The Directors present the strategic report for the year ended 31 December 2024.

The principal activities of the Company are set out in the directors’ report on page 4.

Ahmad Tea has continued to grow the business and global brand throughout 2024, whilst remaining profitable and remaining true to our core values of sustainable growth and agenda of corporate social responsibility. Inflationary pressures as seen throughout 2023 remain and continue to significantly impact the business.

The group's turnover in 2024 has increased to $179Mil from $151Mil seen throughout 2023, a 18.54% increase over the year. The Geographical split in turnover has remained in line with the results seen throughout 2023, although a previous decline in North America sales has been stabilized following re-organization plans. Final operating profit for the year ended 2024 at $21.7Mil (FY24).

Gross profit margins throughout 2024 have increased compared with 2023. From 25.64% to 27.37%. This has largely been due to the cost of freight returning to pre-pandemic rates.

Marketing costs is in line with the strategic growth plans. Marketing costs as a percentage of sales have decreased from 4.75% seen in 2023 to 3.32% throughout 2024.

Overhead expenses for 2024 as a percentage of Turnover have remained constant at just over 15.9%.

The Companies’ financial assets and liabilities consist of trade debtors and creditors, cash balances, and bank overdrafts. The company has no commercial loans.

The Company takes a proactive approach to the management of various risks that it faces and risk management is an integral part of the Group’s strategy. Commercial risks include fluctuations in raw Tea pricing which is managed through close and longstanding supplier relationships. Operationally the company has some risk associated with the supply of product through bulk and co-packers of packers of Tea although much of this has been diversified away. The Companies’ primary financial risk is from currency fluctuations in relation to import and export revenues, this currency exchange risk is managed through careful treasury management. The Group does not trade speculatively in hedging products or similar instruments.

The Directors of Ahmad Tea recognise the importance of robust control measures to govern the group activities and consolidation of financial results.

The company ensures that the supervision of accounting and treasury are duly organised. The Board decides on policy, procedures, reporting, and qualitative and quantitative indicators used to assess operational efficiency and performance.

The business has a system of internal meetings with a formal agenda, including financial information, monitoring and decisions related to financial and operational matters. The quality of the financial reporting processes and internal controls is assessed by Group Finance regularly as part of the quality assurance of reporting. Reconciliation between company and group transactions is closely monitored and confirmed between reporting entities.

Ahmad Tea has a clearly defined uniform group-wide internal control system; which is based on five key components that facilitate good internal control. Control environment, Risk management, Control activities, Information and reporting, and Monitoring and continuous improvement.

It is anticipated that Revenue and profit forecasts for 2025 will remain strong, although inflation rises across many markets have now started to normalise. It is also anticipated that the high freight costs seen throughout previous years may return to pre-pandemic rates as the industry further consolidates and more volume is added to shipping lines and port capacity is improved. There continues to be wider uncertainty across geo-political policies and trade tariffs.

The company continues to endeavour to keep any customer price increases to the minimum so as not to impact the end consumer. The company aims to consistently improve efficiency while ensuring the very high quality of the product. The business continues significant investment to secure additional capacity within its supply chain and has embraced the use of advanced technology and the use of AI within its operations.

Ahmad Tea continues to accelerate direct-to-customer sales and online capabilities in partnership with distributors.

The Charitable, Social and environmental ethos remains at the very core of all of the company’s plans. With continued progress made in the removal of plastic packaging, waste management and a circular supply chain.

Health, wellness and botanicals continue to remain key trends and Ahmad Tea continues to strengthen the core brands with product development, driving premiumisation across the portfolios.

The Board of Directors confirm that during the year under review, they have acted to promote the long term success of the Company for the benefit of the shareholders, while having due regard to matters set out in section 172 (1) of the companies Act 2006.

1. The likely consequences of any decision in the long term;

2. The interest’s of the company employees;

3. The need to foster the company’s business relationships with suppliers, customers and others;

4. The impact of the company’s operations on the community and the environment;

5. The desirability of the company maintaining a reputation for high standards of business conduct; and

6. The need to act fairly as between members of the company

The company reviews its approach to corporate governance and decision making, engagement with stakeholders and the Company’s impact on the environment.

