REGISTERED NUMBER: 06477380 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 June 2025

for

Blackmagic Design Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr D B Clarke

Mr G Petty

REGISTERED OFFICE:

Building V1, Sci-Tech Daresbury

Keckwick Lane

Daresbury

Warrington

WA4 4AB

REGISTERED NUMBER:

06477380 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report for the year ended 30 June 2025.

REVIEW OF BUSINESS

The principal activity of the company continued to be that of wholesalers of video and film products.

Sales revenue remained in line with the previous year, supported by strategic changes to the product portfolio, including the development of advanced new technologies scheduled for release after the current financial year. Scheduled releases are expected to support growth and enhance performance, with strong pre-order levels indicating solid demand.

PRINCIPAL RISKS AND UNCERTAINTIES

The company uses various financial instruments. These include cash and balances such as trade debtors and trade creditors that arise directly from its operations. The company is also supported by balances owed to its immediate parent undertaking. The existence of these financial instruments exposes the company to a number of financial risks, which are described below in more detail. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Currency Risk

The company is exposed to translation and transaction foreign exchange risk. Exposure to currency risk arises principally from transactions denominated in Euros or US dollars.

Where the amounts to be paid and received in a specific currency are expected to largely offset one another, no further hedging activity is undertaken. The company utilises bank accounts in Sterling, Euros and US dollars to facilitate this.

Liquidity Risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities and long term funding is received from the parent undertaking.

Credit Risk

Credit risk arises where there is a risk that customers will not be able to fulfil their financial obligations. Credit limits are reviewed by senior management on a regular basis in conjunction with debt ageing and collection history. There are long standing relationships with the major customers and the company's credit control team have credit policies for trading transactions. At the balance sheet date, there were no significant concentrations of credit risk in respect of individual customers.

DEVELOPMENT AND PERFORMANCE

The aim of the company in the coming year is to become one of the world's leading innovators and manufacturers of creative video technology as signs are positive that the market is returning to normality.

KEY PERFORMANCE INDICATORS

The directors monitor the following key performance indicators:

- Turnover against comparative period

- Gross profit against comparative period

- Expenses against comparative period

The figures can be derived from the results on page 8.

ON BEHALF OF THE BOARD:

Mr G Petty - Director

23 September 2025

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of wholesalers of video and film products.

DIVIDENDS

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

FUTURE DEVELOPMENTS

The company continues investing advanced technology in new product lines and expects to have a positive impact in the coming financial year.

DIRECTORS

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

Mr D B Clarke

Mr G Petty

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), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 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, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr G Petty - Director

23 September 2025

Opinion

We have audited the financial statements of Blackmagic Design Limited (the 'company') for the year ended 30 June 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 101 'Reduced Disclosure Framework' (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 30 June 2025 and of its loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The extent to which the audit was considered capable of detecting irregularities including fraud

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 Senior Statutory Auditor ensured that the audit 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 sale of video and film products;

- 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, taxation legislation and data protection, anti-bribery and corruption legislation, anti slavery and employment legislation, environmental, and other industry specific accreditations and health and safety legislation within the industry;

- 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 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.

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.

Jeremy Bostock BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

23 September 2025

REVENUE

3

96,398,197

95,124,451

Cost of sales

87,768,470

86,728,393

GROSS PROFIT

8,629,727

8,396,058

Administrative expenses

9,186,495

9,851,083

(556,768

)

(1,455,025

)

Other operating income

6,789

-

OPERATING LOSS

(549,979

)

(1,455,025

)

Interest receivable and similar income

25,874

28,347

(524,105

)

(1,426,678

)

Interest payable and similar expenses

5

37,387

51,223

LOSS BEFORE TAXATION

6

(561,492

)

(1,477,901

)

Tax on loss

7

(24,557

)

(104,820

)

LOSS FOR THE FINANCIAL YEAR

(536,935

)

(1,373,081

)

LOSS FOR THE YEAR

(536,935

)

