Company registration number 10435405 (England and Wales)
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr P D Galvin
Company number
10435405
Registered office
3 Bell Lane
Lewes
East Sussex
BN7 1JU
Auditor
Sumer Audit
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
Business address
3 Bell Lane
Lewes
East Sussex
BN7 1JU
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Director's responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 1 -

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

Strategy

The group consists of Smallworld Accessories Holdings Limited, a non-trading holding company, and Smallworld Accessories Limited, an accessories supplier. The group, through Smallworld Accessories Limited, operates concessions with major UK retailers providing fully merchandised end-to-end solutions in adults’ and children’s accessories across jewellery, hair, gifting, bags, cold weather and event categories. It also operates its own direct online sales channels.

The strategy of the business is:

- To grow by supplying sustainably-sourced accessory ranges to customers that enhance their brand positioning and clothing offer.

- To grow online sales through existing customers, marketplaces and directly through our own branded sustainably sourced product.

- To develop profitable product extension opportunities within the accessories category to expand the width of the business's offer and grow the customer base both in the UK and internationally.

Business review

The business delivered turnover of £20.0m and a profit before tax of £0.4m for the year. Turnover was +28.9% up year on year, driven by the acquisition of a significant new concession business with a major UK retailer during the year.

The acquisition of this new business was a positive reflection of the unwavering business focus on the critical fundamentals: the continued strength of our customer relationships; the focus of the business on maintaining strong and relevant sustainably-sourced product ranges whilst retailing these at affordable price points for the customer base; a focus on in store servicing and delivery in order to maximise returns for both the business and its retail partners.

Profit before Tax for the year of £0.42m was a +45.5% improvement on the previous year, reflecting the new business acquisition as well as the continued focus on protecting the gross profit margins of the business, in order to mitigate the negative impacts of a challenging inflationary operating environment within the UK, which continues to impact on people's disposable income.

The business has also placed a core focus on sustaining a strong balance sheet position which has enabled it to invest in order to deliver on these business growth opportunities.

From a product perspective, the Hair and Jewellery categories across Adults and Kids remain a core strength of the business and continue to be key sales drivers throughout the year, whilst the business continues to offer strong Gifting and Events product ranges which support our retail partners through their key seasonal selling periods. During the year the business began developing product ranges in new accessory categories (Beauty and Sunglasses) positioning itself to provide a wider offer to existing customers.

From a customer perspective the acquisition of the new concession business in the year drove significant turnover improvement but also resulted in a +36.4% increase in administrative costs as the business invested in resources to support the phased rollout and maximisation of this business opportunity during the second half of 2024. The business now operates in 1,578 stores, and the diversification of revenue streams during the year has significantly strengthened its UK market position. The business will continue to invest in resources to ensure it has the expertise to support growth in new accessories categories.

The operating structure and processes of the business are such that it underpins the continued use of sustainably sourced raw materials and sustainable supply chain practices in the manufacture of the business's products, providing our retail partners with ranges that meet the requirement of the increasingly conscious consumer base. The business continues to be a leader in this area.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 2 -
Post year-end business developments

In the period since the end of the financial year, the business has reached agreement to add significant new product categories with some of its existing concession partners, starting from early 2026. This expansion is in line with the business's strategic objective to develop profitable product extension opportunities within the accessories category, and will continue to expand the market presence of the company.

Management KPIs

The following are the financial key performance indicators (‘KPIs’) used by management to assess and regulate the company’s performance:

- Contribution per customer contract - these measures are not disclosed externally, but are used internally to ensure each contract delivers a sustainable level of contribution to support the ongoing profitability of the business.

- Gross profit as a % of turnover – 3 2.4% for the period, up +1.8% on the previous years’ accounts.

- Trade debtor days: 20 days, up from 1 7 days last year.

- Administrative expenses as a % of turnover – 29.9% for the period, up +1.7% from the previous year.

Market risk

The main m arket risk is the potential impact if there is a return of the high-cost inflationary pressures that were present in the UK market during 2022 and 2023. From a business perspective the risk would be that this could drive up the cost base of the business and negatively impact on customer’s disposable income

In order to mitigate this risk, the business continues to focus on the following areas which have ensured that it has maintained profitability in the year:

- Continue to ensure that the product mix and value for money offering is aligned with customer demand.

