REGISTERED NUMBER: 04505714 (England and Wales)

GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

FOR

CAMPBELL & TATE LTD

Page

Company Information

1

Group Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

Mr J Campbell

Mr N Tate

SECRETARY:

Mr J Campbell

REGISTERED OFFICE:

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

REGISTERED NUMBER:

04505714 (England and Wales)

AUDITORS:

BW Audit Ltd

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

The directors present their strategic report of the company and the group for the year ended 31 May 2025.

REVIEW OF BUSINESS

The principal activity of the group is that of injection moulding, blow moulding and product design, development and prototyping.

Turnover for the year increased by £106,837 to £9,543,048. However, gross profit decreased by £216,682 to £3,361,700 with an overall margin of 35.2% which is in line with 2023. The net profit before tax amounted to £679,487 with average employee numbers of 60.

The Board acknowledge that it has continued to be a challenging trading period with pressures on costs including energy and labour. The company is working with several PCR suppliers to ensure it remains ahead of market trends.

The Board are very pleased with the continued progress that has been made particularly with the development of the management structure which further reinforces the company's future growth plans. The company has recently been awarded an "AA" rating for BRC.

PRINCIPAL RISKS AND UNCERTAINTIES

There continues to be mixed sentiment towards plastic packaging but alternative formats remain elusive and those that have come to market have a cost base which is not suited to the current economic climate. On this basis we do not see any noticeable downward trend in overall plastic usage but we will continue to monitor this and will adapt as necessary.

The main risks are around macro economic and political factors which have led to continued volatility in markets directly and indirectly affecting our sector. These include currency fluctuation, energy fluctuations and a continued subdued consumer demand. There remain cost pressures relating to wage and employment costs, packaging taxes (including EPR). These risks are monitored and measures taken where possible.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider the key performance indicators, which they use to monitor and manage the business effectively, are those that communicate the financial performance and strength of the group as a whole. These include turnover, gross profit, customer satisfaction, supplier performance and average employee numbers and are discussed in detail within the business review above.

ON BEHALF OF THE BOARD:

Mr J Campbell - Director

22 October 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2025.

DIVIDENDS

Dividends of £344,000 (2024 - £344,000) were declared and paid in the year.

RESULTS

The profit for the year, after taxation, amounted to £396,459 (2024 - £1,077,583).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

Mr J Campbell

Mr N Tate

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has entered into qualifying third party indemnity arrangements for the benefit of all its directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force.

MATTERS COVERED IN THE STRATEGIC REPORT

In accordance with section 414C (11) of the Companies Act 2006, information on exposure to risks and future developments is covered in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the 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 group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

- so far as the director is aware, there is no relevant audit information of which the company's auditor are unaware: and

- the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor are aware of that information.

ON BEHALF OF THE BOARD:

Mr J Campbell - Director

22 October 2025

Opinion

We have audited the financial statements of Campbell & Tate Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 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 of the parent company affairs as at 31 May 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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 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 the audit:

-	the information given in the Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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:

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 objectives of our audit in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both the management and those charged with governance of the group.

Due to the field in which the group operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the group's ability to operate including health and safety; employment law, and compliance with various other regulations relevant to the operation of the group.

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:

- Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;

- Reviewing legal and professional fees for indicators of litigation;

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

- Reviewing board minutes and any relevant correspondence with external authorities;

- Assessing the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance;

- Challenging assumptions and judgments made by management in their significant accounting estimates;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of any significant transactions outside the normal course of business.

Due to 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

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 Auditors' 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.

