REGISTERED NUMBER: 00681381 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 March 2025

for

Dewlay Cheesemakers Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

N J Kenyon

R W Kenyon

C P Daunt

SECRETARY:

D M Kenyon

REGISTERED OFFICE:

Garstang By Pass Road

Garstang

Preston

Lancashire

PR3 0PR

REGISTERED NUMBER:

00681381 (England and Wales)

AUDITORS:

Bennett Kirkhope Smith Ltd

Chartered Certified Accountants

and Statutory Auditors

Suites 5 & 6 The Printworks

Hey Road

Barrow

Clitheroe

Lancashire

BB7 9WB

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

REVIEW OF BUSINESS

The results for the year and the financial position of the company are shown in the annexed financial statement.

The Key metrics measured by the company are revenue and operating margin, which are set out below.

2024/25

2023/24

Revenue

£42.7m

£41.3m

Operating Margin

7.4%

9.1%

KEY RISKS AND BUSINESS CONSIDERATIONS

Dewlay Cheesemakers Ltd remains committed to acting in accordance with the principles outlined in Section 172(1) of the Companies Act 2006. During the year from April 2024 to March 2025, the company continued to promote the long-term success of the business while considering the interests of key stakeholders including employees, suppliers, customers, and the wider community and environment.

Supply of Milk and Relationships with Dairy Farmers

The dairy farming sector continues to experience pressure from fluctuating milk prices and rising input costs. Dewlay maintains strong, long-standing relationships with local farmers and continues to work collaboratively to ensure fair and transparent pricing that reflects prevailing market conditions.

Climate and Environmental Factors

Dewlay remains committed to reducing its environmental impact. In 2024/25, the company recorded total CO2 emissions of 730.26 tCO2e, with 59% of electricity sourced from renewable supply, compared with 65% in the prior year. Ongoing measures include packaging weight reduction, expanded recycling initiatives, and continuous waste monitoring

Recruitment and Retention of Factory Workers

Recruitment of skilled and reliable factory operatives remains a challenge within the wider labour market. Dewlay continues to address this through competitive remuneration, and local engagement.

Competition in the Cheese Supply Market

The UK cheese market remains highly competitive. Dewlay differentiates itself through its focus on quality, authenticity, and award-winning products, while maintaining efficiency and consistency in manufacturing and service delivery.

SECTION 172(1) STATEMENT

In accordance with Section 172(1), Dewlay Cheesemakers Ltd has continued to consider the interests of its stakeholders while promoting the long-term success of the company. Through proactive risk management, a continued focus on sustainability, and investment in people, production facilities, and product development, the company is well placed to meet future challenges and capitalise on opportunities within an evolving marketplace.

PRICE RISK

Dewlay remains exposed to movements in milk prices, which are influenced by weather, feed costs, and demand dynamics. Long-term supply agreements with farmers help mitigate volatility, but significant market shifts can affect profitability.

CREDIT RISK

Dewlay operates debt-free and maintains a cash surplus, while exercising rigorous oversight of debtors and creditors to significantly reduce credit risk

LIQUIDITY RISK & CASH FLOW RISK

Cash flow is monitored closely throughout the year, with prudent reserves maintained to cover operational requirements and unforeseen events. The company's conservative approach to cash management continues to provide stability and flexibility to support investment and growth.

DIRECTORS' REVIEW OF GOING CONCERN

The directors have reviewed the company's financial position, forecasts, and risk exposures. After considering cash flow projections, market conditions, and available resources, they are satisfied that Dewlay Cheesemakers Ltd has adequate resources to continue in operational existence for the foreseeable future. The business remains financially stable, resilient, and positioned for sustainable growth.

STAKEHOLDER ENGAGEMENT AND BUSINESS SUCCESS

Throughout 2024/25, Dewlay Cheesemakers Ltd maintained active engagement with its stakeholders-farmers, employees, customers, suppliers, and the local community. The company's commitment to fair and transparent business relationships, environmental responsibility, and consistent product quality remains central to its success.

The directors believe that Dewlay Cheesemakers Ltd is well positioned to navigate industry challenges, seize opportunities, and continue delivering long-term value for all stakeholders.

ON BEHALF OF THE BOARD:

N J Kenyon - Director

18 December 2025

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

The profit for the year, after taxation, amounted to £2.7m (2024: £2.7m).

In preparing the Director' report, the directors have complied with S414C (11) of the Companies Act 2006 by including certain disclosures required by S416(4) within the strategic report which are future developments, research and development and business relationships.

DIVIDENDS

Interim dividends per share were paid as follows:

A Ordinary £1 Shares

£78.47

B Ordinary £1 Shares

£78.47

The directors recommend that no final dividends be paid.

The total distribution for the year ended 31 March 2025 will be £350,000.

