REGISTERED NUMBER: 03879367 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st March 2025

for

C.K. (Fast Food Suppliers) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

A Bhamji

O Bhamji

REGISTERED OFFICE:

70 Northumberland Avenue

Hull

East Yorkshire

HU2 0JB

REGISTERED NUMBER:

03879367 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

Barclays Bank PLC

1-5 King Edward Street

Hull

East Yorkshire

HU1 3SS

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

REVIEW OF BUSINESS

The key performance indicators of turnover, turnover growth, gross profit and net profit before taxation communicate the financial performance of the company as a whole.

The key performance indicators for the current and previous years are as follows:

2025

2024

2023

2022

£

£

£

£

Turnover

31,239,979

32,240,975

35,670,640

28,155,394

Turnover growth

(3.10%

)

(9.61%

)

26.69%

10.7%

Gross profit margin

12.76%

13.40%

11.85%

17.6%

Net profit

396,700

132,620

167,516

1,697,899

Net profit margin

1.27%

0.41%

0.47%

6.03%

In the year to March 2025, the company generated turnover of £31.2m, a fall of 3.10% from the prior year (2024: £32.2m). This modest decline compares favourably with the sharper 9.61% drop recorded in 2024, and the directors view it as a sign that trading volumes are beginning to stabilise. Over the last three years, turnover has remained within a band of £31m-£35m, which underlines the resilience of the business model despite pressures in the hospitality and takeaway market.

Gross profit for the year was £4.0m (2024: £4.3m), with margins easing slightly to 12.76% from 13.4%. The reduction reflects competitive pricing pressures and higher input costs, though margins were broadly protected through disciplined purchasing and stock control.

The company made significant progress in reducing overheads, with operating costs falling from £4.1m to £3.5m (a reduction of around 15%). Staff costs were a particular focus, dropping from £2.19m in 2024 to £1.72m in 2025, a saving of £476k (22%), achieved through tighter workforce management. Further efficiencies were delivered in areas of operating expenses.

As a result, profit before tax improved strongly to £396k, up from £133k in 2024 - a near threefold increase despite the dip in turnover. Net margins strengthened from 0.41% to 1.27%, showing a much more efficient conversion of sales into profit.

The directors are encouraged by this improved performance, particularly against the backdrop of rising costs and competitive trading. The company has shown that careful cost control, together with strong relationships with suppliers and customers, can protect profitability even in difficult conditions. The focus going forward will be on safeguarding margins, maintaining service quality, and continuing to seek efficiencies in what remains a price-sensitive market.

PRINCIPAL RISKS AND UNCERTAINTIES

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

Principal risk

The business operates in a highly competitive and cost-sensitive wholesale food market, which continues to be influenced by a combination of macroeconomic pressures and sector-specific challenges. Price volatility remains a primary concern, with global supply chain disruptions, geopolitical tensions, and lingering inflationary effects contributing to fluctuations in the cost of raw materials and imported goods.

While some categories have shown signs of stabilisation, unpredictability in logistics costs and shipping availability has meant that pricing remains a key operational risk. The company continues to mitigate these risks through supplier diversification, forward purchasing arrangements, and maintaining efficient stock levels to protect margins and safeguard customer supply.

Price risk

The business continues to operate in a competitive and cost-sensitive wholesale food environment. Over the past year, price risk has remained a key concern, driven by a combination of lingering global inflation, ongoing freight and logistics challenges, and the knock-on effects of geopolitical instability particularly in Eastern Europe and the Middle East. Although certain raw material prices have begun to stabilise in the second half of the year, volatility remains, especially for imported products and key staples. Considering this, CK Fast Food (Suppliers) Ltd has strengthened its procurement strategy, focusing on forward purchasing, diversifying supplier sources, and maintaining lean but effective stock levels. These measures are intended to cushion the business from sudden price spikes and ensure continuity of supply.

Credit risk

As a supplier to a broad and varied customer base, credit risk continues to be actively managed. While most accounts remain within agreed terms, tighter financial conditions across the hospitality and retail sectors have resulted in some increased pressure on receivables. The company has responded by refining its internal credit policy, increasing the frequency of credit reviews, and implementing early warning mechanisms to flag at-risk accounts. Despite some minor delays in payments, there have been no material write-offs, and overall credit exposure remains within a tolerable range.

Liquidity risk

CK Fast Food (Suppliers) Ltd has maintained a healthy liquidity position throughout the year, aided by prudent financial planning and close oversight of working capital. While the company has faced some inflation-linked cost increases, these have been balanced by consistent demand and operational efficiencies. Regular cash flow forecasting remains central to our financial discipline, ensuring the business can meet all obligations as they arise. No liquidity shortfalls were experienced during the year, and the current cash position provides a sound platform to support continued operations and planned improvements.

