REGISTERED NUMBER: 01311235 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SPATIAL GLOBAL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

Mr G M Gillo

Mr M Wallis LLB FCILT

REGISTERED OFFICE:

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

REGISTERED NUMBER:

01311235 (England and Wales)

AUDITORS:

Xeinadin Audit Limited, Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

REVIEW OF BUSINESS

The principal activities of Spatial are intercontinental freight forwarding by sea, air and intra-European road transport, international mail consolidation and increasingly domestic and international e-fulfilment. Spatial acquired a small specialist Heathrow based freight forwarder in early 2024. This business has met targets to date, is being successfully integrated within Spatial operations and financial systems and has enhanced geographical presence and capabilities. At this year-end we have hived up that business into Spatial Global Ltd legally and financially.

The expectation for 2024 was for a turnover growth of 5 - 7% and we achieved 7%. This was based on growth plans for existing customers and some new business. The plan was for a return to a more normal trading year after 3 years of Covid related issues and the Brexit effect which, whilst overall negative, at least settled into foreseeable patterns. The balance of those factors, with the incorporation of the Heathrow freight branch for both years, resulted in turnover increasing to £12.79m (2023 £10.13m), margins improved giving an operating profit before exceptionals of £187k (2023: £111k)

Freight volume overall was static. A reduction in US imports was offset by EU imports. Market prices continued to reduce slowly as the year progressed, which is a welcome relief to shippers, our customers. We have added some customs agency skills to the team to support avenues for growth.

Mail volumes increased significantly with some high value magazine distribution business wins from the growing magazine market at the top-end of the interest and hobby sector including cars, music, space, dining and accommodation. This comes with high quality content and a first-class physical finish. Spatial has now captured several titles in this segment. Our long-term book distribution contract had service extensions and volume growth in the year.

The e-commerce growth continues with new business as well as, for existing customers, service extension and volume growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors review risk on a regular basis both internally and with advisors.

Supply Chain Industry Disruption

There has been a lot of coverage of supply chain dislocation in 2022 and 2023. Various events such as the Middle East conflict and closure of Suez, the ongoing war in Ukraine have continued to provide service challenges as shipping lines and airlines adjust where schedules are more flexible than fixed (the historical norm). Similarly, price validity, which was once 3-6 months, is now 3 weeks providing uncertainty for shippers. Whilst headline costs have eased some surcharges remain and the shipping and airline industries are faster to react to events and demand patterns providing continued flux in services available. We manage that for our customers across all of our products, Freight of course, International Mail and Overseas e-commerce shipments.

We entered 2025 with a new US administration promising to raise tariffs significantly, but with the UK benefiting for many sectors from the lowest level at 10%, which is added to the existing tariff averaging 2.5%. Our export clients in Q3 of 2025 continue to ship at normal levels whilst not being able to forecast 2026. There is some risk. The US Administration in July of 2025 made an equally impactful move related to Mail and E-commerce, the removal of the $800 deminimus import level whereby goods, gifts etc under that level entered the USA with fast-track systems and no duties or taxes. This has impacted some sectors, though our largest sector on this lane, Bound Printed Matter, remains exempt and continues to flow at normal levels. The overall impact will only be seen in 2026 but should be manageable within our business portfolio.

Credit Risk

Our normal rigorous on-boarding and debtor management processes ensure a healthy debtor position.

Customer Retention

Spatial enjoys a high level of customers' trust and loyalty which has worked well through the recent turmoil. Transparency on pricing, consistent execution and customer contact delivered new business across all products and retained virtually all customers.

Staffing Shortages

The business has a good reputation as an employer and has been able to recruit locally and successfully to full staffing levels required. Staff retention is good with less than 5% turnover in the year.

