Selectamark Security Systems PLC

	Page
Strategic Report	1—4
Directors' Report	5—6
Independent Auditor's Report	7—9
Income Statement	10
Statement of Comprehensive Income	11
Statement of Financial Position	12
Statement of Changes in Equity	13
Statement of Cash Flows	14
Notes to the Statement of Cash Flows	15
Notes to the Financial Statements	16—22

The directors present their strategic report for the year ended 31 October 2024.

Principal Activity

Review of the Business

Strategic Overview

Selectamark operates as a leading provider of forensic marking, property identification, and asset-registration solutions. Our technologies and brands continue to underpin crime-reduction strategies adopted by law enforcement, public-sector organisations and commercial customers across the UK and internationally.

The Company's mission is to protect people, property and communities through innovative forensic technologies, trusted brands and secure asset-registration platforms.

Market and Business Model

Selectamark offers a portfolio of overt and covert forensic marking products integrated with secure online registers enabling effective property identification and crime deterrence. The Company sells via multiple channels including e-commerce, UK resellers, international distributors and select white-label partnerships.

Our business model is supported by:

• proprietary forensic technologies, laboratory expertise and registered intellectual property;

• alignment with the Forensic Science Regulator Code of Practice;

• longstanding relationships with UK police forces and public-sector organisations;

• a diversified international distributor network;

• strong brand recognition and high customer satisfaction.

These strengths underpin growing recurring revenue streams and create defensible market positions in both domestic and international markets.

Barriers to Entry

Selectamark operates in a tightly regulated forensic environment, and the requirements of ISO/IEC 17025 and the Forensic Science Regulator’s statutory Code of Practice create a material barrier to new entrants. Achieving and maintaining these accreditations demands specialist scientific expertise and robust quality systems that are costly and time-consuming to replicate. In addition, the Company’s long-standing, trust-based relationships with UK police forces—built through evidential reliability and joint crime-reduction programmes—provide a further competitive advantage that is not easily reproduced.

Strategic Priorities

Following a recent strategic review, the Company has refined its focus around four priorities:

• Strengthening core UK markets. Enhancing digital capability, deepening engagement with law enforcement and expanding adoption across public-sector and commercial clients.

• Accelerating international expansion. Extending reach in priority regions and supporting international distributors through improved partner enablement and technical support.

• Investing in product innovation. Continued development of forensic DNA technology, high-security labelling, digital identification tools and next-generation asset registers.

• Developing organisational capability. Strengthening talent, operational systems, compliance frameworks and governance to support scalable global growth.

Business Environment

...CONTINUED

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Selectamark Security Systems PLC

Strategic Report (continued)

For The Year Ended 31 October 2024

Review of the Business - continued

The UK economy in late 2025 shows measured stabilisation following earlier inflationary pressures and higher interest rates.

Key developments relevant to the Company include:

• inflation returning closer to the 2% target;

• gradual interest-rate reductions improving financial conditions;

• a recalibration of public-sector spending after the July 2024 General Election, with crime prevention remaining a government priority;

• tight labour-market conditions in technical and scientific fields;

• improved global supply-chain stability despite some geopolitical risks;

• strengthened expectations around cybersecurity and data protection;

• increased national focus on tool theft, vehicle theft and retail crime.

Despite a competitive security market, Selectamark delivered strong performance supported by brand strength, police partnerships and growing international traction.

Principal Risks and Uncertainties

• Economic and Political Environment. Changes in economic conditions or public-sector funding may affect customer demand. Mitigation: diversification of revenue, flexible pricing, ongoing monitoring of policy developments.

• Competitive Landscape. Presence of domestic and international competitors.

Mitigation: continued investment in innovation, branding and accreditation.

• Cybersecurity and Data Protection. Evolving cyber threats and stringent regulatory expectations.

Mitigation: strengthened cyber controls, audits, penetration testing and staff training.

