Zintello Merchants Limited - Limited company accounts 25.1

REGISTERED NUMBER: 00826635 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

ZINTELLO MERCHANTS LIMITED

HB&O Ltd

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

B J Fisher

T Johnson

Mrs V Clay

REGISTERED OFFICE:

c/o Fisher & Partners

Princes Drive Estate

Coventry Road

Kenilworth

Warwickshire

CV8 2FD

REGISTERED NUMBER:

00826635 (England and Wales)

SENIOR STATUTORY AUDITOR:

Gregg Olner MPhil BA (Hons) FCA

AUDITORS:

HB&O Ltd

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

Turnover has decreased to £17,698,801 (2024 - £18,341,250) while margins have improved to 33.3% (2024 - 31.8%). Current net assets improved £6,471,764 (2024 - £6,035,294). The group remains profitable and as such net assets increased to £10,915,346 (2024 - £10,366,254).

The directors are satisfied with the group's performance during the year considering the cost pressures.

There is a little more stability in the global supply chains and the purchase of the warehouse in Coventry has and will help withstand the increasing labour costs in the UK.

The directors are confident that, securing product supply cost effectively, hedging against currency fluctuations and with the groups low gearing, performance will be maintained.

PRINCIPAL RISKS AND UNCERTAINTIES

Exposure to exchange rate fluctuations continues to be a threat however as in previous years we manage these risks by hedging.

Despite the uncertain economic outlook the directors are confident that with the measures taken to protect the business and employees safety, together with the good relationships we have with our trading partners, the Group will continue to prosper.

ON BEHALF OF THE BOARD:

B J Fisher - Director

22 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of wholesaling of stationery and ancillary goods.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 250,000 .

During the year the preference shareholders exercised their right to a dividend amounting to £5,000.

DIRECTORS

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

The beneficial interests of the directors holding office at 31 March 2025 in the shares of the company, according to the register of directors' interests, were as follows:

31.3.25

1.4.24

Ordinary shares of £1 each

B J Fisher

-

T Johnson

1,300

Mrs V Clay

650

"A" Reedemable preference shares of £2,500 each

B J Fisher

-

T Johnson

10

Mrs V Clay

5

These directors did not hold any beneficial interests in the following:

Ordinary A shares of £1 each

"B" Redeemable preference shares of £2,500 each

"C" Redeemable preference shares of £2,500 each

These directors did not hold any non-beneficial interests in any of the shares of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

B J Fisher - Director

22 December 2025

Opinion

We have audited the financial statements of Zintello Merchants Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2025 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages three and 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company must comply in the ordinary course of its business.

Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole.

As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities 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 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.

Gregg Olner MPhil BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of HB&O Ltd

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

22 December 2025

TURNOVER

3

17,698,801

18,341,250

Cost of sales

11,791,597

12,513,077

GROSS PROFIT

5,907,204

5,828,173

Distribution costs

700,895

771,005

Administrative expenses

4,177,258

4,379,911

4,878,153

5,150,916

1,029,051

677,257

Other operating income

25,692

24,000

OPERATING PROFIT

5

1,054,743

701,257

Interest receivable and similar income

16,487

15,727

1,071,230

716,984

Interest payable and similar expenses

6

5,821

56,879

PROFIT BEFORE TAXATION

1,065,409

660,105

Tax on profit

7

266,317

186,228

PROFIT FOR THE FINANCIAL YEAR

799,092

473,877

Profit attributable to:

Owners of the parent

799,092

473,877

PROFIT FOR THE YEAR

799,092

473,877

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

799,092

473,877

Total comprehensive income attributable to:

Owners of the parent

799,092

473,877

FIXED ASSETS

Tangible assets

10

3,905,237

3,787,783

Investments

11

-

Investment property

12

626,169

4,531,406

4,413,952

CURRENT ASSETS

Stocks

13

3,515,316

3,030,779

Debtors

14

3,481,010

3,614,937

Cash at bank and in hand

1,956,136

1,499,001

8,952,462

8,144,717

CREDITORS

Amounts falling due within one year

15

2,480,698

2,109,423

NET CURRENT ASSETS

6,471,764

6,035,294

TOTAL ASSETS LESS CURRENT
LIABILITIES

11,003,170

10,449,246

CREDITORS

Amounts falling due after more than one
year

16

-

(29,957

)

PROVISIONS FOR LIABILITIES

19

(87,824

)

(53,035

)

NET ASSETS

10,915,346

10,366,254

CAPITAL AND RESERVES

Called up share capital

20

12,500

Share premium

21

497,500

Capital redemption reserve

21

596

Retained earnings

21

10,404,750

9,855,658

SHAREHOLDERS' FUNDS

10,915,346

10,366,254

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

B J Fisher - Director

FIXED ASSETS

Tangible assets

10

103

27,043

Investments

11

123,099

Investment property

12

4,129,509

4,252,711

4,279,651

CURRENT ASSETS

Debtors

14

741,391

1,312,750

Cash at bank

173,454

331,885

914,845

1,644,635

CREDITORS

Amounts falling due within one year

15

773,581

1,870,734

NET CURRENT ASSETS/(LIABILITIES)

141,264

(226,099

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,393,975

4,053,552

CREDITORS

Amounts falling due after more than one
year

16

-

29,957

NET ASSETS

4,393,975

4,023,595

CAPITAL AND RESERVES

Called up share capital

20

12,500

Share premium

21

497,500

Capital redemption reserve

21

596

Retained earnings

21

3,883,379

3,512,999

SHAREHOLDERS' FUNDS

4,393,975

4,023,595

Company's profit for the financial year

620,380

460,903

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

B J Fisher - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

Balance at 1 April 2023

12,500

9,581,781

497,500

596

10,092,377

Changes in equity

Dividends

-

(200,000

)

-

(200,000

)

Total comprehensive income

-

473,877

-

473,877

Balance at 31 March 2024

12,500

9,855,658

497,500

596

10,366,254

Changes in equity

Dividends

-

(250,000

)

-

(250,000

)

Total comprehensive income

-

799,092

-

799,092

Balance at 31 March 2025

12,500

10,404,750

497,500

596

10,915,346

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

Balance at 1 April 2023

12,500

3,252,096

497,500

596

3,762,692

Changes in equity

Dividends

-

(200,000

)

-

(200,000

)

Total comprehensive income

-

460,903

-

460,903

Balance at 31 March 2024

12,500

3,512,999

497,500

596

4,023,595

Changes in equity

Dividends

-

(250,000

)

-

(250,000

)

Total comprehensive income

-

620,380

-

620,380

Balance at 31 March 2025

12,500

3,883,379

497,500

596

4,393,975

Cash flows from operating activities

Cash generated from operations

1

1,129,647

(134,018

)

Interest element of hire purchase payments
paid

(821

)

(1,879

)

Finance costs paid

(5,000

)

(55,000

)

Tax paid

(191,097

)

(136,029

)

Net cash from operating activities

932,729

(326,926

)

Cash flows from investing activities

Purchase of tangible fixed assets

(239,623

)

(3,543,122

)

Sale of tangible fixed assets

33,489

314

Interest received

16,487

15,727

Net cash from investing activities

(189,647

)

(3,527,081

)

Cash flows from financing activities

Capital repayments in year

(35,947

)

(5,989

)

Equity dividends paid

(250,000

)

(200,000

)

Net cash from financing activities

(285,947

)

(205,989

)

Increase/(decrease) in cash and cash equivalents

457,135

(4,059,996

)

Cash and cash equivalents at beginning of
year

2

1,499,001

5,558,997

Cash and cash equivalents at end of year

2

1,956,136

1,499,001

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

2025

2024

£

Profit before taxation

1,065,409

660,105

Depreciation charges

97,402

72,673

Profit on disposal of fixed assets

(8,723

)

