REGISTERED NUMBER: 08216906 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 March 2025

for

DAISY'S NAIL COMPANY LTD

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTOR:

D Kalnina

REGISTERED OFFICE:

51-53 West Street

Brighton

Brighton and Hove

BN1 2RA

REGISTERED NUMBER:

08216906 (England and Wales)

AUDITORS:

Feist Hedgethorne Limited

Statutory Auditors

Chartered Accountants

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

The director presents her strategic report for the year ended 31 March 2025.

OUR PURPOSE

Our purpose is to meet the needs of our customers, delivering the experience, products and services that matter to them.

Our success as a business depends on delivering value to all our customers and stakeholders. We plan and anticipate what they want and develop products, services and an overall experience that meet their needs.

REVIEW OF BUSINESS

The business has made considerable investment into its infrastructure, including IT systems, specifically a new website; a larger warehouse to facilitate our growth plans; and development of our new headquarters in Brighton. The company has experienced inflationary increases in costs in the year, notably supply chain costs and payroll costs, allowing it to keep pace with the market and for investment in the future growth of the business.

The business has faired well despite some macro-economic challenges in key markets by expanding its retail and wholesale distribution customers, launching new product ranges and proactively anticipating its customers' business needs. Continued inflationary pressures on costs were alleviated through efficiency gains in systems and processes, changes in its supply chain, economies of scale from expanding customer base and tight cost management.

The key financial highlights are as follows:

2025

2024

Turnover

£25,848,553

£24,382,205

Gross profit

£16,878,850

£15,504,271

Gross profit margin

65.29%

63.59%

Profit before tax

£5,860,531

£3,600,363

The company has kept and continues to keep close control over costs and seeks to maximise its profit margins.

FUTURE DEVELOPMENTS

The director is confident that the company will continue to be profitable in the forthcoming year and has been trading well during the new financial year when considering the challenging trading conditions. The company will continue to add to its successful range of cosmetic products and the director is confident that the business will continue to grow over the coming year.

PRINCIPAL RISKS AND UNCERTAINTIES

There are several risks and uncertainties that can impact the performance of the company, some of which are beyond the control of company and its Board. These trends and risks are the focus of management meetings where each department's performance is assessed versus budget, forecast and prior year results. Key performance indicators are also used to benchmark operational performance for all departments. An annual assessment of trends and risks is an integral part of each department's annual review of its strategic plan and budget, which are submitted to the Board for consideration and approval. A combination of all of this, in what is a bottom up and top down approach, enables the Board to determine and assess the company's risk environment.

The principal risks and uncertainties facing the company are outlined below:

Key resources

The company is managed by certain key personnel, including executive directors and senior management who have significant experience within the company and who may be difficult to replace. Furthermore, the company depends on being able to recruit and retain employees of an appropriate calibre. The company has sought to mitigate this resource risk by investing in staff training programmes, competitive reward and compensation packages.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made.

Liquidity risk

The company maintains appropriate finance and cash in hand. The company also has availability of external finance if required, which is considered sufficient to further mitigate business risks relating to market and economic uncertainties.

Market conditions

Our products are targeted at many different sectors, which include salons, chains of professional beauty stores and individual business owners. As a result, demand is dependent on activity levels in these respective sectors, which vary by location and are subject to the usual drivers of retail activity (i.e. general economic conditions and volatility, interest rates, business/consumer confidence levels, unemployment, population growth, etc.).

Competitive pressures

The company continually faces competition and the competitive environment is a function of several factors including the number of competitors, pricing and the availability of substitute products. While such competitive forces can impact profitability in the short-term the company looks to offset such adverse effects by:

(i) a program of continuous process improvement;

(ii) a permanent emphasis on product enhancement, and

(iii) providing a best in class service to customers by offering short delivery times and products that come with a guaranteed performance.

Information technology and business continuity

The company uses a range of information technology and decision support systems across its business for efficient processing of orders, control procedures and financial management. These systems are constantly reviewed and updated to meet the needs of the company. Business continuity and disaster recovery planning is regularly assessed and tested to ensure the company is adequately resourced and maintains an appropriately robust environment including preventative processes on cybercrime. This is further mitigated through consequential loss insurance and business continuity plans which are updated regularly.

Data protection and back-up

The company holds a significant volume of confidential data. Failure to comply with data privacy regulations and standards (GDPR) or weakness in internet security may result in a major data privacy breach causing reputational damage to the company's brands and financial loss.

Breach of IT security may cause data to be lost, corrupted or accessed by unauthorised users, impacting the company's reputation. This could give rise to legal or regulatory penalties as well as commercial costs. The company has processes and procedures in place to monitor effectiveness of customer back-up and is continually upgrading security equipment and software and making improvements to physical security processes.

ON BEHALF OF THE BOARD:

D Kalnina - Director

19 December 2025

The director presents her report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the wholesale and retail of cosmetic products.

DIVIDENDS

The director does not recommend the payment of a final dividend (2024: £nil).