• International Expansion. Challenges entering or scaling new markets.

Mitigation: structured distributor selection, market prioritisation and enhanced governance.

• Supply Chain Reliability. Potential disruption of specialist components.

Mitigation: multi-supplier sourcing, improved forecasting and robust inventory management.

Section 172(1) Statement

In accordance with Section 172(1) of the Companies Act 2006, the Directors confirm that they have acted in the way they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole.

In doing so, they have had regard to the interests of employees, customers, suppliers, regulators and the wider communities in which the Company operates.

The Board engages regularly with staff and key partners to ensure that stakeholder feedback informs strategic and operational decisions. Environmental, social and governance factors are considered as part of every significant business decision, consistent with the Company’s commitment to long-term sustainability, scientific integrity and compliance with forensic-science standards.

The Directors also recognise the importance of the Company’s contribution to public safety through partnerships with UK police forces and participation in national crime-reduction programmes. In balancing these factors, the Board seeks to deliver sustainable growth, protect the Company’s reputation and uphold high standards of business conduct for the benefit of shareholders and stakeholders alike.

...CONTINUED

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Selectamark Security Systems PLC

Strategic Report (continued)

For The Year Ended 31 October 2024

Principal Risks and Uncertainties - continued

Sustainability and ESG Commitment

Selectamark applies environmental, social and governance principles across its operations to support long-term sustainability and maintain trust with customers, police forces and partners.

Environmentally, the Company maintains ISO 14001 certification and continues to reduce waste, improve energy efficiency and increase renewable-energy use. Packaging improvements and selective carbon-offsetting further reduce environmental impact and support customer sustainability expectations.

Social impact remains a core strength. Selectamark works closely with police forces, insurers and community partners on crime-reduction initiatives, including tool-theft prevention and cycle-crime programmes, helping protect livelihoods and enhance community safety.

Governance is a key differentiator: the Company operates an ISO/IEC 17025-accredited forensic laboratory compliant with the Forensic Science Regulator’s statutory Code of Practice, ensuring evidential reliability and robust quality management. Strong data-governance and cybersecurity controls including ISO 27001 certification support the secure operation of asset-registration platforms, with ESG oversight maintained at Board level. This is in addition to ISO 9001 certification that underpins the Company’s pursuit of quality in everything it does.

Business Performance

The Company delivered a strong performance during the year, achieving solid revenue growth and improved profitability despite continued economic uncertainty.

• Turnover increased by approximately 11% compared with the prior year (2023: £4,373,380], supported by sustained demand from UK police forces, public-sector contracts, corporates and international distributors.

• Gross profit margins remained strong at around 58% compared with the prior year (2023: 59%), reflecting the strength of our brand, product quality, and pricing discipline.

• Cash generation remained positive, with profits converting efficiently into operating cash flow.

The Company continued to invest in innovation and product accreditation to maintain its competitive advantage in forensic marking technologies and digital asset-registration platforms.

During 2025, Selectamark also played a leading role in national tool-theft prevention initiatives, working closely with UK police forces, trade bodies and retailers to improve the identification and recovery of stolen tools. These programmes increased brand visibility on a national level and created additional opportunities across the trade, construction and utilities sectors, reinforcing the Company’s position as a trusted partner in crime prevention.

Non-financial KPIs are also used to manage performance including customer satisfaction from online surveys. The Directors are pleased to report that the Company’s Net Promotor Score (NPS) continues to be extremely strong and in one online survey the average score of customers recommending the Company to friends or colleagues during the financial year was 9.4 out of 10 (n=1,814), equivalent to an impressive NPS score of 81 (2023: 77).

The Directors remain confident in the long-term prospects of the business, supported by a clear growth strategy, strong customer relationships, recurring revenue streams and a highly scalable international platform.

