ACCOUNTS - Final Accounts preparation

Registered number: 03744062

KEEL TOYS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025


KEEL TOYS LIMITED

COMPANY INFORMATION

Directors	D M Keel
	J M Keel
	J E Keel
	P A Keel
	R J Keel
	S O Keel
	S A Keel


Company secretary	R J Keel


Registered number	03744062


Registered office	Unit 1 Ashford Business Park
	Sevington
	Ashford
	Kent
	TN24 OSG


Independent auditors	Magee Gammon Corporate Limited
	Chartered Accountants & Statutory Auditors
	Henwood House
	Henwood
	Ashford
	Kent
	TN24 8DH


KEEL TOYS LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Statement of income and retained earnings	8
Balance sheet	9
Statement of cash flows	10
Analysis of net debt	11
Notes to the financial statements	12 - 25


KEEL TOYS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

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

Business review

The performance of the company for the year ended 31 March 2025, accorded with the expectations and the
directors' view, the financial position of the company at that date as satisfactory. The directors consider that
given the right economic conditions, the company will remain profitable in the coming years
.
In the last few years an increasing problem has been the plagiarism of the company's designs. To combat this
situation they have invested heavily in the protection of their copyright and have fought a number of successful
actions. The company has set aside a substantial sum and retained the services of Messrs Berwin Leighton
Paisner, patent specialists, to aggressively pursue any copyright infringements on their behalf.

Principal risks and uncertainties

The key business risks and uncertainties are considered to relate to competition from established competitors,
the support of our suppliers, the state of the UK and global economies and volatility of exchange rates.

Financial key performance indicators

Given the straight forward nature of the business the company's directors are of the opinion that analysis using
KPIs is not necessary for an understanding of the development, performance or position of the business.

This report was approved by the board on 26 November 2025 and signed on its behalf.

___________________________

R J Keel

Director

Page 1


KEEL TOYS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,924,360 (2024 - £2,442,090).

The directors recommended a final dividend of £20.00 per share to be paid in respect to the year ended 31
March 2025.

Directors

The directors who served during the year were:

D M Keel

J M Keel

J E Keel

P A Keel

R J Keel

S O Keel

S A Keel

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2


KEEL TOYS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Auditors

The auditors, Magee Gammon Corporate Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 November 2025 and signed on its behalf.

___________________________

R J Keel

Director

Page 3


KEEL TOYS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEEL TOYS LIMITED

Opinion

We have audited the financial statements of Keel Toys Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of income and retained earnings, the Analysis of net debt, the Balance sheet, the Statement of cash flows and the related notes, 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 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Page 4


KEEL TOYS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEEL TOYS LIMITED (CONTINUED)

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report 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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 2, 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 is 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.

Page 5


KEEL TOYS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEEL TOYS LIMITED (CONTINUED)

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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company, we have considered those laws and regulations that have a direct
impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated
management incentives and opportunities for fraudulent manipulation of the financial statements including
management override, and considered that the principal risk was related to the posting of inappropriate journal
entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
• Discussions with management regarding known or suspected instances of non-compliance with laws and
regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance
with laws and regulations is from the events and transactions reflected in the financial statements, the less likely
we would become aware of it. As in all of our audits we also addressed the risk of management override of
internal controls, including testing journals and evaluating whether there was evidence of bias by the directors
that represented a risk of material misstatement due to fraud.

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 Auditors' report.

Page 6


KEEL TOYS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEEL TOYS LIMITED (CONTINUED)

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 an Auditors' report 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.

