REGISTERED NUMBER: 08239704 (England and Wales)

LE CHAMEAU UK LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

Report of the Independent Auditors

6

to

8

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

to

20

DIRECTORS:

J S McEuen

T M Duncan

S McKenzie

SECRETARY:

Ms A Vanderpuije

REGISTERED OFFICE:

16 Mill Street

Oakham

Rutland

LE15 6EA

REGISTERED NUMBER:

08239704 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 All Saints Street

Stamford

Lincolnshire

PE9 2PA

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

REVIEW OF BUSINESS

Strategic management

The company and group's strategy and objectives are to develop the Le Chameau brand within the United Kingdom, Europe and other markets.

Business environment

Trading remains constrained by the competitive environment in wholesale and retail sectors due to the on-going challenges faced by the economic slow down, relatively high inflation and interest rates. Despite this the business has performed well as highlighted by the key performance indicators below.

Business performance

The board consider that the key performance indicators for the company are those that communicate the financial performance and strength of the company as a whole. The key financial highlights are as follows:

Year ended

Period 1.1.23

31.3.25

to 31.3.24

£m

£m

Revenue

11.4

13.4

Gross profit

7.0

6.5

Gross margin %

61.2%

48.5%

EBITDA before exceptionals

(2.6)

(2.0)

Sales revenue for the year was broadly consistent with the comparable twelve months, with the Direct to Consumer channel growing 7% over the period. As such the company will continue to invest in its digital marketing strategy and driving greater brand awareness both online and in traditional media reinforcing its position as the premium country and outdoor brand in its category.

As the business approaches its centenary in 2027, the Five Year strategy has completed two phases to date:

-

Phase 1 - Optimise: SKU rationalisation focusing on core products, manufacturing improvements and enhanced inventory planning.

-

Phase 2 - Elevate: Secured Loro Piana collaboration for Autumn/Winter 2025 collection and multi-year partnership as Official Wellington Boot Supplier to the CHANEL J12 Boat Race.

Le Chameau, a leading name in hand-crafted, luxury footwear is steadily advancing toward its centenary in 2027. Renowned for its distinctive rubber boots, the brand serves a broad and diverse customer base - from professionals connected to land and sea, to country-sports enthusiasts and style-led consumers who actively enjoy the rural outdoors. Its deep-rooted heritage in technical craftmanship continues to underpin strong customer loyalty, support from prominent brand ambassadors and increasing momentum in emerging customer segments.

Our rubber boots are handmade in our factory in Morocco which remains a key component to our premium positioning. There is a long-term rolling programme of process and operational improvement in place with the aim of driving enhanced production efficiency, quality control and margin improvement. We remain committed to Morocco and our excellent workforce and are grateful for their ongoing hard work and support.

During the year, the business strengthened its leadership team, including a new Managing Director and a Head of Ecommerce. These additions have brought renewed energy and focus on defining Le Chameau's strategic priorities and leading the delivery of its growth initiatives in preparation for the significant milestone year ahead.

Le Chameau continues to invest in strategic programmes designed to elevate brand equity and broaden its market presence. This includes building on its successful track record of collaborations with luxury brand partners, further reinforcing its own position within the premium/luxury market.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks arising from the company’s activities are liquidity risk, interest rate risk, credit risk and supply chain risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

Liquidity risk

Liquidity risk is the risk that the company is unable to meet its payment obligations associated with its liabilities as they fall due. The company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation. The company determines its liquidity requirements by the use of cash flow forecasts. On at least an annual basis, the board reviews and approves any funding requirements of the company which they continue to monitor and review on an ongoing basis.

Interest rate risk

Interest rate risk is managed by regular review of fixed and variable rate facilities available from the company's bankers.

Credit risk

Credit risk is managed by constant monitoring of the creditworthiness of customers and by identifying and addressing any credit issues in a timely manner.

Supply chain risk

In the year our factory in Morocco shipped to our warehouses in the UK, Europe and North America. The business has developed a raw materials demand planning model to mitigate future risk of stock shortages and to hold appropriate levels of key raw materials to enable the factory to meet production demands of finished goods.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")

Environmental

For nearly 100 years we have been producing high quality hand-made natural rubber boots to keep country professionals and enthusiasts dry and comfortable for long days outdoors. We take pride in our deep connection to the countryside and the sea: to farmers, fishermen, field sports enthusiasts and gardeners. We recognise that this natural world that we love and thrive in is coming under increasing threat from climate change and human activity and we understand that by producing and selling products, we are playing a part in this damage and that we must act to counter our impact.

Over the last year we have built up our internal expertise to better understand the impact we have on the planet. We have been looking in detail at our supply chain and considering the raw materials we use in the production of our boots. Our product development team are assessing the composition of our boots looking at sourcing alternatives and more sustainable materials, whilst maintaining the highest quality of product.

