Company registration number SC156834 (Scotland)
FREEWORLD TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
FREEWORLD TRADING LIMITED
COMPANY INFORMATION
Directors
I Das
S Das
H Kiriyama
Secretary
M Das
Company number
SC156834
Registered office
21 Annandale Street
Edinburgh
EH7 4AW
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
FREEWORLD TRADING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 25
FREEWORLD TRADING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Fair review of the business

The results of the year and the financial position of the group are as shown in the financial statements. The principal activity of the group in the year under review remained the importing and distribution of nuts, dried fruit and seeds.

Last accounts we looked forward to the implementation of a new IT system. This system was delayed for a variety of reasons. One of them was the decision to report our accounts in USD in line with the increasing USD sales in our business. This also resulted in a change in our financial year end. We are happy to say that the transition to the new system went smoothly and we now feel well placed to increase volumes through the benefit of increased efficiency.

2024 was a year of increasing commodity costs across the company. With significant increases in our leading products, we experienced a number of challenges. Most notably a sharp increase in the cashew and Brazil nut pricing resulted in a significant delay in some of our cheaper cashew and Brazil nut contracts. This resulted in lower than anticipated profits.

In 2025 we have added to our management team with the ambition to increase sales in the dried fruit category and diversify our customer range further. Early signs are positive and we continue to believe we have something to offer in this competitive category.

Principal risks and uncertainties

Our aim is to work only with reputable and ambitious partners - both on supply and customers. By continuously narrowing our supplier and customer base we have eliminated several risks within the company. We continue to credit insure all our customers and supplier relationships are being strengthened continuously through constant dialogue.

Section 172(1) Statement

The directors have had regard to Section 172 of the Companies Act in discharging their duty under section 172. The group has always been mindful of the origin of their stock, fostering relationships with customers and suppliers to ensure that the highest ethical standards and standard of quality are adhered to. Staff interests are considered in decision making processes, and it is through director and staff conduct that the group can be sure to meet its own high standards.

On behalf of the board

S Das
Director
5 November 2025
FREEWORLD TRADING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the period ended 31 December 2024.

Principal activities

The principal activity of the company and group continued to be the importing and distribution of nuts, dried fruit and seeds.

Results and dividends

The results for the period are set out on page 7.

Ordinary dividends were paid amounting to £110,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

I Das
S Das
H Kiriyama
Auditor

The auditor, MHA, previously traded through the legal entity Macintyre Hudson LLP. In response to regulatory changes, Macintyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put at a General meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 group and company, 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FREEWORLD TRADING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -
Statement of disclosure to auditor

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
S Das
Director
5 November 2025
FREEWORLD TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FREEWORLD TRADING LIMITED
- 4 -
Opinion

We have audited the financial statements of Freeworld Trading Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the period 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 group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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.

FREEWORLD TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FREEWORLD TRADING LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- T he information given in the strategic report and the directors' r eport for the financial period for which the financial statements are prepared is consistent with the financial statements; and

- The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

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 their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

FREEWORLD TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FREEWORLD TRADING LIMITED
- 6 -

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;

- Considering the risk and opportunity of irregularities including fraud within the entity and directing our audit testing accordingly;

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

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

Because of 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 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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Downie CA
(Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
5 November 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
FREEWORLD TRADING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 7 -
Period
Year
ended
ended
31 December
30 June
2024
2023
Notes
£
£
Turnover
2
222,207,488
161,301,276
Cost of sales
(216,385,307)
(157,657,614)
Gross profit
5,822,181
3,643,662
Administrative expenses
(3,065,093)
(2,416,719)
Operating profit
3
2,757,088
1,226,943
Interest payable and similar expenses
7
(2,019,479)
(1,156,873)
Gain on disposal of investments
8
(23,679)
114,799
Profit before taxation
713,930
184,869
Tax on profit
9
(159,028)
(49,839)
Profit for the financial period
554,902
135,030
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.

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

FREEWORLD TRADING LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
31 December 2024
30 June 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
97,284
116,461
Investments
13
4,459
25,558
101,743
142,019
Current assets
Stocks
15
13,213,423
22,615,071
Debtors
16
25,759,969
19,014,027
Cash at bank and in hand
1,291,305
779,162
40,264,697
42,408,260
Creditors: amounts falling due within one year
17
(30,357,190)
(32,985,931)
Net current assets
9,907,507
9,422,329
Net assets
10,009,250
9,564,348
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
10,008,250
9,563,348
Total equity
10,009,250
9,564,348
The financial statements were approved by the board of directors and authorised for issue on 5 November 2025 and are signed on its behalf by:
05 November 2025
S Das
Director
Company registration number SC156834 (Scotland)
FREEWORLD TRADING LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
31 December 2024
30 June 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
97,284
116,461
Investments
13
7,058
28,157
104,342
144,618
Current assets
Stocks
15
12,628,289
21,999,812
Debtors
16
26,028,453
20,040,026
Cash at bank and in hand
1,063,314
651,302
39,720,056
42,691,140
Creditors: amounts falling due within one year
17
(29,702,909)
(33,041,998)
Net current assets
10,017,147
9,649,142
Net assets
10,121,489
9,793,760
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
10,120,489
9,792,760
Total equity
10,121,489
9,793,760

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £437,729 (2023 - £253,859 profit).