- Development of both existing sales channels and potential new channels - leveraging our strengths in product design across Adults and Children’s accessories.

- Drive our Own brand sales growth organically. The business continues to develop new sales channels for these brands, building on the growing brand equity.

- Tightly managing the stock critical path to ensure that the business does not over invest in stocks too early, whilst ensuring that it protects the peak sales periods. This ensures that the business is able to maintain flexibility in order to invest in growth areas and new opportunities as they arise. Having very strong stock management processes, including stock allocations, placement of stock in stores, and visual merchandising of product, are key factors in enabling the business to manage its stocks effectively in this operating environment.

- Focus on mitigating overheads price increases, with special focus on where contractual arrangements come up for renewal to ensure that the cost base of the business is tightly controlled, and that cost efficiencies are made where possible.

Foreign exchange risk

The business imports the majority of its products from the Far East, with this largely being paid for in Chinese Rmb, along with a smaller USD currency requirement. The business regularly reviews the current exchange situation, and the potential economic indicators which could cause weakness in the pound, and places forward currency contracts in order to manage and mitigate the potential impact of currency fluctuations on its cost of product.

Regulatory risk

The business designs, manufactures and tests its products to ensure that they meet all legal requirements for the market it operates in. The business is a full member of the Ethical Trading Initiative.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 3 -

On behalf of the board

Mr P D Galvin
Director
31 October 2025
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 4 -

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

Principal activities

Smallworld Accessories Holdings Limited continued to be that of a non-trading holding company.

The principal activity of the group continued to be that of a supplier of adults' and children's fashion jewellery, accessories and event merchandise.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr P D Galvin
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the group.The ultimate controlling entity has provided finance to assist cash flow and liquidity management.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. The concession stands are operated from the premises of large supermarket chains and some high street stores and sales are reported by the stores themselves based upon the goods passing through the tills. Due to the customer mix the group has not experienced debtor recovery issues but trade debtors are monitored on an ongoing basis and provision will be made for doubtful debts where necessary.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 5 -
Strategic report

The true group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and foreign exchange risk.

Statement of disclosure to auditor

So far as the sole director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the director ha s taken all the necessary steps that he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P D Galvin
Director
31 October 2025
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 6 -

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

- 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 director is 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. He is 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.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMALLWORLD ACCESSORIES HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Smallworld Accessories Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2025 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 28 February 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMALLWORLD ACCESSORIES HOLDINGS LIMITED
- 8 -
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 director's 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 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 director

As explained more fully in the director's r esponsibilities s tatement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Obtaining an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;

- Obtaining an understanding of the group’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and

- Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the group and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the group for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

- Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to stock provisions and write offs, goodwill and fair value of forward contracts; and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMALLWORLD ACCESSORIES HOLDINGS LIMITED
- 9 -

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Kristina Perry FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
31 October 2025
Chartered Accountants
Statutory Auditor
Worthing
Sumer Audit is the trading name of Sumer Auditco Limited
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
19,979,786
15,505,005
Cost of sales
(13,509,757)
(10,763,913)
Gross profit
6,470,029
4,741,092
Administrative expenses
(5,967,027)
(4,374,469)
Other operating income
27,348
3,689
Operating profit
4
530,350
370,312
Interest receivable and similar income
7,405
15,022
Interest payable and similar expenses
8
(121,419)
(99,161)
Profit before taxation
416,336
286,173
Tax on profit
9
(130,704)
(235,477)
Profit for the financial year
285,632
50,696
Other comprehensive income
Fair value gains / (losses) on foreign exchange contracts
31,089
97,899
Tax relating to other comprehensive income
(7,772)
(24,475)
Total comprehensive income for the year
308,949
124,120
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company,
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 28 FEBRUARY 2025
28 February 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
10
148,710
223,066
Tangible assets
11
181,754
68,205
330,464
291,271
Current assets
Stocks
15
2,985,652
2,826,337
Debtors
16
1,912,103
1,603,268
Cash at bank and in hand
1,233,932
1,097,349
6,131,687
5,526,954
Creditors: amounts falling due within one year
17
(2,029,053)
(1,574,072)
Net current assets
4,102,634
3,952,882
Total assets less current liabilities
4,433,098
4,244,153
Creditors: amounts falling due after more than one year
18
(2,449,131)
(2,597,435)
Provisions for liabilities
20
(44,400)
(16,100)
Net assets
1,939,567
1,630,618
Capital and reserves
Called up share capital
23
1
1
Hedging reserve
24
(3,984)
(27,301)
Profit and loss reserves
1,943,550
1,657,918
Total equity
1,939,567
1,630,618
The financial statements were approved and signed by the director and authorised for issue on 31 October 2025
31 October 2025
Mr P D Galvin
Director
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2025
28 February 2025
- 12 -
28 February 2025
29 February 2024
Notes
£
£
£
£
Fixed assets
Investments
12
1
1
Current assets
Debtors
16
1
1
Creditors: amounts falling due within one year
17
(1)
(1)
Net current assets
-
0
-
0
Net assets
1
1
Capital and reserves
Called up share capital
23
1
1