Interest rate and cash flow risk

Although UK interest rates remained elevated for much of the year in response to inflation control measures, their impact on the company's financial performance has been limited. Borrowing levels have remained nil, and the company continues to operate from a solid cash base. Cash flow has been stable, underpinned by strong customer retention and a steady volume of repeat business. Nonetheless, the company remains alert to changes in the broader economic landscape and will continue to monitor both interest rate trends and cash flow dynamics as part of its routine financial risk assessment.

FUTURE DEVELOPMENTS AND STRATEGY

The company remains focused on maintaining its core activities in the food wholesale sector. As in previous years, we will continue to pursue operational improvements and strategic enhancements to our supply chain and logistics processes. Investments will be targeted at strengthening service, delivery, improving stock control, and expanding our product offering to better serve our clients. While the business environment remains uncertain, CK Fast Food (Suppliers) Ltd is committed to sustainable growth, quality assurance, and long-term resilience.

ON BEHALF OF THE BOARD:

A Bhamji - Director

8th December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of catering suppliers.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

Ordinary £1

-

£1.96

- 15th October 2024

Ordinary A £1

-

£37,500.00

- 15th October 2024

The total distribution of dividends for the year ended 31st March 2025 will be £ 360,500 .

FUTURE DEVELOPMENTS

These details have been provided in the company's strategic report.

DIRECTORS

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

A Bhamji

O Bhamji

FINANCIAL INSTRUMENTS

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

Revenue maintenance

The company actively markets and manages its portfolio of products to focus on revenue building and maintenance which, over the life cycle of the products, can contribute to the future profits of the business.

Risks and uncertainties

These details have been provided in the company's strategic report.

GOING CONCERN

The directors are satisfied that the financial statements for the year ending 2025 have been prepared on a going concern basis. There is no intention, nor any requirement, to liquidate or materially scale down operations. The company has assessed its exposure to key risks, including persistent inflation, trade friction following Brexit, supply chain disruptions, and wider geopolitical uncertainty, and has implemented appropriate mitigation strategies. These include strengthened procurement planning, tighter supplier agreements, and robust scenario modelling to ensure continuity of operations. Controls across financial, operational, and compliance domains have been reviewed during the year and are considered effective, with regular board oversight reinforcing this confidence.

Throughout the reporting period, CK Fast Food (Suppliers) Ltd maintained a strong cash position, underpinned by careful financial planning, prudent working capital management, and consistent trading performance. Borrowing levels remained nil, and the company's reliance on external financing remains minimal, providing additional stability. While inflationary pressures persisted and UK interest rates stayed elevated for much of the year, these factors have not materially impacted the company's ability to meet its obligations or continue investment in its strategic objectives.

In assessing going concern for the year ending 2025, the directors have carried out stress testing and scenario planning exercises to evaluate potential downside risks. These reviews confirmed that the company has sufficient liquidity, access to resources, and resilience to withstand adverse trading conditions. In addition, the company's ability to adapt its pricing structure, maintain strong supplier relationships, and sustain operational efficiencies further supports its long-term viability.

Based on these assessments, the directors remain confident in CK Fast Food (Suppliers) Ltd ability to operate successfully over the next 12 months and beyond. The business is well-placed to navigate ongoing challenges in the trading environment while continuing to deliver value to its customers and stakeholders, supported by a solid financial foundation and proactive risk management measures.

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

A Bhamji - Director

8th December 2025

Opinion

We have audited the financial statements of C.K. (Fast Food Suppliers) Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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, 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 as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food sector;

- we 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, UK tax legislation, and data protection, anti-bribery, employment, environmental, health and safety legislation along with industry specific regulations and requirements.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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 as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 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 company's 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 HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

8th December 2025

TURNOVER

3

31,239,979

32,240,975

Cost of sales

27,254,018

27,921,590

GROSS PROFIT

3,985,961

4,319,385

Distribution costs

1,717,682

2,193,417

Administrative expenses

1,950,611

2,066,403

3,668,293

4,259,820

317,668

59,565

Other operating income

4

78,597

73,055

OPERATING PROFIT

6

396,265

132,620

Interest receivable and similar income

465

-

396,730

132,620

Interest payable and similar expenses

8

30

-

PROFIT BEFORE TAXATION

396,700

132,620

Tax on profit

9

66,954

(9,859

)

PROFIT FOR THE FINANCIAL YEAR

329,746

142,479

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

329,746

142,479

FIXED ASSETS

Intangible assets

11

2,517

2,936

Tangible assets

12

2,140,297

2,164,435

2,142,814

2,167,371

CURRENT ASSETS

Stocks

13

1,273,030

2,166,007

Debtors

14

4,065,090

4,168,302

Cash at bank and in hand

526,815

740,621

5,864,935

7,074,930

CREDITORS

Amounts falling due within one year

15

3,100,575

4,301,446

NET CURRENT ASSETS

2,764,360

2,773,484

TOTAL ASSETS LESS CURRENT LIABILITIES

4,907,174

4,940,855

PROVISIONS FOR LIABILITIES

17

415,428

418,345

NET ASSETS

4,491,746

4,522,510

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,010

Share premium

316,000

316,000

Capital redemption reserve

10

-

Retained earnings

4,125,736

4,156,500

SHAREHOLDERS' FUNDS

4,491,746

4,522,510

The financial statements were approved by the Board of Directors and authorised for issue on 8th December 2025 and were signed on its behalf by:

A Bhamji - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1st April 2023

50,010

4,409,021

316,000

-

4,775,031

Changes in equity

Dividends

-

(395,000

)

-

-

(395,000

)

Total comprehensive income

-

142,479

-

-

142,479

Balance at 31st March 2024

50,010

4,156,500

316,000

-

4,522,510

Changes in equity

Purchase of own shares

(10

)

(10

)

-

10

(10

)

Dividends

-

(360,500

)

-

-

(360,500

)

Total comprehensive income

-

329,746

-

-

329,746

Balance at 31st March 2025

50,000

4,125,736

316,000

10

4,491,746

Cash flows from operating activities

Cash generated from operations

1

382,618

975,017

Interest paid

(30

)

-

Tax paid

(81,278

)

(313

)

Taxation refund

43,094

-

Net cash from operating activities

344,404

974,704

Cash flows from investing activities

Purchase of intangible fixed assets

-

(310

)

Purchase of tangible fixed assets

(349,836

)

(139,502

)

Sale of tangible fixed assets

60,185

5,000

Interest received

465

-

Net cash from investing activities

(289,186

)

(134,812

)

Cash flows from financing activities

Amount withdrawn by directors

-

(139,087

)

Share buyback

(10

)

-

Equity dividends paid

(269,014

)

(395,000

)

Net cash from financing activities

(269,024

)

(534,087

)

(Decrease)/increase in cash and cash equivalents

(213,806

)

305,805

Cash and cash equivalents at beginning of year

2

740,621

434,816

Cash and cash equivalents at end of year

2

526,815

740,621

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

2025

2024

£

£

Profit before taxation

396,700

132,620

Depreciation charges

293,944

270,561

Loss on disposal of fixed assets

20,264

45,957

Finance costs

30

-

Finance income

(465

)

-

710,473

449,138

Decrease in stocks

892,977

1,208,609

Decrease in trade and other debtors

97,836

544,039

Decrease in trade and other creditors

(1,318,668

)

(1,226,769

)

Cash generated from operations

382,618

975,017

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31st March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

526,815

740,621

Year ended 31st March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

740,621

434,816

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

740,621

(213,806

)

526,815

740,621

(213,806

)

526,815

Total

740,621

(213,806

)

526,815

1.	STATUTORY INFORMATION

C.K. (Fast Food Suppliers) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Critical accounting judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. Estimates and judgements are continuously evaluated and are based on historical experience and other factors, such as including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are as follows:

Useful life and residual values

Estimations in residual values and useful lives of tangible and intangible assets are assessed annually. Judgement has been made in estimating the useful lives of the asset categories aligned to the company's depreciation and write-off policies.

Impairment of Assets

The company assesses the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. This assessment requires management to make judgements about the recoverable amount of the assets, which is the higher of the asset's fair value less costs of disposal and its value in use. In making these judgements, management considers various factors, including any changes in market conditions that may affect the asset's value. These judgements are based on historical experience and other factors that are believed to be reasonable under the circumstances. Any changes in these assumptions or estimates could result in a material adjustment to the carrying amount of the assets within the next financial year.

Turnover

Is the amount derived from ordinary activities and stated after trade discounts, other sales taxes and net of VAT.

Intangible assets

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

Patents and licences are being amortised evenly over their estimated useful life of ten years.

The directors have assessed the useful life of the intangible assets based on the expected period over which the assets will generate economic benefits for the company. After considering factors such as the nature of the asset, its expected usage, technological or market obsolescence, and past experience with similar assets, the directors concluded that a 10-year amortisation period appropriately reflects the period over which the benefits will be realised.

Tangible fixed assets

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

Improvements to property

-

2% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and account receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangement constitutes a financing transaction, such as a trade debtor or creditor on extended credit terms, initial measurement is at the present value of future cash flows discounted at a market rate of interest. Subsequent measurement is at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between carrying amount and the present value of estimated cash flows discounted at the original effective interest rate. If the financial instrument has a variable interest rate the currently effective rate under the contract is used.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

2025

2024

£

£

Sale of goods

31,239,979

32,240,975

4.	OTHER OPERATING INCOME

2025

2024

£

£

Other income

6,597

1,055

Management charges

72,000

72,000

78,597

73,055

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,515,054

1,955,894

Social security costs

125,712

167,581

Other pension costs

79,129

83,217

1,719,895

2,206,692

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

2025

2024

Directors

1

1

Management

8

5

Sales

4

4

Accounts

3

3

IT

2

2

Data

1

1

Marketing

1

1

Operatives

51

69

71

86

2025

2024

£

£

Directors' remuneration

2,100

12,600

Directors' pension contributions to money purchase schemes

32

191