REGISTERED NUMBER: 02065159 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HUGH RICE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

Mrs S Rice

P J Rice

M Rice

J P Rice

Mrs D T Rice

Ms D Rice

Mrs H M Hirst

REGISTERED OFFICE:

Unit 5-6 St Stephens Shopping Centre

Ferensway

Hull

HU2 8LN

REGISTERED NUMBER:

02065159 (England and Wales)

AUDITORS:

Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

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

REVIEW OF BUSINESS

The Hugh Rice brand originates back to 1971 and over the intervening years branches in Hull, Beverley and Harrogate have all become established along with significant major brand relationships. The business is a multiple industry award winner.

This executive summary provides a concise overview of the statutory accounts for Hugh Rice for the fiscal year ending December 2024. The statutory accounts present a comprehensive picture of the company's financial performance and position, adhering to the relevant accounting standards and regulations.

During the fiscal year, the business achieved £12.3m of revenue, a 1.7% decrease compared to the previous year. Gross profit margin remained strong at 32.8% for recurring trade, reflecting effective cost management and pricing strategies. Regarding product mix, the shift has continued away from fine jewellery into watches, with much of the business now being the sale and servicing of luxury Swiss-made timepieces.

During the year, the company closed its Harrogate location by choosing not to renew the lease of the store at end of its tenancy. Rather than renewing the lease, the directors made a strategic decision to realign the company's jewellery and Swiss watch sales operations into its principal location in Hull. This decision reflects the company's ongoing commitment to strengthening its core retail presence while maintaining focus on operational efficiency and customer experience in its most established markets. Early in 2025, after the date of this report, the Directors also chose to close the Beverley location as part of realigning operations to the principle Hull store. The Directors are very pleased with the decisions taken with strong year-to-date trade.

The group ended the year with strong liquidity and cash headroom of £0.07m.

The company uses adjusted EBITDA to reflect the underlying profitability of the company to account for non-recurring costs and continuing operations. EBITDA was £0.6m. The Directors are delighted with the results.

In conclusion, the statutory accounts demonstrate a strong financial performance. The company's financial forecasts show the company is expected to continue to make profit and generate positive cashflows, giving the company the ability to continue to operate for the foreseeable future.

Based on these facts and the current financial position, forecasts and cash flows of the company, the directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the company are common with those of all other retail companies in the UK. Uncertainty remains around operational performance associated with the supply of product from Europe, though minimal disruption has so far been encountered. Uncertainty remains around consumer behaviour and the effect of a cost-of-living crisis upon such behaviour, despite no evidence yet of demand from our target markets slowing. There is no expectation of a return to previous extremely low interest rates.

In managing the business, the directors have established controls to enable them to respond to and mitigate the impact of such risks.

EMPLOYEES

We pride ourselves on professional development with all new sales colleagues starting with us enrolling on the National association of jewellers JET (Jewellery education and training) programme and colleagues joining in other areas of the business enrolling in courses more specific to their department such as CIPS (chartered institute of procurement and supply) programmes for our members of the procurement team.

We are delighted to count two Fellows of the Gemmological Association (FGA) and a further four Diamond Members of the Gemmological Association (DGA) in various positions throughout the company.

We are very proud to have 2 colleagues within our team of watch makers who have been successful in achieving places with Rolex watch co to further their training in their elite training programmes. The most recent was 1 of only 3 places in the UK.

FINANCIAL RISK MANAGEMENT

The company's operations expose it to the effects in changes in foreign exchange, interest rates and changes in the prices of metals. These are monitored to allow scenario planning to mitigate and minimise risk.

FINANCIAL KEY PERFORMANCE

The management of the company use key performance indicators to measure and monitor the financial well-being of the business. These measures include analysis of sales coverage and growth, variance analysis of sales revenues and margins against targets, along with other key ratios. The company also monitors employee engagement through quarterly interactive surveys

ON BEHALF OF THE BOARD:

P J Rice - Director

18 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of fine jewellery retailer, watch retailer, jewellery manufacturer, and service centre.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

Mrs S Rice

P J Rice

M Rice

J P Rice

Mrs D T Rice

Ms D Rice

Other changes in directors holding office are as follows:

Mrs H M Hirst was appointed as a director after 31 December 2024 but prior to the date of this report.