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 period was £0 (2024 - £0 profit).

The financial statements were approved and signed by the director and authorised for issue on 31 October 2025
31 October 2025
Mr P D Galvin
Director
Company registration number 10435405 (England and Wales)
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 13 -
Share capital
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2023
1
(100,725)
1,607,222
1,506,498
Year ended 29 February 2024:
Profit for the year
-
-
50,696
50,696
Other comprehensive income:
Fair value losses on foreign exchange contracts
-
97,899
-
97,899
Tax relating to other comprehensive income
-
(24,475)
-
0
(24,475)
Total comprehensive income for the year
-
73,424
50,696
124,120
Balance at 29 February 2024
1
(27,301)
1,657,918
1,630,618
Year ended 28 February 2025:
Profit for the year
-
-
285,632
285,632
Other comprehensive income:
Fair value gains on foreign exchange contracts
-
31,089
-
31,089
Tax relating to other comprehensive income
-
(7,772)
-
0
(7,772)
Total comprehensive income for the year
-
23,317
285,632
308,949
Balance at 28 February 2025
1
(3,984)
1,943,550
1,939,567
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 14 -
Share capital
£
Balance at 1 March 2023
1
Year ended 29 February 2024:
Profit and total comprehensive income for the year
-
Balance at 29 February 2024
1
Year ended 28 February 2025:
Profit and total comprehensive income
-
Balance at 28 February 2025
1
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
821,575
385,972
Interest paid
(124,872)
(100,141)
Income taxes paid
(241,116)
(181,066)
Net cash inflow from operating activities
455,587
104,765
Investing activities
Purchase of tangible fixed assets
(173,878)
(35,213)
Interest received
7,405
15,022
Net cash used in investing activities
(166,473)
(20,191)
Financing activities
Repayment of borrowings
(1,684)
-
Repayment of bank loans
(150,000)
(150,000)
Net cash used in financing activities
(151,684)
(150,000)
Net increase/(decrease) in cash and cash equivalents
137,430
(65,426)
Cash and cash equivalents at beginning of year
1,097,349
1,172,788
Effect of foreign exchange rates
(847)
(10,013)
Cash and cash equivalents at end of year
1,233,932
1,097,349
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 16 -
1
Accounting policies
Company information

Smallworld Accessories Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Bell Lane, Lewes, BN7 1JU.

1.1
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 £1.

The financial statements have been prepared under the historical cost convention adjusted for certain financial instruments measured at fair value. 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’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued, and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

The group consists of Smallworld Accessories Holdings Limited and its subsidiary, Smallworld Accessories Limited. Upon the incorporation of the subsidiary, the company subscribed for its share capital, which is recorded within the fixed asset investments of the company's balance sheet.

Smallworld Accessories Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group statement of comprehensive income and statement of cash flows include the results and cash flows of Smallworld Accessories Limited for the year.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The financial statements have therefore been prepared on the going concern basis. The director has considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
1
Accounting policies
(Continued)
- 17 -

The business has continued to be profitable in the year, with the addition of a significant new concession customer helping it to drive headline turnover growth, as well as supporting continued profitability despite the negative impacts of a challenging inflationary operating environment within the UK, which continues to impact on people's disposable income. The company is therefore on a solid financial footing in order to maximise sales and growth opportunities going forward.