People and Culture

The Company’s success continues to be driven by its skilled and committed workforce. With the labour market remaining competitive in 2025, particularly in digital and technical fields, the Company has strengthened investment in training, talent development and retention. The Company supports a diverse and inclusive workplace and continues to prioritise employee engagement.

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Selectamark Security Systems PLC

Strategic Report (continued)

For The Year Ended 31 October 2024

	Male		Female
Directors	3	15%	1	5%
Employees in other senior executive positions	3	15%	3	15%
Other employees	5	25%	5	25%
Total employees	11	55%	9	45%

On behalf of the board

J Brown

Director

28 November 2025

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Selectamark Security Systems PLC

Company No. 01024280

Directors' Report For The Year Ended 31 October 2024

Directors' Report

The directors present their report and the financial statements for the year ended 31 October 2024.

Dividends

No dividends will be distributed for the year ended 31 October 2024.

Directors

The directors who held office during the year were as follows:

J A Brown

J Brown

S A Brown

S M Morris

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the 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;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, 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 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

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

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Selectamark Security Systems PLC

Directors' Report (continued)

For The Year Ended 31 October 2024

Independent Auditors

The auditors, Crane & Partners Audit LLP, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

J Brown

Director

28 November 2025

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Independent Auditor's Report

to the Members of

Selectamark Security Systems PLC

Independent Auditor's Report

Opinion

We have audited the financial statements of Selectamark Security Systems PLC for the year ended 31 October 2024 which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit/(loss) for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

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

Conclusions Relating to Going Concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

Selectamark Security Systems PLC

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 or 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 set out on page 5—6, 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.

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

Based on our understanding of the company and the business sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to those laws which have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and tax legislation. We evaluated management's opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and invoices to manipulate financial results.

Audit procedures included discussions with management, together with identifying and testing invoices and journal entries posted with unusual account combinations. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material fraud is higher than the risk of not detecting one resulting from error, as fraud may be 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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Independent Auditor's Report (continued)

to the Members of

Selectamark Security Systems PLC

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 that 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.

Carl Jepson FCA (Senior Statutory Auditor)

for and on behalf of Crane & Partners Audit LLP , Statutory Auditor

28 November 2025

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Selectamark Security Systems PLC

Income Statement

For The Year Ended 31 October 2024

Income Statement

		2024	2023
	Notes	£	£
TURNOVER	3	4,868,225	4,373,380
Cost of sales		(2,058,158 )	(1,777,156 )

GROSS PROFIT		2,810,067	2,596,224

Administrative expenses		(1,755,787 )	(1,645,500 )

OPERATING PROFIT	4	1,054,280	950,724
Other interest receivable and similar income	9	41,918	20,370
Interest payable and similar charges	10	(3,138 )	(3,835 )

PROFIT BEFORE TAXATION		1,093,060	967,259
Tax on Profit	11	(280,663 )	(201,582 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		812,397	765,677

The notes on pages 15 to 22 form part of these financial statements.

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Selectamark Security Systems PLC

Statement of Comprehensive Income

For The Year Ended 31 October 2024

Statement of Comprehensive Income

	2024	2023
	£	£
PROFIT FOR THE FINANCIAL YEAR	812,397	765,677
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	812,397	765,677

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Selectamark Security Systems PLC

Statement of Financial Position

As At 31 October 2024

Statement of Financial Position

Registered number: 01024280

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	12		230,822		213,572
Tangible Assets	13		465,583		501,267
Investments	14		50		50

			696,455		714,889
CURRENT ASSETS
Stocks	15	423,428		371,414
Debtors	16	324,685		203,272
Cash at bank and in hand		2,730,368		1,967,940

		3,478,481		2,542,626
Creditors: Amounts Falling Due Within One Year	17	(731,601 )		(626,577 )

NET CURRENT ASSETS (LIABILITIES)			2,746,880		1,916,049

TOTAL ASSETS LESS CURRENT LIABILITIES			3,443,335		2,630,938

NET ASSETS			3,443,335		2,630,938

CAPITAL AND RESERVES
Called up share capital	19		50,000		50,000
Income Statement			3,393,335		2,580,938

SHAREHOLDERS' FUNDS			3,443,335		2,630,938

On behalf of the board

J Brown

Director

28 November 2025

The notes on pages 15 to 22 form part of these financial statements.

