REGISTERED NUMBER: 04424536 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

PHASE ELECTRICAL DISTRIBUTORS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

D P Hogg

D Poole

S R Millard

M B Nealer

SECRETARY:

M S Walker

REGISTERED OFFICE:

Unit 42

Hammonds Drive Ind. Estate

Eastbourne

East Sussex

BN23 6PW

REGISTERED NUMBER:

04424536 (England and Wales)

AUDITORS:

Ashdown Hurrey Auditors Ltd

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

SOLICITORS:

Gaby Hardwicke

33 The Avenue

Eastbourne

East Sussex

BN21 3YD

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

REVIEW OF BUSINESS

The Directors are pleased to report a strong performance, with an overall increase in sales of £6 million. This growth reflects the successful execution of our strategic initiatives across multiple areas of the business.

A key driver of this increase has been the launch of our new Renewables division, which contributed £2.5 million in additional sales. Focused on solar products and related components, this division is already proving to be a valuable addition as the demand for sustainable energy solutions continues to grow.

The growth and strategic investment in our Renewables Department has contributed to a lower gross profit margin percentage compared to previous years. This outcome was anticipated and reflects our commitment to building a robust platform for future growth. By strengthening the core operations of the business now, we are positioning the company for long-term, sustainable expansion in an evolving and increasingly opportunity-rich market.

Further growth has been achieved through our continued investment in digital and physical infrastructure. Our website saw sales rise by over £1 million, supported by ongoing improvements in user experience and functionality. Additionally, our Distribution Centre and branch network collectively delivered a sales uplift of over £1 million, reflecting the strength of our operational reach and customer service.

With employee costs, rents, and insurance continuing to rise, maintaining our profit margins remains a key priority. These challenges underscore the importance of ongoing financial discipline, and as a company, we are actively monitoring and addressing margin performance on a monthly basis to ensure long-term stability and resilience.

Key Performance Indicators

Turnover

Gross margin

Pre tax profit

2025

£31,601,952

£6,852,800

£753,498

2024

£25,865,579

£6,136,074

£408,665

2023

£25,712,542

£6,310,950

£1,250,638

2022

£22,584,890

£5,766,243

£1,306,607

2021

£17,880,035

£4,180,464

£1,210,891

PRINCIPAL RISKS AND UNCERTAINTIES

Phase Electrical Distributors Limited, established in 2002, has built a strong reputation for supplying high-quality products and delivering exceptional customer service in line with evolving expectations. Our pricing strategy is carefully structured to achieve targeted margins, which are essential to maintaining profitability and supporting long-term business stability. This disciplined approach enables us to remain competitive while proactively safeguarding against future market pressures. As the marketplace continues to evolve, we are committed to embracing all sales platforms and adapting to changing customer purchasing behaviours to ensure continued relevance and growth.

Given the ongoing global conflicts and the resulting increases in the cost of raw materials, energy, and insurance, we remain committed to maintaining optimal stock levels to meet customer demands. Looking ahead, the anticipated rise in National Insurance contributions for 2025/26, along with continued increases to the National Living Wage, will further drive up operating costs. These factors highlight the critical importance of safeguarding healthy gross profit margins to ensure the long-term financial stability and profitability of the business.

FUTURE DEVELOPMENTS

The Directors remain confident in the company's future growth, supported by continued investment in our website aimed at increasing both sales and cash reserves. The stability of our branch network, which consistently delivers strong sales performance, provides a solid foundation that enables us to invest in emerging markets such as Solar and Electric Vehicle (EV) infrastructure. Collectively, these initiatives enhance our ability to meet the full range of our customers' electrical needs across the UK, supporting sustainable and steady business growth.

ON BEHALF OF THE BOARD:

D P Hogg - Director

10 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of being an electrical wholesaler to trade and retail customers.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £663,268 (2024: £697,992).

DIRECTORS

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

D P Hogg

D Poole

S R Millard

M B Nealer

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements and directors' loans. The main purpose of these instruments is to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

The loans from the directors do not have interest charged but are repayable on demand. The directors are aware of the company's required finance and have determined that these will only be repaid, in whole or in part, when finance is available.

The company's operating lease commitments are in respect of the property from which the company operates as well as motor vehicles. The liquidity risk in respect of these is managed in the same way as loans above.

The company's trade debtors are factored thorough the bank although the company retains all significant benefits and risks in respect of these. These are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

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 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 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, Ashdown Hurrey Auditors Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D P Hogg - Director

10 December 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 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 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 four, 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:

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements;

- 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 and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

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;

- Investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-audit ors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.

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.

Daniel Oliver FCCA (Senior Statutory Auditor)

for and on behalf of Ashdown Hurrey Auditors Ltd

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

10 December 2025

TURNOVER

3

31,601,952

25,865,579

Cost of sales

(24,749,152

)

(19,729,505

)

GROSS PROFIT

6,852,800

6,136,074

Administrative expenses

(5,876,571

)

(5,545,328

)

OPERATING PROFIT

5

976,229

590,746

Interest receivable and similar income

5,189

1,892

981,418

592,638

Interest payable and similar expenses

6

(227,920

)

(183,973

)

PROFIT BEFORE TAXATION

753,498

408,665

Tax on profit

7

(207,438

)

(119,151

)