DIRECTORS

D Kalnina has held office during the whole of the period from 1 April 2024 to the date of this report.

Other changes in directors holding office are as follows:

A J Moss - resigned 30 June 2024

FINANCIAL INSTRUMENTS

The company does not have excessive exposure to risks in respect of price, credit, liquidity and cash flow risk. The company’s financial instruments are largely traded in the functional currency, being sterling and the company does not use hedge accounting in respect of its financial instruments.

POLITICAL DONATIONS AND EXPENDITURE

All donations made during the year were to charities.

DIRECTORS INDEMNITIES

The company has not made qualifying third party indemnity payments for the benefit of the directors during the year.

GOING CONCERN

The directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

ENGAGEMENT WITH EMPLOYEES

The company recognises the importance of good communications and relations with staff and uses a number of methods of keeping staff informed of performance and developments in the group.

New members of staff attend an induction course which gives them an initial understanding of the company and its business and makes them aware of matters directly concerning their employment. Great importance is attached to staff training and development at all levels.

DISCLOSURE IN THE STRATEGIC REPORT

Certain matters required by regulation to be dealt with in the annual report have been dealt with in the Strategic Report rather than in the Directors' Report. These include principal risks and uncertainties and future developments.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Feist Hedgethorne Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Kalnina - Director

19 December 2025

Opinion

We have audited the financial statements of Daisy's Nail Company Ltd (the 'company') for the year ended 31 March 2025 which comprise the Statement of 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 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

-

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

-

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

-

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, and tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence where relevant authorities, and evaluating advice received from external tax advisors.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

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.

Chris Morey (Senior Statutory Auditor)

for and on behalf of Feist Hedgethorne Limited

Statutory Auditors

Chartered Accountants

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

22 December 2025

TURNOVER

25,848,553

24,382,205

Cost of sales

(8,969,703

)

(8,877,934

)

GROSS PROFIT

16,878,850

15,504,271

Administrative expenses

(11,037,956

)

(11,963,116

)

5,840,894

3,541,155

Other operating income

281,630

285,919

OPERATING PROFIT

5

6,122,524

3,827,074

Interest receivable and similar income

39,908

-

6,162,432

3,827,074

Interest payable and similar expenses

6

(301,901

)

(226,711

)

PROFIT BEFORE TAXATION

5,860,531

3,600,363

Tax on profit

7

(130,743

)

(231,814

)

PROFIT FOR THE FINANCIAL YEAR

5,729,788

3,368,549

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,729,788

3,368,549

FIXED ASSETS

Intangible assets

8

374,789

212,655

Tangible assets

9

471,824

412,037

846,613

624,692

CURRENT ASSETS

Stocks

10

3,559,529

3,143,620

Debtors

11

16,668,544

14,236,817

Cash at bank

844,598

653,983

21,072,671

18,034,420

CREDITORS

Amounts falling due within one year

12

(2,511,414

)

(5,009,111

)

NET CURRENT ASSETS

18,561,257

13,025,309

TOTAL ASSETS LESS CURRENT LIABILITIES

19,407,870

13,650,001

CREDITORS

Amounts falling due after more than one year

13

-

(35,661

)

PROVISIONS FOR LIABILITIES

18

(189,941

)

(126,199

)

NET ASSETS

19,217,929

13,488,141

CAPITAL AND RESERVES

Called up share capital

19

1

1

Retained earnings

20

19,217,928

13,488,140

SHAREHOLDERS' FUNDS

19,217,929

13,488,141

The financial statements were approved by the director and authorised for issue on 19 December 2025 and were signed by:

D Kalnina - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

1

10,119,591

10,119,592

Changes in equity

Total comprehensive income

-

3,368,549

3,368,549

Balance at 31 March 2024

1

13,488,140

13,488,141

Changes in equity

Total comprehensive income

-

5,729,788

5,729,788

Balance at 31 March 2025

1

19,217,928

19,217,929

1.	STATUTORY INFORMATION

Daisy's Nail Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest pound.

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.

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 3.17(d).

These disclosures are included in the consolidated financial statements of DK Universe Limited in which this company is included.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates and these 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.

The items in the financial statements where these judgements and estimates have been made include the useful economic life of tangible fixed assets, the depreciation and amortisation of these assets, stock obsolescence, provisions, and the recoverability of debtors.

Key sources of estimation uncertainty:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are depreciated over the approved depreciation rates. The carrying amount of tangible fixed assets is £471,824 (2024: £412,037) as noted in note 10.

The value of stock for the year ended 31 March 2025 has been increased by an estimate of 20% (2024: 20%) of the closing stock value to represent shipping and import costs.

No significant judgements have been made by management in preparing these financial statements.

The company's current tax provision of £313,155 (2024: £113,352) relates to management's assessment of the amount of tax payable on the company's profit for the year where the liabilities remain to be agreed with HMRC. Due to the uncertainty with such taxation items, there is a possibility that the final outcome may differ on conclusion of open tax matters at a future date.

Employee benefits

The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans and the costs of short-term employee benefits are recognised as a liability and an expense.