The company has made qualifying third party indemnity provisions for the benefit of its directors. These provisions remain in force at the reporting date.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise trade debtors, trade creditors and bank overdrafts. The main purpose of these instruments is to raise funds to finance the company's operations.

The company's approach to managing risks applicable to the financial instruments is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

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

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

The company is a lessee in respect of finance leased assets. The monthly repayments on finance lease agreements are fixed and liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

DONATIONS AND EXPENDITURE

Charitable donations of £7,700 have been made in the year with the largest of these donations being to Hey Smile and the British School of Watchmaking.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P J Rice - Director

18 December 2025

Opinion

We have audited the financial statements of Hugh Rice Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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 through collusion.

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

However, in identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- we also obtained an understanding of the legal and regulatory frameworks that the company operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety, quality control and employee matters;

- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the company;

- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and;

- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls

- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated.

- we also considered the existence of performance targets and their potential influence on management to manage earnings.

- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.

These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations.

We also tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of company management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible.

The results of our procedures did not identify any instances or irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.

Richard Skewis FCCA (Senior Statutory Auditor)

for and on behalf of Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

18 December 2025

TURNOVER

3

11,401,988

887,995

12,289,983

Cost of sales

(7,653,240

)

(603,752

)

(8,256,992

)

GROSS PROFIT

3,748,748

284,243

4,032,991

Administrative expenses

(3,123,644

)

(504,471

)

(3,628,115

)

OPERATING PROFIT/(LOSS)

5

625,104

(220,228

)

404,876

Interest payable and similar expenses

6

(287,673

)

-

(287,673

)

PROFIT/(LOSS) BEFORE TAXATION

337,431

(220,228

)

117,203

Tax on profit/(loss)

7

(44,305

)

-

(44,305

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

293,126

(220,228

)

72,898

TURNOVER

3

10,954,290

1,550,820

12,505,110

Cost of sales

(7,237,109

)

(998,093

)

(8,235,202

)

GROSS PROFIT

3,717,181

552,727

4,269,908

Administrative expenses

(3,089,396

)

(472,757

)

(3,562,153

)

OPERATING PROFIT

5

627,785

79,970

707,755

Interest payable and similar expenses

6

(357,127

)

-

(357,127

)

PROFIT BEFORE TAXATION

270,658

79,970

350,628

Tax on profit

7

93,111

-

93,111

PROFIT FOR THE FINANCIAL YEAR

363,769

79,970

443,739

PROFIT FOR THE YEAR

72,898

443,739

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

72,898

443,739

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

92,232

201,215

92,232

201,215

CURRENT ASSETS

Stocks

10

3,879,340

4,533,731

Debtors

11

1,379,593

1,442,126

Cash at bank

1,680

2,830

5,260,613

5,978,687

CREDITORS

Amounts falling due within one year

12

4,906,347

5,462,968

NET CURRENT ASSETS

354,266

515,719

TOTAL ASSETS LESS CURRENT LIABILITIES

446,498

716,934

CREDITORS

Amounts falling due after more than one year

13

(2,953,574

)

(3,336,908

)

PROVISIONS FOR LIABILITIES

17

(40,000

)

-

NET LIABILITIES

(2,547,076

)

(2,619,974

)

CAPITAL AND RESERVES

Called up share capital

18

14,380

14,380

Capital redemption reserve

19

8,972

8,972

Retained earnings

19

(2,570,428

)

(2,643,326

)

SHAREHOLDERS' FUNDS

(2,547,076

)

(2,619,974

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2025 and were signed on its behalf by:

P J Rice - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

14,380

(3,087,065

)

8,972

(3,063,713

)

Changes in equity

Total comprehensive income

-

443,739

-

443,739

Balance at 31 December 2023

14,380

(2,643,326

)

8,972

(2,619,974

)

Changes in equity

Total comprehensive income

-

72,898

-

72,898

Balance at 31 December 2024

14,380

(2,570,428

)

8,972

(2,547,076

)

1.	STATUTORY INFORMATION

Hugh Rice Limited is a private company, limited by shares and is registered and incorporated in England and Wales. The registered number is 02065159 and the registered address is at Unit 5-6 St Stephens Shopping Centre, Ferensway, Hull, HU2 8LN.