RESEARCH AND DEVELOPMENT

Dewlay places significant emphasis on research and development (R&D) to stay ahead of market trends and improve product quality. Our R&D efforts focus on creating new, innovative cheese varieties and improving existing recipes. Additionally, we continue to invest in more sustainable production methods, which align with consumer demand for environmentally friendly products.

FUTURE DEVELOPMENTS

Looking ahead, Dewlay is focused on sustainable growth and enhancing our position as a leading producer of Lancashire cheese in the UK. Our strategy includes investing in our facilities and introducing innovative product lines to meet changing consumer preferences. We are committed to sustainability initiatives, including reducing our environmental footprint and implementing more efficient production processes.

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

A Ordinary shares of £1 each

N J Kenyon

2,230

2,230

R W Kenyon

-

-

C P Daunt

-

-

B Ordinary shares of £1 each

N J Kenyon

-

-

R W Kenyon

2,230

2,230

C P Daunt

-

-

These directors did not hold any beneficial interests in the C Ordinary shares of £1 each.

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

POLITICAL DONATIONS AND EXPENDITURE

There were no political donations or expenditure in the year.

CO2 EMISSIONS REPORT FOR THE YEAR ENDED 31 MARCH 2025

In compliance with the Streamlined Energy and Carbon Reporting (SECR) framework and following the UK Government's GHG Conversion Factors for Company Reporting (2023), Dewlay presents its CO2 emissions for the financial year ending 31 March 2025. This report covers UK operations and includes emissions from grid electricity, renewable electricity, natural gas, and diesel.

Scope and Boundaries of the Report

Emissions are reported in tonnes of carbon dioxide equivalent (tCO2e), based on the UK Government's 2023 GHG conversion factors.

Energy Consumption Overview

The following table summarises our energy consumption for the reporting period:

Energy Source

Consumption

Grid electricity

615,000 kWh

Renewable electricity

898,000 kWh

Natural gas

2,577,000 kWh

Diesel (fleet vehicles)

16,000 litres

Total CO2 Emissions Summary

Category

Tonnes of CO2e (tCO2e)

Scope 1 (Direct emissions)

602.95

- Natural gas (heating)

561.27

- Diesel (fleet)

41.68

Scope 2 (Indirect emissions)

127.31

- Grid electricity

127.31

- Renewable electricity

0.00

Total Emissions (Scope 1 + 2)

730.26

Intensity Ratio

To provide context, Dewlay uses emissions per £1 million turnover as our intensity metric. Based on the company's revenue of £43 million for the year ending 31 March 2025, the emissions intensity is calculated as:

Total emissions (730.26t CO2e) / Revenue (£43 million) = 16.98t CO2e per £1 million turnover

Total emissions in 2023/24 = 16.52 CO2e per £1 million turnover

Energy Efficiency Actions

During 2024/25, the company continued to pursue improvements in sustainability and energy management, including:

- Ongoing optimisation of boiler controls and heating systems

- Expansion of renewable electricity contracts to maintain a high proportion of green energy.

Conclusion

For the year ending 31 March 2025, Dewlay recorded total CO2 emissions of 730.26 tonnes, an increase from the prior year primarily due to higher grid electricity use. The company maintained a strong renewable electricity proportion (approximately 59% of total electricity consumption).

Dewlay remains committed to improving energy efficiency, reducing reliance on fossil fuels, and continuing its journey toward lower carbon intensity.

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). 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Bennett Kirkhope Smith Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N J Kenyon - Director

18 December 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statements disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

A M Smith FCCA CTA (Senior Statutory Auditor)

for and on behalf of Bennett Kirkhope Smith Ltd

Chartered Certified Accountants

and Statutory Auditors

Suites 5 & 6 The Printworks

Hey Road

Barrow

Clitheroe

Lancashire

BB7 9WB

18 December 2025

TURNOVER

3

42,702,187

41,357,160

Cost of sales

35,857,489

33,518,699

GROSS PROFIT

6,844,698

7,838,461

Distribution costs

329,205

321,862

Administrative expenses

3,390,400

3,781,747

3,719,605

4,103,609

3,125,093

3,734,852

Other operating income

4

43,706

41,551

OPERATING PROFIT

6

3,168,799

3,776,403

Income from fixed asset investments

285

421

Interest receivable and similar income

8

312,398

223,426

312,683

223,847

PROFIT BEFORE TAXATION

3,481,482

4,000,250

Tax on profit

9

755,099

1,295,575

PROFIT FOR THE FINANCIAL YEAR

2,726,383

2,704,675

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,726,383

2,704,675

FIXED ASSETS

Tangible assets

11

7,682,260

8,245,169

Investment property

12

1,820,000

1,820,000

9,502,260

10,065,169

CURRENT ASSETS

Stocks

13

5,664,521

4,487,575

Debtors

14

8,539,777

5,822,206

Investments

15

23,723

23,723

Cash at bank and in hand

5,415,256

5,827,353

19,643,277

16,160,857

CREDITORS

Amounts falling due within one year

16

5,633,979

4,850,444

NET CURRENT ASSETS

14,009,298

11,310,413

TOTAL ASSETS LESS CURRENT LIABILITIES

23,511,558

21,375,582

PROVISIONS FOR LIABILITIES

18

(1,314,118

)

