The director presents the strategic report for the year ended 31st March 2025.

The principal activity of the company during the year was that of a holding company. The principle activity of the group during the year was that of provision of freight forwarding, logistics and goods delivery.

The results for the year under review and the financial position at the year-end were considered satisfactory by the director. The group's objectives are to achieve sustainable rates of growth and returns through organic growth, ensuring a high standard of workmanship for our customers.

As shown on the group's statement of total comprehensive income, the group made a profit before tax of £7.0m (2024: £10.8m). The group's statement of financial position remains strong with net current assets of £30.3m (2024 : £33.7m), net assets at £30.8m (2024: £33.8m ). The Group has considerable cash at bank of £4.7m (2024 : £6.5m).

During the year, Group's turnover decreased by £2.5m, reaching £135.16m, primarily driven by decrease in market volumes. The turnover from continuing activity included £72.6m (2024: £66.9m) from UK subsidiaries, £22.9m (2024: £28.1m) from USA subsidiary, £17.0m (2024: £22.8m) from German subsidiary, £18.5.m (2024: £17.4.m) from Canadian subsidiary and remaining £4.0m (2024: £3.0m) from Australian and South African subsidiaries.

Group's GP margin has decreased from 13.0% in 2024 to 10.4% in 2025. Although, the contributions from Canada and Australia subsidiaries have remained at same level compared to last year, the overall decrease was contributed by other subsidiaries. The gross profit contribution within group's GP comprised of 55% (2024: 47%) from UK subsidiaries, 21% (2024: 25%) from USA subsidiary,11% (2024: 17%) from Germany subsidiary, 11% (2024: 9%) from Canadian subsidiary and remaining 2% (2024: 2%) was contributed by Australian and South African subsidiaries.

Credit risk
The group's principal financial assets are trade debtors. The group monitors credit risk closely and considers that its current policies of credit checks meets its objective of managing exposure to credit risk. Credit risk involves setting limits for customers and this is based on their payment history together with third party references. There is continuous monitoring of amounts outstanding for both time and credit limits.

Economic, Market and price risk

The group's performance is directly impacted by the economic environment. The group operates in a highly competitive market and price competition can adversely affect the group's result. The company endeavour to manage price risk by placing purchase orders with suppliers only after some degree of assurance is achieved for the freight service being ordered.

Cashflow risk

The group is reliant on timely receipts from customers and short term overdraft facility from banks to manage its cash flow. The management closely monitors the receipts from debtors and utilises the credit period allowed by its suppliers to manage its working capital cycle.

Foreign currency risk

The group has transactional currency exposures arising from sales and purchases in foreign currencies. The group mitigate foreign currency risk by operating US dollar and Euro bank accounts.

Laws and regulations
The group operates in a market which is subject to specific regulations. The directors monitor the regulations to ensure that the group complies with its obligations.

The management also ensure that the group is in compliance with health and safety laws and ensure compliance with its licensing laws.

The future outlook of the company remains consistent with the results of the current year. We continue to build on our strength to grow even further with key customers and our ability to provide service to high quality standards and in a timely manner as required.

Though the future remains uncertain due to the global situation, the group has been able to achieve the expected volume in the financial year 2024/25 and is expecting to achieve similar volume in the next year.

The group continues to closely monitor the global situation and continues to work closely with its suppliers and customers in these turbulent times.

The directors are pleased with the results achieved in the period under review despite the challenges faced by the freight industry due to the current geo-political situation.

The directors have identified the following Key Performance Indicators to monitor the performance of the group during the year under report.

The group's targets for year 2025/2026 are to increase volume throughout, to increase collections within agreed credit terms and to increase our market share.

The group’s operations are based in one office in Park Royal, Acton. The management team employed is small and the group recognises the importance of this resource and as such reviews its remuneration and recruitment policies on a regular basis. The group seeks to keep its employees up to date about matters affecting them as employees and information is provided through internal communications regularly. Details of the number of employees and related costs can be found in note 6 to the financial statements.

The management team recognise the need to conduct business in a way that is ethical, compliant and to a high standard. The business is governed around a higher framework, with appropriate training on correct business conduct where required. The business is governed around key values, of which integrity and transparency are key.

The directors recognise the need for strong and mutually beneficial relationships with customers and suppliers. The directors, purchasing and sales teams ensure that they are in regular contact with their suppliers and customers by continuous engagement and site visits to supplier yards or customer mills with a view to creating and nurturing long term partnerships. The activities carried out in development of these partnerships are reported regularly to the management team.