The principal activity of the company is that of fine jewellery retailer, manufacturer and service centre.

The financial statements are prepared in sterling, which is the functional currency of the company.

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 financial statements of the company are consolidated in the financial statements of Hugh Rice Holdings Limited. These consolidated statements are available from its registered office at Unit 5-6 St Stephens Shopping Centre, Ferensway, Hull, HU2 8LN.

Going concern

During the fiscal year the group recorded strong performance with £12m of revenue, continuing revenue showing an increase of c.4%. Gross profit margin remained strong at 32%, reflecting effective cost management and pricing strategies. With regards to our product mix, the shift has continued away from fine jewellery into watches, with much of the business now being the sale and servicing of luxury Swiss made time pieces.

The group ended the year with strong liquidity and cash headroom of £0.07m.

The company uses adjusted EBITDA to reflect the underlying profitability of the company to account for non-recurring costs. EBITDA was £0.6m. The Directors are delighted with the results.

In conclusion, the statutory accounts demonstrate a strong financial performance, with notable revenue growth and profitability. The company's financial forecasts show the company is expected to continue to make profit and generate positive cashflows giving the company the ability to continue to operate for the foreseeable future.

No material uncertainty is raised in relation to the company being able to meet its creditors as they fall due and the company is still considered a going concern. The Directors have based their opinion on the assumption that the existing bank facilities will remain at their current levels throughout the review period. These facilities are not scheduled for renewal until 2026 as part of the annual review process, and given the Group and Company's strong relationship with its bankers, there is no indication that the facilities will not be maintained at their present levels.

Based on these facts and the current financial position, forecasts and cash flows of the company, the directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

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.

Significant judgements and estimates

In the application of the Company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

No key sources of estimation uncertainty are noted by management that have a significant effect on the amounts recognised in the financial statements.

Turnover

Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts.

Turnover from the sale of goods is recognised at the point of sale. For retail goods this is upon delivery of the goods to the customer for 'Click and collect' internet items this is when the goods are collected from retail shops.

Turnover from services is recognised on completion of service, or when those services span the year end date, by reference to the stage of completion at the balance sheet date.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33.3% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. 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. Stock is calculated on an average basis.

In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture/completion.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Impairment of financial assets

Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Related parties

For the purposes of these financial statements, a party is considered to be related to the Company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company;

(ii) the Company and the party are subject to common control;

(iii) the party is an associate of the Company or a joint venture in which the Company is a venture

(iv) the party is a member of key management personnel of the Company or the Company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company.

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts.

3.

TURNOVER

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

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

2024

2023

£

£

Jewellery sales and repairs

12,289,983

12,505,110

12,289,983

12,505,110

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

12,289,983

12,505,110

12,289,983

12,505,110

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,604,307

1,529,224

Social security costs

158,429

151,436

Other pension costs

31,006

29,295

1,793,742

1,709,955

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

2024

2023

Selling

30

28

Servicing

4

6

Administration

22

22

56

56

2024

2023

£

£

Directors' remuneration

319,764

312,302

Directors' pension contributions to money purchase schemes

5,246

5,174

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

72,186

70,581

Pension contributions to money purchase schemes

1,321

1,321

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

22,452

51,974

Depreciation - owned assets

80,820

146,459

Auditors' remuneration

30,635

15,000

Other operating lease charges

475,004

494,982

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

264,708

353,774

Interest payable

22,965

3,353

287,673

357,127

7.

TAXATION

Analysis of the tax charge/(credit)

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

2024

2023

£

£

Deferred tax

44,305

(93,111

)

Tax on profit

44,305

(93,111

)

Reconciliation of total tax charge/(credit) included in profit and loss

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

2024

2023

£

£

Profit before tax

117,203

350,628

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

29,301

87,657

Effects of:

Expenses not deductible for tax purposes

16,851

8,083

Income not taxable for tax purposes

(15,608

)

(12,625

)

Depreciation in excess of capital allowances

839

928

Utilisation of tax losses

(31,383

)

(84,043

)

Deferred tax

44,305

(93,111

)

Total tax charge/(credit)

44,305

(93,111

)

8.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 January 2024

and 31 December 2024

117,461

AMORTISATION

At 1 January 2024

and 31 December 2024

117,461

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-