(244

)

Finance costs

5,821

56,879

Finance income

(16,487

)

(15,727

)

1,143,422

773,686

(Increase)/decrease in stocks

(484,537

)

666,039

Decrease/(increase) in trade and other debtors

133,927

(1,103,055

)

Increase/(decrease) in trade and other creditors

336,835

(470,688

)

Cash generated from operations

1,129,647

(134,018

)

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

1,956,136

1,499,001

Year ended 31 March 2024

31.3.24

1.4.23

£

Cash and cash equivalents

1,499,001

5,558,997

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

Net cash

Cash at bank and in hand

1,499,001

457,135

1,956,136

1,499,001

457,135

1,956,136

Debt

Finance leases

(35,947

)

35,947

-

Debts falling due within 1 year

(550,000

)

-

(550,000

)

(585,947

)

35,947

(550,000

)

Total

913,054

493,082

1,406,136

1.	STATUTORY INFORMATION

Zintello Merchants 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 General 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 principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous year.

Basis of consolidation

The consolidated financial statements incorporate those of Zintello Merchants Limited and all of its subsidiary undertakings. All financial statements are made up to 31 March 2025.

The assets, liabilities, costs and revenues of the subsidiary entities are adjusted to represent transactions with external third parties and combined. The consolidated financial statements present financial information for the group as a single economic entity.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

Zintello Merchants Limited:

Accounting judgements and estimates relate primarily to investment property valuation which is noted below. The directors do not believe that any other accounting judgements or estimates are significant to the reported results of the entity.

Tallon International Limited:

Accounting estimates:

i) Stock provisioning

When calculating the stock provision management considers the potential resale ability of stock items, at or above cost, when determining the associated provision required.

Accounting judgements:

ii) Stock provisioning

The business model is to buy goods in bulk quantities and sell it to distributors in smaller quantities. The key judgements in the financial statements are:

a) whether to make a provision or not for stock, given that some goods such as calendars and diaries are time appropriate; and

b) the level of such a provision, given any potential sale incentives offered to customers for old goods.

Stock provisions have been made in these financial statements. The amounts and effect are disclosed in the notes below.

Turnover

Turnover comprises the value of sales (net of value added tax) of goods and services provided in the normal course of business. Revenue is recognised in respect of service contracts when the company obtains the right to consideration.

Investment income receivable is recognised in accordance with lease agreements.

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.

Improvements to properties

-

over the lease term

Plant and machinery

-

25% on reducing balance and 20% on reducing balance

Fixtures and fittings

-

at variable rates on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold property is initially recognised at cost. Subsequently the group applies a valuation methodology similar to that followed for its investment property.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment property is held at a carrying value determined by the directors with reference to rental yield models. The valuation is reviewed annually and tested for impairment during this process. Any impairments are recognised in profit or loss when they arise.

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at a standard rate set on an annual basis and considered to be reflective of market conditions. Exchange differences are taken into account in arriving at the operating result.

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 the profit and loss account over the life of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Product development expenditure

Product development expenditure is charged to the profit and loss account as the expenditure is incurred. The company is continually developing its products by upgrading its existing products, extending its range of current products and creating new products.

Financial instruments

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

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

Open foreign currency contracts are revalued at the period end with the surplus and deficits being recognised in the profit and loss account.

Investments

Investments are stated at historic cost less any provision for diminution in value.

Preference shares

Preference shares that provide for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date, or give the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount are classified as financial liabilities. Preference shares without these characteristics are classified within equity.

Operating leases

Rentals paid under operating leases are charged to the profit and loss account over the life of the lease.

3.