The two main potential risk factors to the business would be Market Risk if the inflationary pressures on the UK customer were to significantly increase from the current state and have a negative sales impact as a result of reducing customers' disposable income further, or Foreign Exchange Risk if there was a significant weakening of sterling with regard to our foreign currency stock purchases which would impact the business's intake and profit margins.

The director has performed a robust analysis of forecast future cash flows, taking into account the potential impact on the business of possible future scenarios arising from the impact of the current economic operating environment. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.

Based on these assessments and having regard to the resources available to the entity, the director has concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

1.4
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 customer returns, VAT and other sales related taxes. It is shown prior to any commissions paid.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated business es over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

The goodwill amortisation charge is included within administrative expenses in the Group Statement of Comprehensive Income.

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:

Leasehold improvements
Straight line over the term of the lease
Plant and equipment
15% diminishing balance
Fixtures and fittings
Straight line over 5 years
Computers
Straight line over 3 years
1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
1
Accounting policies
(Continued)
- 18 -

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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell after making allowances for obsolete and slow moving stock.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks and bank overdrafts.

1.10
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.

Basic financial assets

Basic financial assets are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

Other financial assets

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

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Basic financial liabilities

Basic financial liabilities 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Other financial liabilities

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

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a

negative fair value is recognised as a financial liability.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

1.12
Taxation

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

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
1
Accounting policies
(Continued)
- 20 -
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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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.

1.14
Retirement benefits

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

1.15
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 s asset are consumed.

1.16
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
Judgements and key sources of estimation uncertainty

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

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

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

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

Stocks

The group monitors stock levels and impairment on an ongoing basis. Units held on concession stands are vulnerable to damage, pilfering and misplacement within the stores and provisions are maintained to reflect this. At the end of a season the group writes off the bulk of the remaining goods as new product lines are introduced. The estimation includes judgement on a number of factors including historical sales patterns, expected sales profiles and potential obsolescence. At the reporting date, the carrying amount of inventory was £2,985,652 (20 24 - £2,826,337).

Intangible assets (goodwill)

The director has estimated the useful life of goodwill to be 10 years. The useful life of goodwill may vary depending on a number of factors including timing of future returns and market demands. The director has reviewed the estimated useful life of goodwill and determined that goodwill should continue to be amortised over 10 years from the inception date, with no impairment of goodwill required to be recognised.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Concessions
19,772,440
15,294,339
Wholesale
207,346
210,666
19,979,786
15,505,005

All turnover is derived from the sale of goods.

2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
19,973,355
15,494,983
United States if America
6,431
10,022
19,979,786
15,505,005
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
60,329
52,645
Amortisation of intangible assets
74,356
74,355
Operating lease charges
127,243
124,828
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
4
Operating profit
(Continued)
- 22 -

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to a £130,584 gain (2024 - £298,260 loss).

5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
25,000
22,750

Costs in relation to the audit of the group financial statements are encapsulated within the fees payable by the subsidiary.

6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Head office / Distribution / Field management
45
43
-
-
Visual merchandisers
261
198
-
-
Total
306
241
0
0

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
3,593,102
2,703,484
-
0
-
0
Social security costs
256,049
220,524
-
-
Pension costs
48,781
43,756
-
0
-
0
3,897,932
2,967,764
-
0
-
0
7
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
226,676
219,291
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
7
Director's remuneration
(Continued)
- 23 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
220,654
210,147

The director is also considered to represent the key management personnel of the group.

