REGISTERED NUMBER: 11222978 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 December 2024

for

MUK GLOBAL TRADING H LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

J R Eve

REGISTERED OFFICE:

Bury House

1 - 3 Bury Street

Guildford

Surrey

GU2 4AW

REGISTERED NUMBER:

11222978 (England and Wales)

INDEPENDENT AUDITORS:

BDA Associates Limited

Statutory Auditor

Chartered Accountants

Global House

1 Ashley Avenue

Epsom

Surrey

KT18 5AD

The director presents their strategic report for the year ended 31 December 2024.

MUK Global Trading H Ltd is the parent company of a portfolio of IT distribution companies, supplying IT products produced by the A-Branded world leading manufacturers to businesses operating across Eastern Europe and Central Asia as part of the EMEA market. The Group provides strategic, financial and operational support to its subsidiaries, the main one of which is MUK Global Trading (UK) Ltd.

MUK Group works with local distributors and system integrators offering expert consultancy, business transformation and managed services to clients.

Combining deep vertical market expertise with proven technical capability, the MUK Group works in partnership with their clients to help increase productivity, accelerate growth and deliver outstanding user experiences.

Core to MUK Group's success is the quality of its people and strength of its innovative culture, both of which are supported by a deeply integrated values-led approach. The Group uses a workforce of many people across 18 countries, employed by the Group subsidiaries and other associated companies, which are established as independent enterprises operating in each of the countries of the MUK Groups areas of interest, accommodating the MUK Group's portfolio of clients across these countries.

MUK Group's current strategy is centred around five core strategic principles;

- Building Stronger Growth - A focus to grow revenue and profit through the selling of high value, vertical propositions to a targeted customer base in an efficient and profitable way.

- Concentrate on the sale of only complete project solutions.

- Prioritise the sale to the end clients only via the network of the local dealers/distributors.

- Delivering Client Excellence - Placing client needs at the core and centre of all we do, developing operational

excellence to deliver exceptional service and experience.

- Being a Great Place to Work - Facilitating an engaging, dynamic and rewarding workplace in which our people can

grow, develop and perform.

REVIEW OF BUSINESS

Throughout the year, the MUK Group and in particular MUK Global Holdings (UK) Ltd, took steps to strengthen and refocus its strategic efforts. They aimed to make the most of their team's skills, delivering innovative and profitable technology solutions. The main priorities included cutting delivery costs and speeding up distribution timelines, even if it meant a potential dip sales volume.

MUK Global Trading (UK) Ltd also ran a variety of marketing initiatives to grow new business in Azerbaijan, Armenia,

Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Mongolia, Uzbekistan, Macedonia, Slovenia,

Turkey, UAE, Bulgaria, and Albania. This was in response to software manufacturers requiring that their products be

sold in the regions where they're consumed.

During the reporting period, the Group's client base grew both in percentage terms and in absolute numbers across various sectors.

Metric

FY2024

FY2023

Change

Revenue

£90.7m

£77.11m

17.62%

Gross Profit

£4.09m

£4.96m

-17.60%

Operating Profit

£3.30m

£3.58m

-7.82%

Net Assets

£6.87m

£5.86m

15.32%

The slight reduction across the metrics are due to fluctuations in the USD/GBP exchange rate and the restructuring of distribution channels for the Asian market.

In 2025 / 2026, we plan to focus on increasing our margins, which will help boost the company's profitability even if

turnover declines.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group is responsible for the effectiveness of its processes of control and risk management. The management monitors and manages risks, regularly reviewing strategic, financial and operational risks. Mitigating actions and associated assurance and reporting processes are identified for all 'high' and material risks, enabling managers to better understand the context within which risks occur, and to identify probable / likely areas for mitigation and increased organisation control.

The risk management process has identified certain key risks faced by the company, these are summarised below. The risks identified do not necessarily comprise all the risks facing the group, nor are they presented in any particular order of assessed impact / severity.

Dependence on Key Vendors

MUK Group is dependent upon a number of key suppliers, in particular IBM, Cisco, HPE, and DELL-EMC. Should any of the principal suppliers terminate or materially adversely change its agreement with the company, it could materially impact revenue and profit for the whole Group. The Board and Management team recognise both the importance of key suppliers and the actions required to mitigate this risk, so the Group added additional key suppliers in prior years such as GN Audio Germany GmbH and Hewlett-Packard Singapore PTE. Ltd and continues to assign the highest priority to the maintenance and development of transparent and mutually beneficial relationships. During the year to 31 December 2024 the Group's relationships with all key vendors continued to be strong.