TURNOVER

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

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

2025

2024

£

Sale of goods

17,674,801

18,317,250

Investment income

24,000

17,698,801

18,341,250

An analysis of turnover by geographical market is given below:

2025

2024

£

United Kingdom

15,669,558

15,650,176

Europe

1,628,168

2,268,213

Rest of world

401,075

422,861

17,698,801

18,341,250

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

Wages and salaries

1,983,686

2,112,575

Social security costs

184,530

206,986

Other pension costs

107,577

121,684

2,275,793

2,441,245

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

2025

2024

Employees including executive directors

49

53

2025

2024

£

Directors' remuneration

60,520

70,770

Directors' pension contributions to money purchase schemes

1,800

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

Money purchase schemes

1

5.	OPERATING PROFIT

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

2025

2024

£

Depreciation - owned assets

94,600

63,704

Depreciation - assets on hire purchase contracts

2,803

8,969

Profit on disposal of fixed assets

(8,723

)

(244

)

Auditors' remuneration

10,741

10,286

Operating leases - plant and machinery

39,571

40,998

Operating leases - other

511,755

299,448

Operating lease income

(24,000

)

(24,000

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

Hire purchase

821

1,879

Preference shares

5,000

55,000

5,821

56,879

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

Current tax:

UK corporation tax

231,560

191,131

Under/(over) provision in

previous year

(32

)

-

Total current tax

231,528

191,131

Deferred tax

34,789

(4,903

)

Tax on profit

266,317

186,228

UK corporation tax has been charged at 25 % (2024 - 25 %).

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

Profit before tax

1,065,409

660,105

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

266,352

165,026

Effects of:

Expenses not deductible for tax purposes

3,055

21,442

Capital allowances in excess of depreciation

(1,056

)

-

Depreciation in excess of capital allowances

-

1,188

Adjustments to tax charge in respect of previous periods

(32

)

-

Movement on temporary timing differences

(271

)

(523

)

Effect of marginal rate relief

-

(905

)

Profit on disposal

(2,346

)

-

Effect of different tax rates

615

-

Total tax charge

266,317

186,228

The main rate of corporation tax to 25%, which is expected to remain unchanged for the foreseeable future.

8.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

9.

DIVIDENDS

2025

2024

£

Ordinary shares of £1 each

Interim

250,000

200,000

10.	TANGIBLE FIXED ASSETS

Group

Improvements

Freehold

to

Plant and

buildings

properties

machinery

£

COST

At 1 April 2024

3,503,340

56,016

394,509

Additions

-

141,898

69,186

Disposals

-

(1,074

)

At 31 March 2025

3,503,340

197,914

462,621

DEPRECIATION

At 1 April 2024

-

34,614

214,132

Charge for year

-

29,399

50,022

Eliminated on disposal

-

(411

)

At 31 March 2025

-

64,013

263,743

NET BOOK VALUE

At 31 March 2025

3,503,340

133,901

198,878

At 31 March 2024

3,503,340

21,402

180,377

Fixtures

and

Motor

fittings

vehicles

Totals

£

COST

At 1 April 2024

256,859

153,742

4,364,466

Additions

28,539

-

239,623

Disposals

-

(56,000

)

(57,074

)

At 31 March 2025

285,398

97,742

4,547,015

DEPRECIATION

At 1 April 2024

206,666

121,271

576,683

Charge for year

13,787

4,195

97,403

Eliminated on disposal

-

(31,897

)

(32,308

)

At 31 March 2025

220,453

93,569

641,778

NET BOOK VALUE

At 31 March 2025

64,945

4,173

3,905,237

At 31 March 2024

50,193

32,471

3,787,783

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2024

56,000

Disposals

(56,000

)

At 31 March 2025

-

DEPRECIATION

At 1 April 2024

29,094

Charge for year

2,803

Eliminated on disposal

(31,897

)

At 31 March 2025

-

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

26,906

Company

Plant and

Motor

machinery

vehicles

Totals

£

COST

At 1 April 2024

1,823

56,000

57,823

Disposals

-

(56,000

)

(56,000

)

At 31 March 2025

1,823

-

1,823

DEPRECIATION

At 1 April 2024

1,686

29,094

30,780

Charge for year

34

2,803

2,837

Eliminated on disposal

-

(31,897

)

