REGISTERED NUMBER: 03662925 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

FRANKLIN PRODUCTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTOR:

K Picard

REGISTERED OFFICE:

20 Crownhill Business Park

Vincent Avenue

Milton Keynes

Buckinghamshire

MK8 0AB

REGISTERED NUMBER:

03662925 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

The director presents her strategic report for the year ended 31 December 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The director continually reviews and evaluates the risks that the company is facing. The principal risks and uncertainties facing the company are broadly grouped as: Competitive, Legislative, and Financial risks.

Competitive risks

The aircraft seating business throughout Europe has faced very strong competition in recent years. The company puts strong emphasis on service levels, quality of products and competitive pricing to its customer base to maintain its position within the market.

Legislative risks

The director does not expect the departure of the United Kingdom from the European Union to have any significant effect on the company's business.

Legislative risk within Europe is controlled by the European Aviation Safety Agency and in the UK more specifically by the Civil Aviation Authority. Franklin Products Limited has EASA Production Organisation Approval (POA) Part 21 Section A Sub part G Approval Number UK.21G.2392.

Financial risk management objectives and policies

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The company holds bank accounts in four major currencies (GBP, USD, EUR, PLN) for the purposes of making and receiving payments and does not use derivative financial instruments for speculative purposes.

* Cash flow risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company does not take any specific action to minimise this risk and recognises any realised or unrealised gains or losses to the income statement in the month it is incurred.

* Credit risk

The company's principal financial assets are bank and cash balances and trade and other receivables.

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the related cash flows.

The credit risk on liquid funds is limited because the counter parties are banks with high credit ratings assigned by international credit-rating agencies.

The company has no significant concentration of credit risk with exposure spread over a number of customers, who themselves have high credit ratings.

* Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term intercompany debt finance.

* Price risk

The company has limited exposure to commodity price risk. The company generally purchases goods and services based upon market prices that are established with the vendor as part of the purchase process. The company does not use commodity financial instruments as it deems them unnecessary.

KEY PERFORMANCE INDICATORS

2024

2023

Change

Turnover

£16,310,739

£12,451,497

31.0%

Depreciation

£48,408

£45,492

6.4%

Operating profit

£1,432,286

£488,666

193.1%

Profit after tax

£1,150,034

£581,857

97.6%

Current assets as % of current liabilities

273.0%

242.5%

12.6%

Average number of employees

177

175

1%

There have been a number of actions that have been implemented to improve efficiency, product availability and reduce costs. The director considers that Franklin Products Limited has an excellent future and continued in 2025 to consolidate its position as one of Europe's leading manufacturers of aircraft seating.

ON BEHALF OF THE BOARD:

K Picard - Director

12 December 2025

The director presents her report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and sale of aircraft seat cushions and covers for the airline industry in the United Kingdom, Europe and overseas markets.

REVIEW OF THE BUSINESS

Turnover increased by 31.0% as a result of increased volume across all sectors due to the continuing recovery from the COVID-19 pandemic.

The company also has a manufacturing branch based in Poland. The results of this branch are included in these financial statements.

DIVIDENDS

No dividends were received in 2024 (2023: Nil). No dividends have been declared and paid by the company in 2024 (2023: Nil).

FUTURE DEVELOPMENTS

The Director’s aim at the start of 2024 remained to maintain the policies of the company while continuing the commitment to retaining revenue and reducing costs. To remain competitive and to continue meeting the requirements of our customers, the company had previously reduced its workforce during 2020 and 2021 as a result of the COVID-19 pandemic. As the aviation sector has recovered, staff numbers have increased further throughout all areas of production and production support, reflecting ongoing improvement in market conditions.

The company continues to expand, with the move into Unit 10 this year providing additional production capacity and extra warehouse space to support growing customer demand. The Poland facility is also experiencing significant development, with expansion works currently under way. The Poland site as of 2025 employs just under 250 staff, and plans are in place to double this headcount over the next two years.

Opportunities with new and existing customers will always be sought, along with new ways to meet those opportunities. The company’s focus on cashflow, established during the uncertainty of the pandemic, remains important, and the cost-saving measures introduced to mitigate declining revenues at that time have continued to prove effective. With the aviation industry showing sustained signs of improvement, the Director remains tasked with balancing a continued degree of uncertainty while ensuring the company meets the needs of its customers and maintains a healthy order book.

