured using the corporation tax rates that have been enacted or substantively enacted at the statement of financial position date, based on the periods in which the temporary differences are forecast to reverse (19% for deferred tax expected to reverse before 1 April 2023 and 25% for deferred tax expected to reverse on or after 1 April 2023).

The actual charge 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:

Stock recognised in cost of sales during the year as an expense was £34,335,267 (2024: £40,104,541).

Amounts owed from group undertakings are interest free and repayable on demand.

The bank overdraft was secured by a fixed and floating charge over the assets and undertakings of the company.

The following are all the deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

No events after the reporting date have occurred that require disclosure.

The company has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with other wholly owned subsidiaries within the group headed by Paragon Property Investments Limited.

Pargaon Property Investments Limited (incorporated in England and Wales) is regarded by the director as being the company's ultimate parent company.

The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is Paragon Property Investments Limited, whose registered office is Unit D, Herons Way, Balby, Doncaster, United Kingdom, DN4 8WA. Consolidated accounts are available from Companies House, Crown Way, Cardiff CF14 3UZ.

The Group and parent Company are controlled by M Pekin by virtue of his majority shareholding.