Company Registration No. 01944865 (England and Wales)
PANAZ LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2025
31 March 2025
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
PANAZ LIMITED
COMPANY INFORMATION
Directors
Mr A J W Attard
Mrs P M Attard
Mr R S Attard
Mr N Memon
Mrs S A Lloyd
(Appointed 6 April 2024)
Company number
01944865
Registered office
Panaz Hq, Bentley Wood Way
Network 65 Business Park
Hapton
Burnley
Lancashire
BB11 5ST
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
PANAZ LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 23
PANAZ LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Review of the business

Panaz manufactures and distributes exclusive interior textiles and wallcoverings all of which are designed and distributed within our group headquarters and produced within our own manufacturing facilities or in conjunction with our strategic eco-system partners. We process fabrics via carefully selected subcontracted supply chains, and create printed fabrics using in house advanced manufacturing facilities.

The company operates from a modern warehouse and distribution centre in Hapton with direct access to the M65 and thus the national motorway network. There is additional land on site available for expansion.

The Panaz European team has successfully established one of the world’s foremost contract fabric companies, becoming leaders in the design, manufacture, and distribution of desirable inherently flame retardant and exclusive fabrics. There is a clear culture within the business that is determined to ensure our customer receive the best possible professional service.

Embedded in the business is an experienced management team who are strong, dedicated, internationally focused and capable of delivering sizable growth.

Key performance indicators

- Turnover (excluding freight income) ended March 2025 at just over £19.6m

- Turnover is up 8.3% from the previous year after stripping out one off sales.

Strengths

- UK market leader with an ambition to grow and lead globally

- Huge spectrum of growth through an abundance of UK and export opportunities

- Lead by exemplary customer service levels

- Exceptional employee engagement of over 90%

- Panaz is an acknowledged industry innovator

Customer profile

- High-profile blue-chip customers

- Highly discerning interior design and architectural customer base

- Very high quality with ultra-low returns rate

- International and global Panaz brand awareness

- Global cruise ship clients

- 10,000 samples shipped weekly

Diversified product range offering a unique one-stop-shop for contract fabric solutions.

Over 7,000 individual SKUs with a further number of print variants creates the largest contract fabric selection available from stock in the UK.

PANAZ LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Summary of Key Strategic Areas

The prevailing economic headwinds are still challenging to navigate but by employing various investment strategies alongside short, mid and long term planning methodologies we have been able to yield positive growth in a flat or down market. Clear understanding of the position of other companies within the market is allowing us to capitalise on opportunities and avoid risks.

We maintain a strong supply chain with strong relationships creating the most innovative new products for customers with the ability to pivot routes around supply chain uncertainties. Proprietary technologies such as Shieldplus and Acryltron maintain relevance and gain traction in new markets.

We continue to invest in the technology with increased focus on automation and AI increasing our service proposition to customers and maintaining the industry leading proposition. Our print service offered to customers continues to be the fastest and most flexible available, this machinery channels the use of our solar energy and increase our sustainability credentials. We now also accept online orders through a custom platform and are seeing good adoption.

Sampling is an important part of the Panaz customer service proposition. Over 10,000 individual samples are shipped on a weekly basis worldwide. Recent investments in sampling order inputting is resulting in more information gathered to aid sales and stock inventory decisions. We are still partnered with Material Bank for increased lead generation in Europe through sampling.

All staff are incentivised to successfully retain customers and procure new customers, they are rewarded as part of our profit incentive scheme. This is robustly tracked and managed through strategic analysis and key performance indicators within our CRM system that is fully adopted by the sales teams.

The London Showroom in Clerkenwell has been added as a facility for our sales team this year and it is proving a valuable hub for customers. Many brilliant events have driven a very positive customer engagement.

Panaz has since its inception set high standards reducing its environmental impact. We were the first company in our industry to utilise waterless printing methods. We aim to sustain and improve our natural environment for the benefit of all. We are committed to continual improvement in our environmental performance by improving the efficiency with which we use resources and through compliance with all relevant environmental regulation and legislation. We operate, ISO 14001, a robust environmental management system to ensure environmental issues are integrated into our business processes and practices. We have also conducted a carbon measurement this year that allows us to benchmark our progress to net zero. We have also completed certification with Evergreen sustainable supplier assessment and continue to be SEDEX registered for ethical employment practices.

