REGISTERED NUMBER: 05328790 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st March 2025

for

C.K. Foods (Processing) 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:

O Bhamji

A Bhamji

A Bhamji

SECRETARY:

O Bhamji

REGISTERED OFFICE:

70 Northumberland Avenue

Hull

HU2 0JB

REGISTERED NUMBER:

05328790 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

Barclays Bank PLC

1 Churchill Place

London

E14 5HP

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

37,997,957

34,948,076

40,437,288

32,419,447

Turnover growth

8.7%

(13.6%

)

24.7%

19.9%

Gross profit margin

19.9%

22.6%

18.6%

18.1%

Net profit

2,176,732

1,849,155

4,772,463

2,754,338

Net profit margin

5.7%

5.3%

11.8%

8.5%

The company achieved a turnover of £38.0m in 2025, an increase of 8.7% on the prior year (2024: £34.9m). This marks a welcome recovery after the decline experienced in 2024, when sales fell by 13.6% from the unusually high levels of 2023 (£40.4m). The directors see the latest growth as evidence of stabilisation in both the customer base and overall demand, with turnover now moving back towards the levels achieved in stronger trading years.

The gross profit margin narrowed to 19.9% (2024: 22.6%), reflecting continued upward pressure on raw material and energy costs. Although margins have tightened, management has worked to limit the impact through disciplined cost control and carefully targeted pricing.

Profit before tax rose to £2.18m (2024: £1.85m), showing that efficiency measures and tighter control of overheads were enough to offset the pressure on margins. Operating costs did increase in line with sales, most notably in staff wages and related costs, as well as in motor, travel, and professional fees. These rises reflect the resources invested to sustain and support the company's growth.

Over the past four years, the company has shown resilience, with turnover consistently ranging between £32m and £40m and profitability maintained throughout, despite shifts in market conditions. The directors consider the latest year's performance to be a solid result and will continue to focus on improving efficiency and protecting margins while seeking further opportunities to grow revenue.

Looking ahead, the directors remain mindful of ongoing cost pressures and volatility in the wider food sector, but are confident that the company's established operations, disciplined financial management, and strong supplier and customer relationships provide a sound platform for continued stability and sustainable growth.

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.

Price risk

CK Food Processing continues to operate in a price-sensitive market, where margin pressure remains a constant challenge. During financial year 2024/25, global commodity prices have remained volatile, driven by a combination of prolonged geopolitical tensions, including the Russia-Ukraine conflict and unrest across parts of the Middle East. These external pressures have led to fluctuating input costs, particularly for dairy and grain-based products. While inflation has eased slightly compared to last year, procurement remains unpredictable. In response, the company has strengthened supplier relationships and introduced more flexible purchasing agreements, allowing for quicker adaptation to market shifts. Price risk will remain closely monitored, with contingency plans in place to minimise disruption.

Foreign exchange risk

The FX market is being very volatile lately mainly due to interest rate hikes across the world which impacted sterling strength. The company is prepared to manage the risk by forward booking, purchasing, and selling in sterling to avoid the FX risk.

Credit risk

The business supplies a diverse customer base, ranging from large retailers to smaller food service operators. While most customers continue to meet payment terms, a small increase in late payments was noted during the second quarter of the year, largely due to tightened liquidity across the sector. CK Food Processing has responded by refining its credit control procedures and conducting more frequent credit reviews. Rather than taking a one-size-fits-all approach, the company now assesses credit risk more dynamically, balancing commercial relationships with financial prudence. No material bad debt has been recorded, and overall exposure remains within acceptable levels.

Liquidity risk

Despite a turbulent economic backdrop, CK Food Processing has maintained a stable cash position throughout the year. Careful cash flow management, combined with disciplined capital allocation, has ensured that all financial obligations have been met as they fall due. With a planned investment in new cheese processing equipment scheduled for early 2025, the company has secured appropriate funding through a mix of retained earnings and director's investment. Stress testing and scenario planning exercises are carried out regularly to ensure liquidity remains robust under various conditions.

Interest rate and cash flow risk

Interest rate fluctuations have had a limited impact on the company's financial position to date. Operational cash generation continues to be strong, supported by steady demand and effective working capital management. The business does not foresee any significant cash flow constraints in the near term, though interest rate movements will continue to be monitored as part of ongoing risk assessment.

FUTURE DEVELOPMENTS AND STRATEGY

Looking ahead, CK Food Processing is embarking on a major strategic development: the expansion of its cheese production facility. This decision is a response to growing domestic and export demand, as well as the opportunity to diversify the company's product portfolio. A significant capital expenditure programme has been approved for the acquisition and installation of modern, energy-efficient machinery aimed at increasing output capacity and improving product consistency. This investment underscores the company's commitment to long-term competitiveness and innovation. Alongside this, the company will continue to evaluate potential opportunities for growth in overseas markets, particularly where demand for processed dairy products is rising.

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 the manufacture and wholesale of chicken, cheese and dairy products.

DIVIDENDS

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

Ordinary £1

-

£2678.57

Ordinary A £1

-

£37,500

Ordinary B £1

-

£37,500

The total distribution of dividends for the year ended 31st March 2025 will be £ 562,500 .

RESEARCH AND DEVELOPMENT

During the year, the company undertook R&D activities focused on development of new products. This included refining and trialling alternative process methodologies and restructuring the entire manufacturing line to enhance efficiency, product quality and scalability.

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.