(1,373,081

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(536,935

)

(1,373,081

)

FIXED ASSETS

Owned

Property, plant and equipment

8

309,001

424,197

Right-of-use

Property, plant and equipment

8, 13

801,110

1,229,121

1,110,111

1,653,318

CURRENT ASSETS

Debtors

9

7,420,549

7,257,176

Cash at bank

2,903,996

2,703,080

10,324,545

9,960,256

CREDITORS

Amounts falling due within one year

10

8,220,245

7,397,012

NET CURRENT ASSETS

2,104,300

2,563,244

TOTAL ASSETS LESS CURRENT LIABILITIES

3,214,411

4,216,562

CREDITORS

Amounts falling due after more than one year

11

(386,378

)

(827,037

)

PROVISIONS FOR LIABILITIES

14

(44,647

)

(69,204

)

NET ASSETS

2,783,386

3,320,321

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

2,783,286

3,320,221

SHAREHOLDERS' FUNDS

19

2,783,386

3,320,321

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

Mr G Petty - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

100

4,693,302

4,693,402

Changes in equity

Total comprehensive income

-

(1,373,081

)

(1,373,081

)

Balance at 30 June 2024

100

3,320,221

3,320,321

Changes in equity

Total comprehensive income

-

(536,935

)

(536,935

)

Balance at 30 June 2025

100

2,783,286

2,783,386

1.	STATUTORY INFORMATION

Blackmagic Design 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 preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Where required, equivalent disclosures are given in the group accounts of Blackmagic Design PTY Limited for the year ended 30 June 2025.

The company is a wholly owned subsidiary of Blackmagic Design PTY Limited, a company incorporated in Australia, which prepares publicly available consolidated financial statements in accordance with IFRS. This company is included in the consolidated financial statements of Blackmagic Design PTY Limited for the year ended 30 June 2025. These financial statements are available from 180 Bank Street, South Melbourne, VIC 3205, Australia.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraphs 53(a), (h) and (j) of IFRS 16;

-

paragraph 79(a)(iv) of IAS 1; and

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

•

the requirements of

-

paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

-

paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make significant judgements and estimates. There are no items within the financial statements where significant judgements and estimates have been applied.

Turnover

Sale of Goods

Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.

Rendering of Services

Revenue from a contract to provide services is recognised over time as the services are rendered based on a fixed price.

Interest revenue

Interest revenue is recognised when it is received.

All revenue is stated net of the amount of value added taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Over the term of the lease

Fixtures and fittings

-

3 or 5 years straight line

Motor vehicles

-

Straight line over 3 years

Computer equipment

-

Straight line over 3 years

Fixed asset additions with a cost below £500 are fully depreciated in the year of acquisition.

Impairment of tangible and intangible assets

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

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

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

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

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, bank financing facilities and loans from related parties.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specific categories, depending on the nature and purpose of the financial assets.

Financial assets at fair value through profit or loss

The company does not hold any financial assets at fair value through profit and loss.

Financial assets held at amortised cost

The company classifies all of its financial assets as loans and receivables, measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (e.g trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

The company does not hold any financial assets at fair value through other comprehensive income.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the company will be unable to collect all the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses. in the

Income Statement. On confirmation that the trade receivable will not be collected, the gross carrying value of the asset is written off against the associated provision.

Derecognition of financial assets

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provision of the instruments. The company classifies all of its financial liabilities at amortised cost.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit and loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

- it has been incurred principally for the purpose of repurchasing it in the near term, or

- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and has a recent actual pattern of short-term profit taking, or

- it is a derivative that is not designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arsing on remeasurement recognised in profit or less.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognisiton of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Equity instruments

Wqyuity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantially enacted by the reporting end date.

Deferred tax is tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and it is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign currencies

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

Leases

Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

The company has elected not to recognise right-of-use assets and lease liabilities for short term leases of machinery that have a term of 12 months or less, or for leases of low value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight line basis over the lease term.