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Selectamark Security Systems PLC

Statement of Changes in Equity

For The Year Ended 31 October 2024

Statement of Changes in Equity

	Share Capital	Income Statement	Total
	£	£	£
As at 1 November 2022	50,000	1,815,261	1,865,261
Profit for the year and total comprehensive income	-	765,677	765,677

As at 31 October 2023 and 1 November 2023	50,000	2,580,938	2,630,938


Profit for the year and total comprehensive income	-	812,397	812,397

As at 31 October 2024	50,000	3,393,335	3,443,335

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Selectamark Security Systems PLC

Statement of Cash Flows

For The Year Ended 31 October 2024

Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	957,182	703,090
Interest paid		(3,138 )	(3,835 )
Tax paid		(201,593 )	-

Net cash generated from operating activities		752,451	699,255

Cash flows from investing activities
Purchase of intangible assets		(34,124 )	(29,071 )
Interest received		41,918	20,370

Net cash generated from/(used in) investing activities		7,794	(8,701 )



Increase in cash and cash equivalents		760,245	690,554
Cash and cash equivalents at beginning of year	2	1,967,940	1,277,386

Cash and cash equivalents at end of year	2	2,728,185	1,967,940

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Selectamark Security Systems PLC

Notes to the Statement of Cash Flows

For The Year Ended 31 October 2024

Notes to the Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2024	2023
	£	£
Profit for the financial year	812,397	765,677
Adjustments for:
Tax on profit	280,663	201,582
Interest expense	3,138	3,835
Interest income	(41,918 )	(20,370 )
Amortisation of intangible assets	16,874	15,168
Depreciation of tangible assets	35,683	45,920
Movements in working capital:
Increase in stocks	(52,014 )	(9,396 )
(Increase)/decrease in trade and other debtors	(121,412 )	19,619
Increase/(decrease) in trade and other creditors	23,771	(318,945 )

Net cash generated from operations	957,182	703,090

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	2,730,368	1,967,940
Overdraft facilities repayable on demand	(2,183 )	-

Cash and cash equivalents as stated in the Statement of Cash Flows	2,728,185	1,967,940

3. Analysis of changes in net funds

	As at 1 November 2023	Cash flows	As at 31 October 2024
	£	£	£
Cash at bank and in hand	1,967,940	762,428	2,730,368
Overdraft facilities repayable on demand	-	(2,183)	(2,183)

Cash and cash equivalents	1,967,940	760,245	2,728,185
Debts falling due within one year	(100,000 )	-	(100,000 )

	1,867,940	760,245	2,628,185

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Selectamark Security Systems PLC

Notes to the Financial Statements

For The Year Ended 31 October 2024

Notes to the Financial Statements

1. General Information

Selectamark Security Systems PLC is a private company, limited by shares, incorporated in England & Wales, registered number 01024280 . The registered office is 1 Locks Court, 429 Crofton Road, Locksbottom, Kent, BR6 8NL.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

2.3. Intangible Fixed Assets and Amortisation - Intellectual Property

Intellectual property assets are amortised to the income statement over its estimated economic life of 20 years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	- 2% on cost
Plant & Machinery	- 20% on cost and 15% on reducing balance
Furniture, fixtures and equipment	15% on reducing balance

2.5. Investments

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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 income statement. 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 income statement.