Providing a safe working environment is a key priority for the company. The company regularly assesses safety checks and implements them as required

On behalf of the board

The director presents his annual report and audited financial statements of the group and the company for the year ended 31st March 2025.

The results for the year are set out in page 8 to the financial statements.

Ordinary dividends were paid amounting to £7,455,769 (2024: £1,975,000). The director does not recommend payment of a further dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The director has the benefit of a qualifying third party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and continues to the current financial year. The company also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

King and King Chartered Accountants and statutory auditors were appointed auditors to the company and in accordance with section 487(2) of the Companies Act 2006, are deemed to be reappointed.

Group's environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting ("SECR") Policy. The table below represents Inbrit Logistics Limited's energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period 01/04/2023 to 31/03/2024. The scope of the reporting includes all UK operations.

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Group’s strategy is to reduce its carbon emissions through improving energy efficiency by reducing consumption and by purchasing electricity from renewable sources. To improve energy efficiency, Inbrit Logistics Limited have made operational improvements. These improvements include; replacing old boilers with energy efficient condensing boiler, replacing all thermostats and removing water tank in lieu of main fed water pipes. Energy efficiency measure in consideration is to upgrade to less efficient lighting to LED as part of maintenance.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We rely on constructive relationships with customers and suppliers to conduct our business and maintain supportive framework conditions. We aspire to provide truly integrated logistics for customers' supply chains.

The group made profit after tax of £4.5m (2024: £8.2m) during the year and balance sheet showed net assets of £30.8m (2024: £33.8).The directors, in making their assessment of the ability of the company to continue as a going concern, have prepared financial forecasts in excess of 12 months from the date of these financial statements. These forecasts have been produced using the group’s existing and future workload, assessments of current and future market conditions and expected new business, together with other risks and uncertainties in the business. Using these forecasts, the board considers the company has sufficient funding to continue trading. Overall the directors are satisfied that the company has sufficient cash reserves and strength in the balance sheet to demonstrate that the going concern method of preparing the accounts continues to be appropriate for the foreseeable future.

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

We have audited the financial statements of IKA Holdings Uk Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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. 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 course of 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 our audit:

• The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of directors' remuneration specified by law are not made; or

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

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

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.

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant which are directly relevant to specific assertions in the financial statements are those related to the reporting frameworks (Financial Reporting Standard 102 and the Companies Act 2006).

• We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by making enquires of management, those charged with governance. We utilised internal and external information to corroborate these enquiries and to perform a fraud risk assessment for the company. We considered the risk of fraud to be higher within the areas of the recognition of revenue. Audit procedures performed by the engagement team included:

• testing the occurrence of revenues to supporting documentation including bills of lading.

• identifying and testing journal entries considered by the engagement team to carry a higher risk of fraud.

• In assessing the potential risks of material misstatement, we obtained an understanding of:

• The company’s operations, including the nature of its revenue sources and revenue recognition policy, the assessment of material judgements made by management and the design of the control environment for the overall financial reporting process for the company.

• the company’s control environment, including the policies and procedures implemented to comply with the requirements of Financial Reporting Standard 102 and the Companies Act 2006, the adequacy of procedures for authorisation of transactions within the business and the regularity of management’s review of management accounts for indicators of material misstatement.

• We enquired of management and those charged with governance whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud;

• Where any instances of non-compliance with laws and regulations and / or fraud we assessed their potential impact and followed up where appropriate;

• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, 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;

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,684,585 (2024 - £2,435,299 profit).

IKA Holdings (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 3, Sovereign Park, Park Royal, London, NW10 7QP .

The group consists of IKA Holdings (UK) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

On acquisition, goodwill is allocated to cash-generating units (‘CGU’s’) that are expected to benefit from the combination.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

The consolidated group financial statements consist of the financial statements of the parent company IKA Holdings (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting year ends and accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements.

The group has reported profit before tax for the year of £7,037,253 (2024: £10,820,658) and net assets of £30,808,685 (2024: £33,798,160). As at the year end and at the date of review of going concern, the group has sufficient liquidity in terms of cash at bank of £4,736,409.