The board takes active steps to ensure that the suggestions views and interests of staff members are gathered and considered in its strategic direction. The company benefits from having a board who are actively involved in the daily running of the business and maintain regular communications with its management team. Further examples of how the board engages with its staff include regular updates on business performance through employee newsletters and web-based HR facilitation. The company also offers employees the opportunity for career development and regular communication where necessary from the company's in house human resources on all major matters of importance including the welfare and health and safety of the workforce.

The company is an active patron of both the Furniture Makers Charity and Blackburn Youth Zone and we encourage staff to become involved in local and national fund-raising events. We are the largest UK patrons for the Ribble Rivers Trust – our donations have planted almost 20,000 trees within Lancashire

Investments

Revenue increased in 2024-25 but operating profit was more challenging. The operating profit return is lower in comparison to 2023-24 and this is due to significant investment in sustainability, infrastructure, personnel and technology, much of which benefits the whole group. This gives The Panaz Group the platform to ensure significant growth for the future

PANAZ LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Principal Risks and Uncertanties

The UK economy has remained challenging, with growth continuing to underperform expectations through 2024. Although inflationary pressures have eased compared to the prior year, the persistence of relatively high interest rates by the Bank of England continues to constrain investment and dampen consumer confidence across a number of the sectors in which we operate. Political uncertainty, both in the UK and globally, has further delayed investment decisions and added to market volatility. Widely reported geopolitical issues – particularly ongoing conflict in Eastern Europe and tensions in the Middle East – have continued to impact energy and commodity prices, while creating further hesitation in global supply chains. We remain vigilant and have taken steps to strengthen resilience where possible.

We continue to work hard to mitigate the effects of Brexit. Our established European distribution hub in the Netherlands has proven to be a critical investment, significantly reducing complexity and allowing shipments direct to EU customers without the additional burden of duties or taxes. This has improved service delivery, shortened lead times, and made our proposition more competitive. Alongside this, our logistics and supply chain teams have continued to reduce transport costs wherever possible and maintain a high level of customer service, despite external pressures.

The cost of shipping and importing products globally remains subject to volatility. The ongoing disruption in the Suez Canal and wider Red Sea region has created continued cost and lead-time pressures, although global freight markets have shown greater stability compared with the immediate post-pandemic period. We remain proactive in diversifying routes and partners to ensure continuity of supply and competitive cost management.

The company is exposed to a wide range of risk profiles, including financial (credit risk, liquidity risk, foreign exchange exposure, internal and external fraud, and pricing risk). These risks are managed through a comprehensive framework designed to limit potential adverse effects. Foreign exchange movements remain a short-term risk, although this is largely mitigated by our natural hedge from export activities. We operate policies that require thorough credit checks on customers before sales are agreed, and we closely monitor exposure limits for individual accounts.

Cyber security remains an area of increasing importance, with the ongoing risk of disruption or fraud arising from attacks on computer and information systems. We actively invest in protective technology and advanced operating procedures, supported by regular training and system upgrades, to ensure we remain protected against emerging threats.

Going concern

Despite the economic complexities and continued barriers to export from geopolitical issues the directors are confident that profit will be generated for the full year in 2025/26 and Panaz is in a strong position to grow in the years to come.

On behalf of the board

Mr R S Attard
Director
17 November 2025
PANAZ LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of the manufacture and distribution of exclusive interior textiles and wall coverings.

Results and dividends

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

Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr A J W Attard
Mrs P M Attard
Mr R S Attard
Mr N Memon
Mrs S A Lloyd
(Appointed 6 April 2024)
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

PANAZ LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -
Medium-sized companies exemption

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 R S Attard
Director
17 November 2025
PANAZ LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PANAZ LIMITED
- 6 -
Opinion

We have audited the financial statements of Panaz Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

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 directors' 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 directors' report have been prepared in accordance with applicable legal requirements.