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Turnover

Analysis of turnover by geographical market is as follows:

	2024	2023
	£	£
United Kingdom	2,116,400	1,715,020
Europe	2,732,484	2,629,671
North America	2,259	7,159
Asia	8,065	11,743
Rest of the world	9,017	9,787

	4,868,225	4,373,380

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

4. Operating Profit

The operating profit is stated after charging:

	2024	2023
	£	£
Bad debts	-	2,761
Research and Development Costs	-	54
Depreciation of tangible fixed assets	35,683	45,920
Amortisation of intangible fixed assets	16,874	15,168

5. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	5,200	4,800

6. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	876,240	790,002
Social security costs	82,139	74,199
Other pension costs	56,270	54,156

	1,014,649	918,357

7. Average Number of Employees

Average number of employees, including directors, during the year was: 20 (2023: 19)

8. Directors' remuneration

	2024	2023
	£	£
Emoluments	333,103	322,769

Information regarding the highest paid director was as follows:

	2024	2023
	£	£
Emoluments	115,965	112,799

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

9. Interest Receivable and Similar Income

	2024	2023
	£	£
Bank interest receivable	41,863	20,370
Other interest receivable	55	-

	41,918	20,370

10. Interest Payable and Similar Charges

	2024	2023
	£	£
Other finance charges	3,138	3,835

11. Tax on Profit

	Tax Rate		2024	2023
The tax charge on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	22.5%	280,663	201,582


Total tax charge for the period			280,663	201,582


The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			1,093,060	967,259

Tax on profit at 25% (UK standard rate)			271,295	217,807
Goodwill/depreciation not allowed for tax			15,109	13,756
Expenses not deductible for tax purposes			1,172	2,004
Tax losses utilised			-	(6,913 )
Capital allowances			(6,913 )	(5,738 )
Research and Development tax credit			-	(19,334 )

Total tax charge for the period			280,663	201,582

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

12. Intangible Assets

	Intellectual Property
	£
Cost
As at 1 November 2023	328,059
Additions	34,124

As at 31 October 2024	362,183

Amortisation
As at 1 November 2023	114,487
Provided during the period	16,874

As at 31 October 2024	131,361

Net Book Value
As at 31 October 2024	230,822

As at 1 November 2023	213,572

13. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Furniture, fixtures and equipment	Total
	£	£	£	£
Cost
As at 1 November 2023	351,413	809,943	162,665	1,324,021

As at 31 October 2024	351,413	809,943	162,665	1,324,021

Depreciation
As at 1 November 2023	35,364	668,335	119,055	822,754
Provided during the period	2,081	25,517	8,086	35,684

As at 31 October 2024	37,445	693,852	127,141	858,438

Net Book Value
As at 31 October 2024	313,968	116,091	35,524	465,583

As at 1 November 2023	316,049	141,608	43,610	501,267

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

14. Investments

	Subsidiaries
	£
Cost
As at 1 November 2023	50

As at 31 October 2024	50

Provision
As at 1 November 2023	-

As at 31 October 2024	-

Net Book Value
As at 31 October 2024	50

As at 1 November 2023	50

15. Stocks

	2024	2023
	£	£
Stock	423,428	371,414

16. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	208,938	150,286
Other debtors	115,747	52,986

	324,685	203,272

17. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	315,381	280,539
Bank loans and overdrafts	2,183	-
Other loans	100,000	100,000
Other creditors	23,429	31,000
Corporation tax	280,916	201,846
Taxation and social security	-	8,392
Accruals and deferred income	9,692	4,800

	731,601	626,577

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Selectamark Security Systems PLC

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

18. Loans

An analysis of the maturity of loans is given below:

	2024	2023
	£	£
Amounts falling due within one year or on demand:
Other loans	100,000	100,000

19. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
50,000 Ordinary shares of £ 1.00 each	50,000	50,000

20. Related Party Disclosures

At the year end the company had an outstanding loan balance of £100,000 (2023: £100,000) due to a company director.

The loan is secured, bears interest at 2.5% per annum, and is repayable on demand.

Interest charged during the year was recognised within interest payable. No repayments of capital were made during the year.

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