Andrew John Childs FCA (Senior statutory auditor)

for and on behalf of

Magee Gammon Corporate Limited

Chartered Accountants

Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH

27 November 2025

Page 7


KEEL TOYS LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024


Turnover	4	28,227,081	29,565,930
Cost of sales		(18,962,393)	(19,880,628)
Gross profit		9,264,688	9,685,302
Distribution costs		(1,125,247)	(1,079,392)
Administrative expenses		(5,037,197)	(4,921,885)
Operating profit	5	3,102,244	3,684,025
Interest receivable and similar income	9	225,700	165,542
Interest payable and similar expenses	10	(742,669)	(572,431)
Profit before tax		2,585,275	3,277,136
Tax on profit	11	(660,915)	(835,046)
Profit after tax		£1,924,360	£2,442,090


Retained earnings at the beginning of the year	7,242,695	6,800,605
Profit for the year	1,924,360	2,442,090
Dividends declared and paid	(2,000,000)	(2,000,000)
Retained earnings at the end of the year	£7,167,055	£7,242,695

The notes on pages 12 to 25 form part of these financial statements.

Page 8


KEEL TOYS LIMITED REGISTERED NUMBER:03744062

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note

Fixed assets
Tangible assets	13		13,750,246		13,604,124
Current assets
Stocks	14	5,306,478		4,112,255
Debtors: amounts falling due within one year	15	4,068,735		5,308,833
Cash at bank and in hand	16	7,325,831		5,698,958
		16,701,044		15,120,046
Creditors: amounts falling due within one year	17	(14,919,259)		(13,078,367)
Net current assets			1,781,785		2,041,679
Total assets less current liabilities			15,532,031		15,645,803
Provisions for liabilities
Deferred tax	19	(1,342,022)		(1,380,154)
			(1,342,022)		(1,380,154)
Net assets			£14,190,009		£14,265,649

Capital and reserves
Called up share capital	20	100,000	100,000
Revaluation reserve	21	6,922,954	6,922,954
Profit and loss account	21	7,167,055	7,242,695
		£14,190,009	£14,265,649

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 November 2025.

___________________________

R J Keel

Director

The notes on pages 12 to 25 form part of these financial statements.

Page 9


KEEL TOYS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

2025

2024

Cash flows from operating activities
Profit for the financial year	1,924,360	2,442,090
Adjustments for:
Depreciation of tangible assets	258,937	204,831
Loss on disposal of tangible assets	-	13,679
Interest paid	742,669	572,430
Interest received	(225,700)	(165,542)
Taxation charge	660,915	835,046
(Increase)/decrease in stocks	(1,194,226)	1,964,134
Decrease/(increase) in debtors	1,240,100	(870,959)
Increase in creditors	2,011,065	2,492,475
Corporation tax (paid)	(869,218)	(924,441)
Net cash generated from operating activities	4,548,902	6,563,743
Cash flows from investing activities
Purchase of tangible fixed assets	(405,060)	(326,765)
Sale of tangible fixed assets	-	48,124
Interest received	225,700	165,542
Net cash from investing activities	(179,360)	(113,099)
Cash flows from financing activities
Dividends paid	(2,000,000)	(2,000,000)
Interest paid	(742,669)	(572,430)
Net cash used in financing activities	(2,742,669)	(2,572,430)
Net increase in cash and cash equivalents	1,626,873	3,878,214
Cash and cash equivalents at beginning of year	5,698,958	1,820,744
Cash and cash equivalents at the end of year	£7,325,831	£5,698,958

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	7,325,831	5,698,958
	£7,325,831	£5,698,958

The notes on pages 12 to 25 form part of these financial statements.

Page 10


KEEL TOYS LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2025


At 1 April 2024	Cash flows	At 31 March 2025

Cash at bank and in hand	5,698,958	1,626,873	7,325,831
Debt due within 1 year	(7,398,941)	(2,608,963)	(10,007,904)
	£(1,699,983)	£(982,090)	£(2,682,073)

The notes on pages 12 to 25 form part of these financial statements.