PANAZ LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PANAZ LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not 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, 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' r esponsibilities s tatement, 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

PANAZ LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PANAZ LIMITED (CONTINUED)
- 8 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

- a ny matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

PANAZ LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PANAZ LIMITED (CONTINUED)
- 9 -

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Christopher Johnson FCA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
17 November 2025
PANAZ LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
20,242,580
21,019,706
Cost of sales
(11,095,054)
(12,116,251)
Gross profit
9,147,526
8,903,455
Distribution costs
(2,418,393)
(2,202,187)
Administrative expenses
(6,097,760)
(5,571,950)
Other operating income
396,866
463,207
Operating profit
4
1,028,239
1,592,525
Interest receivable and similar income
7
69
-
0
Interest payable and similar expenses
8
(5,294)
-
0
Profit before taxation
1,023,014
1,592,525
Tax on profit
9
(268,238)
(436,165)
Profit for the financial year
754,776
1,156,360
Retained earnings brought forward
6,323,494
6,667,134
Dividends
10
(300,000)
(1,500,000)
Retained earnings carried forward
6,778,270
6,323,494

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

PANAZ LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
11
16,614
37,939
Tangible assets
12
1,062,089
867,884
1,078,703
905,823
Current assets
Stocks
14
4,478,672
3,971,943
Debtors
13
3,779,912
3,792,362
Cash at bank and in hand
1,821,336
2,241,952
10,079,920
10,006,257
Creditors: amounts falling due within one year
15
(4,166,454)
(4,427,678)
Net current assets
5,913,466
5,578,579
Total assets less current liabilities
6,992,169
6,484,402
Provisions for liabilities
Deferred tax liability
16
193,899
140,908
(193,899)
(140,908)
Net assets
6,798,270
6,343,494
Capital and reserves
Called up share capital
18
20,000
20,000
Profit and loss reserves
6,778,270
6,323,494
Total equity
6,798,270
6,343,494

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 November 2025 and are signed on its behalf by:
Mr R S Attard
Director
Company registration number 01944865 (England and Wales)
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
1
Accounting policies
Company information

Panaz Limited is a private company limited by shares incorporated in England and Wales. The registered office is Panaz Hq, Bentley Wood Way, Network 65 Business Park, Hapton, Burnley, Lancashire, BB11 5ST.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash f low and related notes and disclosures;

The financial statements of the company are consolidated in the financial statements of Panaz Holdings Limited. These consolidated financial statements are available from its registered office, Panaz Hq, Bentley Wood Way, Network 65 Business Park, Burnley, Lancashire, BB11 5ST.

1.2
Going concern

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

1.3
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.

The company recognises revenue from the following major sources:

- Sale of Textiles

- Delivery of Textiles

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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.

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
20-33% straight line
1.5
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:

Short tem leasehold property
10% straight line
Plant & machinery
10-20% straight line
Office equipment
20% straight line
Motor vehicles
20% 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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
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.

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.

1.8
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.

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

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

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

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

Basic financial assets

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

Other financial assets

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

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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

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

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

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

Other financial liabilities

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

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

Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases
As lessee

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.

1.15
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The main areas of judgement are in relation to stock provisions and useful lives of fixed assets. Stock provision is estimated by reviewing product life and forecasted sales. The stock provision at year end totals £460,312 (2023 - £390,753)

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
15,175,854
15,819,861
Europe
4,313,276
4,420,408
Rest of world
753,451
779,437
20,242,580
21,019,706
2025
2024
£
£
Other revenue
Interest income
69
-
Royalty income
311,866
310,576
Management Fees Receivable
-
152,631

All turnover arose from the manufacture and distribution of exclusive interior textiles and wall coverings.

4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(405,077)
(235,892)
Fees payable to the company's auditor for the audit of the company's financial statements
13,650
13,000
Depreciation of owned tangible fixed assets
249,483
250,251
Profit on disposal of tangible fixed assets
-
0
(800)
Amortisation of intangible assets
21,325
6,789
Impairment of stocks recognised or reversed
29,967
137,528
Operating lease charges
468,445
408,670
5
Employees

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

2025
2024
Number
Number
Administration
45
43
Sales
26
26
Production
25
25
Total
96
94
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,788,780
3,327,434
Social security costs
504,727
437,198
Pension costs
103,790
113,047
4,397,297
3,877,679
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
213,205
207,433
Company pension contributions to defined contribution schemes
6,320
4,607
219,525
212,040