DIRECTORS

K Picard has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

R E Picard - resigned 29 February 2024

ENGAGEMENT WITH EMPLOYEES

The company holds quarterly Town Hall meetings where the company's performance is shared with the employees. This allows employees to see the direct impact that their hard work has on the performance of the company. Employees are also encouraged to give suggestions via a suggestion box on how business activities and surroundings can be improved to make the work environment better. These suggestions are always responded to individually by way of a noticeboard announcement.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make 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:

K Picard - Director

12 December 2025

Opinion

We have audited the financial statements of Franklin Products Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 December 2024 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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.

Opinion on other matters prescribed by 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

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

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Company's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud.

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

- Employment legislation, reflecting the Company's workforce

- Health and safety regulation, reflecting the Company's production, distribution and operating processes

- Data privacy, reflecting the Company's management of personal and corporate data

- Environmental regulation, reflecting environmental impact restrictions, waste and contamination related to the Company's distribution and operating processes.

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, 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. 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.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

12 December 2025

TURNOVER

5

16,310,739

12,451,497

Cost of sales

11,323,387

8,444,309

GROSS PROFIT

4,987,352

4,007,188

Administrative expenses

3,555,066

3,518,522

OPERATING PROFIT

7

1,432,286

488,666

Interest receivable and similar income

4,067

1,913

1,436,353

490,579

Interest payable and similar expenses

8

186

-

PROFIT BEFORE TAXATION

1,436,167

490,579

Tax on profit

9

286,133

(91,278

)

PROFIT FOR THE FINANCIAL YEAR

1,150,034

581,857

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,150,034

581,857

FIXED ASSETS

Tangible assets

10

103,394

93,243

CURRENT ASSETS

Stocks

11

1,714,700

1,261,802

Debtors

12

3,337,852

2,400,139

Cash at bank and in hand

1,587,621

1,268,929

6,640,173

4,930,870

CREDITORS

Amounts falling due within one year

13

2,432,382

2,042,673

NET CURRENT ASSETS

4,207,791

2,888,197

TOTAL ASSETS LESS CURRENT LIABILITIES

4,311,185

2,981,440

CREDITORS

Amounts falling due after more than one year

14

1,366,169

1,186,458

NET ASSETS

2,945,016

1,794,982

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

2,944,916

1,794,882

SHAREHOLDERS' FUNDS

2,945,016

1,794,982

The financial statements were approved by the director and authorised for issue on 12 December 2025 and were signed by:

K Picard - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

1,213,025

1,213,125

Changes in equity

Total comprehensive income

-

581,857

581,857

Balance at 31 December 2023

100

1,794,882

1,794,982

Changes in equity

Total comprehensive income

-

1,150,034

1,150,034

Balance at 31 December 2024

100

2,944,916

2,945,016

Cash flows from operating activities

Cash generated from operations

1

379,227

154,569

Interest paid

(186

)

-

Tax received

(5,856

)

300,969

Net cash from operating activities

373,185

455,538

Cash flows from investing activities

Purchase of tangible fixed assets

(58,560

)

(32,122

)

Interest received

4,067

1,913

Net cash from investing activities

(54,493

)

(30,209

)

Increase in cash and cash equivalents

318,692

425,329

Cash and cash equivalents at beginning of year

2

1,268,929

843,600

Cash and cash equivalents at end of year

2

1,587,621

1,268,929

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

2024

2023

£

£

Profit before taxation

1,436,167

490,579

Depreciation charges

48,408

45,492

Finance costs

186

-

Finance income

(4,067

)

(1,913

)

1,480,694

534,158

(Increase)/decrease in stocks

(452,899

)

564,769

(Increase)/decrease in trade and other debtors

(1,109,266

)

242,468

Increase/(decrease) in trade and other creditors

460,698

(1,186,826

)

Cash generated from operations

379,227

154,569

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,587,621

1,268,929

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,268,929

843,600

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

1,268,929

318,692

1,587,621

1,268,929

318,692

1,587,621

Total

1,268,929

318,692

1,587,621

1.	STATUTORY INFORMATION

Franklin Products 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes that continuing support will be made available by the company's parent company to provide working capital and enable the company to meet its obligations as they fall due. Further details are shown below.