KPI AND THE FUTURE

The key financial performance indicators for the company are as follows:-

2024

2023

Measure

Gross Profit Margin

24.8%

24.4%

Gross Profit/Turnover

Debtors days

48 days

45 days

Trade Debtors/Turnover

Creditor days

52 days

70 days

Trade Creditors / Cost of Sales

Gross Profit % improved mostly from improved buy side tariffs and some price increases for overhead related charges in the face of continued inflation and regulatory costs.

Debtor days were in line with the previous year as we continue to maintain tight control over our debtors.

Creditors days reduced significantly supporting the buy side improvements.

FUTURE DEVELOPMENTS

The company has seen profits become relatively stable and the directors are confident of delivering sustainable future growth in its sector.

ETHICAL EMPLOYMENT

The company operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability.

Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the company become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training.

The company maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the company is responsive to the needs of the employees and the environment.

ON BEHALF OF THE BOARD:

Mr M Wallis LLB FCILT - Director

29 October 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of warehousing, export and courier services.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

Mr G M Gillo

Mr M Wallis LLB FCILT

Other changes in directors holding office are as follows:

Mr G D Withers BSc ACMA - resigned 1 October 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr M Wallis LLB FCILT - Director

29 October 2025

Opinion

We have audited the financial statements of Spatial Global Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 2024 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

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, 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 Statement of Directors' Responsibilities set out on page four, 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 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.

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 a Report of the Auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company's sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected transactions;

- tested the appropriateness of journal entries;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud. we:

- we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence; and

- tested, on a sample basis, revenue related balances in the balance sheet.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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 a Report of the Auditors 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.

Mr Thurairatnam Sudarshan FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited, Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

29 October 2025

TURNOVER

4

12,791,783

10,129,947

Cost of sales

(9,623,474

)

(7,662,273

)

GROSS PROFIT

3,168,309

2,467,674

Distribution costs

-

(19,653

)

Administrative expenses

(2,993,838

)

(2,336,773

)

174,471

111,248

Other operating income

12,800

(253

)

OPERATING PROFIT

7

187,271

110,995

Exceptional item

8

(685,510

)

-

(498,239

)

110,995

Income from shares in group undertakings

881,527

-

Interest receivable and similar income

(33

)

-

383,255

110,995

Interest payable and similar expenses

9

(15,648

)

(8,351

)

PROFIT BEFORE TAXATION

367,607

102,644

Tax on profit

10

(54,217

)

(28,696

)

PROFIT FOR THE FINANCIAL YEAR

313,390

73,948

PROFIT FOR THE YEAR

313,390

73,948

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

313,390

73,948

FIXED ASSETS

Intangible assets

11

489,150

-

Tangible assets

12

355,367

308,255

Investments

13

-

1,214,098

844,517

1,522,353

CURRENT ASSETS

Stocks

14

32,607

-

Debtors

15

2,794,908

2,337,325

Cash at bank and in hand

880,033

801,474

3,707,548

3,138,799

CREDITORS

Amounts falling due within one year

16

2,417,035

2,792,165

NET CURRENT ASSETS

1,290,513

346,634

TOTAL ASSETS LESS CURRENT LIABILITIES

2,135,030

1,868,987

CREDITORS

Amounts falling due after more than one year

17

(79,569

)

(135,559

)

PROVISIONS FOR LIABILITIES

21

(85,707

)

(77,064

)

NET ASSETS

1,969,754

1,656,364

CAPITAL AND RESERVES

Called up share capital

22

462,500

462,500

Revaluation reserve

23

23,145

23,145

Retained earnings

23

1,484,109

1,170,719

SHAREHOLDERS' FUNDS

1,969,754

1,656,364

The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2025 and were signed on its behalf by:

Mr M Wallis LLB FCILT - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

462,500

1,096,771

23,145

1,582,416

Changes in equity

Total comprehensive income

-

73,948

-

73,948

Balance at 31 December 2023

462,500

1,170,719

23,145

1,656,364

Changes in equity

Total comprehensive income

-

313,390

-

313,390

Balance at 31 December 2024

462,500

1,484,109

23,145

1,969,754

1.	STATUTORY INFORMATION

Spatial Global Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 judgment in applying the accounting policies. The following principal accounting policies have been applied:

Going concern

The directors have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The directors have made this assessment in respect to a period of at least twelve months from when the financial statements are authorised for issue.