All key suppliers have signed up to our Vendor Compliance Manual and Operations Guide which highlights our required ESG standards, including factory auditing. In the upcoming year we will build further on our vendor assessments and further our knowledge of the full supply cycle.

We have also identified a number of potential solutions to reducing our carbon footprint, which we are looking into further as well as auditing our suppliers and raw material sourcing, which will include physical visits and verification of any certification or accreditation.

We are continually looking to improve our business and will continue to invest more time and resources in the bigger changes we need to make as a business to reduce our impact on the planet.

Social

We appreciate and value our people. The Le Chameau Maîtres Bottiers have been making boots by hand for nearly 100 years with traditional skills passed from generation to generation. We continue to make continuous improvement to our factory in Morocco, investing in health and safety improvements on all equipment, workstations and tools.

To reduce safety incidents the business undertakes safety audits with production and maintenance supervisors on a weekly basis. This is followed up by safety training for supervisors and operators. Quarterly company meetings are held to reinforce commitment to plant and personal safety. The action plans associated with all these meetings and audits are monitored and directed by the QHSE department.

We are committed to investing in our staff, we have a programme for training bootmakers at our factory and provide several soft skill training programmes which are available to all our Moroccan staff, such as language and IT courses.

Le Chameau is the chosen supplier of the French lifeboat organisation, Société Nationale de Sauvetage en Mer ("SNSM"). Through promotions of our leisure marine products donations are made to the SNSM. During the year we also donated to various charitable causes including The Dogs Trust, Prince's Countryside Trust (part of the Prince's Trust), Ligue Contre Le Cancer and ONF-Act for the forest.

Governance

Le Chameau already has in place a structured governance framework, with the directors meeting formally on a monthly basis and meeting both in person and via video-calls frequently on an informal basis. The chairman of the group is responsible for leading the board meetings and the board meeting agenda.

Board packs are circulated in advance of the board meetings and include an executive summary as well as details on sales, marketing and ecommerce, a report from the finance director, product development and production, supply chain and operations, manufacturing, IT and ESG. The materials presented and discussed at board meetings are critical to the directors making the right strategic decisions for the business. Given their importance the directors have continued to feed back on the board materials to further refine and improve these during the year and as part of these updates the board receive department specific in-depth updates on a periodic basis from department heads.

ON BEHALF OF THE BOARD:

S McKenzie - Director

12 December 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the sale of premium wellington boots and accessories.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

J S McEuen has held office during the whole of the period from 1 April 2024 to the date of this report.

Other changes in directors holding office are as follows:

T M Duncan and S McKenzie were appointed as directors after 31 March 2025 but prior to the date of this report.

C E B Cavell-Taylor ceased to be a director after 31 March 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

S McKenzie - Director

12 December 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, reperforming the calculation and reviewing the outcome of current year estimates since the financial reporting date.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and safety regulations, consumer rights and employment law.

Our work included a review of relevant correspondence within the year for any evidence of non-compliance and reading minutes of meetings of those charged with governance. In addition, an assessment of the company's legal expenses and possible contingencies was performed. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Alistair Main BFP FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 All Saints Street

Stamford

Lincolnshire

PE9 2PA

12 December 2025

REVENUE

3

11,422,346

13,418,712

Cost of sales

4,428,881

6,913,239

GROSS PROFIT

6,993,465

6,505,473

Administrative expenses

11,152,084

9,932,458

(4,158,619

)

(3,426,985

)

Other operating income

879,018

1,114,743

OPERATING LOSS

5

(3,279,601

)

(2,312,242

)

Exceptional costs

6

1,259,957

874,299

(4,539,558

)

(3,186,541

)

Interest receivable and similar income

30,873

-

(4,508,685

)

(3,186,541

)

Impairment/(release of impairment provisions) on investments

7

-

(87,147

)

(4,508,685

)

(3,099,394

)

Interest payable and similar expenses

8

1,216

442,967

LOSS BEFORE TAXATION

(4,509,901

)

(3,542,361

)

Tax on loss

9

-

-

LOSS FOR THE FINANCIAL YEAR

(4,509,901

)

(3,542,361

)

LOSS FOR THE YEAR

(4,509,901

)

(3,542,361

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(4,509,901

)

(3,542,361

)

FIXED ASSETS

Property, plant and equipment

10

185,227

766,186

Investments

11

924,662

924,662

1,109,889

1,690,848

CURRENT ASSETS

Inventories

12

2,916,347

2,514,289

Debtors

13

4,665,193

6,120,942

Cash at bank

823,802

2,179,182

8,405,342

10,814,413

CREDITORS

Amounts falling due within one year

14

14,308,296

12,788,425

NET CURRENT LIABILITIES

(5,902,954

)

(1,974,012

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(4,793,065

)

(283,164

)

CAPITAL AND RESERVES

Called up share capital

16

20,167,338

20,167,338

Retained earnings

17

(24,960,403

)

(20,450,502

)

SHAREHOLDERS' FUNDS

(4,793,065

)

(283,164

)

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2025 and were signed on its behalf by:

S McKenzie - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

20,167,338

(16,908,141

)

3,259,197

Changes in equity

Total comprehensive income

-

(3,542,361

)

(3,542,361

)

Balance at 31 March 2024

20,167,338

(20,450,502

)

(283,164

)

Changes in equity

Total comprehensive income

-

(4,509,901

)

(4,509,901

)

Balance at 31 March 2025

20,167,338

(24,960,403

)

(4,793,065

)

1.	STATUTORY INFORMATION

Le Chameau UK 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.