Dependence on Key Verticals

A vertically focused approach provides the Group with a depth of credibility and expertise that is clearly valued amongst it's client base. However, it also creates exposure in the event of significant change within those sectors in terms of compliance, policy or economic terms. A phased and controlled plan to generate business in new verticals is underway.

Retention of Key Personnel

Recruiting, developing and retaining key staff, remains a challenge in a buoyant IT industry. During the year, the Group continued to enhance and extend existing initiatives around training, and the development of product awareness.

Exposure to Foreign Exchange Fluctuations

The Group operates across multiple Eastern European and Central Asian markets and a proportion of its revenues, costs and assets are denominated in currencies other than sterling. As a result the Group is exposed to both transactional and translational foreign exchange risk.

1. Transactional exposure - this arises from sales and purchases made in foreign currencies, mainly where subsidiaries source products in USD or EUR from global vendors but sell to customers in local currencies. Currency fluctuations can therefore impact gross margins and working capital commitments.

2. Translational exposure - The Group's consolidated results and net assets are reported in sterling (GBP). When translating the financial results and net assets of subsidiaries that report in other currencies, exchange rate movements may affect the Group's consolidated equity and reported earnings. These are non-cash accounting movements but can lead to volatility in consolidated statements.

The Group has established a policy framework to manage foreign exchange risk proportionate to its scale.

The Board believes that the Group's risk management framework is proportionate to its scale and complexity.

SECTION 172(1) STATEMENT

The Director of MUK Global Trading H Ltd acknowledges their duty under Section 172(1) of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, while having regard to the interests of key stakeholders and the long-term consequences of their decisions.

Although the Company is a non-trading holding company, the Board recognises that its decisions influence the strategic direction, performance, and governance of the wider Group, which distributes IT hardware and software from key IT vendors. The Director therefore considers the interests of the Group's stakeholders - including employees, suppliers, customers, and business partners - in all significant decision-making.

The Board receives regular updates from subsidiary management on matters such as employee engagement, customer satisfaction, supplier relationships, and financial performance. These reports enable the Directors to take stakeholder considerations into account when determining the Group's strategy, investment priorities, and dividend policy.

The Board also promotes high standards of business conduct, ensuring that the Group operates with integrity, complies with all legal and regulatory obligations, and maintains the trust of its stakeholders.

The Directors believe that this approach allows the Company to meet its responsibilities under Section 172 of the Companies Act 2006 and supports the long-term success and sustainability of the Group for the benefit of its members and wider stakeholders.

FUTURE DEVELOPMENTS

Whilst the markets within which the MUK Group operates remain subject to challenges, the Group's strategic priorities for 2025-2026 are:

- To continue to extend its presence throughout Eastern Europe and Central Asia and;

- To deliver higher margin, differentiated services to both new and existing customers.

ON BEHALF OF THE BOARD:

J R Eve - Director

2 December 2025

The director presents her report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

An interim dividend of 9.91223 per share was paid on 13 June 2024. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 991,223 .

DIRECTOR

J R Eve held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, BDA Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J R Eve - Director

2 December 2025

Opinion

We have audited the financial statements of MUK Global Trading H Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

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

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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. Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to covid-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

- Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;

- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

- Gaining an understanding of the internal controls established to mitigate risks related to fraud;

- Discussing amongst the engagement team the risks of fraud; and

- Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Rajesh Amin (Senior Statutory Auditor)

for and on behalf of BDA Associates Limited

Statutory Auditor

Chartered Accountants

Global House

1 Ashley Avenue

Epsom

Surrey

KT18 5AD

2 December 2025

TURNOVER

90,703,157

77,113,078

Cost of sales

(86,613,391

)

(72,149,799

)

GROSS PROFIT

4,089,766

4,963,279

Administrative expenses

(1,738,085

)

(1,429,461

)

2,351,681

3,533,818

Other operating income

946,958

48,580

OPERATING PROFIT

4

3,298,639

3,582,398

Interest receivable and similar income

36,333

29,541

3,334,972

3,611,939

Interest payable and similar expenses

5

(20,332

)

(1,259

)

PROFIT BEFORE TAXATION

3,314,640

3,610,680

Tax on profit

6

(854,025

)

(923,214

)

PROFIT FOR THE FINANCIAL YEAR

2,460,615

2,687,466

Retained earnings at beginning of year

5,863,840

7,082,245

Dividends

8

(991,223

)