(31,897

)

At 31 March 2025

1,720

-

1,720

NET BOOK VALUE

At 31 March 2025

103

-

103

At 31 March 2024

137

26,906

27,043

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2024

56,000

Disposals

(56,000

)

At 31 March 2025

-

DEPRECIATION

At 1 April 2024

29,094

Charge for year

2,803

Eliminated on disposal

(31,897

)

At 31 March 2025

-

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

26,906

11.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

123,099

NET BOOK VALUE

At 31 March 2025

123,099

At 31 March 2024

123,099

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Tallon International Limited

Registered office: Unit 4 Cyan Park, Coventry, CV2 4QP

Nature of business: Wholesalers of stationery

%

Class of shares:

holding

Ordinary

100.00

Tallon International Limited owns a dormant subsidiary incorporated in Ireland, Tallon Stationery EU Limited.

12.	INVESTMENT PROPERTY

Group

Total

£

FAIR VALUE

At 1 April 2024

and 31 March 2025

626,169

NET BOOK VALUE

At 31 March 2025

626,169

At 31 March 2024

626,169

Investment property is shown at a fair value derived from rental yield as calculated by the directors.

Company

Total

£

FAIR VALUE

At 1 April 2024

and 31 March 2025

4,129,509

NET BOOK VALUE

At 31 March 2025

4,129,509

At 31 March 2024

4,129,509

Investment property is shown at a fair value derived from rental yield as calculated by the directors.

13.

STOCKS

Group

2025

2024

£

Stocks

3,515,316

3,030,779

14.

DEBTORS

Group

Company

2025

2024

2025

2024

£

Amounts falling due within one year:

Trade debtors

2,518,061

2,263,535

-

Amounts owed by group undertakings

-

286,821

-

Other debtors

542,531

752,797

375,063

581,250

VAT

-

308,597

-

650,481

Prepayments

340,911

210,814

-

1,825

3,401,503

3,535,743

661,884

1,233,556

Amounts falling due after more than one

year:

Other debtors

79,507

79,194

79,507

79,194

Aggregate amounts

3,481,010

3,614,937

741,391

1,312,750

An impairment loss of £105,181 (2024 - £45,433) was recognised against trade debtors.

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2025

2024

2025

2024

£

Preference shares (see note 17)

550,000

Hire purchase contracts (see note 18)

-

5,990

-

5,990

Trade creditors

593,919

641,364

4,483

9,955

Amounts owed to related parties

31,700

-

31,700

1,223,232

Tax

233,713

193,282

90,471

4,840

Social security and other taxes

46,157

40,200

5,420

1,748

VAT

456,978

-

14,588

-

Other creditors

19,484

19,157

19,484

19,157

Accrued expenses

548,747

659,430

57,435

55,812

2,480,698

2,109,423

773,581

1,870,734

The bank loan and overdrafts are secured by a legal mortgage over the group's freehold properties and a debenture incorporating fixed and floating charges over the assets of the group.

The group's bankers also hold cross guarantees from Zintello Merchants Limited and Tallon International Limited.

16.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2025

2024

2025

2024

£

Hire purchase contracts (see note 18)

-

29,957

-

29,957

17.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2025

2024

2025

2024

£

Amounts falling due within one year or on

demand:

Preference shares

550,000

Preference shares are redeemable at their par value on the company's part following 12 months written notice. They are redeemable at their par value on the holders part following 12 months written notice, or 1 months written notice for B shares.

Details of shares shown as liabilities are as follows:

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

100

"A" Reedemable preference

£2,50

0

250,000

40

"B" Redeemable preference

£2,50

0

100,000

80

"C" Redeemable preference

£2,50

0

200,000

550,000

Preference shares are redeemable at their par value on the company's part following 12 months written notice. They are redeemable at their par value on the holders part following 12 months written notice, or 1 months written notice for B shares.

