REGISTERED NUMBER: 12073366 (England and Wales)

EGUCHI IWAO EUROPE LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Mr L Mulder

Mr Y Hasegawa

Mr J Hashimoto

REGISTERED OFFICE:

15 High Street

Brackley

Northamptonshire

NN13 7DH

REGISTERED NUMBER:

12073366 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ashley Painter ACA FCCA MAAT

AUDITORS:

Blencowes

Chartered Accountants & Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

The directors present their 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 retail sale of hardware, paints and glass in specialised stores.

DIRECTORS

The directors during the year under review were:

Mr L Mulder

Mr Y Hasegawa

Mr J Hashimoto

The directors holding office at 31 March 2025 did not hold any beneficial interest in the issued share capital of the company at 1 April 2024 or 31 March 2025.

The directors have opted to make a full disclosure of their shareholdings in this report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing 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;

-	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.

GOING CONCERN

The Board has undertaken a comprehensive review of the company forecasts and its environment. As part of this review the directors considered the potential impact of reasonable downside scenarios on the company.

At the time of approving the financial statements, the directors consider that the Company has adequate resources to remain in operation and have no reason to believe that a material uncertainty exists that may cast significant doubt about the Company's ability to continue as a going concern. Accordingly, the financial statements have been prepared on the going concern basis of accounting.

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, Blencowes, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr L Mulder - Director

23 December 2025

Opinion

We have audited the financial statements of Eguchi IWAO Europe Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, 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 loss 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 of 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.

Emphasis of matter

We drawn your attention to note 9 of the financial statements, which states that there is some uncertainly around he recoverability of the £1,220,598 due from the subsidiary.

Our opinion is not modified with respect to this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

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

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.

Irregularities, including fraud, are instances of non-compliance with law and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations to the UK tax legislation, pension legislation, employment regulations and health and safety regulations, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relation to Covid-19. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the directors and management incentives and opportunities for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgments and assumptions in significant accounting estimates, in particular the valuation of investments and significant one-off or unusual transactions.

Our audit procedures were designed to respond to these identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures include but were not limited to

-

Discussing with the directors and management their policies and procedures regarding compliance with

laws and regulations:

-

Communicating identified laws and regulations throughout our engagement team and remaining alert to any

indications of non-compliance throughout our audit and

-

Considering the risk of acts by the Group which were contrary to applicable laws and regulations, 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.

Ashley Painter ACA FCCA MAAT (Senior Statutory Auditor)

for and on behalf of Blencowes

Chartered Accountants & Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

23 December 2025

TURNOVER

2,374,967

3,323,913

Cost of sales

2,153,612

2,298,965

GROSS PROFIT

221,355

1,024,948

Administrative expenses

1,057,459

1,121,790

(836,104

)

(96,842

)

Other operating income

436,219

477,083

OPERATING (LOSS)/PROFIT

5

(399,885

)

380,241

Income from fixed asset investments

337,603

49,000

(62,282

)

429,241

Interest payable and similar expenses

89,932

43,888

(LOSS)/PROFIT BEFORE TAXATION

(152,214

)

385,353

Tax on (loss)/profit

(117,537

)

89,591

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(34,677

)

295,762

FIXED ASSETS

Intangible assets

6

-

17,719

Tangible assets

7

70,393

84,057

Investments

8

6,469,443

6,469,443

6,539,836

6,571,219

CURRENT ASSETS

Stocks

443,232

545,216

Debtors

9

2,910,608

2,943,356

Cash at bank

151,035

383,987

3,504,875

3,872,559

CREDITORS

Amounts falling due within one year

10

678,884

878,185

NET CURRENT ASSETS

2,825,991

2,994,374

TOTAL ASSETS LESS CURRENT LIABILITIES

9,365,827

9,565,593

CREDITORS

Amounts falling due after more than one year

11

(1,598,199

)

(1,723,426

)

PROVISIONS FOR LIABILITIES

(17,598

)

(21,014

)

NET ASSETS

7,750,030

7,821,153

CAPITAL AND RESERVES

Called up share capital

12

5,050,100

5,050,100

Retained earnings

2,699,930

2,771,053

SHAREHOLDERS' FUNDS

7,750,030

7,821,153

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

Mr L Mulder - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

5,050,100

2,475,291

7,525,391

Changes in equity

Total comprehensive income

-

295,762

295,762

Balance at 31 March 2024

5,050,100

2,771,053

7,821,153

Changes in equity

Dividends

-

(36,446

)

(36,446

)

Total comprehensive income

-

(34,677

)

(34,677

)

Balance at 31 March 2025

5,050,100

2,699,930

7,750,030

1.	STATUTORY INFORMATION

Eguchi IWAO Europe 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.

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

The financial statements report the figures rounded to the nearest £1.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Eguchi IWAO Europe Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Eguchi IWAO Company Limited, 19-5, Meiji 1 Chome, 457-0861 Minami-Ku Nagoya-Shi, Japan.