The financial statements were approved by the board of directors and authorised for issue on 5 November 2025 and are signed on its behalf by:
05 November 2025
S Das
Director
Company registration number SC156834 (Scotland)
FREEWORLD TRADING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1,000
9,603,318
9,604,318
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
135,030
135,030
Dividends
10
-
(175,000)
(175,000)
Balance at 30 June 2023
1,000
9,563,348
9,564,348
Period ended 31 December 2024:
Profit and total comprehensive income for the period
-
554,902
554,902
Dividends
10
-
(110,000)
(110,000)
Balance at 31 December 2024
1,000
10,008,250
10,009,250
FREEWORLD TRADING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1,000
9,713,901
9,714,901
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
253,859
253,859
Dividends
10
-
(175,000)
(175,000)
Balance at 30 June 2023
1,000
9,792,760
9,793,760
Period ended 31 December 2024:
Profit and total comprehensive income for the period
-
437,729
437,729
Dividends
10
-
(110,000)
(110,000)
Balance at 31 December 2024
1,000
10,120,489
10,121,489
FREEWORLD TRADING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
5,850,041
4,873,364
Interest paid
(2,019,479)
(1,156,873)
Taxation paid
(90,659)
(256,123)
Net cash inflow from operating activities
3,739,903
3,460,368
Investing activities
Purchase of tangible fixed assets
-
(97,265)
Purchase of investments
(2,580)
-
Proceeds from disposal of investments
-
181,076
Net cash (used in)/generated from investing activities
(2,580)
83,811
Financing activities
Net (repayment)/proceeds from other borrowings
(1,549,616)
(4,641,381)
Net increase in bank loans
(1,565,564)
970,450
Dividends paid to equity shareholders
(110,000)
(175,000)
Net cash used in financing activities
(3,225,180)
(3,845,931)
Net increase/(decrease) in cash and cash equivalents
512,143
(301,752)
Cash and cash equivalents at beginning of period
779,162
1,080,914
Cash and cash equivalents at end of period
1,291,305
779,162
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Freeworld Trading Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 21 Annandale Street, Edinburgh, EH7 4AW.

The group consists of Freeworld Trading Limited and all of its subsidiaries.

1.1
Reporting period

The company extended its accounting period end from 30 June 2024 to 31 December 2024 to support an operational change within the business, therefore comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.2
Accounting convention

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 a mounts 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.

The 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 for parent company information presented within the consolidated financial statements:

- 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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Freeworld Trading Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

Plant and machinery
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
33% straight line

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -

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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
Cash and cash equivalents

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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

Debtors

Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Creditors

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable. After initial recognition they are measured at amortised cost.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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 if, and only if, there is 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.

1.14
Employee benefits

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.

1.15
Retirement benefits

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

1.16
Leases

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 lease d asset are consumed.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover

The directors believe that the disclosure of turnover by geographical markets would be seriously prejudicial to the interests of the company and such information has not been disclosed on this basis.

3
Operating profit
2024
2023
£
£
Operating profit for the period is stated after charging:
Exchange losses
126,045
223,059
Depreciation of owned tangible fixed assets
19,177
19,158
Stocks impairment losses recognised or reversed
187,711
-
0
Operating lease charges
62,387
41,518
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,600
18,000
For other services
Taxation compliance services
1,100
1,000
All other non-audit services
800
750
1,900
1,750
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales, logistics, marketing and administration
26
24
20
18
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,553,393
1,023,239
1,148,499
766,013
Social security costs
233,146
161,691
126,787
82,795
Pension costs
50,579
79,586
50,579
79,586
1,837,118
1,264,516
1,325,865
928,394
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
214,134
141,174
Company pension contributions to defined contribution schemes
13,649
44,503
227,783
185,677

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
111,667
-
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,019,479
1,156,873
8
Gain on disposal of investments
2024
2023
£
£
Gain on disposal of fixed asset investments
-
114,799
Other gains and losses
(23,679)
-
(23,679)
114,799
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
159,903
52,508
Adjustments in respect of prior periods
(875)
(2,669)
Total current tax
159,028
49,839

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
713,930
184,869
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
178,483
37,898
Tax effect of expenses that are not deductible in determining taxable profit
5,920
6,272
Adjustments in respect of prior years
(875)
(2,669)
Income and expenditure not subject to UK Corporation tax
(29,294)
27,864
Movement in deferred tax not recognised
4,794
(19,526)
Taxation charge
159,028
49,839
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
110,000
175,000
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Fixed asset investments
13
23,679
-
Stocks
15
187,711
-
Recognised in:
Cost of sales
187,711
-
Amounts written off investments
23,679
-
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
11
Impairments
(Continued)
- 20 -