The company has demonstrated this by their strategic approach underpinned by the operational and functional business plans in their duty to fulfil Section 172.

The company has a clear Purpose underpinned by its core values in its approach to its multi stakeholder model, to include Employees, Consumers, Customers, Suppliers and Distributors, and in its approach to Environmental sustainability, The wider society, and its shareholders.

This has been manged through Employee development and reward initiatives supported by employee engagement reviews and employee metrics including robust Health and Safety operating procedures.

The Ahmad Tea ethos is to embed long term partnership agreements, with all parties within the supply chain who are expected to uphold the same high standards of business ethics and agreement charters to ensure adherence to modern slavery, human rights and corruption policies.

Corporate social responsibility, environmental sustainability, and charitable endeavours around the globe is at the very core of the Cultures and Values of the organisation and will continue to be so.

On behalf of the board

The Directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activities of the company continued to be that of the acquisition, blending, packing and distribution of quality tea and tea products.

The results for the year are set out on note 11.

Ordinary dividends were paid amounting to $1,500,000. The Directors do not recommend payment of a further dividend.

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

This is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset

Management monitors its cash flows to determine its cash requirements to meet its payment obligations on time. If necessary, funds are made available by the shareholders to ensure that the payments obligations are met on time.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged . It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The Companies policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employee’s interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve common awareness on the part of all employees of the financial and economic factors affecting the Company’s performance.

HJS Accountants Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The UK Government’s Streamlined Energy and carbon Reporting (SECR) policy was implemented on 1 April 2019, the Company first adopted the disclosure on energy and Carbo in the accounts ending 31 December 2020. The table below represents Ahmad Tea Limited’s energy use and associated greenhouse gas (GHG) emissions from electricity and fuel for the single UK site for the year ended 31 December 2024.

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Net Total gross Emissions in KG's of CO2e 90,439

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The financial statements have been drawn up on going concern basis since the directors are satisfied the Companies equity position remains stable.

This report has been prepared in accordance with the provisions applicable to companies Act 2006.

The directors are responsible for preparing the strategic report, the directors’ report and the accounts in accordance with applicable law and regulations.

Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts 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 accounts, the directors are required to;

• Select suitable accounting policies and then apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting policies have been followed, subject to any material departures disclosed and explained in the accounts;

• Prepare the accounts 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 accounts comply with the Companies act 2006. They are also responsible for safeguarding the assets of the company and hence forb taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Ahmad Tea (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

As explained more fully in the Directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

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

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant Hygiene Standards authorities within the UK. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the audit engagement team included:

• Discussions with senior management, including consideration of known or suspected instances of non compliance with laws and regulation or instances of fraud;

• Identifying and testing journal entries based on risk criteria;

• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

• Testing transactions entered into outside of the normal course of the company's business;

• Reviewing any potential litigation or claims against the entity which indicate any potential non compliance issues.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or though collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was $2,688,029 (2023 - $4,826,721 profit).

Ahmad Tea (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ahmad Tea Estate, Winchester Road, Chandler's Ford, Eastleigh, Hampshire, SO53 2PZ.

The group consists of Ahmad Tea (UK) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $. A closing rate of 1.27356 dollars for each pound has been used with and average rate of 1.24791 dollars for each pound used where required.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Ahmad Tea (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and equity of the joint venture. The consolidated profit and loss includes the groups share of the post-tax results and the consolidated balance sheet includeds the groups share of the identifiable net assets.

At the time of approving the financial statements, the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Company

The Company has a sterling denominated debt to its UK subsidiary for the US$ equivalent of $11,529,610 (2023: $9,770,213) at the balance sheet date which creates a net current liability position. This debt is interest-free and repayable on demand, and is eliminated on consolidation. Although the Company does not have the resources to pay this debt, the directors have confirmed that there is no intention to seek settlement in the foreseeable future. The group will provide the necessary financial support.

