REGISTERED NUMBER: SC256809 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

PG Paper Company Ltd.

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mrs Poonam Gupta

Mr Puneet Gupta

SECRETARY:

Mr Puneet Gupta

REGISTERED OFFICE:

The Stables

Auchenbothie Gardens

Kilmacolm

Inverclyde

PA13 4SF

REGISTERED NUMBER:

SC256809 (Scotland)

AUDITORS:

Henderson & Company

73 Union Street

Greenock

Renfrewshire

PA16 8BG

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

REVIEW OF BUSINESS

The directors are pleased to report that the company has continued to trade profitably during the year ended 31 March 2025, despite exceptionally challenging global trading conditions across the paper and packaging sector.

The year was characterised by significant disruption to global trade flows, driven by geopolitical instability, evolving tariff regimes, and ongoing volatility in key supply regions and end markets. These factors affected product availability, pricing dynamics and trade routes, placing sustained pressure on margins throughout the financial year.

Turnover for the year decreased marginally to £64.6 million, reflecting the impact of global trade disruption and softer trading conditions in certain markets. Notwithstanding this reduction in revenue, profitability increased year on year, supported by a diversified product portfolio and a disciplined commercial approach, alongside continued focus on pricing and risk management. The directors remain satisfied with the underlying performance of the company given the external environment in which it operated.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the business are external factors such as raw material price increases, exchange rate fluctuations and political and economic risks in some of our emerging markets. The company aims to mitigate such risks with key strategies including market and product diversity.

SECTION 172(1) STATEMENT

1. The likely consequences of any decisions in the long term:

During the year, the directors focused on strengthening the company's operating platform to improve resilience and scalability in an increasingly volatile global trading environment.

Key strategic actions taken during the year included the rollout of a CRM platform, now live and operating in a beta phase, supporting improved operational visibility and coordination, with further refinement planned in future periods. The company also invested in strengthening its leadership and organisational structure through the engagement of a strategic consultant and the appointment of senior regional leadership, enhancing management depth and accountability. In parallel, the company commenced preparatory work in relation to EU Deforestation Regulation (EUDR), including initial assessments and supplier engagement. The directors also continue to plan for further capability development to support the long-term resilience and sustainability of the business. The directors believe that these actions position the company to better manage ongoing market disruption, improve decision-making, and support long-term value creation.

2. The interests of the company's employees:

The directors recognise that employees are central to the continued success and development of the business. During the year, the company maintained focus on capability building, engagement, and wellbeing.

Key areas of focus during the year included ongoing support for internal and external training and professional development, alongside the establishment of clearer leadership structures following senior appointments, which have improved accountability and created enhanced development pathways. The company continued to promote employee wellbeing and maintain a supportive working environment, while also providing Modern Apprenticeships and supporting employees undertaking formal qualifications. Pension arrangements remained in place throughout the year, including enhanced contribution rates for long-serving employees.

The company provides a pension scheme which sees contribution rates increase for long term employees.

3. The need to foster the company's business relationships with suppliers, customers and others:

Relationships with suppliers, customers and other stakeholders are key to the success of the business. During the year, the company continued to invest in developing and strengthening these relationships through regular and effective communication across a range of channels. Ongoing engagement supported continuity of supply, customer confidence, and the development of new commercial relationships, while regular updates ensured stakeholders remained informed of relevant developments.

4. The impact of the company's operations on the community and the environment:

Social and ethical responsibility remains a core value of PG Paper. The company continues to support a range of charitable initiatives at local, national and international levels, provides local employment within the Inverclyde area, and invests in th ongoing development of its employees. Sustainability and environmental accountability remain key priorities, with the business promoting alternatives to plastic, encouraging the reuse of paper, and identifying productive uses for material that might otherwise enter landfill. The company remains FSC certified and holds PEFC certification, supporting the use of responsibly sourced and recycled materials. During the year, the company commenced preparatory work in relation to the EU Deforestation Regulation (EUDR), including engagement and consultation with mills and suppliers, as well as internal assessments to support future compliance as regulatory requirements continue to evolve.

5. The desirability of the company to maintain a reputation for high standards of business conduct:

Integrity and accountability remain core values of the business and are actively reinforced by the directors and senior management. These values underpin the company's approach to conducting business and support maintenance of high standards of conduct both internally and externally. The directors believe that a consistent commitment to strong ethical standards continues to support the company's reputation and long-term relationships with stakeholders.

