REGISTERED NUMBER: 03471741 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025

FOR

HERALD PACKAGING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

B M Patel

Y B Patel

SECRETARY:

Mrs R B Patel

REGISTERED OFFICE:

Darwin Road

Willowbrook East Industrial Estate

Corby

NN17 5XZ

REGISTERED NUMBER:

03471741 (England and Wales)

AUDITORS:

Orcom Civvals Audit Limited

Chartered Accountants and Statutory Auditors

50 Seymour Street

London

W1H 7JG

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

REVIEW OF BUSINESS

The results for the period and financial position of the company are as shown in the annexed financial statements.

The total turnover of the company during the year amounted to £16,176,541 (2024: £15,210,333). The company's profit for the financial year was £938,742 (2024: Loss of £233,314). The management is continuing to review its costs and is also looking at ways to increase the company's customer base. The management anticipates that these steps will help in the improvement of the company's performance in the coming year.

Shareholders' funds at the year end were £4,356,392 (2024: £3,588,051).

PRINCIPAL RISKS AND UNCERTAINTIES

Key performance indicators:

The directors regularly review their exposure to key customers. It is the company's intention to further broaden the company's range of customers and its market share in the UK. The company therefore continues to invest in developing its product range to meet the market requirements.

The directors manage the company on key indicators including growth and profitability. The directors believe that the company can manage its business risks successfully despite the current uncertain economic outlook.

The directors continually monitor the company's liquidity in order to ensure that sufficient funds are available for its ongoing operations and future growth. The company has a good record on bad debts and the directors do not consider that it carries any material credit risks.

The company's internal control systems sufficiently ensure that financial and management controls apply at all levels of the business. The use of annual budgets and forecasts are operated and investigations are made into areas of adverse expenditure with appropriate management action to correct.

Financial risk management objectives and policies:

The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans. The main purpose of these instruments is to raise funds for the company's operations.

Due to the nature of financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company makes use of money market facilities where funds are available. The company manages the liquidity risk by ensuring there are sufficient funds to meet these payments.

Trade debtors are managed in respect of credit and cash flow risk by the use of factoring and policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

BUSINESS ENVIRONMENT

The company operates in a competitive market that requires compliance with increasing amount of regulations that are designed to make businesses more accountable for the environmental impact of packing they place on the market. The directors continue to take mitigating steps to counter these market conditions and are satisfied that the steps they are taking will ensure that the company will increasingly offer a range environmentally friendly products at competitive prices.

STRATEGY

The company's primary objective is to increase its market share for the high quality products it is supplying. To achieve this aim the directors are looking at implementation the following strategic initiatives:

Digital Marketing Implementation

The company continues to enhance its online presence through targeted digital marketing efforts, including Google Ads, SEO optimization, broadcast marketing ( Lyca Radio and Sunrise Radio) and social media marketing. Additionally, the company will leverage traditional media channels such as Lyca Radio and execute email campaigns to engage our target audience effectively.

Online Ordering System Integration

To streamline operations and improve customer experience, the company has introduced a new accounting software that integrates with the CRM system. This will enable the development of a user-friendly website featuring an online ordering system, facilitating seamless transactions for the company's clients.

Sales & Promotions Execution

The company plans to boost brand visibility and customer engagement by actively participating in industry exhibitions, such as the recent NEC exhibitions in Birmingham. Additionally, the company will implement strategic promotional campaigns, including special offers, loyalty programs, and referral incentives.

Expansion of Sales Team

To strengthen its market presence, the company has recruited experienced, geographically based sales representative in order to enable it to enhance its customer relationships and drive sales growth in key regions.

New Product Lines

The company intends to introduce new product lines, which should open new business opportunities and further expand it's market share.

STRATEGIC OUTLOOK

The directors regularly review the strategic objectives of the business including potential future developments. The long-term strategic objectives of the business continue to be to provide excellent service for our clients, continued expansions into new product lines and sectors to meet the requirements of its business and operational environment.