8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
28,516
41,160
Interest on invoice finance arrangements
17,212
-
0
Interest payable to group undertakings
57,843
58,001
Other interest
17,848
-
Total finance costs
121,419
99,161
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
101,000
93,000
Adjustments in respect of prior periods
1,404
146,777
Total current tax
102,404
239,777
Deferred tax
Origination and reversal of timing differences
28,300
(4,300)
Total tax charge
130,704
235,477
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
9
Taxation
(Continued)
- 24 -

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

2025
2024
£
£
Profit before taxation
416,336
286,173
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 24.49%)
104,084
70,084
Tax effect of expenses that are not deductible in determining taxable profit
5,467
929
Adjustments in respect of prior years
1,404
146,777
Depreciation on assets not qualifying for tax allowances
44
63
Amortisation on assets not qualifying for tax allowances
18,589
18,210
Effect of rounding
1,116
(498)
Effect of change in local deferred tax rate
-
0
(88)
Taxation charge
130,704
235,477

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2025
2024
£
£
Deferred tax arising on:
Fair value adjustments on foreign exchange contracts
7,772
24,475
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2024 and 28 February 2025
762,410
Amortisation and impairment
At 1 March 2024
539,344
Amortisation charged for the year
74,356
At 28 February 2025
613,700
Carrying amount
At 28 February 2025
148,710
At 29 February 2024
223,066
The company had no intangible fixed assets at 28 February 2025 or 29 February 2024.
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 25 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 March 2024
33,470
1,350
187,356
145,098
367,274
Additions
3,383
10,845
114,599
45,051
173,878
At 28 February 2025
36,853
12,195
301,955
190,149
541,152
Depreciation and impairment
At 1 March 2024
33,428
1,350
140,627
123,664
299,069
Depreciation charged in the year
174
9,302
32,735
18,118
60,329
At 28 February 2025
33,602
10,652
173,362
141,782
359,398
Carrying amount
At 28 February 2025
3,251
1,543
128,593
48,367
181,754
At 29 February 2024
42
-
0
46,729
21,434
68,205
The company had no tangible fixed assets at 28 February 2025 or 29 February 2024.
12
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2024 and 28 February 2025
1
Carrying amount
At 28 February 2025
1
At 29 February 2024
1
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 26 -
13
Subsidiaries

Details of the company's subsidiaries at 28 February 2025 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Smallworld Accessories Limited
Note 1
Supplier of adults' and children's fashion jewellery, accessories and event merchandise
Ordinary Shares
100

Note 1: 3 Bell Lane, Lewes, East Sussex, BN7 1JU

14
Financial instruments
Group
Company
2025
2024
2025
2024
£
£
£
£
Carrying amount of financial liabilities
Measured at fair value through other comprehensive income
- Other financial liabilities
5,313
36,402
-
-
15
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
2,985,652
2,826,337
-
0
-
0
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 27 -
16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
669,494
356,910
-
0
-
0
Unpaid share capital
1
1
1
1
Other debtors
207,085
171,991
-
0
-
0
Prepayments and accrued income
152,983
185,909
-
0
-
0
1,029,563
714,811
1
1
Amounts falling due after more than one year:
Other debtors
881,211
879,356
-
0
-
0
Deferred tax asset (note 20)
1,329
9,101
-
0
-
0
882,540
888,457
-
-
Total debtors
1,912,103
1,603,268
1
1

Other d ebtors falling due after more than one year includes a deposit of £881,211 (202 4: £879,356) with a key supplier to provide security on orders placed by the group. This is funded by a loan from the ultimate controlling entity of the same amount, which is recorded in c reditors: amounts falling due after more than one year within other borrowings.

17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
19
154,933
158,227
-
0
-
0
Trade creditors
240,224
489,851
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1
1
Corporation tax payable
101,000
239,712
-
0
-
0
Other taxation and social security
763,590
326,427
-
-
Derivative financial instruments
5,313
36,402
-
0
-
0
Deferred income
21
31,425
-
0
-
0
-
0
Accruals and deferred income
732,568
323,453
-
0
-
0
2,029,053
1,574,072
1
1
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
19
112,500
262,500
-
0
-
0
Other borrowings
19
2,336,631
2,334,935
-
0
-
0
2,449,131
2,597,435
-
0
-
0

Other borrowings relates to a loan from the ultimate controlling entity, which has been subordinated to the loan received under the UK Government-backed Coronavirus Business Interruption Loan Scheme ("CBILS") received in 2021.