Joanne Fox BA FCA (Senior Statutory Auditor)

for and on behalf of BW Audit Ltd

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

22 October 2025

TURNOVER

4

9,543,048

9,436,211

Cost of sales

6,181,348

5,857,829

GROSS PROFIT

3,361,700

3,578,382

Distribution costs

634,738

642,675

Administrative expenses

2,117,046

1,519,261

2,751,784

2,161,936

609,916

1,416,446

Other operating income

4,614

-

OPERATING PROFIT

6

614,530

1,416,446

Interest receivable and similar income

82,570

47,438

Interest payable and similar expenses

9

(17,613

)

(19,191

)

PROFIT BEFORE TAXATION

679,487

1,444,693

Tax on profit

10

283,028

367,110

PROFIT FOR THE FINANCIAL YEAR

396,459

1,077,583

Retained earnings at beginning of year

6,096,401

5,362,818

Dividends

12

(344,000

)

(344,000

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

6,148,860

6,096,401

Profit attributable to:

Owners of the parent

396,459

1,077,583

FIXED ASSETS

Tangible assets

13

2,313,695

2,856,042

Investments

14

1

1

2,313,696

2,856,043

CURRENT ASSETS

Stocks

15

1,093,632

1,087,783

Debtors

16

2,499,108

2,445,547

Cash at bank and in hand

2,606,539

2,594,930

6,199,279

6,128,260

CREDITORS

Amounts falling due within one year

17

2,045,925

2,264,909

NET CURRENT ASSETS

4,153,354

3,863,351

TOTAL ASSETS LESS CURRENT LIABILITIES

6,467,050

6,719,394

CREDITORS

Amounts falling due after more than one year

18

(34,792

)

(194,520

)

PROVISIONS FOR LIABILITIES

22

(283,298

)

(428,373

)

NET ASSETS

6,148,960

6,096,501

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

6,148,860

6,096,401

SHAREHOLDERS' FUNDS

6,148,960

6,096,501

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2025 and were signed on its behalf by:

Mr N Tate - Director

FIXED ASSETS

Tangible assets

13

249,252

255,049

Investments

14

2,290,374

2,290,374

2,539,626

2,545,423

CURRENT ASSETS

Debtors

16

330,504

748,901

Cash at bank

1,792,744

1,673,030

2,123,248

2,421,931

CREDITORS

Amounts falling due within one year

17

144,208

134,018

NET CURRENT ASSETS

1,979,040

2,287,913

TOTAL ASSETS LESS CURRENT LIABILITIES

4,518,666

4,833,336

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

4,518,566

4,833,236

SHAREHOLDERS' FUNDS

4,518,666

4,833,336

Company's profit for the financial year

29,330

1,577,476

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2025 and were signed on its behalf by:

Mr N Tate - Director

Cash flows from operating activities

Cash generated from operations

1

1,075,259

1,986,102

Tax paid

(539,925

)

(472,781

)

Net cash from operating activities

535,334

1,513,321

Cash flows from investing activities

Purchase of tangible fixed assets

(1,999

)

(7,182

)

Sale of tangible fixed assets

1,000

-

Interest received

82,570

47,438

Net cash from investing activities

81,571

40,256

Cash flows from financing activities

Loan repayments in year

(19,315

)

(19,172

)

Repayments of HP and finance leases

(215,305

)

(215,306

)

Amount withdrawn by directors

(9,063

)

(7,512

)

Interest paid

(820

)

(2,398

)

Interest paid on hire purchase

(16,793

)

(16,793

)

Equity dividends paid

(344,000

)

(344,000

)

Net cash from financing activities

(605,296

)

(605,181

)

Increase in cash and cash equivalents

11,609

948,396

Cash and cash equivalents at beginning of year

2

2,594,930

1,646,534

Cash and cash equivalents at end of year

2

2,606,539

2,594,930

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

396,459

1,077,583

Depreciation charges

457,532

488,235

Loss on disposal of fixed assets

85,814

-

Finance costs

17,613

19,191

Finance income

(82,570

)

(47,438

)

Taxation

283,028

367,110

1,157,876

1,904,681

(Increase)/decrease in stocks

(5,849

)

147

(Increase)/decrease in trade and other debtors

(42,808

)

19,804

(Decrease)/increase in trade and other creditors

(33,960

)

61,470

Cash generated from operations

1,075,259

1,986,102

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

2,606,539

2,594,930

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

2,594,930

1,646,534

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank and in hand

2,594,930

11,609

2,606,539

2,594,930

11,609

2,606,539

Debt

Finance leases

(409,825

)

215,305

(194,520

)

Debts falling due within 1 year

(19,315

)

19,315

-

(429,140

)

234,620

(194,520

)

Total

2,165,790

246,229

2,412,019

1.	STATUTORY INFORMATION

Campbell & Tate Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group's accounting policies (see note 3).