18.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase

contracts

2025

2024

£

Net obligations repayable:

Within one year

-

5,990

Between one and five years

-

29,957

-

35,947

Company

Hire purchase

contracts

2025

2024

£

Net obligations repayable:

Within one year

-

5,990

Between one and five years

-

29,957

-

35,947

The group has the following non-cancellable operating leases:

2025

2024

£

Within one year

543,948

552,448

Between one and five years

802,482

1,345,308

In more than five years

-

1,346,430

1,897,756

One investment property is occupied under a rolling agreement capable of cancellation with 30 days notice on either part. As such the non-cancellable operating lease income represents one month's rental at £2,000 (2024 - £2,000).

19.	PROVISIONS FOR LIABILITIES

Group

2025

2024

£

Deferred tax

Accelerated capital allowances

90,513

54,642

Other timing differences

(2,689

)

(1,607

)

87,824

53,035

Group

Deferred

tax

£

Balance at 1 April 2024

53,035

Charge to Income Statement during year

34,789

Balance at 31 March 2025

87,824

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

10,000

Ordinary

£1

10,000

2,500

Ordinary A

£1

2,500

12,500

Each class of share capital has consistent voting rights and rank pari passu with each other on a return of capital.

21.

RESERVES

Group

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

At 1 April 2024

9,855,658

497,500

596

10,353,754

Profit for the year

799,092

Dividends

(250,000

)

(250,000

)

At 31 March 2025

10,404,750

497,500

596

10,902,846

Company

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

At 1 April 2024

3,512,999

497,500

596

4,011,095

Profit for the year

620,380

Dividends

(250,000

)

(250,000

)

At 31 March 2025

3,883,379

497,500

596

4,381,475

Retained earnings

This reserve represents all current and prior period realised profits and losses.

Share premium

This reserve represents the amount paid in excess over the nominal value of the shares of the company to acquire the shares.

Capital redemption reserve

This reserve represents amounts relating to adjustments in the share capital of the company.

22.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme in respect of the directors and staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £107,577 (2024 - £121,684). Included within creditors is an amount due to scheme providers totalling £88,212 (2024 - £81,428).

23.	CONTINGENT LIABILITIES

The directors of the company are not aware of any other contingent liability apart from those outlined as part of the bank security arrangements explained further in the notes to the financial statements.

24.	OTHER FINANCIAL COMMITMENTS

As at 31 March 2025 the company had the following financial commitments under forward exchange contracts:-

Contract detail

Commitment

Average rate

$

$/ £1

Contracts dated August 2024, maturing April to August 2025

1,250,000

1.3175

Contracts dated November 2024, maturing May to July 2025

750,000

1.2834

Contracts dated December 2024, maturing April 2025

500,000

1.2625

Contracts dated February 2025, maturing April to October 2025

2,200,000

1.2514

Contracts dated March 2025, maturing May 2025 to March 2026

1,300,000

1.2862

The commitments above are in the ordinary course of the company's business and form part of the directors' risk management strategy, whose aim is to reduce the company's exposure to adverse exchange rate movements on its purchasing, a significant proportion of which is denominated in US dollars.

25.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2025 and 31 March 2024:

2025

2024

£

T Johnson

Balance outstanding at start of year

17,593

21,329

Amounts advanced

4,976

-

Amounts repaid

-

(3,736

)

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

22,569

17,593

Directors' loans are repayable on demand and attract no interest.

26.	RELATED PARTY DISCLOSURES

During the year, total dividends of £39,000 (2024 - £39,000) were voted to the directors.

Preference dividends totalling £3,750 (2024 - £3,750) were voted to the directors during the year.

The directors are considered to be key management. Their remuneration is outlined in the notes to the financial statements.

During the previous year, Zintello Merchants Ltd paid and received amounts on behalf of trusts, which are significant shareholders of Zintello Merchants Ltd. At the year end no debtor is recognised within other debtors (2024 - £1,861).

27.	CONTROLLING INTERESTS

The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company.