Employee benefit costs

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

The cost of short term employee benefits are recognised ad a liability and an expense.

The cost of any unused holiday entitlement is not required. The financial year is coterminous with the holiday year and employees are not permitted to carry forward any unused holiday entitlement.

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

Going concern

The directors consider the company to be a going concern, given the available working capital resources of the company, support from its parent company and that the directors have prepared forecasts for the period of at least 12 months beyond the date on which the financial statements are approved to show that the company can operate on a going concern basis.

3.

REVENUE

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

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

2025

2024

£

£

Contracts with customers

96,398,197

95,124,451

96,398,197

95,124,451

Management have not disclosed the analysis of turnover by geography as this is deemed prejudicial to the interests of the company given their technological nature.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,819,805

4,753,326

Social security costs

480,823

445,178

Other pension costs

404,676

394,078

5,705,304

5,592,582

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

2025

2024

Office staff

63

56

Other

18

26

81

82

There was no remuneration paid to the directors in the current or preceding year.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on lease liabilities

37,387

51,223

6.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging:

2025

2024

£

£

Cost of inventories recognised as expense

87,768,470

86,728,393

Leases

11,426

20,119

Depreciation - owned assets

181,001

185,243

Depreciation - assets on finance leases

428,011

493,256

Loss on disposal of fixed assets

2,401

-

Auditors' remuneration

18,000

18,980

7.

TAXATION

Analysis of tax income

2025

2024

£

£

Current tax:

Over provision in previous yea

-

(82,432

)

Deferred tax

(24,557

)

(22,388

)

Total tax income in income statement

(24,557

)

(104,820

)

Factors affecting the tax expense

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

2025

2024

£

£

Loss before income tax

(561,492

)

(1,477,901

)

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

(140,373

)

(369,475

)

Effects of:

Expenses not deductible in determining taxable profit

4,105

5,617

Unutilised tax losses carried forward

111,711

337,996

corporation tax

Permanent capital allowances in excess of depreciation

-

3,474

Tax losses carried back

-

(82,432

)

Tax income

(24,557

)

(104,820

)

8.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Short

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 July 2024

2,140,059

1,194,421

45,690

491,128

3,871,298

Additions

-

7,190

-

61,036

68,226

Disposals

-

(68,521

)

-

(42,550

)

(111,071

)

At 30 June 2025

2,140,059

1,133,090

45,690

509,614

3,828,453

DEPRECIATION

At 1 July 2024

910,938

832,270

45,690

429,082

2,217,980

Charge for year

428,011

132,928

-

48,073

609,012

Eliminated on disposal

-

(67,213

)

-

(41,437

)

(108,650

)

At 30 June 2025

1,338,949

897,985

45,690

435,718

2,718,342

NET BOOK VALUE

At 30 June 2025

801,110

235,105

-

73,896

1,110,111

At 30 June 2024

1,229,121

362,151

-

62,046

1,653,318

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

6,904,949

6,410,074

Amounts owed by group undertakings

-

279,013

Other debtors

179,873

207,921

Tax

-

82,432

Prepayments

335,727

277,736

7,420,549

7,257,176

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Leases (see note 12)

440,661

426,675

Trade creditors

646,217

415,417

Amounts owed to group undertakings

6,675,925

5,428,246

Social security and other taxes

-

140,281

VAT

101,662

503,226

Pension creditor

35,951

35,258

Other creditors

220,000

240,000

Accrued expenses

99,829

207,909

8,220,245

7,397,012

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Leases (see note 12)

386,378

827,037

12.

FINANCIAL LIABILITIES - BORROWINGS

2025

2024

£

£

Current:

Leases (see note 13)

440,661

426,675

Non-current:

Leases (see note 13)

386,378

827,037

Terms and debt repayment schedule

1 year or

less

1-2 years

2-5 years

Totals

£

£

£

£

Leases

440,661

336,564

49,814

827,039