19
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
267,433
420,727
-
0
-
0
Loans from group undertakings
2,336,631
2,334,935
-
0
-
0
2,604,064
2,755,662
-
-
Payable within one year
154,933
158,227
-
0
-
0
Payable after one year
2,449,131
2,597,435
-
0
-
0

As disclosed within note 16, the ultimate controlling entity has provided a loan to the group to fund a deposit that is held with a key supplier.

In the 2021, the group obtained a bank loan under the UK Government-backed Coronavirus Business Interruption Loan Scheme ("CBILS"). The loan is subject to interest charges at a rate of 3.8% above the Bank of England base rate per annum, with the Government providing a Business Interruption payment to cover the first 12 months of interest payments. The loan is repayable over 6 years, with a repayment holiday in place for the first 12 months of the loan.

The loan is secured by fixed and floating charges over the company's assets and has external guarantees.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 29 -
20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2025
2024
2025
2024
Group
£
£
£
£
Accelerated capital allowances
44,400
16,100
-
-
Fair value loss on foreign exchange contracts
-
-
1,329
9,101
44,400
16,100
1,329
9,101
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 March 2024
6,999
-
Charge to profit or loss
28,300
-
Charge to other comprehensive income
7,772
-
Liability at 28 February 2025
43,071
-

The timing of the expected reversal of the deferred tax asset is expected to be in the next 12 months. The deferred tax liability is expected to re verse over the useful lives of the tangible fixed assets.

21
Deferred income
Group
Company
2025
2024
2025
2024
£
£
£
£
Other deferred income
31,425
-
-
-
22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,781
43,756

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.

SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 30 -
23
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of 1p each
100
100
1
1

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

24
Hedging reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At beginning of year
(27,301)
(100,725)
-
-
Gains and losses on cash flow hedges
31,089
97,899
-
0
-
0
Deferred tax on gains and losses on cash flow hedges
(7,772)
(24,475)
-
-
At end of year
(3,984)
(27,301)
-
0
-

The group entered into forward foreign exchange contracts to mitigate exchange rate risk for foreign currency payments, all contracts mature within 12 months of the reporting date.

25
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
2025
2024
2025
2024
£
£
£
£
Within one year
171,900
118,661
-
-
Between two and five years
813,482
44,652
-
-
985,382
163,313
-
-
SMALLWORLD ACCESSORIES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
- 31 -
26
Related party transactions

Group and company

At the reporting date, the group had loans outstanding with the ultimate controlling entity amounting to £2,294,554 (202 4: £2,336,631), included within non-current liabilities. The loan interest paid during the year was £57,843 (202 4: £58,001) and was charged at a rate of 4% (202 4: 4%) on the interest bearing loan.

At the reporting date, the group had a year-end trade creditor balance outstanding with an other trading related party of £111,925 (2024: £341,174), and a debtor balance due in more than one year of £881,211 (2024: £879,356). During the year, purchases with that related party amounted to £4,418,275 (2024: £3,382,571).

27
Controlling party

The ultimate controlling entity is Chuan Men Investment Inc, a company incorporated in Taiwan.

28
Cash generated from group operations
2025
2024
£
£
Profit for the year after tax
285,632
50,696
Adjustments for:
Taxation charged
130,704
235,477
Finance costs
121,419
99,161
Investment income
(7,405)
(15,022)
Amortisation and impairment of intangible assets
74,356
74,355
Depreciation and impairment of tangible fixed assets
60,329
52,645
Unrealised currency translation gains on long-term loans
3,536
(38,626)
Foreign exchange gains on cash equivalents
847
10,013
Movements in working capital:
Increase in stocks
(159,315)
(366,132)
(Increase)/decrease in debtors
(316,607)
99,859
Increase in creditors
596,651
183,546
Increase in deferred income
31,425
-
Cash generated from operations
821,572
385,972
29
Analysis of changes in net debt - group
1 March 2024
Cash flows
Market value movements
Exchange rate movements
28 February 2025
£
£
£
£
£
Cash at bank and in hand
1,097,349
137,430
-
(847)
1,233,932
Borrowings excluding overdrafts
(2,755,662)
155,051
(3,453)
-
(2,604,064)
(1,658,313)
292,481
(3,453)
(847)
(1,370,132)
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