PROFIT FOR THE FINANCIAL YEAR

546,060

289,514

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

546,060

289,514

FIXED ASSETS

Intangible assets

9

4,318

9,500

Tangible assets

10

845,840

805,380

850,158

814,880

CURRENT ASSETS

Stocks

11

4,435,954

4,048,615

Debtors

12

7,259,325

4,769,338

Cash at bank and in hand

7,216

142,937

11,702,495

8,960,890

CREDITORS

Amounts falling due within one year

13

10,538,498

7,652,903

NET CURRENT ASSETS

1,163,997

1,307,987

TOTAL ASSETS LESS CURRENT LIABILITIES

2,014,155

2,122,867

CREDITORS

Amounts falling due after more than one year

14

(53,390

)

-

PROVISIONS FOR LIABILITIES

18

(272,175

)

(317,069

)

NET ASSETS

1,688,590

1,805,798

CAPITAL AND RESERVES

Called up share capital

19

4,078

4,078

Share premium

245,972

245,972

Capital redemption reserve

75

75

Retained earnings

1,438,465

1,555,673

SHAREHOLDERS' FUNDS

1,688,590

1,805,798

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

D P Hogg - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

4,078

1,964,151

245,972

75

2,214,276

Changes in equity

Profit for the year

-

289,514

-

-

289,514

Total comprehensive income

-

289,514

-

-

289,514

Dividends

-

(697,992

)

-

-

(697,992

)

Balance at 31 March 2024

4,078

1,555,673

245,972

75

1,805,798

Changes in equity

Profit for the year

-

546,060

-

-

546,060

Total comprehensive income

-

546,060

-

-

546,060

Dividends

-

(663,268

)

-

-

(663,268

)

Balance at 31 March 2025

4,078

1,438,465

245,972

75

1,688,590

Cash flows from operating activities

Cash generated from operations

1

(237,967

)

249,317

Interest paid

(227,908

)

(182,933

)

Interest element of hire purchase payments paid

(12

)

(1,040

)

Tax paid

(115,817

)

(223,899

)

Net cash from operating activities

(581,704

)

(158,555

)

Cash flows from investing activities

Purchase of tangible fixed assets

(261,398

)

(281,403

)

Sale of tangible fixed assets

-

9,000

Interest received

5,189

1,892

Net cash from investing activities

(256,209

)

(270,511

)

Cash flows from financing activities

Loan repayments in year

-

(75,758

)

HP borrowing

79,369

(30,658

)

Amount loaned/(withdrawn) by directors

55,433

9,766

Increase in invoice financing

1,339,226

1,103,896

Increase in credit card financing

24,856

21,160

Equity dividends paid

(663,268

)

(697,992

)

Net cash from financing activities

835,616

330,414

Decrease in cash and cash equivalents

(2,297

)

(98,652

)

Cash and cash equivalents at beginning of year

2

(69,044

)

29,608

Cash and cash equivalents at end of year

2

(71,341

)

(69,044

)

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

31.3.25

31.3.24

£

£

Profit before taxation

753,498

408,665

Depreciation charges

226,119

255,870

Profit on disposal of fixed assets

-

(3,576

)

Movement in dilapidation provisions

(55,275

)

-

Finance costs

227,920

183,973

Finance income

(5,189

)

(1,892

)

1,147,073

843,040

Increase in stocks

(387,339

)

(590,147

)

(Increase)/decrease in trade and other debtors

(2,489,987

)

475,828

Increase/(decrease) in trade and other creditors

1,492,286

(479,404

)

Cash generated from operations

(237,967

)

249,317

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

7,216

142,937

Bank overdrafts

(78,557

)

(211,981

)

(71,341

)

(69,044

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

142,937

29,608

Bank overdrafts

(211,981

)

-

(69,044

)

29,608

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

142,937

(135,721

)

7,216

Bank overdrafts

(211,981

)

133,424

(78,557

)

(69,044

)

(2,297

)

(71,341

)

Debt

Finance leases

(1,364

)

(79,369

)

(80,733

)

(1,364

)

(79,369

)

(80,733

)

Total

(70,408

)

(81,666

)

(152,074

)

1.	STATUTORY INFORMATION

Phase Electrical Distributors 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The operating and presentation currencies are both GBP (£).

Going concern

In preparing the financial statements, the directors are required to make an assessment of the ability of the company to continue as a going concern. The directors have prepared budgets and cash flow forecasts for the company.

On the basis of these forecasts and the fact that the company has a good level of net current assets and net assets, the directors are confident that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion.

Changes in accounting policies

There have been no changes in accounting policies.

Turnover

Turnover represents net invoiced sales of electrical parts and equipment and is stated after trade discounts, incentives, rebates and excluding value added tax. Revenue is recognised on despatch of goods to the customer.

Intangible assets

These represent the company's development of a sales website and an electronic stock control system.

Once operational, the company is amortizing intangible assets over their estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost (net of discounts received) and net realisable value, after making due allowance for obsolete and slow moving stock.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts are shown within borrowings in current liabilities.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Equity instruments

Equity 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

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Invoice financing

The company's trade debts are factored with HSBC Invoice Financing although the company retains all significant benefits and risks in respect of these. The trade debts of the company are disclosed within current assets and the amount advanced by HSBC is shown within other creditors. Charges associated with this facility are charged to the profit and loss account for the relevant period.

Employee benefits

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

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

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.

3.

TURNOVER

All turnover was generated from the company's sole class of business and almost exclusively within the UK.

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

2,854,779

2,468,071

Social security costs

284,037

238,206

Other pension costs

115,510

101,306

3,254,326

2,807,583

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

31.3.25

31.3.24

Head Office Staff

21

21

Warehouse/Branch Staff

75

68

96

89

31.3.25

31.3.24

£

£

Directors' remuneration

62,800

62,775

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4