ON BEHALF OF THE BOARD:

Y B Patel - Director

26th November 2025

The directors present their report with the financial statements of the company for the year ended 31st March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacturer and wholesaler of plastic products.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2024 to the date of this report.

B M Patel

Y B Patel

FINANCIAL INSTRUMENTS

The company has various financial assets and liabilities such as trade debtors and trade creditors arising from its operations. Details of the company's financial risk management objectives are included in the strategic report and are shown in note 16 of the financial statements.

GOING CONCERN

The company operates in a competitive market that requires compliance with increasing regulations that are designed to make businesses more accountable for the environmental impact of packaging they place on the market. The directors continue to take mitigating steps to counter these market conditions and are satisfied that the steps they are taking will ensure that the company will remain competitive. As a result of these steps the directors anticipate the company will increase its turnover and improve its results.

The directors have completed an assessment of the going concern for a period of at least twelve months following the approval of the company's financial statements (the going concern assessment period).

The directors have considered the potential impact of the Extended Producer Responsibility (EPR) regulations effective from 2025/2026 on the company's financial position, performance, and cash flows. These regulations introduce new obligations for producers to fund the collection, recycling, and disposal of packaging materials, which are expected to result in additional liabilities for the company.

In assessing the company's ability to continue as a going concern, the directors have prepared detailed forecasts and cash flow projections that incorporate the estimated EPR costs. Sensitivity analyses have been performed to evaluate the impact of variations in the level and timing of these liabilities.

Based on current information, the directors believe that the company has adequate financial resources, including bank facilities, to meet its obligations as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

However, the directors note that the EPR regime introduces uncertainties regarding the ultimate quantum of liabilities and the timing of cash outflows. While these uncertainties represent a risk to liquidity, the directors consider that they do not cast significant doubt on the company's ability to continue as a going concern.

On this basis, the directors consider that it is appropriate to prepare the accounts on a going concern basis.

DIRECTOR'S INSURANCE AND INDEMNITIES

The directors have the benefit of the indemnity provisions contained in the company's Articles of Association ('Articles'), and the company has maintained throughout the period directors' and officers' liability insurance for the benefit of the company, the directors and its officers. The company has entered into qualifying third party indemnity arrangements for the benefit of all its directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the period and remain in force.

DISCLOSURE 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 set out in the strategic report information required by schedule 7 of the Large and Medium-sized Companies (Accounts and Reports) Regulations 2008 and the Companies (Miscellaneous Reporting) Regulations 2018.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Orcom Civvals Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Y B Patel - Director

26th November 2025

Opinion

We have audited the financial statements of Herald Packaging Limited (the 'company') for the year ended 31st March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31st 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 Auditors' 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

We draw attention to note 3 in the financial statements, which describes the company's exposure to Extended Producer Responsibility (EPR) liabilities from 2025/2026. While these liabilities are significant, the directors have concluded that the Company remains a going concern. Our opinion is not modified in respect of this matter.

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. However, it is not possible for us to predict all future events or conditions that may affect the company, and accordingly, this conclusion does not constitute a guarantee that the company will continue as a going concern.

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

Other matters

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

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, 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 Statement of Directors' Responsibilities set out on page five, 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 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.

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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, 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 financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included:

- Identify and assess the risk 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;

- 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 purposes of expressing an opinion on the effectiveness of the company's internal control;

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and the related disclosures made by the directors;

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

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias); and

- 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.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Mark Tullett (Senior Statutory Auditor)

for and on behalf of Orcom Civvals Audit Limited

Chartered Accountants and Statutory Auditors

50 Seymour Street

London

W1H 7JG

26th November 2025

TURNOVER

16,176,541

15,210,333

Cost of sales

(12,668,886

)

(12,586,929

)

GROSS PROFIT

3,507,655

2,623,404

Administrative expenses

(2,208,905

)

(2,485,881

)

