AVSL Group Limited Company accounts

COMPANY REGISTRATION NUMBER: 03605979

AVSL Group Limited

Financial Statements

31 December 2024

AVSL Group Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	12

AVSL Group Limited

Officers and Professional Advisers

The board of directors	P. Williams
	R. Moran
	M. Doyle
	A. Field
	J. Lewis
	S. Smith

Registered office	Unit 2
	Bridgewater Park
	Taylor Road
	Trafford Park
	Manchester
	England
	M41 7JQ

Auditor	Edwards Veeder (UK) Limited
	Chartered accountants & statutory auditor
	4 Broadgate
	Broadway Business Park
	Chadderton
	Oldham
	OL9 9XA

Bankers	HSBC Bank PLC
	109 Union Street
	Oldham
	OL1 1RT

AVSL Group Limited

Strategic Report

Year ended 31 December 2024

Business review

1. Introduction This strategic report provides an overview of AVSL Group Limited 's performance, financial standing, and key risk factors for the year ended 31 December 2024. The report outlines the company's business model, operational highlights, financial performance, and risk management approach to ensure sustainable growth and long-term success. 2. Business Model & Principal Activities AVSL Group Limited is a leading importer and wholesale distributor of Audio, Visual, Sound & Light products, servicing a diverse customer base across multiple geographies. The company specialises in sourcing high-quality products, ensuring efficient supply chain management, and delivering value to customers through a strong distribution network. The company's operations are divided into the following core functions: Procurement & Sourcing: AVSL sources products from a network of suppliers, predominantly in China, ensuring competitive pricing and consistent quality. Logistics & Distribution: The company utilises a streamlined logistics operation, optimising inventory management and minimising lead times. Sales & Customer Relations: With a robust client portfolio, AVSL has maintained strong sales growth through effective market penetration and strategic partnerships. Financial Management: The company exercises prudent financial control to support expansion while maintaining profitability. 3. Business Performance Overview Despite global economic headwinds, AVSL has demonstrated resilience and sustained growth in 2024. Key highlights include: Revenue Growth: Turnover increased by 3.6%, from £13.72m in 2023 to £14.22m in 2024. Profitability: Gross profit margins improved from 39.2% to 41.7%, reflecting efficient cost management and value-driven pricing strategies. Operational Efficiency: Despite an 8.8% increase in overheads, pre-tax profit rose to £1.97m from £1.73m in 2023. Financial Stability: Strong cash flow management and reduced reliance on short-term borrowing strengthened the company's liquidity position.

Financial risk management objectives and policies

The Board actively monitors financial risks to ensure the company remains well-positioned for future challenges. The key risk areas include: Interest Rate Risk: The company manages exposure by balancing fixed and floating rate borrowings, with ongoing monitoring of interest rate fluctuations. Liquidity & Cash Flow Risk: AVSL maintains a stable funding mix through invoice discounting, bank overdrafts, and fixed-term loans. Foreign Currency Risk: Given its reliance on imports, the company mitigates exchange rate fluctuations through forward contracts and strategic supplier agreements. Cost Inflation & Market Volatility: The company continues to monitor and manage cost pressures, ensuring profitability remains robust despite inflationary trends. 5. Key Strategic Initiatives & Future Outlook Looking ahead, AVSL Group Limited is committed to strengthening its market position through the following strategic initiatives: 1. Expansion of Product Portfolio: Introduction of innovative consumer electronics to cater to evolving market demands. 2. Supply Chain Optimisation: Further enhancing procurement efficiency and logistics integration to improve cost control and product availability. 3. Digital Transformation: Leveraging data analytics and e-commerce capabilities to enhance sales performance and customer engagement. 4. Sustainability Commitment: Reducing the company's carbon footprint through sustainable sourcing and packaging solutions. 5. Financial Prudence: Continued focus on maintaining a healthy balance sheet and reducing unnecessary operational expenses. The Directors remain confident in the company's ability to navigate market challenges and capitalise on growth opportunities in 2025 and beyond.