Page 11


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Keel Toys Limited is a private company limited by shares. The company is registered in England and
Wales under the number 03744062. The company registered office is Unit 1 Ashford Business Park,
Sevington, Ashford TN24 0SG.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 12


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property	-		Not depreciated
Plant and machinery	-	20%
Motor vehicles	-	25%
Fixtures and fittings	-	10%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 15


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Page 16


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.17

Financial instruments (continued)

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and
assumptions that affect the amounts reported. These estimates and judgments are continually reviewed
and are based on experience and other factors, including expectations of future events that are believed
to be reasonable under the circumstances.
The judgments (apart from those involving estimations) that management has made in the process of
applying the entity's accounting policies and that have the most significant effect on the amounts
recognised in the financial statements are as follows:
(i) Purchase recognition - directors recognise the purchases when significant risks and rewards of
ownership are passed to them as a buyer. They consider this has taken place on delivery and therefore
record all deliveries not yet invoiced as accruals at the year end.
(ii) Useful economic life of fixed and intangible assets - The annual depreciation and amortisation
charges are based upon management's assessment of the useful economic lives and residual values of
the company's tangible assets. These are reassessed annually and amended where necessary.
(iii) Bad debts - Directors have included bad debt provisions for items due from customers in
administration and any other debts which are in dispute and have been reviewed. A proportion has been
provided based on expected outcome.
(iv) Stock valuation - Stocks are measured at the lower of cost and estimated selling price less cost to
complete and sell.

Turnover

The whole of the turnover is attributable to the design and distribution of toys. In accordance with the
Companies Act 2006, the Directors have chosen not to disclose turnover by class or geographical area as,
in their opinion, this would be seriously prejudicial to the business.

5.	Operating profit
	The operating profit is stated after charging:
		2025	2024

Exchange differences	(2,624,629)	(2,992,603)
Other operating lease rentals	8,380	13,537
	£2,633,009	£3,006,140

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KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

6.	Auditors' remuneration
	During the year, the Company obtained the following services from the Company's auditors:
		2025	2024

Fees payable to the Company's auditors for the audit of the Company's financial statements	17,007	14,687
Fees payable to the Company's auditors in respect of:
Audit-related assurance services	14,075	11,390
Taxation compliance services	112	107
Other services relating to taxation	2,820	3,190

7.	Employees
	Staff costs, including directors' remuneration, were as follows:
		2025	2024

Wages and salaries	6,435,779	6,659,292
Social security costs	897,768	899,618
Cost of defined contribution scheme	62,576	57,381
	£7,396,123	£7,616,291

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Directors	7	7
Administration Staff	23	23
Distribution Staff	15	15
Sales Staff	13	12

	58	57

8.	Directors' remuneration
					2025	2024

	Directors' emoluments	£4,695,150	£5,148,727

The highest paid director received remuneration of £1,503,792 (2024 - £1,689,074).

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KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

9.	Interest receivable
					2025	2024

Other interest receivable

£225,700

£165,542

10.	Interest payable and similar expenses
					2025	2024

Bank interest payable	17	1,276
Other loan interest payable	731,997	571,155
Other interest payable	10,655	-
	£742,669	£572,431

11.	Taxation

		2025	2024

Corporation tax
Current tax on profits for the year	711,078	828,002
Adjustments in respect of previous periods	(12,031)	-
Total current tax	£699,047	£828,002

	Deferred tax
	Origination and reversal of timing differences	£(38,132)	£7,044


	Tax on profit	£660,915	£835,046

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KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

11.Taxation (continued)

Factors affecting tax charge for the year
The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
	2025	2024

Profit on ordinary activities before tax

£2,585,275

£3,277,137

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	646,319	819,285
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	15,585	17,431
Capital allowances for year in excess of depreciation	11,042	(1,670)
Adjustments to tax charge in respect of prior periods	(12,031)	-
Total tax charge for the year	£660,915	£835,046

Factors that may affect future tax charges

In accordance with Accounting Standards, the deferred tax liability reflected in the accounts has been
calculated at 25%, being the corporation tax rate substantively enacted at the Balance Sheet date.
The deferred tax liability on the revaluation would only become realiseable if the site was sold and the
proceeds not reinvested. The respective deferred tax charge in the prior year is £1,342,022 and closing
liability is £1,342,022 as detailed in Note 19 to the accounts.