OPERATING PROFIT

5

1,298,750

137,523

Interest receivable and similar income

350

537

1,299,100

138,060

Interest payable and similar expenses

6

(360,358

)

(371,374

)

PROFIT/(LOSS) BEFORE TAXATION

938,742

(233,314

)

Tax on profit/(loss)

7

(170,401

)

(41,292

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

768,341

(274,606

)

PROFIT/(LOSS) FOR THE YEAR

768,341

(274,606

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

768,341

(274,606

)

FIXED ASSETS

Tangible assets

8

816,385

786,707

CURRENT ASSETS

Stocks

9

6,532,662

6,993,147

Debtors

10

3,106,525

2,927,648

Cash at bank

351,612

6,409

9,990,799

9,927,204

CREDITORS

Amounts falling due within one year

11

(5,994,691

)

(6,691,383

)

NET CURRENT ASSETS

3,996,108

3,235,821

TOTAL ASSETS LESS CURRENT LIABILITIES

4,812,493

4,022,528

CREDITORS

Amounts falling due after more than one year

12

(371,302

)

(364,034

)

PROVISIONS FOR LIABILITIES

17

(84,799

)

(70,443

)

NET ASSETS

4,356,392

3,588,051

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

4,356,292

3,587,951

SHAREHOLDERS' FUNDS

4,356,392

3,588,051

The financial statements were approved by the Board of Directors and authorised for issue on 26th November 2025 and were signed on its behalf by:

Y B Patel - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2023

100

3,862,557

3,862,657

Changes in equity

Total comprehensive income

-

(274,606

)

(274,606

)

Balance at 31st March 2024

100

3,587,951

3,588,051

Changes in equity

Total comprehensive income

-

768,341

768,341

Balance at 31st March 2025

100

4,356,292

4,356,392

Cash flows from operating activities

Cash generated from operations

1

883,359

(4,521

)

Interest paid

(342,404

)

(363,799

)

Interest element of hire purchase payments paid

(17,954

)

(7,575

)

Tax paid

(275,971

)

(163,334

)

Net cash from operating activities

247,030

(539,229

)

Cash flows from investing activities

Purchase of tangible fixed assets

(174,010

)

(603,529

)

Interest received

350

537

Net cash from investing activities

(173,660

)

(602,992

)

Cash flows from financing activities

New loans in year

5,890

840,163

Factoring loan in year

73,050

(61,511

)

New HP loans in year

86,743

154,600

Amount introduced by directors

114,509

115,875

Net cash from financing activities

280,192

1,049,127

Increase/(decrease) in cash and cash equivalents

353,562

(93,094

)

Cash and cash equivalents at beginning of year

2

(82,704

)

10,390

Cash and cash equivalents at end of year

2

270,858

(82,704

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

938,742

(233,314

)

Depreciation charges

144,332

124,974

Loss on disposal of fixed assets

-

955

Finance costs

360,358

371,374

Finance income

(350

)

(537

)

1,443,082

263,452

Decrease/(increase) in stocks

460,485

(1,175,346

)

Increase in trade and other debtors

(178,877

)

(649,538

)

(Decrease)/increase in trade and other creditors

(841,331

)

1,556,911

Cash generated from operations

883,359

(4,521

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

351,612

6,409

Bank overdrafts

(80,754

)

(89,113

)

270,858

(82,704

)

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

6,409

10,390

Bank overdrafts

(89,113

)

-

(82,704

)

10,390

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

6,409

345,203

351,612

Bank overdrafts

(89,113

)

8,359

(80,754

)

(82,704

)

353,562

270,858

Debt

Finance leases

(230,365

)

(86,743

)

(317,108

)

Debts falling due within 1 year

(719,702

)

(66,321

)

(786,023

)

Debts falling due after 1 year

(120,461

)

60,432

(60,029

)

(1,070,528

)

(92,632

)

(1,163,160

)

Total

(1,153,232

)

260,930

(892,302

)

1.	STATUTORY INFORMATION

Herald Packaging Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

Going concern

The company operates in a competitive market that requires compliance with increasing regulations that are designed to make businesses more accountable for the environmental impact of packaging they place on the market. The directors continue to take mitigating steps to counter these market conditions and are satisfied that the steps they are taking will ensure that the company will remain competitive. As a result of these steps the directors anticipate the company will increase its turnover and improve its results.