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
129,411
142,674
Company pension contributions to defined contribution schemes
6,320
4,607
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
69
-
0
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
69
-
0
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
8
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Other interest
5,294
-
0
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
215,247
437,277
Adjustments in respect of prior periods
-
0
13,532
Total current tax
215,247
450,809
Deferred tax
Origination and reversal of timing differences
52,991
(14,644)
Total tax charge
268,238
436,165

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

2025
2024
£
£
Profit before taxation
1,023,014
1,592,525
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
255,754
398,131
Tax effect of expenses that are not deductible in determining taxable profit
17,668
15,906
Adjustments in respect of prior years
-
0
13,532
Group relief
(11,620)
-
0
Permanent capital allowances in excess of depreciation
6,436
8,596
Taxation charge for the year
268,238
436,165
10
Dividends
2025
2024
£
£
Interim paid
300,000
1,500,000
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 April 2024 and 31 March 2025
75,528
Amortisation and impairment
At 1 April 2024
37,589
Amortisation charged for the year
21,325
At 31 March 2025
58,914
Carrying amount
At 31 March 2025
16,614
At 31 March 2024
37,939

More information on impairment movements in the year is given in note .

12
Tangible fixed assets
Short tem leasehold property
Plant & machinery
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2024
444,482
1,312,447
582,545
235,099
2,574,573
Additions
10,514
312,001
121,173
-
0
443,688
At 31 March 2025
454,996
1,624,448
703,718
235,099
3,018,261
Depreciation and impairment
At 1 April 2024
170,157
1,025,896
405,770
104,866
1,706,689
Depreciation charged in the year
44,126
112,344
55,470
37,543
249,483
At 31 March 2025
214,283
1,138,240
461,240
142,409
1,956,172
Carrying amount
At 31 March 2025
240,713
486,208
242,478
92,690
1,062,089
At 31 March 2024
274,325
286,551
176,775
130,233
867,884
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,399,285
3,394,422
Amounts owed by group undertakings
96,873
143,848
Other debtors
62,266
100,481
Prepayments and accrued income
221,488
153,611
3,779,912
3,792,362

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

14
Stocks
2025
2024
£
£
Raw materials and consumables
831,534
722,792
Finished goods and goods for resale
3,647,138
3,249,151
4,478,672
3,971,943

15
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
3,132,987
2,987,152
Amounts owed to group undertakings
37,092
151,231
Corporation tax
67,328
279,358
Other taxation and social security
278,759
463,400
Other creditors
125,527
120,075
Accruals and deferred income
524,761
426,462
4,166,454
4,427,678

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

PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
16
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Fixed asset timing differences
198,298
143,704
Short term timing differences
(4,399)
(2,796)
193,899
140,908
2025
Movements in the year:
£
Liability at 1 April 2024
140,908
Charge to profit or loss
52,991
Liability at 31 March 2025
193,899
17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,790
113,047

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

Contributions totalling £18,008 (202 3: £1 4,028) were payable to the fund at the balance sheet date.

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
20,000
20,000
20,000
20,000
PANAZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
19
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
220,769
359,000
Years 2-5
257,424
235,805
478,193
594,805
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2025
2024
£
£
Entities over which the entity has control, joint control or significant influence
29,950
45,345
Other information

As permitted by FRS 102 the financial statements do not disclose transactions with the parent company and fellow subsidiaries where 100% of the voting rights are controlled within the group.

Remuneration of £48,733 (202 3 - £46,363) was payable to related parties of director s in the year.

21
Directors' transactions

Included within other debtors due within one year are loans to directors amounting to £21,529 (202 4 - £65,950). The maximum amount outstanding during the year was £104,322 (2024 - £90,928). The balance is repayable on demand.

22
Ultimate controlling party

The company is a wholly owned subsidiary of Panaz Holdings Limited, a company incorporated in England and Wales. The ultimate controlling party is Mr A J W Attard. The smallest and largest group of undertakings for which group accounts are drawn up and of which the company is a member is Panaz Holdings Limited Group. Consolidated financial statements of the group can be requested from Panaz Holdings Limited’s registered office; Panaz Hq, Bentley Wood Way, Network 65 Business Park, Hapton, Burnley, Lancashire, BB11 5ST.

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