Accordingly, no going concern risk to the Company regarding this debt is considered to exist.

Group

The financial statements have been drawn up on a going concern basis since the directors are satisfied that the Group’s equity position remains sound..

The directors acknowledge that given the currently rapidly changing business and social environment. There are likely to be significant unknown factors which may present themselves.

The financial statements have been drawn up on a going concern basis since the directors are satisfied that the Groups’ equity position remains stable.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost less their residual values of each asset (other than freehold land) over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 arising 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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

End-of-service gratuities

Provision is made for end-of-service gratuities that have accrued to staff at the balance sheet date in accordance with local labour laws in an overseas territory. In accordance with section 4.7 of FRS 102, the amount so accrued is recorded as a liability falling due within one year.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Due to the events of February 2022, an impairment review has been conducted by the directors on Group investments in both Russia and the Ukraine.

Ukraine – The investment held in the Ukraine has been fully impaired due to the ongoing conflict in the country. This was following a previous impairment of the asset seen in prior years. Production at the facility continues and Ukraine country sales remain stable

Russia – Due to the conflict between Russia and Ukraine, a full impairment review was undertaken on the companies investment within Russia. It is noted that there has not been any detrimental impact on Sales, or operational activity in Russia nor has the exchange rate with the Ruble impacted on profitability. The Directors ascertain that there is no basis for an impairment of the asset at this time.

Despite owning shareholdings in excess of 50% in the investments of Ahmad Tea Factory LLC, Premium Production LLC and Ahmad Tea (Nanchang) these have been accounted for in line with the treatment for joint ventures for the following reasons:

• The directors are unable to directly control the entities and require unanimous consent in order to make decisions

• Lack of a local presence and difficult and unstable legal systems within the associated countries

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets other than freehold land are depreciated over their economic useful lives taking into account local factors affecting operating longevity and residual values where appropriate. The actual lives of the assets and the residual values, particularly in overseas territories, are considered annually by the directors and may vary depending upon 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 assets and expected disposal values.

The directors consider that a general provision against trade debtors is required because of the inherent risks in the geographical spread of its customers. This provision is currently set at 3.5% of trade debts due from customers (excluding related parties).

An analysis of the group's turnover is as follows:

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

This note has been updated when compared to the previously filed accounts to reflect the dividends paid to shareholders only.

Investment properties have been valued by the management. The current carrying value of the investment properties although not valued by independent valuers at the reporting date approximates to the their respective market values at the reporting date, accordingly, there is no impairment in the value of any of the investment properties.

Registered office addresses (all UK unless otherwise indicated):

Details of joint ventures at 31 December 2024 are as follows:

Amount owed by group undertakings in consolidated financials is balance owed by Joint ventures.

Amount owed to group undertakings in consolidated financials is amount owed to joint ventures.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The general provision for doubtful debts is not deductible for tax purposes, thereby creating a deferred asset.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the exemption available under FRS 102 paragraph 33.1a whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

The balances and transactions eliminated on consolidation are not disclosed.

2025 Revenue is expected to end on par with the 2024 figures, Freight rate has stabilized over the year and many routes have seen a reduction in costs, although transit times are still extended with a reduction of traffic through the red sea and significant congestion at key ports. The company remains committed to ensuring the very highest level of quality of product and operating procedures.

Markets

2025 Revenue is expected to end on par with the 2024 figures. Ahmad Tea continues to accelerate direct-to-customer sales and online capabilities in partnership with local distributors.

Group

Post year end, the group have formed one new subsidiary 100% owned subsidiary know as Ahmad Tea (CPC) (Pvt) Ltd and partaken in a further joint venture forming Ahmad Tea Beverages PTE Ltd.

Future

The Charitable, social and environmental ethos remains at the very core of all of the company’s plans. With progress made in the removal of plastic packaging, waste management and a circular supply chain.

The ultimate control persons are the Afshar family.