6. The need to act fairly between members of the company:

PG Paper is a family business with a close working relationship between the directors and the management team. The shareholders, directors and employees of the business have a clear strategy and work towards a common goal.

KEY PERFORMANCE INDICATORS

As a business we monitor KPI's such as turnover, gross margin and sales volumes. The performance management system is used to track more detailed financial and non-financial KPI's which continued to give the company improved insight into each area of the business resulting in streamlining of current processes as well as highlighting potential opportunities.

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cashflow risks arising from trading activities which are conducted in sterling, dollars and euros.

CARBON DISCLOSURE

Due to the nature of the business, carbon use is negligible, as we are not directly responsible for the manufacture of goods sold and transportation is carried out by third party providers.

ON BEHALF OF THE BOARD:

Mr Puneet Gupta - Director

23 December 2025

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

DIVIDENDS

During the year dividends totalling £75,250 were paid (2024 - £133,020).

FUTURE DEVELOPMENTS

Since the year end, the company has continued to trade profitably on a cumulative basis. Trading performance has varied between months, reflecting ongoing volatility in global markets; however, overall results for the period remain in line with directors' expectations.

DIRECTORS

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

Mrs Poonam Gupta

Mr Puneet Gupta

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made payments totalling £26,000 to the Labour Party.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Henderson & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Puneet Gupta - Director

23 December 2025

Opinion

We have audited the financial statements of PG Paper 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, 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

In identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the nature of the company and the industry and the company's control environment. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the company such as the Companies Act 2006, taxation legislation, employment and health and safety legislation and other relevant legislation. we assessed the extent of compliance with laws and regulations identified through making enquiries of management, inspecting legal correspondence and correspondence with HMRC.

We considered management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management bias and override of controls. To address these risks we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions and assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias, We reviewed financial statement disclosures and tested balances to supporting documentation.

Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through out the audit.

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.

David Quigg (Senior Statutory Auditor)

for and on behalf of Henderson & Company

73 Union Street

Greenock

Renfrewshire

PA16 8BG

23 December 2025

TURNOVER

3

64,649,455

65,175,016

Cost of sales

59,805,360

61,271,361

GROSS PROFIT

4,844,095

3,903,655

Administrative expenses

3,434,168

2,875,046

1,409,927

1,028,609

Other operating income

112,265

254,274

OPERATING PROFIT

5

1,522,192

1,282,883

Interest receivable and similar income

34,373

108,080

1,556,565

1,390,963

Interest payable and similar expenses

6

571,744

539,141

PROFIT BEFORE TAXATION

984,821

851,822

Tax on profit

7

276,366

241,216

PROFIT FOR THE FINANCIAL YEAR

708,455

610,606

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

708,455

610,606

FIXED ASSETS

Intangible assets

9

602

2,055

Tangible assets

10

30,084

28,178

Investments

11

342,505

246,159

Investment property

12

102,147

102,147

475,338

378,539

CURRENT ASSETS

Stocks

13

3,365,415

3,832,853

Debtors

14

19,985,807

21,184,251

Cash at bank

1,711,496

2,205,734

25,062,718

27,222,838

CREDITORS

Amounts falling due within one year

15

11,782,283

14,481,155

NET CURRENT ASSETS

13,280,435

12,741,683

TOTAL ASSETS LESS CURRENT LIABILITIES

13,755,773

13,120,222

PROVISIONS FOR LIABILITIES

18

7,521

5,175

NET ASSETS

13,748,252

13,115,047

CAPITAL AND RESERVES

Called up share capital

19

2

2

Share premium

20

20,000

20,000

Retained earnings

20

13,728,250

13,095,045

SHAREHOLDERS' FUNDS

13,748,252

13,115,047

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 Puneet Gupta - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2023

2

12,617,459

20,000

12,637,461

Changes in equity

Dividends

-

(133,020

)

-

(133,020

)

Total comprehensive income

-

610,606

-

610,606

Balance at 31 March 2024

2

13,095,045

20,000

13,115,047

Changes in equity

Dividends

-

(75,250

)

-

(75,250

)

Total comprehensive income

-

708,455

-

708,455

Balance at 31 March 2025

2

13,728,250

20,000

13,748,252

Cash flows from operating activities

Cash generated from operations

1

366,492

2,191,567

Interest paid

(571,744

)

(539,141

)

Tax paid

(141,934

)

(93,912

)

Net cash from operating activities

(347,186

)