TURNOVER

The company's turnover represents the value, excluding sales taxes, of goods and services supplied to customers during the year. A sale is recognised when goods and services have been delivered and future economic benefits are probable. Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts and sales 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.

Improvements to property

-

10% or 17% straight line

Plant, machinery and office equipment

-

at varying rates on cost

* Lease ends in 2031.

Loose tools and moulds

It is the company's policy to write off expenditure on loose tools and moulds immediately to profit or loss, since individually they are not of any significant value.

STOCKS

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

Cost is calculated using the first-in first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress includes an additional proportion of relevant overheads dependent on the stage of completion.

FINANCIAL INSTRUMENTS

Financial assets including cash at bank and in hand and other debtors are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the the financial instrument's legal form. Financial liabilities including other creditors as well as bank overdrafts are initially measured at transaction price (including transaction costs) and are subsequently held at amortised cost.

Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

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.

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.

DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

TAX

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. it is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

GOING CONCERN

COVID-19 previously had an adverse impact on the aviation industry in which the Company operates; however, the situation has now reversed. Global demand for air travel has increased dramatically, leading to a corresponding increase in demand for the Company’s primary products. In response to this growing market, Franklin Products Limited has taken proactive steps to ensure its continued success, including expansion of its UK operations and ongoing plans to further expand its facility in Poland.

Franklin Products Limited continues to hold significant cash reserves and has no external financing other than the balance due to its parent company. Franklin Products Inc., the ultimate parent company, has provided a written letter of support confirming its commitment to continue funding the UK operations. The Company remains up to date with its tax obligations and continues to pay suppliers within agreed credit terms.

At the balance sheet date, the Company had a net surplus on reserves of £2,945,016. The order book remains strong as the aviation industry continues to grow following the recovery from the COVID-19 pandemic. The Director is therefore of the opinion that the going concern basis remains appropriate.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In preparing these financial statements, the Directors have made the following judgements:

* Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

* Impairment of trade receivables

The company evaluates the amount of allowance for impairment based on available facts and circumstances affecting the collectability of the accounts, including, but not limited to, the length of the Company's relationship with the customers, the customers' current credit status, average age of accounts, collection experience and historical loss experience. The methodology and assumptions used in estimating future cash flows are reviewed regularly by the Company to reduce any differences between loss estimates and actual loss experience.

* Inventory

The Company evaluates the amount of allowance for impairment based on available facts and circumstances affecting the inventory balances at the year end. The methodology and assumptions used in determining whether inventory items are impaired is reviewed regularly by the Company to reduce any differences between loss estimates and actual loss experience.

5.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

2,854,109

2,241,054

Rest of Europe

5,797,246

6,619,802

Rest of the World

7,659,384

3,590,641

16,310,739

12,451,497

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,283,489

2,858,971

Social security costs

83,768

72,056

Other pension costs

196,040

165,375

3,563,297

3,096,402

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

2024

2023

UK

46

41

Poland

131

134

177

175

2024

2023

£

£

Directors' remuneration

-

-

7.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

11,896

18,121

Depreciation - owned assets

48,410

45,492

Auditors' remuneration

53,559

63,382

Operating lease rentals

230,805

210,697

Exchange losses/(gains)

(235,320

)

454,417

The auditors remuneration in 2024 is analysed as: BDO LLP £23,559 (2023: £33,382) and Ad Valorem Audit Services Limited £30,000 (2022: £30,000).

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

186

-

9.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

213,475

119,902

Foreign tax paid

169,194

-

Total current tax

382,669

119,902

Deferred tax

(96,536

)

(211,180

)

Tax on profit

286,133

(91,278

)

UK corporation tax has been charged at 25% (2023 - 23.52%).

RECONCILIATION OF TOTAL TAX CHARGE/(CREDIT) INCLUDED IN PROFIT AND LOSS

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

2024

2023

£

£

Profit before tax

1,436,167

490,579

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

359,042

115,384

Effects of:

Expenses not deductible for tax purposes

(24,740

)

-

Depreciation in excess of capital allowances

24,489

4,515

Other permanent differences

-

3

Movement in deferred tax

96,536

(211,180

)

Foreign tax already paid

(169,194

)

-

Total tax charge/(credit)

286,133

(91,278

)