The directors have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as going concern. The directors are of the opinion that the company will have sufficient resources to meet its liabilities as they fall due with the continued support of the group companies.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Short leasehold, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

- 10% on cost

Fixtures and fittings

- 25% on cost

Motor vehicles

- 25% on cost

Computer and office equipment

- 25% on cost

As permitted under FRS 102, a valuation was carried out at the transition date and the value assigned to these short leasehold, plant and equipment was deemed to be it's cost. The company has opted for a policy of not revaluing its tangible fixed assets. Additions in subsequent years are stated at cost initially and subsequently measured at cost, net of depreciation and any impairment losses.

Stocks

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

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 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 that are held by the company under leases which transfer to the group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the group are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the group's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight­line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

Fixed asset investments

Fixed asset investments are held at cost less amounts provided for permanent diminution in value. The carrying values of fixed asset investment are reviewed for impairment where events or changes in circumstance indicate the carrying value may not be recoverable.

Provisions and liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Tangible fixed assets

Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and product life cycles are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Intangible fixed asset

Goodwill is being amortised evenly over its estimated useful life of 10 years.

Stock provision

Stock is valued at the lower of cost and net realisable value. Management is required to consider the net realisable value of stock and whether an impairment is appropriate. When calculating the stock impairment provision, management considers the nature, condition, ageing and expiry date of stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

Deferred tax

The calculation of deferred tax liabilities requires management to make judgements about the timing of the reversal of taxable temporary differences. Estimates are made regarding the expected manner and timing of recovery of settlement of the related assets and liabilities, which influence the measurement of deferred tax.

The amount recognised is sensitive to changes in tax rates and legislation, which could result in a material adjustment to the provision in future periods.

Bad debt provision

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Shares in group undertakings

The valuation where material will be based on directors' assessment with professional assistance.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

10,617,609

9,265,882

Europe

259,636

82,768

Rest of the world

1,914,538

781,297

12,791,783

10,129,947

Turnover is wholly attributable to the principal activities of the company.

5.	EMPLOYEES AND DIRECTORS

Year Ended

Year Ended

31.12.24

31.12.23

£

£

Wages and salaries

1,660,486

1,312,360

Social security costs

159,638

118,695

Other pension costs

103,291

96,799

1,923,415

1,527,854

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

Year Ended

Year Ended

31.12.24

31.12.23

Management

5

6

Administration

28

24

Operations

25

21

Selling and distribution

3

2

61

53

6.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

-

-

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

7,165

6,735

Other operating leases

243,275

203,253

Depreciation - owned assets

80,661

83,400

Profit on disposal of fixed assets

(872

)

-

Goodwill amortisation

54,350

-

Auditors' remuneration - audit

services

19,500

18,073

Foreign exchange differences

(12,800

)

253

8.	EXCEPTIONAL ITEMS

2024

2023

£

£

Exceptional item

(685,510

)

-

The exceptional item in the year relates to a subsidiary company loan write off on the hive up of its assets.

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

15,648

8,351

10.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

45,574

33,931

Deferred tax:

Origination and reversal of timing differences

8,643

(5,235

)

Tax on profit

54,217

28,696

UK corporation tax has been charged at 25% (2023 - 23.52%).

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

367,607

102,644

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

91,902

24,142

Effects of:

Expenses not deductible for tax purposes

600

1,266

Depreciation in excess of capital allowances

2,295

8,523

Short term timing differences

8,643

(5,235

)

Amount written of investment

171,378

-

Income from shares in group undertakings

(220,601

)

-

Total tax charge

54,217

28,696