REGISTERED NUMBER: 00064585 (England and Wales)

Morco Products Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

C R E Gillett

Mrs S J V Gillett

W Hildyard

D Redford

SECRETARY:

C R E Gillett

REGISTERED OFFICE:

Morco House

Riverview Road

Beverley

East Yorkshire

HU17 0LD

REGISTERED NUMBER:

00064585 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

REVIEW OF BUSINESS

Morco Products is a specialist supplier of own branded LPG heating and hot water systems and have been supplying the UK and Continental European Caravan Holiday Home and Residential Park Home industries with hot water and central heating solutions for decades, evolving with the times in order to maintain a high standard of both products and service.

The Directors consider the results for the year to be satisfactory which includes ongoing costs for a safety upgrade and product recall.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks for the business are associated with the world economic climate and the effect of any increase in interest rates, which may affect the consumer's drive to enter the caravan market. The trend of world commodity prices also affects the ability of the business to remain competitive, but every effort is made to mitigate adverse factors.

FUTURE DEVELOPMENTS AND PERFORMANCE

Today, Morco Products is working with the LPG industry to discuss and understand the future use of renewable gas including other alternative energy sources to diversify the business. Research and Development is taking place to measure the suitability of different options in order to provide customers with a range of heating and hot water systems.

KEY PERFORMANCE INDICATORS

The shareholders are closely involved in the company's activities. The company directors therefore believe that the analysis of the company's performance for the year using Key Performance Indicators is not necessary as the shareholders already understand the development, performance and position of the company. Performance is measured by the key Performance indicators of turnover, cost control and profitability.

ON BEHALF OF THE BOARD:

C R E Gillett - Director

3 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of heating and hot water equipment supplier.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 was £880,000 (2024 £nil).

DIRECTORS

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

C R E Gillett

Mrs S J V Gillett

W Hildyard

D Redford

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made political donations totalling £3,000.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C R E Gillett - Director

3 December 2025

Opinion

We have audited the financial statements of Morco Products Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 31 March 2025 and of its 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 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

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

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

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

Other information

The 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 three, 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

Peter Dearing BSc FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

3 December 2025

TURNOVER

3

16,644,741

19,684,290

Cost of sales

11,067,643

13,505,341

GROSS PROFIT

5,577,098

6,178,949

Distribution costs

199,689

188,176

Administrative expenses

6,249,454

2,185,695

6,449,143

2,373,871

(872,045

)

3,805,078

Other operating income

110,174

5,557

OPERATING (LOSS)/PROFIT

5

(761,871

)

3,810,635

Interest receivable and similar income

521,652

402,197

(LOSS)/PROFIT BEFORE TAXATION

(240,219

)

4,212,832

Tax on (loss)/profit

7

(37,889

)

1,079,397

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(202,330

)

3,133,435

OTHER COMPREHENSIVE INCOME

Purchase of own shares

-

(4,020,000

)

Cancellation of own shares

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(4,020,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(202,330

)

(886,565

)

FIXED ASSETS

Tangible assets

9

498,871

632,728

Investments

10

-

-

498,871

632,728

CURRENT ASSETS

Stocks

11

3,102,568

3,363,242

Debtors

12

6,684,519

5,538,802

Cash at bank and in hand

12,113,191

11,327,627

21,900,278

20,229,671

CREDITORS

Amounts falling due within one year

13

2,050,693

2,222,262

NET CURRENT ASSETS

19,849,585

18,007,409

TOTAL ASSETS LESS CURRENT LIABILITIES

20,348,456

18,640,137

PROVISIONS FOR LIABILITIES

15

2,807,114

16,465

NET ASSETS

17,541,342

18,623,672

CAPITAL AND RESERVES

Called up share capital

16

103,600

103,600

Capital redemption reserve

17

236,400

236,400

Retained earnings

17

17,201,342

18,283,672

SHAREHOLDERS' FUNDS

17,541,342

18,623,672

The financial statements were approved by the Board of Directors and authorised for issue on 3 December 2025 and were signed on its behalf by:

C R E Gillett - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

140,000

19,170,237

200,000

19,510,237

Changes in equity

Purchase of own shares

(36,400

)

-

36,400

-

Total comprehensive income

-

(886,565

)

-

(886,565

)

Balance at 31 March 2024

103,600

18,283,672

236,400

18,623,672

Changes in equity

Dividends

-

(880,000

)

-

(880,000

)

Total comprehensive income

-

(202,330

)

-

(202,330

)

Balance at 31 March 2025

103,600

17,201,342

236,400

17,541,342

1.	STATUTORY INFORMATION

Morco Products 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102. The financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Morco Products Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements. The subsidiary company is dormant and so not material for the purpose of giving a true and fair view.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover 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. This is usually on dispatch of the goods.