The financial statements are presented in Sterling (£) and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiary ('the group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Going concern

The directors have considered the group’s position at the time of signing the financial statements, and in particular the continued economic uncertainty and cost inflation. As part of their assessment, they have prepared forecasts which take a prudent account of expectations around trading performance and profitability in light of the above.

Based on this, the directors have concluded that they have a reasonable expectation that the group and company will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statements, and they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised when products and services are supplied to customers in line with contractual arrangements. At this point, control has passed to third parties, the transaction price can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the group.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property

- 2% on cost

Plant and machinery

- 33% on reducing balance and 10% on cost

Fixtures and fittings

- 25% on reducing balance

Motor vehicles

- 25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Valuation of investments

Investments in unlisted companies including subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

In determining the cost of stock, latest invoice price is used for raw materials and standard cost used for finished goods and work in progress. Standard cost is regularly reviewed and updated. Given the fast moving nature of most stock lines these methods are considered close to actual cost.

Debtors

Short-term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial instruments

The group only enter into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, bank loans and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date.

Taxation

Taxation for the year comprises current and deferred tax. 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.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability. The assets of the plan are held separately from the group in independently administered funds.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. All borrowing costs are charged to profit or loss in the year in which they are incurred.

Dividends

Dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final dividends are recognised when approved by the shareholders at an annual general meeting.

Invoice factoring

The group has entered into an invoice factoring agreement. Due to the nature of the agreement, the amounts owed by customers are included within trade debtors and the amounts owed from/to the invoice factoring company are included within bank/creditors.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and judgements are continually evaluated and are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The judgements, estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below:

Depreciation of tangible fixed assets

Included within plant and machinery are moulds and tooling work used for production. Due to their custom manufacture, often for a specific project, the directors have adopted a policy of 33% depreciation on a reducing balance basis based on historical information. The carrying value is reviewed annually for those no longer in use and for which no alternative use is seen to exist at the time without significant modification.

Stock valuation

Stock is valued using the latest invoice price for raw materials and standard cost for finished goods and work in progress, which the directors consider appropriate given the fast moving nature of the stock lines. The carrying value of stock is reviewed regularly for any slow moving stock lines and potential impairment.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,934,579

1,873,796

Social security costs

164,676

155,275

Other pension costs

202,520

202,511

2,301,775

2,231,582

The average number of employees during the year was as follows:

2025

2024

Management and administration

16

13

Production

43

45

Sales

1

1

60

59

Agency staff were used at various times to meet demand which are not included in the above staff numbers but are included in wages and salaries costs. This amounted to £220,612 (2024 - £203,2247).

2025

2024

£

£

Directors' remuneration

26,061

25,776

Directors' pension contributions to money purchase schemes

120,000

120,922

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

28,356

31,423

Other operating leases

14,919

12,144

Depreciation - owned assets

343,737

374,440

Depreciation - assets on hire purchase contracts

113,795

113,795

Loss on disposal of fixed assets

85,814

-

Foreign exchange differences

8,520

20,813

7.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

3,150

3,685

8.	EXCEPTIONAL ITEMS

A provision has been made in the year against other debtors amounting to £515,307 (2024 - £Nil).

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

35

-

Bank loan interest

785

2,398

Hire purchase interest

16,793

16,793

17,613

19,191

10.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

428,103

473,802

Deferred tax:

Origination and reversal of timing differences

(145,075

)

(106,692

)

Tax on profit

283,028

367,110

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

679,487

1,444,693

Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2024 - 25 %)

169,872

361,173

Effects of:

Expenses not deductible for tax purposes

130,475

1,648

Fixed asset differences

(17,319

)

4,289

Total tax charge

283,028

367,110

11.	PARENT COMPANY PROFIT FOR THE YEAR

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

The profit after tax of the parent company for the period was £29,330 (2024 - £1,577,476).