This report was approved by the board of directors on 18 November 2025 and signed on behalf of the board by:

P. Williams

Director

Registered office:

Unit 2

Bridgewater Park

Taylor Road

Trafford Park

Manchester

England

M41 7JQ

AVSL Group Limited

Directors' Report

Year ended 31 December 2024

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

Directors

The directors who served the company during the year were as follows:

C. Kelly
P. Williams
R. Moran
A. Wong
B. Kelly
M. Doyle

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Events after the end of the reporting period

Particulars of events after the reporting date are detailed in note 25 to the financial statements.

Disclosure of information in the strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 the company has chosen to include the strategic report information as required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The information in this report covers the Business Review and Financial Risk Management and Objectives.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 18 November 2025 and signed on behalf of the board by:

P. Williams

Director

Registered office:

Unit 2

Bridgewater Park

Taylor Road

Trafford Park

Manchester

England

M41 7JQ

AVSL Group Limited

Independent Auditor's Report to the Members of AVSL Group Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of AVSL Group Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' report 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. 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' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: - Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud. - Auditing the risk of management of override controls, including through testing journal entries and other adjustments for appropriateness. - Challenging assumptions and judgements made by management in their significant accounting estimates. Because of the field in which the client operates, we identified that employment law, health and safety legislation and compliance with the UK Companies Act are most likely to have a material impact on the financial statements. Owing to the inherent limitations of an audit, there's 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 ISAs (UK). For instance, the further removed non-compliances are 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Andrew Wadsworth FCCA

(Senior Statutory Auditor)

For and on behalf of

Edwards Veeder (UK) Limited

Chartered accountants & statutory auditor

4 Broadgate

Broadway Business Park

Chadderton

Oldham

OL9 9XA

18 November 2025

AVSL Group Limited

Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	14,215,516	13,722,610

Cost of sales	8,291,233	8,340,492
	-------------	-------------
Gross profit	5,924,283	5,382,118

Distribution costs		489,590	426,477
Administrative expenses		3,461,517	3,205,297
		------------	------------
Operating profit	5	1,973,176	1,750,344

Interest payable and similar expenses	9	–	15,704
		------------	------------
Profit before taxation		1,973,176	1,734,640

Tax on profit	10	494,862	411,379
		------------	------------
Profit for the financial year and total comprehensive income		1,478,314	1,323,261
		------------	------------

Dividends paid and payable	11	( 1,111,500)	( 1,111,500)

Retained earnings at the start of the year	7,824,374	7,612,613
	------------	------------
Retained earnings at the end of the year	8,191,188	7,824,374
	------------	------------

All the activities of the company are from continuing operations.

AVSL Group Limited

Statement of Financial Position

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Intangible assets	12	1	1
Tangible assets	13	111,091	125,112
Investments	14	3	3
		---------	---------
		111,095	125,116

Current assets

Stocks	15	4,434,416	3,842,036
Debtors	16	5,716,411	5,662,192
Cash at bank and in hand		622,509	215,403
		-------------	------------
		10,773,336	9,719,631

Creditors: amounts falling due within one year	17	2,621,666		1,947,152
		-------------		------------
Net current assets			8,151,670	7,772,479
			------------	------------
Total assets less current liabilities			8,262,765	7,897,595

Provisions

Taxation including deferred tax	18	1,577	3,221
		------------	------------
Net assets		8,261,188	7,894,374
		------------	------------

Capital and reserves

Called up share capital	21	37,800	37,800
Capital redemption reserve	22	32,200	32,200
Profit and loss account	22	8,191,188	7,824,374
		------------	------------
Shareholders funds		8,261,188	7,894,374
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 18 November 2025 , and are signed on behalf of the board by:

P. Williams

Director

Company registration number: 03605979

AVSL Group Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 2, Bridgewater Park, Taylor Road, Trafford Park, Manchester, M41 7JQ, England.