In the prior reporting period the company's accounting reference date was changed to 31 March. These financial statements have been prepared for the year to 31 March 2025 however the comparative amounts represent the 15 month period to 31 March 2024 and are therefore not entirely comparable with amounts shown for the current period.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

The company is a subsidiary of Le Chameau Holdings Limited. Consolidated financial statements of Le Chameau Holdings Limited can be obtained from:

Companies House

Crown Way

Cardiff

CF14 3UZ

Preparation of consolidated financial statements

The financial statements contain information about Le Chameau UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Le Chameau Holdings Limited, 16 Mill Street, Oakham, Rutland, LE15 6EA.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

i) Stock provisions

The company is subject to changing consumer demands and economic trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. Stocks are stated after provisions for impairment. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

ii) Bad debt provision

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the aging profile of receivables and historical experience. Any bad debt provisions are netted off against the overall trade debtor amount.

iii) Sales return provision

The sales return provision presented within other creditors is estimated on the basis of historical return and after date sales analysis. Sales have a 28-day free return period from the day of sale. The provision is recorded to allocate the returns to the same period in which the revenue is recorded.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue represents amounts receivable for the supply of goods and is net of VAT and trade discounts. Revenue is recognised on the delivery of products to wholesale customers and on the sale of products to retail customers.

Property, plant and equipment

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

Fixtures and fittings

-

33% on cost

Computer equipment

-

33% on cost

Property, plant and equipment is stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries

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

Inventories

Inventories are valued at the lower of cost and estimated selling price less costs to complete and sell and after making due allowance for obsolete and slow moving items.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

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 the income statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other creditors, bank loans, loans from related 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 receipts discounted at a market rate of interest.

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. Accounts 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.

Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value through the income statement.

The company uses forward exchange contracts to mitigate it's exposure to foreign exchange risks. The fair value is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

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

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.

Going concern

The company has made a loss for the financial year and the preceding period due to investments in people, sales and marketing costs. The directors consider that the going concern basis remains appropriate as the company maintains the support of its parent group.

3.

REVENUE

The revenue and loss before taxation are attributable to the principal activities of the company.

An analysis of revenue by class of business is given below:

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Product sales

10,979,789

13,178,994

Service contract income

442,557

239,718

11,422,346

13,418,712

An analysis of revenue by geographical market is given below:

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

United Kingdom

11,260,194

13,313,392

Europe

160,159

79,441

Rest of the world

1,993

25,879

11,422,346

13,418,712

4.	EMPLOYEES AND DIRECTORS

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Wages and salaries

2,241,917

2,141,662

Social security costs

261,778

259,174

Other pension costs

88,276

88,716

2,591,971

2,489,552

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

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

Sales and administrative

34

28

Directors' fees of £30,000 (15 months to 31 March 2024 - £37,500) were charged for the year.

5.	OPERATING LOSS

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

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Depreciation - owned assets

388,875

328,671

Loss on disposal of fixed assets

288,711

5,553

Auditors' remuneration

25,449

37,135

Foreign exchange differences

(1,258

)

89,748

6.	EXCEPTIONAL COSTS

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Impairment of group debt no longer deemed recoverable

1,222,000

-

Exceptional stock provisions

-

818,656

Restructuring and redundancy costs

37,957

55,643

1,259,957

874,299

7.

IMPAIRMENT/(RELEASE OF IMPAIRMENT PROVISIONS) ON INVESTMENTS

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Release of provisions against investments

-

(87,147

)

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Other interest

1,216

-

Loan Interest

-

442,967

1,216

442,967

9.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2025 nor for the period ended 31 March 2024.

10.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2024

21,224

1,177,979

1,199,203

Additions

8,143

91,378

99,521

Disposals

-

(673,259

)

(673,259

)

At 31 March 2025

29,367

596,098

625,465

DEPRECIATION

At 1 April 2024

2,636

430,381

433,017

Charge for year

9,758

379,117

388,875

Eliminated on disposal

-

(381,654

)

(381,654

)

At 31 March 2025

12,394

427,844

440,238

NET BOOK VALUE

At 31 March 2025

16,973

168,254

185,227

At 31 March 2024

18,588

747,598

766,186

11.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

1,383,200

PROVISIONS

At 1 April 2024

and 31 March 2025

458,538

NET BOOK VALUE

At 31 March 2025

924,662

At 31 March 2024

924,662