Interest and other income

Interest income is recognised using the effective interest method.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Long Leasehold

Over the period remaining on the lease

Improvements to property

Straight line over 10 to 20 years

Plant and Machinery

33.33% on cost

Motor Vehicles

33.33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost method. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements, that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Foreign currencies

Foreign currency transactions are initially recognised applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Leasing commitments

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Employee benefits

When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate, and are receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their value can otherwise be measured reliably. Other investments are measured at cost less impairment.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

16,446,988

19,421,694

Rest of the world

197,753

262,596

16,644,741

19,684,290

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

988,321

1,070,358

Social security costs

114,075

123,857

Other pension costs

209,684

161,991

1,312,080

1,356,206

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

2025

2024

Office and administration

11

11

Sales and marketing

8

8

19

19

2025

2024

£

£

Directors' remuneration

473,143

519,811

Directors' pension contributions to money purchase schemes

173,390

140,005

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

212,366

222,900

Pension contributions to money purchase schemes

39,566

7,966

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging/(crediting):

2025

2024

£

£

Operating leases - rent

97,500

97,500

Depreciation - owned assets

165,629

181,531

Profit on disposal of fixed assets

(100

)

-

Auditors' remuneration

9,665

9,215

Operating leases - other

3,632

-

Exceptional items

4,114,531

-

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Product recall costs

4,114,531

-

4,114,531

-

The company identified a potential safety issue should the installation procedures not be followed correctly with one of its range of water heaters. Voluntarily they launched an upgrade campaign in order to rectify this issue. As the uptake of this upgrade program wasn't deemed sufficient by the company, in December 2024 it issued a full product recall. This campaign commenced in January 2025, replacing or refunding the affected products.

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(3,695

)

1,085,373

Group relief

(23,410

)

-

Total current tax

(27,105

)

1,085,373

Deferred tax

(10,784

)

(5,976

)

Tax on (loss)/profit

(37,889

)

1,079,397

UK corporation tax has been charged at 25% .

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(240,219

)

4,212,832

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(60,055

)

1,053,208

Effects of:

Expenses not deductible for tax purposes

830

3,658

Depreciation in excess of capital allowances

21,336

22,531

rate

Total tax (credit)/charge

(37,889

)

1,079,397

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2025.

2024

Gross

Tax

Net

£

£

£

Purchase of own shares

(4,020,000

)

-

(4,020,000

)

Cancellation of own shares

(4,020,000

)

-

(4,020,000

)

The expected net reversal of deferred tax assets and liabilities in 2026 is £4,493. This is due to the reversal of accelerated capital allowances.

8.

DIVIDENDS

2025

2024

£

£

"A" Ordinary shares shares of £1 each

Interim

880,000

-

9.	TANGIBLE FIXED ASSETS

Improvements

Long

to

Plant and

Motor

leasehold

property

machinery

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2024

611,179

713,965

866,946

189,179

2,381,269

Additions

-

3,500

9,923

18,349

31,772

Disposals

-

-

-

(12,000

)

(12,000

)

At 31 March 2025

611,179

717,465

876,869

195,528

2,401,041

DEPRECIATION

At 1 April 2024

531,402

264,365

778,860

173,914

1,748,541

Charge for year

60,865

35,782

51,867

17,115

165,629

Eliminated on disposals

-

-

-

(12,000

)

(12,000

)

At 31 March 2025

592,267

300,147

830,727

179,029

1,902,170

NET BOOK VALUE

At 31 March 2025

18,912

417,318

46,142

16,499

498,871

At 31 March 2024

79,777

449,600

88,086

15,265

632,728

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

100

PROVISIONS

At 1 April 2024

and 31 March 2025

100

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

-