2. Statement of compliance

These financial statements have been prepared in accordance with the provisions of FRS 102,'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'. There were no material departures from that standard.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of AVSL Group (Holdings) Limited which are publicly available. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. The company was at the end of the year, a wholly owned subsidiary of another company incorporated in the EEA and in accordance with Section 400 of the Companies Act 2006, is not required to produce, and has not published, consolidated accounts.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents income arising from the import and wholesale distribution of consumer electronics, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	over useful life

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold Property Improvements	-	10% straight line
Warehouse Equipment	-	20% reducing balance
Motor Vehicles	-	25% reducing balance
Office Fixtures & Equipment	-	25 % reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	14,215,516	13,722,610
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2024	2023
	£	£
United Kingdom	12,436,143	11,628,687
Overseas sales	1,779,373	2,093,923
	-------------	-------------
	14,215,516	13,722,610
	-------------	-------------

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	27,543	24,685
Impairment of trade debtors	(3,373)	8,291
	--------	--------

6. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	25,700	24,000
	--------	--------

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	44,603	18,140
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Distribution staff	11	11
Administrative staff	24	25
Management staff	6	6
	----	----
	41	42
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	1,752,445	1,683,309
Social security costs	183,039	175,548
Other pension costs	94,908	65,621
	------------	------------
	2,030,392	1,924,478
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	625,742	580,982
Company contributions to defined contribution pension plans	26,775	23,838
	---------	---------
	652,517	604,820
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	4	4
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	2024	2023
	£	£
Aggregate remuneration	152,992	124,497
Company contributions to defined contribution pension plans	13,771	11,114
	---------	---------
	166,763	135,611
	---------	---------

9. Interest payable and similar expenses

	2024	2023
	£	£
Other interest payable and similar charges	–	15,704
	----	--------

10. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	496,506	409,177

Deferred tax:

Origination and reversal of timing differences	( 1,644)	2,202
	---------	---------
Tax on profit	494,862	411,379
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	1,973,176	1,734,640
	------------	------------
Profit on ordinary activities by rate of tax	493,294	433,660
Adjustment to tax charge in respect of prior periods	–	( 25,737)
Effect of capital allowances and depreciation	1,764	( 889)
Deferred taxation	( 1,644)	2,202
Expenses not deductable for tax purposes	1,448	2,143
	------------	------------
Tax on profit	494,862	411,379
	------------	------------

11. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Equity dividends on ordinary shares	1,111,500	1,111,500
	------------	------------

12. Intangible assets

	Goodwill
	£
Cost
At 1 January 2024 and 31 December 2024	75,001
	--------
Amortisation
At 1 January 2024 and 31 December 2024	75,000
	--------
Carrying amount
At 31 December 2024	1
	--------
At 31 December 2023	1
	--------

13. Tangible assets

	Leasehold Property Improve-ments	Warehouse Equipment	Motor vehicles	Office Fixtures and Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2024	65,660	300,416	22,244	449,733	838,053
Additions	–	–	–	13,522	13,522
	--------	---------	--------	---------	---------
At 31 December 2024	65,660	300,416	22,244	463,255	851,575
	--------	---------	--------	---------	---------
Depreciation
At 1 January 2024	27,644	261,698	20,342	403,257	712,941
Charge for the year	6,566	7,743	475	12,759	27,543
	--------	---------	--------	---------	---------
At 31 December 2024	34,210	269,441	20,817	416,016	740,484
	--------	---------	--------	---------	---------
Carrying amount
At 31 December 2024	31,450	30,975	1,427	47,239	111,091
	--------	---------	--------	---------	---------
At 31 December 2023	38,016	38,718	1,902	46,476	125,112
	--------	---------	--------	---------	---------

14. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2024 and 31 December 2024	1,003
	-------
Impairment
At 1 January 2024 and 31 December 2024	1,000
	-------

Carrying amount
At 31 December 2024	3
	-------
At 31 December 2023	3
	-------

AVSL (Hong Kong) Limited is registered in Hong Kong. All other subsidiaries are registered in England and Wales.