1,558,514

Cash flows from investing activities

Purchase of tangible fixed assets

(12,097

)

(10,481

)

Purchase of fixed asset investments

(65,500

)

-

Interest received

34,373

108,080

Net cash from investing activities

(43,224

)

97,599

Cash flows from financing activities

Loan repayments in year

-

(2,000,000

)

Amount introduced by directors

(28,578

)

(26,017

)

Equity dividends paid

(75,250

)

(133,020

)

Net cash from financing activities

(103,828

)

(2,159,037

)

Decrease in cash and cash equivalents

(494,238

)

(502,924

)

Cash and cash equivalents at beginning of year

2

2,205,734

2,708,658

Cash and cash equivalents at end of year

2

1,711,496

2,205,734

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

2025

2024

£

£

Profit before taxation

984,821

851,822

Depreciation charges

11,644

11,686

Gain on revaluation of fixed assets

(30,846

)

-

Finance costs

571,744

539,141

Finance income

(34,373

)

(108,080

)

1,502,990

1,294,569

Decrease in stocks

467,438

943,365

Decrease/(increase) in trade and other debtors

1,227,022

(2,991,422

)

(Decrease)/increase in trade and other creditors

(2,830,958

)

2,945,055

Cash generated from operations

366,492

2,191,567

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,711,496

2,205,734

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

2,205,734

2,708,658

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

2,205,734

(494,238

)

1,711,496

2,205,734

(494,238

)

1,711,496

Total

2,205,734

(494,238

)

1,711,496

1.	STATUTORY INFORMATION

PG Paper Company Ltd. is a private company, limited by shares , registered in Scotland. 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 (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. These financial statements have been prepared under the historical cost convention and in accordance with the accounting policies set out below.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Valuation of Investment Properties

As described in notes to the financial statements investments properties are stated at fair value based on the valuation performed by the directors..

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Trademarks

Expenditure arising on the acquisition of trademarks is carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated on a straight line basis over its useful economic life up to a presumed maximum of ten years.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful lives as follows:

Property Improvements - 10% straight line

Office Equipment - 20% reducing balance

Computer Equipment - 20% straight line

Motor Vehicles - 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate or if there is an indication of significant change since the last reporting date.

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.

Stocks

Stocks are valued at the lower of cost and net realisable value, 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. The amounts of any write downs to stock to net realisable value and all losses of stocks are recognised as an expense in the period in which the write down or loss occurs.

Taxation

The tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount for deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recoverd.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or asset realised, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Foreign currencies

Foreign currency transactions are translated into functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and from translation of period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the period of the lease.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value and thereafter stated at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less.

Creditors

Short term creditors are measured at transaction price. Other financial liabilities are measured initially at fair value and are measured subsequently at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as an interest expense.

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:

2025

2024

£

£

United Kingdom

2,265,086

4,056,247

Europe

8,002,751

8,298,940

Rest of the World

54,381,618

52,819,829

64,649,455

65,175,016

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,388,615

1,234,201

Social security costs

91,975

92,840

Other pension costs

30,967

28,462

1,511,557

1,355,503

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

2025

2024

Directors

2

2

Administration

28

30

30

32

2025

2024

£

£

Directors' remuneration

86,373

73,303

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

83,346

79,178

Depreciation - owned assets

10,191

10,233

Trademarks amortisation

1,453

1,453

Auditors' remuneration

9,900

9,300

Accountancy Fees

7,800

7,500

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

568,795

539,141

Default Interest

2,949

-

571,744

539,141

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

274,020

241,023

Deferred tax

2,346

193

Tax on profit

276,366

241,216

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

984,821

851,822

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

246,205

212,956

Effects of:

Expenses not deductible for tax purposes

35,639

27,428

Capital allowances in excess of depreciation

(113

)

-

Depreciation in excess of capital allowances

-

639

Deferred tax movement

2,346

193

Gain on revaluation of investments

(7,711

)

-

Total tax charge

276,366

241,216

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of .00002 each

Final

45,000

105,020

A Ordinary shares of .00001 each

Final

30,250

28,000

75,250

133,020

9.	INTANGIBLE FIXED ASSETS

Trademarks

£

COST

At 1 April 2024

and 31 March 2025

14,527

AMORTISATION

At 1 April 2024

12,472

Amortisation for year

1,453

At 31 March 2025

13,925

NET BOOK VALUE

At 31 March 2025

602

At 31 March 2024

2,055