In assessing the going concern status of the group, the director considered current statement of financial position, working capital requirements and the forecast financial projections. Director has conducted sensitivity analysis, stress and reverse testing, assuming decrease in revenue and margin with a prudent assumption as to related impact on cashflow. It was concluded that under both plausible and severe scenarios, the group has sufficient and adequate capital to meet its obligations over the course of next 12 months from the date of approval of the accounts without the need for further capital from shareholders.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of services is recognised when the significant risks and rewards of ownership of the goods under the freight contract have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Costs includes the original purchase price and costs directly attributable to bringing the assets to its working conditions for its intended use.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The group operates a number of country-specific defined contribution plans for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date, including any goodwill. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 March 2025 are as follows:

All the above subsidiaries are included in the consolidation. The company’s investment in above companies is direct ownership.

Shares owned in third party entity by one of the subsidiary within the group. Dividend is received on the shares held by the subsidiary.

Trade receivables are stated after provision for impairment of £337,825 (2024: £38,789).

Included in other receivables is an amount of £498,740 (2024: £388,789) owed by related parties under common control.

Other receivables include three unsecured loans totalling £2,500,000 (2024 - £2,300,000) made by the company to other entities. Two of these loans totalling £2,000,000 (2024 - £1,700,000) bear interest at the rate of 2% per annum. The third loan amounting to £500,000 (2024 - nil) bears interest at 18% per annum and has been recovered post year end upon maturity.

Included in trade payables is an amount of £1,145,579 (2024 - £431,221) owed to related parties under common control.

Included in accruals is an amount of £539,490 (2024 - nil) owed to a related party under common control.

Amounts owed to group undertakings under common control are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

The subsidiary company - Inbrit Logistics Ltd has obtained an overdraft facility amounting to £1,000,000 (2024 - £1,000,000) repayable on demand. The bank has fixed and floating charge on all assets of the company against this facility. The amount drawn down from this facility as at the year end was nil (2024 - nil).

Borrowings represent loan from the company's pension scheme. The term of loan is 5 years from its drawdown date of June 2021 and it bears interest at the rate of 5% per annum, The loan is secured by way of first charge over the entire shareholding of the parent company, IKA Holdings ( UK) Limited.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The UK subsidiary company has obtained its main office premises on rent from its pension fund for an annual rent of £300,000 in the current year. The lease is for an indefinite period with no end date and the company intends to rent the premises from the pension fund for the foreseeable future.

The USA subsidiary has leased its main office premises and a motor vehicle. The operating lease commitments are £39,810 (2024: £37,797) for the next one-year period and £32,982 (2024: £74,687) for the two- to five-year period. There are no commitments beyond five years.

The group has taken advantage of the exemption in disclosing transactions with members of the IKA Holdings (HK) Limited.

During the year, the company has paid management fees to a related company amounting to £978,312 (2024: £925,564) for utilising back office services and £2,940,160 (2024: £2,744,451) for freight purchase. At the year end there is an outstanding balance of £1,216,912 (2024:£577,041). The company is related by virtue of common control.

The subsidiary company - Inbrit Logistics Ltd has an outstanding balance of loan company's pension fund of £447,371 (2024: £660,451). The term of loan is 5 years from its drawdown date of June 2021 and it bears interest at the rate of 5% per annum. The director and his close family members are the beneficiaries and trustees of the pension fund. The subsidiary company has paid interest amounting to £17,895 (2024 - £30,734) on loan obtained from the pension fund.

Subsidiary company - Inbrit Logistics Ltd was charged an annual rent amounting to £300,000 (2024 - £258,333) by its pension fund for use of office premises. The company had also paid advance rent amounting to £30,000 (2024 - £160,000) as at the year end.

A company under common directorship and control has put a charge on Inbrit Logistics Ltd against the mortgage of £450,000. Inbrit Logistics Ltd has paid rent amounting to £49,528 (2024: £70,078) to this company. The company is related by virtue of common directorship.

The remuneration paid to director’s close family members for services rendered during the year was £60,067 (2024: £32,700 ) and the pension contribution made on their behalf is £180,000 (2024: £240,000).

A subsidiary within the group has been provided with a guarantee of £185,000 (2024: £185,000) by one of the director.

The ultimate parent undertaking of the group is IKA Holding (HK) Limited registered at Room 501, 5/F, Wayson Commercial Building, 28 Connaught Road, West Sheung Wan, Hong Kong.

Mr S Ahluwalia and close family members control the group by virtue of their shareholdings.