O Bhamji

A Bhamji

A 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 have reviewed the company's financial position and outlook and are satisfied that the business remains a going concern. While global economic uncertainty persists, particularly due to ongoing conflict in Ukraine and instability in oil-producing regions of the Middle East, CK Food Processing has demonstrated resilience through strong governance and sound financial planning. Key risks have been reviewed in detail, and the company has appropriate strategies in place to address them. Internal controls across financial, operational and compliance areas have also been tested and deemed effective. With a clear investment strategy and adequate financial resources, the directors are confident in the company's ability to continue trading successfully over the next 12 months and beyond.

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. Foods (Processing) 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

37,997,957

34,948,076

Cost of sales

30,434,518

27,048,402

GROSS PROFIT

7,563,439

7,899,674

Administrative expenses

5,429,601

6,077,663

2,133,838

1,822,011

Other operating income

4

11,219

4,000

OPERATING PROFIT

6

2,145,057

1,826,011

Interest receivable and similar income

31,675

23,144

PROFIT BEFORE TAXATION

2,176,732

1,849,155

Tax on profit

8

444,895

169,865

PROFIT FOR THE FINANCIAL YEAR

1,731,837

1,679,290

OTHER COMPREHENSIVE INCOME

Revaluation

79,304

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

79,304

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,811,141

1,679,290

FIXED ASSETS

Intangible assets

10

414

512

Tangible assets

11

6,110,877

2,397,404

Investments

12

-

600,000

6,111,291

2,997,916

CURRENT ASSETS

Stocks

13

1,656,651

2,245,539

Debtors

14

7,104,690

6,829,621

Cash at bank and in hand

1,845,844

3,028,125

10,607,185

12,103,285

CREDITORS

Amounts falling due within one year

15

2,975,339

2,479,699

NET CURRENT ASSETS

7,631,846

9,623,586

TOTAL ASSETS LESS CURRENT LIABILITIES

13,743,137

12,621,502

CREDITORS

Amounts falling due after more than one year

16

(581,317

)

(779,804

)

PROVISIONS FOR LIABILITIES

18

(528,176

)

(456,686

)

NET ASSETS

12,633,644

11,385,012

CAPITAL AND RESERVES

Called up share capital

19

100

109

Revaluation reserve

59,478

-

Capital redemption reserve

9

-

Retained earnings

12,574,057

11,384,903

SHAREHOLDERS' FUNDS

12,633,644

11,385,012

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

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1st April 2023

105

10,035,613

-

-

10,035,718

Changes in equity

Issue of share capital

4

-

-

-

4

Dividends

-

(330,000

)

-

-

(330,000

)

Total comprehensive income

-

1,679,290

-

-

1,679,290

Balance at 31st March 2024

109

11,384,903

-

-

11,385,012

Changes in equity

Purchase of own shares

(9

)

(9

)

-

9

(9

)

Dividends

-

(562,500

)

-

-

(562,500

)

Total comprehensive income

-

1,731,837

79,304

-

1,811,141

Reserves transfer

-

19,826

(19,826

)

-

-

Balance at 31st March 2025

100

12,574,057

59,478

9

12,633,644

Cash flows from operating activities

Cash generated from operations

1

3,036,397

1,902,594

Tax paid

(797,284

)

(1,170,928

)

Taxation refund

172,105

128,908

Net cash from operating activities

2,411,218

860,574

Cash flows from investing activities

Purchase of intangible fixed assets

(318

)

-

Purchase of tangible fixed assets

(4,032,609

)

(231,491

)

Purchase of fixed asset investments

-

(600,000

)

Sale of tangible fixed assets

75,959

42,650

Sale of fixed asset investments

627,292

5,000

Interest received

31,675

23,144

Net cash from investing activities

(3,298,001

)

(760,697

)

Cash flows from financing activities

Amount introduced by directors

-

9,879

Amount withdrawn by directors

-

(3,675

)

Share issue

-

4

Purchase of own shares

(9

)

-

Equity dividends paid

(295,489

)

(330,000

)

Net cash from financing activities

(295,498

)

(323,792

)

Decrease in cash and cash equivalents

(1,182,281

)

(223,915

)

Cash and cash equivalents at beginning of year

2

3,028,125

3,252,040

Cash and cash equivalents at end of year

2

1,845,844

3,028,125

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

2025

2024

£

£

Profit before taxation

2,176,732

1,849,155

Depreciation charges

322,897

788,545

(Profit)/loss on disposal of fixed assets

(27,292

)

31,214

Finance income

(31,675

)

(23,144

)

2,440,662

2,645,770

Decrease in stocks

588,888

172,344

Increase in trade and other debtors

(158,412

)

(235,572

)

Increase/(decrease) in trade and other creditors

165,259

(679,948

)

Cash generated from operations

3,036,397

1,902,594

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

1,845,844

3,028,125

Year ended 31st March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

3,028,125

3,252,040

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

3,028,125

(1,182,281

)

1,845,844

3,028,125

(1,182,281

)

1,845,844

Total

3,028,125

(1,182,281

)

1,845,844

1.	STATUTORY INFORMATION

C.K. Foods (Processing) 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 as modified by the revaluation of certain assets.

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

Turnover is the amount derived from the sale of processed cheese upon delivery 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.

Freehold property

-

not provided

Improvements to property

-

2% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

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.

Investments

Investments are measured at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

3.

TURNOVER

2025

2024

£

£

Sale of goods

37,997,957

34,948,076

4.	OTHER OPERATING INCOME

2025

2024

£

£

Sundry receipts

11,219

4,000

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,879,030

1,790,053

Social security costs

150,163

149,250

Other pension costs

260,447

257,095

2,289,640

2,196,398