(3,735,463

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

7,333,232

6,034,248

Profit attributable to:

Owners of the parent

2,437,640

2,659,458

Non-controlling interests

22,975

28,008

2,460,615

2,687,466

FIXED ASSETS

Intangible assets

9

12,447

9,238

Tangible assets

10

175,919

159,514

Investments

11

-

34,179

188,366

202,931

CURRENT ASSETS

Stocks

12

5,286,850

5,010,808

Debtors

13

18,658,338

24,333,253

Cash and cash equivalents

12,192,760

4,873,258

36,137,948

34,217,319

CREDITORS

Amounts falling due within one year

14

26,452,013

25,221,064

NET CURRENT ASSETS

9,685,935

8,996,255

TOTAL ASSETS LESS CURRENT LIABILITIES

9,874,301

9,199,186

CREDITORS

Amounts falling due after more than one year

15

(2,944,603

)

(3,222,833

)

PROVISIONS FOR LIABILITIES

17

(28,772

)

(27,894

)

NET ASSETS

6,900,926

5,948,459

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Other reserves

19

37,981

-

Foreign currency translation

reserve

19

58,870

-

Retained earnings

19

6,762,093

5,863,840

SHAREHOLDERS' FUNDS

6,868,944

5,873,840

NON-CONTROLLING INTERESTS

31,982

74,619

TOTAL EQUITY

6,900,926

5,948,459

The financial statements were approved by the director and authorised for issue on 2 December 2025 and were signed by:

J R Eve - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

1,071,814

1,071,814

1,071,814

1,071,814

CURRENT ASSETS

Debtors

13

4,290,463

687,121

Cash at bank

185,018

27,267

4,475,481

714,388

CREDITORS

Amounts falling due within one year

14

234

-

NET CURRENT ASSETS

4,475,247

714,388

TOTAL ASSETS LESS CURRENT LIABILITIES

5,547,061

1,786,202

CREDITORS

Amounts falling due after more than one year

15

241,440

945,064

NET ASSETS

5,305,621

841,138

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Retained earnings

19

5,295,621

831,138

SHAREHOLDERS' FUNDS

5,305,621

841,138

Company's profit for the financial year

5,455,706

3,697,282

The financial statements were approved by the director and authorised for issue on 25 February 2025 and were signed by:

J R Eve - Director

Cash flows from operating activities

Cash generated from operations

1

13,244,052

3,452,449

Interest paid

(20,332

)

(1,259

)

Tax paid

(794,476

)

(928,884

)

Net cash from operating activities

12,429,244

2,522,306

Cash flows from investing activities

Purchase of intangible fixed assets

(4,820

)

(3,123

)

Purchase of tangible fixed assets

(21,088

)

(199,981

)

Interest received

36,333

29,541

Net cash from investing activities

10,425

(173,563

)

Cash flows from financing activities

Loan repayments in year

-

420,577

Related party transaction

(633,939

)

1,212,083

New loans made in year

(2,791,381

)

-

Equity dividends paid

(1,694,847

)

(4,810,318

)

Net cash from financing activities

(5,120,167

)

(3,177,658

)

Increase/(decrease) in cash and cash equivalents

7,319,502

(828,915

)

Cash and cash equivalents at beginning of year

2

4,873,258

5,702,173

Cash and cash equivalents at end of year

2

12,192,760

4,873,258

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

3,314,640

3,610,680

Depreciation charges

21,623

48,260

Loss on revaluation of fixed assets

42,855

-

Exchange and other gains/losses

156,546

-

Finance costs

20,332

1,259

Finance income

(36,333

)

(29,541

)

3,519,663

3,630,658

Increase in stocks

(276,042

)

(1,283,066

)

Decrease/(increase) in trade and other debtors

11,041,458

(9,615,987

)

(Decrease)/increase in trade and other creditors

(1,041,027

)

10,720,844

Cash generated from operations

13,244,052

3,452,449

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

12,192,760

4,873,258

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,873,258

5,702,173

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash and cash equivalents

4,873,258

7,319,502

12,192,760

4,873,258

7,319,502

12,192,760

Debt

Finance leases

-

(42,465

)

(42,465

)

-

(42,465

)

(42,465

)

Total

4,873,258

7,277,037

12,150,295

1.	STATUTORY INFORMATION

MUK Global Trading H Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated financial statements presents the results of the Company and all of its subsidiary undertakings as if they formed a single entity. The Company acts as a holding company for its subsidiary undertakings.