(1,538,410

)

ACCRUALS AND DEFERRED INCOME

19

(226,149

)

(242,264

)

NET ASSETS

21,971,291

19,594,908

CAPITAL AND RESERVES

Called up share capital

20

4,550

4,550

Non-distributable reserve

21

1,429,393

1,429,393

Capital redemption reserve

21

4,450

4,450

Retained earnings

21

20,532,898

18,156,515

SHAREHOLDERS' FUNDS

21,971,291

19,594,908

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:

N J Kenyon - Director

R W Kenyon - Director

Called up

Capital

share

Retained

Non-distributable

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

4,550

15,562,569

1,728,664

4,450

17,300,233

Changes in equity

Dividends

-

(410,000

)

-

-

(410,000

)

Total comprehensive income

-

3,003,946

(299,271

)

-

2,704,675

Balance at 31 March 2024

4,550

18,156,515

1,429,393

4,450

19,594,908

Changes in equity

Dividends

-

(350,000

)

-

-

(350,000

)

Total comprehensive income

-

2,726,383

-

-

2,726,383

Balance at 31 March 2025

4,550

20,532,898

1,429,393

4,450

21,971,291

Cash flows from operating activities

Cash generated from operations

1

783,067

5,532,152

Tax paid

(1,033,244

)

(628,242

)

Taxation refund interest

16,114

15,446

Net cash from operating activities

(234,063

)

4,919,356

Cash flows from investing activities

Purchase of tangible fixed assets

(380,717

)

(1,718,754

)

Sale of tangible fixed assets

-

12,000

Sale of fixed asset investments

-

688

Interest received

312,398

223,426

Dividends received

285

421

Net cash from investing activities

(68,034

)

(1,482,219

)

Cash flows from financing activities

Amount introduced by directors

350,000

410,000

Amount withdrawn by directors

(110,000

)

(624,696

)

Equity dividends paid

(350,000

)

(410,000

)

Net cash from financing activities

(110,000

)

(624,696

)

(Decrease)/increase in cash and cash equivalents

(412,097

)

2,812,441

Cash and cash equivalents at beginning of year

2

5,827,353

3,014,912

Cash and cash equivalents at end of year

2

5,415,256

5,827,353

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

31.3.25

31.3.24

£

£

Profit before taxation

3,481,482

4,000,250

Depreciation charges

943,627

871,257

Profit on disposal of fixed assets

-

(2,851

)

Loss on revaluation of fixed assets

-

304,071

Government grants

(16,115

)

(16,115

)

Finance income

(312,683

)

(223,847

)

4,096,311

4,932,765

(Increase)/decrease in stocks

(1,176,946

)

226,018

Increase in trade and other debtors

(2,717,571

)

(708,569

)

Increase in trade and other creditors

581,273

1,081,938

Cash generated from operations

783,067

5,532,152

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

5,415,256

5,827,353

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

5,827,353

3,014,912

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

5,827,353

(412,097

)

5,415,256

5,827,353

(412,097

)

5,415,256

Liquid resources

Current asset investments

23,723

-

23,723

23,723

-

23,723

Total

5,851,076

(412,097

)

5,438,979

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

2% on cost

Dairy equipment

-

20% on cost and 10% on cost

Motor vehicles

-

25% on reducing balance

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.

Although this policy is in accordance with Financial Reporting Standard 102 the non-depreciation is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors, compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

Stocks

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

Cost is calculated using the first in first out method and consists of all direct material costs and an appropriate proportion of fixed and variable overheads.

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.

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.

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.

Government grants

Government grants received in respect of items charged to the profit and loss account during the year have been included in the profit and loss. The remainder are deferred and included in the profit and loss account by instalments over the expected useful lives of the related assets. Estimated useful lives are equivalent to those disclosed in the accounting policy for fixed assets and depreciation.

Financial instruments

Financial assets that are publicly traded such as listed investments are valued at open market value with increases and decreases in value being recognised in the profit and loss account. Loans receivable and payable that are due within one year are measured at the undiscounted amount expected to be received or paid.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.3.25

31.3.24

£

£

United Kingdom

42,635,887

41,287,160

Europe

66,300

70,000

42,702,187

41,357,160

4.	OTHER OPERATING INCOME

Other operating income includes revenue from all other operating activities which are not related to the principle activities of the company, such as gains / losses from disposal, dividend income, etc.