In accordance with FRS 102, the cost of any unused holiday entitlement should be recognised in the period in which the employee's services are received. The company has reviewed the potential provision and has considered the amount to be immaterial.

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.

Turnover

Turnover represents the fair value of consideration received or receivable net of VAT and trade discounts and represents the amount receivable for goods supplied and services rendered.

Revenue from the sale of cosmetics is recognised when goods are invoiced and despatched to customers and is therefore recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Intangible assets

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

Patents and licenses are being amortised evenly over their estimated useful life of 10 years or to their legal expiry date.

Computer software is being amortised evenly over it's estimated useful life of 3 or 4 years.

Tangible fixed assets

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

Improvements to property

-

over the period of the leases

Fixtures and fittings

-

25% on cost and 10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost and 10% on cost

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

Stocks

Stocks, which consist of cosmetic products, are valued 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.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in

which the related revenue is recognised. At the end of each reporting period, stocks are assessed for impairment and the identified inventory is written down to its estimated selling price less costs to complete and sell, and all losses of stocks are recognised as an expense in the period in which the write-down or loss occur. The amount of any reversal of any write-down of stock is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Stock is valued using the average cost method.

Financial instruments

The company's financial instruments comprise cash, debtors (trade, intercompany debtors and other debtors) and creditors (trade, other, intercompany creditors, accruals and deferred income). A financial asset or a financial liability is recognised when the company becomes party to the contractual provisions of the instrument. The de-recognition of a financial instrument takes place when the company no longer controls substantially all the risks and rewards.

At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the Company. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset or, if lower, the present value of minimum lease payments at the inception of the lease. The corresponding liability is included in the balance sheet as ‘hire purchase contracts and finance leases’ with creditors. Lease payments are apportioned between finance charges and reduction of the lease liability using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are included in tangible fixed assets and are depreciated and assessed for impairment losses in the same way as owned assets.

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

At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents

Cash and cash equivalents 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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

6,889,409

5,859,947

Social security costs

716,316

665,973

Other pension costs

94,696

87,456

7,700,421

6,613,376

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

2025

2024

Directors

1

2

Administration

16

21

Sales and operations

106

95

123

118

4.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

63,250

280,563

Directors' pension contributions to money purchase schemes

330

1,321

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

14,922

15,173

Other operating leases

386,121

504,339

Depreciation - owned assets

198,298

122,083

Intellectual property amortisation

397

1,192

Computer software amortisation

97,096

55,239

Auditors' remuneration

10,305

13,730

Foreign exchange differences

(130,652

)

80,303

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Loan transaction costs

301,901

209,598

Statutory interest

-

17,113

301,901

226,711

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

313,155

113,352

Prior year tax amend

(246,154

)

66,910

Total current tax

67,001

180,262

Deferred tax

63,742

51,552

Tax on profit

130,743

231,814

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

5,860,531

3,600,363

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

1,465,133

900,091

Effects of:

Expenses not deductible for tax purposes

3,808

11,325

Adjustments to tax charge in respect of previous periods

(246,154

)

66,910

Group relief

(981,435

)

(752,466

)

Deferred tax adjustments

8,691

5,954

Research and development tax relief

(119,300

)

-

Total tax charge

130,743

231,814

8.	INTANGIBLE FIXED ASSETS

Intellectual

Computer

property

software

Totals

£

£

£

COST

At 1 April 2024

3,972

267,497

271,469

Additions

-

259,627

259,627

At 31 March 2025

3,972

527,124

531,096

AMORTISATION

At 1 April 2024

3,575

55,239

58,814

Amortisation for year

397

97,096

97,493

At 31 March 2025

3,972

152,335

156,307

NET BOOK VALUE

At 31 March 2025

-

374,789

374,789

At 31 March 2024

397

212,258

212,655

9.	TANGIBLE FIXED ASSETS

Fixtures

Improvements

Plant and

and

to property

machinery

fittings

£

£

£

COST

At 1 April 2024

104,387

-

218,042

Additions

23,448

19,588

153,839

At 31 March 2025

127,835

19,588

371,881

DEPRECIATION

At 1 April 2024

64,529

-

97,340

Charge for year

28,541

1,112

39,475

At 31 March 2025

93,070

1,112

136,815

NET BOOK VALUE

At 31 March 2025

34,765

18,476

235,066

At 31 March 2024

39,858

-

120,702

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2024

171,311

294,736

788,476

Additions

-

61,210

258,085

At 31 March 2025

171,311

355,946

1,046,561

DEPRECIATION

At 1 April 2024

96,761

117,809

376,439

Charge for year

42,254

86,916

198,298

At 31 March 2025

139,015

204,725

574,737

NET BOOK VALUE

At 31 March 2025

32,296

151,221

471,824

At 31 March 2024

74,550

176,927

412,037

10.

STOCKS

2025

2024

£

£

Stock

3,559,529

3,143,620

Stock recognised in cost of sales during the year as an expense was £4,724,952 (2024: £4,868,292).