12.	Dividends
					2025	2024

	Ordinary
	Dividends	£2,000,000	£2,000,000

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KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

13.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
Cost or valuation
At 1 April 2024	12,900,000	135,477	797,486	397,899	14,230,862
Additions	-	-	405,060	-	405,060
At 31 March 2025	12,900,000	135,477	1,202,546	397,899	14,635,922
Depreciation
At 1 April 2024	-	135,477	228,053	263,208	626,738
Charge for the year on owned assets	-	-	240,463	18,475	258,938
At 31 March 2025	-	135,477	468,516	281,683	885,676
Net book value
At 31 March 2025	£12,900,000	£-	£734,030	£116,216	£13,750,246
At 31 March 2024	£12,900,000	£-	£569,433	£134,691	£13,604,124

	The net book value of land and buildings may be further analysed as follows:
					2025	2024

	Freehold	£12,900,000	£12,900,000

The revaluations of freehold property were performed by Colliers International, an independent valuer
with a recognised and relevant professional qualification. The valuation given of £12,900,000 on 1 August
2022, on the basis of the open market value in accordance with the Appraisal and Valuation Manual of the Royal Institute of Chartered Surveyors. Based on the current market and surrounding economic conditions the directors feel the valuation of the freehold property is representative of the current market value.
If carried at historic cost, freehold property would be held at year end at a cost of £4,635,024.

14.	Stocks
					2025	2024

	Finished goods and goods for resale	£5,306,478	£4,112,255

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KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

15.

Debtors

2025

2024

Trade debtors	3,115,665	4,586,004
Other debtors	236,337	139,967
Prepayments and accrued income	716,733	582,862
	£4,068,735	£5,308,833

16.	Cash and cash equivalents
					2025	2024

	Cash at bank and in hand	£7,325,831	£5,698,958

17.	Creditors: Amounts falling due within one year
					2025	2024

Trade creditors	1,143,838	1,535,955
Corporation tax	287,237	457,408
Other taxation and social security	554,481	630,101
Other creditors	10,142,723	7,566,806
Accruals and deferred income	2,790,980	2,888,097
	£14,919,259	£13,078,367

18.	Financial instruments
					2025	2024

Financial assets
Financial assets measured at fair value through profit or loss	7,325,831	5,698,958
Financial assets measured at amortised cost	3,352,002	4,725,971
	£10,677,833	£10,424,929

	Financial liabilities
	Financial liabilities measured at amortised cost	£11,841,042	£9,732,862

	Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.
	Financial assets measured at amortised cost comprise of trade debtors and other debtors.
	Financial liabilities measured at amortised cost comprise of trade creditors, other taxation and social security and other creditors.

Page 23


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

19.	Deferred taxation

		2025

	At beginning of year	1,380,154
	Charged to profit or loss	(38,132)
	At end of year	£1,342,022

	The provision for deferred taxation is made up as follows:
					2025	2024

Accelerated capital allowances	-	38,132
Revaluation of freehold property	1,342,022	1,342,022
	£1,342,022	£1,380,154

20.	Share capital
					2025	2024

Allotted, called up and fully paid

100,000 (2024 - 100,000) Ordinary shares of £1.00 each	£100,000	£100,000

21.

Reserves

Revaluation reserve

The total revaluation reserve is represented by £6,922,954 (2024: £6,922,954) which related to the
recognition of freehold property at market value and the related deferred taxation. This is non distributable.

Profit and loss account

The profit and loss account reserve represents the accumulation amounts passing through the statement
of comprehensive Income. This reserve represents distributable profit.

22.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the company to the fund and amount to £62,576 (2024: £57,381).

Page 24


KEEL TOYS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

23.	Commitments under operating leases
	At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		2025	2024

Not later than 1 year

£-

£7,671

24.	Related party transactions
	Included in creditors due within one year are amounts due to the directors, amounting to £10,007,904 (2024: £7,398,941). These amounts are incurring interest. Interest paid in the period amounted to £585,598 (2024: £454,824). Amounts paid under employment contracts to close family members of the directors amounts to £186,903 (2024: £176,358).

Page 25