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

12
Tangible fixed assets
Group
Plant and machinery
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 July 2023 and 31 December 2024
11,830
17,267
162,728
191,825
Depreciation and impairment
At 1 July 2023
11,830
17,267
46,267
75,364
Depreciation charged in the period
-
0
-
0
19,177
19,177
At 31 December 2024
11,830
17,267
65,444
94,541
Carrying amount
At 31 December 2024
-
0
-
0
97,284
97,284
At 30 June 2023
-
0
-
0
116,461
116,461
Company
Plant and machinery
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 July 2023 and 31 December 2024
11,830
17,267
162,728
191,825
Depreciation and impairment
At 1 July 2023
11,830
17,267
46,267
75,364
Depreciation charged in the period
-
0
-
0
19,177
19,177
At 31 December 2024
11,830
17,267
65,444
94,541
Carrying amount
At 31 December 2024
-
0
-
0
97,284
97,284
At 30 June 2023
-
0
-
0
116,461
116,461
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
4,459
25,558
7,058
28,157
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 21 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 July 2023
25,558
Additions
2,580
At 31 December 2024
28,138
Impairment
At 1 July 2023
-
Impairment losses
23,679
At 31 December 2024
23,679
Carrying amount
At 31 December 2024
4,459
At 30 June 2023
25,558
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 July 2023
28,157
Additions
2,580
At 31 December 2024
30,737
Impairment
At 1 July 2023
-
Impairment losses
23,679
At 31 December 2024
23,679
Carrying amount
At 31 December 2024
7,058
At 30 June 2023
28,157
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 22 -
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Country of origin
Class of
% Held
shares held
Direct
Freeworld EU SL
Spain
Ordinary
100.00
BUYME CO SL
Spain
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
C/ PEREJIL DE SIERREZUELA 1 - LAS LAGUNAS, MIJAS C (MIJAS), SPAIN
2
CALLE PROVENÇA, 278 - 1 BIS 1, SPAIN
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
13,213,423
22,615,071
12,628,289
21,999,812

Stock held consists of finished goods.

Impairment losses of £187,711 (202 3 - £0) have been recognised in cost of sales in the current year.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
17,934,718
18,738,909
16,890,295
18,093,353
Amounts owed by group undertakings
-
-
1,386,614
-
Other debtors
217,427
149,334
207,991
1,820,889
Prepayments and accrued income
7,555,947
125,784
7,543,553
125,784
25,708,092
19,014,027
26,028,453
20,040,026
Deferred tax asset (note 18)
51,877
-
0
-
0
-
0
25,759,969
19,014,027
26,028,453
20,040,026
FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 23 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade loans
9,312,206
10,877,770
9,312,206
10,877,770
Invoice financing
8,035,549
9,585,165
8,035,549
9,585,165
Trade creditors
5,230,517
12,348,127
4,673,660
12,391,343
Corporation tax payable
159,903
39,657
159,903
52,508
Other taxation and social security
18,988
21,221
18,988
21,221
Other creditors
97,599
9,407
175
9,407
Accruals and deferred income
7,502,428
104,584
7,502,428
104,584
30,357,190
32,985,931
29,702,909
33,041,998

Bank loans, comprising a trade loan facility, and other borrowings, comprising an invoice finance facility, are secured by a floating charge over the company's assets and a deed of charge over the company's debtors in favour of Barclays Bank PLC.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2024
2023
Group
£
£
Tax losses
51,877
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Asset at 1 July 2023
-
-
Other
(51,877)
-
Asset at 31 December 2024
(51,877)
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 24 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,579
79,586

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
34,000
34,000
34,000
34,000
Between two and five years
56,667
107,667
56,667
107,667
90,667
141,667
90,667
141,667
22
Related party transactions

During the financial year the company paid rent to the directors pension scheme of £52,700 (202 3: £3 3,910). At the year end date an amount of £5,000 (202 3: £5,000) was included within prepayments.

FREEWORLD TRADING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 25 -
23
Cash generated from group operations
2024
2023
£
£
Profit for the period after tax
554,902
135,030
Adjustments for:
Taxation charged
159,028
49,839
Finance costs
2,019,479
1,156,873
Depreciation and impairment of tangible fixed assets
19,177
19,158
Gain on sale of investments
-
(114,799)
Other gains and losses
23,679
-
Movements in working capital:
Decrease/(increase) in stocks
9,401,648
(8,970,104)
(Increase)/decrease in debtors
(6,694,065)
4,891,615
Increase in creditors
366,193
7,705,752
Cash generated from operations
5,850,041
4,873,364
24
Analysis of changes in net debt - group
1 July 2023
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
779,162
512,143
1,291,305
Borrowings excluding overdrafts
(20,462,935)
3,115,180
(17,347,755)
(19,683,773)
3,627,323
(16,056,450)
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