The consolidated financial statements have been prepared in accordance with the provisions of Section 9 Consolidated and Seperate Financial Statements from FRS102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland.

All subsidiaries, with the exception of MUK Global Trading (UK) Ltd, are wholly owned by the Company. The Company owns a 99% interest in MUK Global Trading (UK) Ltd, and consequently, a non-controlling interest is recognised for the remaining 1% held by the external shareholder.

The financial statements of the subsidiaries are prepared for the same reporting period as the Company and adjusted, where necessary, to ensure consistency with the accounting policies adopted by the group.

As the Company has owned its subsidiaries since their incorporation, no goodwill arises on consolidation.

Non-controlling interests are presented within equity in the consolidated statement of financial position, separately from the equity of the owners of the parent company. The share of profit of loss and other comprehensive income attributable to the non-controlling interests is presented in the consolidated statement of comprehensive income.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the process of applying its accounting policies, the company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.

Revenue

Revenue is measured at the fair value of the consideration received or receivable for goods supplied in the normal course of business, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the distribution of IT products or licenses as specified in the strategic report is recognised when all the following conditions are satisfied:

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

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

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the company; and

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

Specifically, revenue from the sale of components is recognised when the goods are delivered, and legal title has passed.

The Company, being a holding company, does not itself undertake trading activities and therefore earns no trading revenue.

Intangible assets

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

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Computer equipment

-

10% on cost and 20% - 33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of costs and net realisable value, in accordance with Section 13 Inventories of FRS102.

Cost represents purchase cost, including freight, duty and other directly attributable costs. Net realisable value represents the estimated selling price less costs to complete and sell.

Stocks comprise computer hardware, software products and related accessories held for resale by the Group. Stocks are primarily held at bonded warehouses and logistics facilities, or in some cases are shipped directly from suppliers to customers. Title and associated risks and rewards of ownership are recognised by the Group in accordance with the underlying trading terms of each transaction.

Goods are normally purchased only to fulfill specific customer orders and are held for minimal periods, consequently, the risk of obsolescence or slow movement is not considered material.

The Company being a holding company, does not itself hold any stock.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date in each jurisdiction.

For foreign subsidiaries, current tax is calculated in accordance with local tax rules and rates applicable in those jurisdictions. Taxable profits or losses of subsidiaries are determined in accordance with local requirements which may differ from the recognition and measurement principles used in these consolidated financial statements.

Current tax assets and liabilities are offset only when the Group has a legally enforceable right to do so and relates to the same fiscal authority. .

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

The consolidated financial statements are presented in pounds sterling (£), which is the functional and presentational currency of the Company.

Transactions in foreign currencies are translated into the functional currency of each group entity at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the exchange rate ruling at that date. Exchange differences arising on settlement of monetary items or on translation at reporting date exchange rates are recognised in the profit or loss account in the period in which they arise.

On consolidation, the assets and liabilities of the Group's foreign operations are translated at the exchange rate ruling at the reporting date. Income and expense items are translated at the average exchange rate for the period, unless exchange rates fluctuate significantly, in which case the exchange rates at the dates of the transactions are used.

Exchange differences arising on the retranslation of the opening net assets of foreign operations, and on the translation of income and expenses at average rates, are recognised in other comprehensive income and accumulated in a separate component of equity, titled the foreign currency translation reserve.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

Group

Group

Company

Company

2024

2023

2024

2023

£

£

£

£

Wages and Salaries

824,354

517,318

12,000

-

Social Security costs

79,377

49,303

-

-

Other pension costs

22,743

16,931

-

-

926,474

588,552

12,000

-

The average monthly number of employees, including directors, during the year across both the Group and the Company was 23 (2023 -15).

The directors emoluments for the Company and the Group are included within the wages and salaries figures above. No director received emoluments in excess of £200,000 in 2024 or 2023.

4.	OPERATING PROFIT

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

31.12.24

31.12.23

£

£

Depreciation - owned assets

22,545

61,755

Computer software amortisation

358

-

Auditors' remuneration

18,000

15,000

Subsidiary audits (including overseas auditors)

29,689

-

Foreign exchange differences

(65,540

)

519,047

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Other interest payable

20,332

1,259

6.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

766,156

898,810

Overseas corporation tax

88,203

-

Total current tax

854,359

898,810

Deferred tax

(334

)

24,404

Tax on profit

854,025

923,214