Goodwill

Goodwill was transferred over from Eguchi IWAO UK Limited. It will be amortised evenly over its remaining estimated useful life of three years.

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.

Improvements to property

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries and associates

The company has opted to value its investments on the "costs model" as per FRS102. Investments are recognised at cost less any accumulated impairment losses in accordance with the Impairment of assets policy detailed in FRS102.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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.

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.

Debtors and creditor receivable and payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are recognised at the transaction price including transaction costs.

Turnover and dividends receivable

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Dividends receivable

Dividend income is recognised as the company's right to receive payment is established.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In applying the company accounting policies, the directors are required to make judgements, estimates

and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements,estimates and assumptions the actual results and outcomes may differ.

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 revisions and future periods, if the revision affects both current and future

Key sources of estimation uncertainly

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Recoverability of receivables

The Group establishes a provisions for receivables that are estimated not to be recovered. When assessing recoverability the directors consider factors such as the aging of the receivables, past experience of recoverability, and the credit profile of individuals or groups of customers.

Stock provision

The directors review the stock valuation at the year end to determine the possibility of any such obsolesce or change in the market sector that may reflect a reduction in stock valuation.

Useful economic lives of property, plant and equipment

The company depreciates tangible assets over their estimated useful lives. The estimation of the usefullives of assets is based on historic performance as well as expectations about future use and thereforerequires estimates and assumptions to be applied by management. The actual lives of these assetscan vary depending on a variety of factors, including technological innovation, product life cycles andmaintenance programmes.Judgement is applied by management when determining the residual values for plant, machinery andequipment. When determining the residual value management aim to assess the amount that thecompany would currently obtain for the disposal of the asset, if it were already of the conditionexpected at the end of its useful economic life. Where possible this is done with reference to externalmarket prices.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2024 - 12)

2025

2024

£

£

Wages and Salaries

354,096

352,591

Employers National Insurance

37,464

37,988

Employer Pension

11,141

11,385

Total Wages and Salaries

402,701

401,964

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging:

2025

2024

£

£

Depreciation - owned assets

21,351

11,743

Goodwill amortisation

16,300

16,301

Computer software amortisation

1,419

20,954

6.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 April 2024

and 31 March 2025

48,901

24,050

72,951

AMORTISATION

At 1 April 2024

32,601

22,631

55,232

Charge for year

16,300

1,419

17,719

At 31 March 2025

48,901

24,050

72,951

NET BOOK VALUE

At 31 March 2025

-

-

-

At 31 March 2024

16,300

1,419

17,719

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 April 2024

17,362

83,347

8,022

29,953

138,684

Additions

-

-

-

7,687

7,687

At 31 March 2025

17,362

83,347

8,022

37,640

146,371

DEPRECIATION

At 1 April 2024

4,624

20,844

3,268

25,891

54,627

Charge for year

1,736

15,168

1,472

2,975

21,351

At 31 March 2025

6,360

36,012

4,740

28,866

75,978

NET BOOK VALUE

At 31 March 2025

11,002

47,335

3,282

8,774

70,393

At 31 March 2024

12,738

62,503

4,754

4,062

84,057

8.	FIXED ASSET INVESTMENTS

Shares in

Interest

group

in

undertakings

associate

Totals

£

£

£

COST

At 1 April 2024

and 31 March 2025

5,050,100

1,419,343

6,469,443

NET BOOK VALUE

At 31 March 2025

5,050,100

1,419,343

6,469,443

At 31 March 2024

5,050,100

1,419,343

6,469,443

The directors consider that "cost" of these investments does not require any impairment adjustments.

9.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

702,569

663,509

Amounts owed by group undertakings

818,424

763,446

Other debtors

36,495

34,095

Deferred tax asset

114,121

-

Prepayments

18,401

8,397

1,690,010

1,469,447

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,220,598

1,473,909

Aggregate amounts

2,910,608

2,943,356

Included in debtors is a balance of £1,220,598 (2024 -£1,473,909). owed by the subsidiary company. The directors consider the debt to be recoverable however there is some degree of uncertainty to the recoverability of the whole debt.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

10,000

10,000

Trade creditors

479,039

695,890

Amounts owed to group undertakings

-

3,618

Social security and other taxes

7,040

7,970

VAT

50,667

89,882

Other creditors

1,944

1,651

Accrued expenses

130,194

69,174

678,884

878,185

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans - 2-5 years

4,115

14,115

Amounts owed to group undertakings

1,594,084

1,709,311

1,598,199

1,723,426

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

5,050,100

Ordinary

£1

5,050,100

5,050,100

13.	RELATED PARTY DISCLOSURES

As at 31 March 2025 the sum of £71,776.08 is owed to Trade Winds Consultants Limited, a company associated with the managing director of Eguchi IOWA Europe Limited.

The transactions involved have been done at arms length.

14.	ULTIMATE CONTROLLING PARTY

15.	LEASING AGREEMENTS

2025

2024

£

£

Leases due within one year

151,553

120,020

Leases due between two and five years

606,212

757,765

Total lease payments due

757,765

877,785