Subsidiaries, associates and other investments

	Class of share	Percentage of shares held
Subsidiary undertakings
AVSL (HK) Limited	Ordinary	100
AVSL (Asia) Limited	Ordinary	100
AVSL (Hong Kong) Limited	Ordinary	100

The results and capital and reserves for the year are as follows:

	Capital and reserves		Profit/(loss) for the year
	2024	2023	2024	2023
	£	£	£	£
Subsidiary undertakings
AVSL (HK) Limited	(1,434)	(1,434)	–	–
AVSL (Asia) Limited	1	1	–	–
AVSL (Hong Kong) Limited	1	1	–	–
	-------	-------	----	----

15. Stocks

	2024	2023
	£	£
Raw materials and consumables	4,434,416	3,842,036
	------------	------------

16. Debtors

	2024	2023
	£	£
Trade debtors	2,866,798	2,759,981
Amounts owed by group undertakings	2,157,931	2,157,911
Amounts owed by undertakings in which the company has a participating interest	62,849	72,375
Prepayments and accrued income	177,278	125,991
Directors loan account	451,555	545,934
	------------	------------
	5,716,411	5,662,192
	------------	------------

17. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	–	597
Trade creditors	1,052,556	960,507
Amounts owed to group undertakings	3	3
Accruals and deferred income	411,087	495,262
Corporation tax	268,529	410,728
Social security and other taxes	144,236	112,118
Director loan accounts	6,595	–
Invoice discounting loan	738,663	(32,063)
Other creditors	(3)	–
	------------	------------
	2,621,666	1,947,152
	------------	------------

The following liabilities disclosed under creditors falling due within one year are secured by the company:

Invoice discounting loan - (£738,663) (2023: £32,063)

The invoice discounting loan is secured by a charge on the trade debtors.

18. Provisions

	Deferred tax (note 19)
	£
At 1 January 2024	3,221
Charge against provision	( 1,644)
	-------
At 31 December 2024	1,577
	-------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 18)	1,577	3,221
	-------	-------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	1,577	3,221
	-------	-------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 68,133 (2023: £ 41,783 ).

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary A shares of £ 1 each	37,800	37,800	37,800	37,800
	--------	--------	--------	--------

22. Reserves

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	443,297	394,052
Later than 1 year and not later than 5 years	824,700	1,039,200
	------------	------------
	1,267,997	1,433,252
	------------	------------

24. Contingencies

a) Counter Indemnity re guarantee in favour of HM Customs & Excise for £23,400 (2023:£23,400). b) Counter Indemnity re guarantee in favour of Damco Sea & Air for $7,772 (2023: $7,772). c) Unlimited multilateral guarantee dated 1 August 2018 in favour of AVSL Group (Holdings) Limited. The amount owing at 31 December 2024 was £2,156,375 (2023:£2,156,335).

25. Events after the end of the reporting period

On 31 October 2025, the shareholders sold 100% of their shares in the Company to MC Newco Limited. The new owners have indicated their intention to continue operations under existing management.

26. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2024
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
P. Williams	65,342	( 54,438)	10,904
R. Moran	14,362	( 20,959)	( 6,597)
B. Kelly	455,579	( 18,365)	437,214
M. Doyle	10,650	( 7,211)	3,439
	---------	---------	---------
	545,933	( 100,973)	444,960
	---------	---------	---------

	2023
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
P. Williams	108,734	( 43,392)	65,342
R. Moran	44,261	( 29,899)	14,362
B. Kelly	606,602	( 151,024)	455,578
M. Doyle	22,050	( 11,399)	10,651
	---------	---------	---------
	781,647	( 235,714)	545,933
	---------	---------	---------

All Directors loans were paid in full on 31 October 2025.

27. Related party transactions

The directors consider that the company is under the control of the directors of the parent company AVSL Group (Holdings) Limited.

28. Controlling party

The company is a wholly owned subsidiary of AVSL Group (Holdings) Limited company number 11347705, a company incorporated in England.