The directors have completed an assessment of the going concern for a period of at least twelve months following the approval of the company's financial statements (the going concern assessment period).

The directors have considered the potential impact of the Extended Producer Responsibility (EPR) regulations effective from 2025/2026 on the company's financial position, performance, and cash flows. These regulations introduce new obligations for producers to fund the collection, recycling, and disposal of packaging materials, which are expected to result in additional liabilities for the company.

In assessing the company's ability to continue as a going concern, the directors have prepared detailed forecasts and cash flow projections that incorporate the estimated EPR costs. Sensitivity analyses have been performed to evaluate the impact of variations in the level and timing of these liabilities.

Based on current information, the directors believe that the company has adequate financial resources, including bank facilities, to meet its obligations as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

However, the directors note that the EPR regime introduces uncertainties regarding the ultimate quantum of liabilities and the timing of cash outflows. While these uncertainties represent a risk to liquidity, the directors consider that they do not cast significant doubt on the company's ability to continue as a going concern.

On this basis, the directors consider that it is appropriate to prepare the accounts on a going concern basis.

Significant judgements and estimates

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The notes to the financial statements set out areas involving a higher degree of judgement, or areas where assumptions are significant to the reporting entity and its financial report such as:

- useful economic lives of tangible assets

- fair value of assets and liabilities

- recoverability of tax receivables, deferred tax assets and measurement of current and deferred tax liabilities can require significant judgement, particularly where the recoverability of such tax balances relies on the estimation of future taxable profits and management's determination of the likelihood that uncertain tax positions will be accepted by the relevant taxation authority

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Management believes that the estimates used in preparing this financial statements are reasonable. Actual results in the future may differ from those reported and it is therefore reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year that are different from management's assumptions and estimates could require an adjustment to the carrying amounts of the reported assets and liabilities in future reporting periods.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns and discounts allowed by the company and value added taxes.

Turnover represents the amount derived from the provision of goods and services falling within the company's activities after deduction of value added tax.

The company recognises revenue when:

i) the significant risks and rewards of ownership have been transferred to the buyer;

ii) the company retains no continuing involvement or control over the goods;

iii) the amount of revenue can be measured;

iv) it is probable that future economic benefits will flow to the entity.

Sales of goods are recognised on sale to the customer, which is considered the point of delivery.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

4% on cost

Plant and machinery

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell. They are recognised as an expense in the period in which the related revenue is recognised.

The cost of these stocks are measured by using the weighted average cost formula and the same cost formula has been used for all stock items having a similar nature and use.Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans 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 receipts discounted at a market rate of interest.

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating lease

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

Pension costs and other post-retirement benefits

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

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

196,688

115,707

Other pension costs

60,893

40,021

257,581

155,728

The average number of employees during the year was as follows:

2025

2024

Office and administration

7

6

Others

19

21

26

27

2025

2024

£

£

Directors' remuneration

41,280

2,780

Directors' pension contributions to money purchase schemes

24,000

24,750

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

46,759

55,289

Depreciation - assets on hire purchase contracts

97,573

69,685

Loss on disposal of fixed assets

-

955

Auditors' remuneration

18,000

30,000

Foreign exchange differences

(522

)

(20

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

4,684

18,125

Bank loan interest

78,185

38,958

Other Interest

16,083

91,591

Factoring charges

243,452

215,125

Hire purchase interest

17,954

7,575

360,358

371,374

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

156,046

-

Deferred tax

14,355

41,292

Tax on profit/(loss)

170,401

41,292